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Automakers, Seeking Targeted Buys, Still Fleeing Print

The publishing industry needs to recognize the fact that the auto industry is moving away from print ads in general interest publications, and that the trend is not going to change, says Steve Parr, president of Primedia’s enthusiast media division, which publishes Automobile and Motor Trend magazines.

Automakers are continuing to reduce spending in print publications as they move more heavily toward targeted media, he says, according to Brandweek. Newspaper and magazine ad buys by auto companies are down 24 percent through July of this year, while total auto spend on online ads is up 51.6 percent, despite the fact that a recent study (PDF) sponsored by Newspaper National Network indicates that newspapers play a critical role throughout the automotive purchase cycle.

Also affecting print ad spend is the fact that marketing budgets are being reduced in order to make room for incentives such as zero financing and cash rebates.

When DaimlerChrysler cut budgets in marketing this year, network spend dropped 12 percent while its print spend plummeted 36.7 percent, per TNS. GM cut its print spend by 40.8 percent for the first half of this year and Volkswagen eviscerated print spending to the tune of 76.4 percent.

Primedia’s automotive niche publications have not been dramatically affected by the cuts. Automobile’s revenues are up 9.6 percent in the first half of this year, while Motor Trend’s revenue grew 7 percent, according to the Publishers’ Information Bureau.

Parr pointed out that it is the general interest titles upon which the burden will most likely fall.