Major changes coming to advertising world

Major changes coming to advertising world

Television advertising is going to be eclipsed by online ads within the next five years, according to a new report from Forrester Research, which specializes in analyzing digital media trends. By 2016, Forrester says advertisers will spend almost $77 billion online, comprising 35% of overall ad spending. For franchised automobile dealers that means getting into the swing and staying up-to-speed with social, mobile and online media.

According to Forrester:

* Mobile ads will overtake social ads and email marketing this year as advertisers focus on reaching people while theyre on mobile phones and tablets, not just searching at their desk.

* Search ads, which the auto industry uses extensively, will suffer from that development as Google rushes headlong into display and mobile advertising.

* Online display ads will rise anew: as a result of rich media ads placed on social media sites such as Facebook and Yahoo.

* Daily deals, like those offered by Groupon, LivingSocial, et. al. will decline in effectiveness as consumers become jaded and employers blacklist them to keep workers focused on their jobs.

Ironically, the Forrester forecast comes on the heels of findings from CNW Marketing Research reported in the WANADA Bulletin of September 16, which showed newspaper advertising retaining its place as the most effective way to reach would-be new and used vehicle buyers. The conclusion for dealers then, seems to be that digital media is the new television and likely effective at broad messaging and brand advertising, while print remains best at drawing real buyers to the showroom.