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13% of Automotive budget moves online by 2011

By Andrew Redfern @ 13th December 2007 5:43 pm

Annual revenues in the automotive advertising market will hold steady globally at $40 billion through 2011, according to The Kelsey Group, data and strategic analysis on directories, small-business advertising and online local media.

“Our new Marketplaces practice is designed to analyze audience and ad media fragmentation,” said Neal Polachek, chief executive officer, The Kelsey Group.

“This report on the automotive vertical explains why and where the shift is occurring in the auto sector.”

Among the report’s findings is that the Internet’s share of auto advertising dollars on a global basis will grow from 5 percent in 2007 to 13 percent in 2011.

During the same period, traditional classifieds’ share is expected to decrease from 14 percent to 10 percent and newspapers’ share is expected to decline from 17 percent to 14 percent.

“The Kelsey Group has been the leading analyst firm covering the transition of national offline advertising to online local advertising,” said Mark Cannon, senior vice president and chief product officer, Autobytel.

“We are eager to see The Kelsey Group now diving into the auto category and other key vertical markets in order to shed light on the opportunities and challenges in these rapidly changing markets.”

“The autos category, along with real estate and travel, has enjoyed the deepest, most sustained experience among all verticals in the shift online,” said Peter Krasilovsky, Marketplaces program director for The Kelsey Group.

“For the auto industry, the Internet represents an ongoing battle between third-party sites, OEM sites and dealers.

There is unlikely to be a winner-takes-all outcome. But who gets the upper hand depends, in part, on utility to consumers, ability to create a brand and degree of local interaction.”

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