Marty’s Marketing Minutia

Borrell Associates Auto Advertising Outlook for 2010

Not good, but not that bad. The respected advertising research and consulting firm, which concentrates on online media annual report, is titled this time “Running on Empty.” Over the years, I have found the company’s predictions accurate, dependable, reliable and prescient.

The report is based on Borrell’s Automotive Table, which monitors local ad spending, by U.S. auto dealer associations and manufacturers and is updated quarterly.

Eleven different sources are used to compile the data into the report.

Rather than rehash the current economic woes, I have opted to focus on their predictions for next year. According to the report, “There are signs of recovery and permanent change ahead, among the observations:

• 2010 will be better than 2009 for new car marketing, but not by much
• Dealerships are getting leaner
• Cars sold be dealer are trending up
• Manufacturer co-op spending is returning and beginning to rise
• Independent dealers are finding new sources of revenue
• Large dealers will continue to gain share in used cars
• Online “ad spend” will surpass all media for new car advertising”

In the online auto-advertising category, the usual focus by auto brands on display banners, pop-ups and classified listings is dropping by 20%. Conversely, this year e-mail and social networking campaigns have grown by 20%, but the most growth Borrell predicts will come for streaming audio and video.

U.S. Total New Vehicle Ad Spend – 2010

In 2010 Borrell predicts overall ad spending to increase to $19.2 billion, while online ad spending climbs more than 10% to $4.3 billion.

Stay tuned, as Betty Davis said, “It’s going to be a bumpy ride.”

Non-automotive spot of the week

PSA’s or public service announcements – even though reduced in number required by the FCC – are generally worthwhile, but every so often, a PSA comes along that resonates. This Veterans Day commercial does just that and more:  Click here.

Automotive spot of the week

Volkswagen commercials around the world, no matter if it is the new or the old agency – they do change often – set a very high standard. Here is a new example you may not have seen in the U.S. Click here.

Going to the LA Show? Consider the LA version of the DAC – the LAAC

It's an easy walk to the Los Angeles show.

There are hotels and then there are hotels in private clubs, a new opportunity for those who want to stay in a clubby atmosphere with excellent features and amenities including pools, health clubs, and exercise facilities in a boutique atmosphere at a price no bean counter will object to.

The Hotel at the Los Angeles Athletic Club has recently completed a multi-million dollar renovation that appeals to the visual senses with original artwork, grandfather clocks and other objet de art according to the release.

The 72 hotel rooms, like the one pictured here, feature distinctive custom-made furnishings, luxurious bedding, roman shades, flat screen televisions, wireless internet and original art from the club’s historical vault.

To book a room reservation at the newly-revamped hotel at the LAAC now, just call (800) 421-8777 or visit www.laac.com. Introductory room rates start at $149/night and include a complimentary American breakfast buffet for two in The Grill Room, complimentary WiFi, and a welcome amenity upon arrival and there is no parking valet to deal with either. And it’s just a short walk to the LA Auto Show too.

Rumors to the contrary, radio is not dead!

If you listen to the radio while driving, according to a Nielsen analysis of a media study conducted by the Council for Research Excellence, you are part of the 77% of adults who are reached by broadcast radio on a daily basis, second only to television at 95%. The study found that Web/Internet (excluding email) reached 64%, newspaper 35%, and magazines 27%.

In a deeper analysis of audio media titled “How U.S. Adults Use Radio and Other Forms of Audio,” Nielsen found that:

• 90% of consumers listen to some form of audio media per day
• The 77% who listen to broadcast radio surpass the 37% who listen to CDs and tapes and the 12% who listen to portable audio devices.
• Almost 80% of those aged 18 to 34 listening to broadcast radio in an average day.

While the recent emergence of portable audio devices like the iPod and other MP3 players was considered a threat to traditional forms of audio, this study’s evidence suggests that the new technology has had a positive effect on radio consumption. Jeff Haley, President and CEO of the Radio Advertising Bureau (RAB), concludes “… this… observational study of today’s consumer proves that the primary source of new music is the radio.”

Other findings highlighted in the report include:

• Audio media exposure has the highest reach among those with higher levels of education and income
• Approximately 12% of study participants listened to MP3s and iPods for an average of 69 minutes per day, yet eight-in-ten of these individuals also listened to broadcast radio for an average of 97 minutes per day
• 90% of adults are exposed to some form of audio media on a daily basis, with broadcast radio having by far the largest share of listening time

The report also noted broadcast radio reaches those aged 18-34 at rates equivalent to the general adult population, with 79% of younger adults listening to broadcast radio for an average of 104 minutes a day among listeners. On average, individuals spend almost identical amounts of time during weekdays (454 minutes) as they do on weekends (458 minutes) using one of the five key media sources. And, among key “advertising-based” media platforms:  Live television had the highest reach and daily usage among users (95%, 331 minutes) followed by broadcast radio (77.3% reach, 109 minutes), Internet [excluding use of email] (64%, 77 minutes), newspapers (35%, 41 minutes) and magazines (27%, 22 minutes)

Marshall McLuhan, the Canadian media maven said, “All media exist to invest our lives with artificial perceptions and arbitrary values.” However, that was before the Internet.