Contents:

Figure 1.1: Automotive Advertising by Media Channel, 2001-2011Figure 1.2: The Next Five Years: Winners and Losers in Automotive Figure 1.3: Disruption Occuring at the End of the Car-Buying Funnel Figure 1.4: Percentage of Auto Advertising Devoted to Online Media Figure 2.1: Used-Car Advertising by Source and Media Channel Figure 2.2: Used-Car Advertising by By Media Channel, 2006 Figure 2.3: Autotrader.com Revenue Growth Since 1998 Figure 2.3: Per-Vehicle Ad Spending By Dealers, Private Party Figure 2.4: How Private-Party Sellers Spent $421 Million Figure 3.1: Top 20 Online Advertising Categories for “Local Figure 3.2: Columbus Dispatch Video Offering: VOD Commercials Appendix E Methodology Executive Summary Chapter 1 Automotive Advertising in Flux Chapter 2 Online Used-Car Market: Game Over? Chapter 3 Automotive's Online Future: Video and Search Conclusions Appendix A New-Car Auto Advertising, 2001-2011 Appendix B New-Car Auto Advertising By Medium, 2006 Appendix C Used-Car Auto Advertising, 2001-2011 Appendix D Used-Car Auto Advertising By Medium, 2006, 2006

Summary:

The days of easy money from automotive advertising are gone for traditional media. Buyers are spending five hours researching vehicles online – and less time with traditional media. And manufacturers and dealers are ploughing more money into their own Web sites, terminating traditional media by delivering price-and-item information directly to consumers. Automotive grew to a $31 billion advertising category this year on compound annual growth of 3.7 percent in the past five years. Over the next five, however, we are projecting compound growth of just 1.7 percent. Meanwhile, the online portion of automotive advertising will reach $2.8 billion this year – 7.6 percent of all automotive advertising – with a 13 percent CAGR. By 2010 online will hit $4 billion and become the second-largest medium for automotive advertisers, surpassing newspapers, cable, radio, direct mail – everything but broadcast TV. At the local level things get more interesting. Next year online media will become the No. 1 expenditure for used-car marketers, sur-passing newspapers for the first time. Used-car dealers have pinto online than the manufacturers – 19.6 percent in 2006. Private-party auto advertising has migrated online even faced with 27 percent of that segment now going to online media. The local online marketplace remains in flu programs appear to be faltering. In addition, programming that is based on listing fees and banner advertising is less attractive to dealers than campaigns that can generate excitement about products – such as online video – or can goose traffic to their Web sites –