The automotive industry was hit by a Mack truck the second half of 2008 with all-time high gas prices, a shrinking economy and growing consumer fear of making a large purchase.  Advertising spend reflects how the automotive industry reacted to the crisis, highlighting channels that are the most vital to intercepting new vehicle prospects.

The first half of 2008 showed growth in advertising spend over 2007 for TV (+2%) and Internet (+55%) while outdoor, magazine, radio and paper decreased (20%, 18%, 14%, and 4%, respectively).  The second half of 2008 yielded a lower advertising spend over 2007 across all channels.  Radio and paper took the biggest hits with decreases of 42 percent and 40 percent, while Internet exhibited a similar level of spend vs. 2007 with only a 0.5 percent decrease.  Overall automotive advertising spend decreased 8.2 percent from 2007 to 2008, with the Internet being the only channel to witness growth.

Automotive Estimated Ad Spend: 2007 – 2008

Trended on a monthly basis, automotive Internet advertising was outpacing 2007 until October 2008 when the brakes were applied and it dipped below 2007 levels for the first time.  Automotive Internet spending in 2007 represented 4.6 percent of total Internet spend rising to 5.9 percent in 2008.  Acura, Hyundai and Subaru contributed the largest increase in Internet spend from 2007 to 2008 while Mercury, Volvo and Jeep had the largest decrease.  Thus far, Internet spend for 2009 is once again gaining momentum and is forecast to be on par with Q1 07 while still slightly below Q1 08.

Auto Internet Ad Spend As % Of Total Internet Spend

The Internet is proving to be a critical strategic channel for automakers and we anticipate the trend to continue.  Although TV continues to represent roughly three-quarters of total advertising spend, the Internet could likely become the second largest advertising channel by 2010.  The key to successful Internet spend in 2009 will be identifying where your target audience goes online and interjecting yourself at the right moment in the vehicle purchase funnel.

According to the Nielsen India Outbound Travel Monitor 2008, most international travelers from India are well-educated urbanites.  Countries in Asia — Singapore (24% of Indians), Dubai, Australia, and Malaysia (17% of Indians, respectively) — are the most popular destinations for India’s new travel elite. 

Overall, Asian destinations account for 72% of international leisure trips and 63% of business trips originating in India, Nielsen reported.  In comparison, travel to Europe accounts for just 18% of Indian travelers’ business trips and 14% of pleasure trips.

Of those Indians who travel internationally, 64% named sightseeing as the main purpose of their trip, while 47% reported they travel abroad to explore new countries.  Another 25% of those surveyed said they travel abroad to relieve stress, to have a good time, or to visit family and friends.

The Nielsen Indian Outbound Travel Monitor conducts face-to-face interviews with 2,000 men and women, ages 18 and older, who have traveled outside of India in the last twelve months.

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