$12.5 Billion Automotive Ad Market.

Interep recently released a report entitled, “Radio Works for the Automotive Industry,” highlighting radio’s ability to target key auto consumers. Despite the fact that Automotive advertising was the 2nd largest category for national radio in 2003, auto manufacturers spend only 3% of total ad dollars on the medium. Auto Factories/ Manufacturers spend the bulk of their ad dollars on television and newspaper. Auto Dealers associations spend almost 3/4ths of their budgets in newspaper, despite research showing that radio’s reach far exceeds that of newspapers among auto consumers. For this reason, Automotive is a key category for Interep’s new business development sellers. Using vertical integration to penetrate the industry, Interep has assigned specialists in the automotive category who are experts in the field. In addition, all new business sellers have had specialized training in landscaping and calling on the largest automotive marketers in the country. This training will roll out to the transactional sales staff in the coming months. The report also points out that the youth market and ethnic markets are two of the fast-growing markets for new car buyers. This is good news for radio, which excels at targeting young adult, Hispanic and African-American consumers.

Auto Report Highlights:

2004 is being called “The Year of the Car,” with roughly 53 new models scheduled for release.

Auto advertisers spent $12.5 billion on national media in 2003, up from $9.7 billion in 1998. (Competitive Media Reporting)

Auto Manufacturers spent 18% of ad dollars on newspaper and 3% on radio. Auto Dealers groups spent 75% of ad dollars on newspaper and less than 1% on radio. (CMR) Each week, radio reaches 86% of new car decision-makers. Daily newspaper reaches 51%. (Mediamark Fall ’03)

Auto Manufacturers spent 22% of ad dollars on Network TV and 29% on Spot TV. (CMR) Primetime television reaches 83% of Compact Car Owners; radio reaches 89%. Primetime television reaches 85% of Luxury Car Owners; radio reaches 86%. Primetime television reaches 83% of SUV Owners; radio reaches 90%.