In 2007, the average advertising spend per dealership was a whopping $378,346. Of that spend, the Internet accounted for $62,607. That is over 16 percent of the total ad spend per dealership. In 2005, Internet spending was under 10 percent of the advertising mix. In the meantime, newspaper spend has dropped from 52 percent in 1997 to 26.7 percent in 2007.

Newspapers have tried to cut their losses by offering Internet listings and advertising. According to the Newspaper Association of America, however, only 14 percent of Internet users used their local newspapers Website for shopping information in 2006. Internet users who used search engines to search for products and services, on the other hand accounted for 75 percent of Internet shopping in 2006. Hmmm, where to put those Internet advertising dollars?

Dealers have been slowly but surely shifting their advertising spend to the Internet. Manufacturers have been shifting as well. They recognize the warning signs and are ahead of the curve. The shift in manufacturer spend has directly corresponded to the number of car shoppers using the Internet to find their next car. The numbers dont lie. Newspapers have been dying a slow death and life support just aint cutting it.

According to several studies, close to 90 percent of car buyers today use the Internet to shop for vehicles. No question about it, dealers advertising budgets should be heavily weighted toward online advertising and search engine marketing. A recent study by The Kelsey Group projects that Internet ad spending will be on par with newspaper ad spending by 2011. It has taken the industry a long time to adapt to the advances brought on by the Internet, but it doesnt have to take long for individual dealerships to jump on board.

In a recent Yahoo! study comparing media consumption with advertising dollars spent in 2006, newspaper was flagged as inefficient. Newspaper spend is at 21 percent, while media consumption is at a meager 4 percent. The Internet was flagged as an area of opportunity with ad spend at 6 percent and media consumption at 17 percent.

When times get tough and the economy looks a little grim, costs get cut. Moving into the realm of the Internet is the best way to consolidate your dealerships costs. According to the J.D. Power 2007 Internet Automotive Shopper Research results, the Internet is the only marketing channel that spans every stage of the sales funnel. It makes sense to start your advertising there and add other marketing channels as youre able.

To sum it all up, advertising spending is at an all time high, the economy isnt looking so good, and newspapers are doing very little for your dealership (even online versions), yet the Internet is growing stronger and has the ability to span all stages of the sales process. What does this mean to you? Put your money where the buyers are-online! Search engine marketing and optimization, as well as Website usability, should be a priority for your dealership. Remember, 75 percent of Internet shoppers hit the search engines first! With a little maneuvering, your dealership wont miss a beat, regardless of the economy and increasing gas prices. Offset the obstacles by concise and consolidated Internet advertising and kill off newspaper spending for good.

Aimee Romero is the marketing writer and analyst for Dealerskins. She can be reached at 877-707-5467 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .