| What Are Your Advertising Plans for 2011? |
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| Written by Tom Letizia |
| Thursday, 09 December 2010 09:31 |
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As we make plans for 2011, it is once again time to assess our advertising strategies. Like everything else in this fast paced world we live in, advertising is changing rapidly. By all indications 2011 will be the beginning of a significant revival in the automotive industry, as global sales of new light vehicles are forecast to reach 60.8 million units, an 11 percent increase over 2010. Standard & Poor's forecasts 2010 U.S. light-vehicle sales of about 11.4 million units. That would be up about 9.6 percent from 2009 sales of 10.4 million. S&P expects 2011 U.S. light-vehicle sales of about 12.8 million. That would still be below 13.2 million in 2008, let alone 16.1 million in 2007. We are now moving in the right direction, however, which means we must step up the pace of our advertising if we wish to maintain market share. Here are a few steps you need to take to insure you get the most of this growing market:
1. What you did in any other advertising year will not necessarily work in 2011. Advertising changes every year. You already saw the digital revolution, but, as digital advertising enters its third decade, branding dollars continue to lag in the medium. Approximately 20 percent of people's media consumption time occurs online, yet the medium attracts just five percent of branding advertising dollars, according to the TVB Media Comparisons Study. So, if you are like most advertisers, the bulk of your budget will remain in traditional advertising. Yes, I said it traditional advertising and it’s not such a bad word after all.
2. Be creative in your advertising—Good creative can yield big dividends. Research shows that a more creative message can be four times more effective in generating a sales outcome than a less creative message. It is also proven that if the advertising is more creative, this carries more weight than if you were to spend more money. The look and sound of your advertising is one of the most important elements in successful campaigns; this is what the car buyer sees. It's what moves the consumer from awareness of your concept to understanding into liking and then on to traffic into your store and finally to purchase and hopefully re-purchase. Your look is made up of a number of elements, including your name, logo, dealership information, and car line.
3. The question dealers ask constantly is how much should I spend for my dealership? Where should you place your ads and how often should you run them? I always believe that you spend, based on a percentage of sales. Take your last year’s sales for any given month, then use average industry standards for seasonality and current market conditions. That should give you a specific amount which you should allocate for advertising. Most dealerships operate with an advertising budget based on so much per car sale. NADA publishes a monthly report showing the typical dealership expenditures. Keep in mind, by scrimping on advertising, you will yield a lower sales volume. Bigger dealers always spend more than smaller dealers.
Start making 2011 advertising plans now.And remember, be creative and stay fresh! 2011 is showing signs of being a robust year, so get in the game now.
Tom Letizia is the president of Letizia Mass Media, a full-service advertising agency specializing in automotive. He can be reached at 702-777-2121 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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