Moving the Metal:
How Automotive Dealers Can Take
Advantage of Social Media
Chart 1: Social-Media Ad Spending
The auto industry will spend approximately $1.2 billion this year on some form of “social media” advertising, or about
16% of the $7.4 billion spent by all U.S. companies. That represents a disproportionate share, by the way: Auto advertising
tends to be about10% of total advertising expenditures, yet 16% of all social media advertising.
SOCIAL MARKETING TOTAL
$40
AUTO INDUSTRY TOTAL
AUTO INDUSTRY SHARE
BILLION
$35
$30
$25
$20
$15
$10
$5
19.5%
16.2%
14.5%
13.2%
11.5%
11.7%
12.2%
$0
2009
2010
2011
2012
All estimates, projections, and forecasts in $ billions.
* Spending includes advertising and promotions. ** “Auto Industry” includes dealers, dealer associations, and manufacturers.
2013
2014
2015
Source: Borell Associates
Moving the Metal:
How Automotive Dealers Can Take
Advantage of Social Media
Chart 2a: Media Budgets Not Yet Balanced
with Consumer Media Time, 2007
% OF TOTAL MEDIA TIME
INDIVIDUALS SPEND WEEKLY
% OF AD SPENDING ON
EACH MEDIA TYPE
In 2007, spending was not yet aligned with where consumers spent the most time…
37%
Watching TV
31%
29%
Internet (Work and Personal)
8%
8%
Reading newspapers
Reading magazines
18%
7%
6%
Listening to radio
0%
19%
8%
5%
10%
Source: Forrester Research, North American Technographics Benchmark Survey, 2007 and 2009
15%
20%
25%
30%
35%
40%
Moving the Metal:
How Automotive Dealers Can Take
Advantage of Social Media
Chart 2b: Media Budgets Not Yet Balanced
with Consumer Media Time, 2009
% OF TOTAL MEDIA TIME
INDIVIDUALS SPEND WEEKLY
% OF AD SPENDING ON
EACH MEDIA TYPE
… that still held true in 2009.
35%
Watching TV
31%
34%
Internet (Work and Personal)
Reading newspapers
Reading magazines
12%
7%
6%
5%
18%
Listening to radio
0%
14%
7%
5%
10%
Source: Forrester Research, North American Technographics Benchmark Survey, 2007 and 2009
15%
20%
25%
30%
35%
40%
Moving the Metal:
How Automotive Dealers Can Take
Advantage of Social Media
Chart 3: Forecast: U.S. Social Media Spend, 2009-2014 (U.S.$millions)
Social media is the fastest-growing segment of interactive
marketing at an annual growth rate of 34%. It’s growing more
than twice as fast as other forms, such as search and display.
AGENCY FEES FOR SOCIAL MEDIA
INTEGRATED CAMPAIGNS ON SOCIAL NETWORKS
TOTAL
$3,113
$3,500
MILLION
$3,000
$2,254
$2,500
$1,649
$2,000
$1,217
$1,500
$935
$716
$1,000
$500
$0
2009
Source: Forrester Research; U.S. dollars, in millions
2010
2011
2012
2013
2014