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Car dealers increasing internet marketing spend
US car dealers are increasing their spending on internet advertising, according to new research, reflecting the extent to which online marketing is being embraced by all kinds of businesses.
A poll of car dealers from Cars.com revealed that nearly two-thirds of them were planning to increase their online advertising budgets in 2007.
The results reflected internet advertising expenditures reported by eMarketer.com, the company said, which expected US car dealers to spend $1.9 billion (£0.9 billion) on online marketing in 2006 - more than twice what they spent in 2004 – and predicts a 42 per cent increase in 2007.
Dealers were increasingly recognising the value of internet advertising and the exceptional return on investment it offered, especially when compared to radio, outdoor and direct mail programmes, explained president of Cars.com, Mitch Golub.
Effectively-placed internet advertising reached more in-market car buyers and drove more high-quality traffic to dealer stores, he added.
He said: "As more car shoppers spend more time on the web looking for automotive information dealers should invest in well-integrated internet campaigns to reach shoppers across the full spectrum of their online activities."
"Effective programs include lead generation, display advertising, classified listings and search engine marketing to provide dealers with the greatest online reach and visibility."
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