Chart 1: Social-Media Ad SpendingThe 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. 

All estimates, projections, and forecasts in $ billions. * Spending includes advertising and promotions. ** “Auto Industry” includes dealers, dealer associations, and manufacturers.

Source: Borell Associates

AUTO INDUSTRY TOTAL

SOCIAL MARKETING TOTAL

AUTO INDUSTRY SHARE

$0

$5

$10

$15

$20

$25

$30

$35

$40

2009 2010 2011 2012 2013 2014 2015

12.2%11.7%11.5%16.2% 14.5% 13.2%

19.5%

BILLION

Moving the Metal:How Automotive Dealers Can Take Advantage of Social Media

Chart 2a: Media Budgets Not Yet Balanced with Consumer Media Time, 2007

8%19%

6%7%

18%8%

8%29%

31%37%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Watching TV

Internet (Work and Personal)

Reading newspapers

Reading magazines

Listening to radio

% OF AD SPENDING ONEACH MEDIA TYPE

% OF TOTAL MEDIA TIME INDIVIDUALS SPEND WEEKLY

Source: Forrester Research, North American Technographics Benchmark Survey, 2007 and 2009

In 2007, spending was not yet aligned with where consumers spent the most time…

Moving the Metal:How Automotive Dealers Can Take Advantage of Social Media

7%18%

5%6%

14%7%

12%34%

31%35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Watching TV

Internet (Work and Personal)

Reading newspapers

Reading magazines

Listening to radio

Chart 2b: Media Budgets Not Yet Balanced with Consumer Media Time, 2009

Source: Forrester Research, North American Technographics Benchmark Survey, 2007 and 2009

% OF AD SPENDING ON EACH MEDIA TYPE

% OF TOTAL MEDIA TIME INDIVIDUALS SPEND WEEKLY

… that still held true in 2009.

Moving the Metal:How Automotive Dealers Can Take Advantage of Social Media

Source: Forrester Research; U.S. dollars, in millions

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.

INTEGRATED CAMPAIGNS ON SOCIAL NETWORKS

AGENCY FEES FOR SOCIAL MEDIA

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2009 2010 2011 2012 2013 2014

$3,113

$2,254

$1,649

$1,217$935

$716

TOTAL

Moving the Metal:How Automotive Dealers Can Take Advantage of Social Media

MILLION