Us Automotive Ad Spending Slows Down

By Author: Marty Bay
Total Articles: 413
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Car makers are considered as one of the highest ad spender in the US. This is because the competition between vehicle producers is so intense making the production and airing of commercials to promote their vehicles and auto financing deals to car finders a very essential aspect of their operation. Due to this almost all car makers are spending millions of dollars for ads each year just to promote their vehicles to new car finders and cope up with the existing sales competition.

However, a recent examination of the figures attributed to automotive ad spending revealed that the amount of money used by car makers in producing their ads continues to decline. Compared to the previous year’s increase in ad spending which is about 20% the expenses incurred by auto makers on creating automotive ads for this year has decreased tremendously. By the end of April this year, the increase in automotive commercial spending is just around 6.7% and is expected to further ...
... soar down before this year ends.

Careful assessments by experts have known that this condition was caused by different reasons ad among the most important factors for the slowing down are the March 11 earthquake in Japan and the unstable economy.

The earthquake in Japan has prevented car makers in the US from having new vehicle types and models that they could promote using the ads since the production of new vehicle models has also slowed down. One of the most prominent car makers which reduced their ad spending due to the earthquake in Japan was Toyota car makers. As a result, the demand for airtime where the car makers usually air their commercials has also gone down.

Given that most of the Japanese car makers are starting to recover from the harsh effects of the court, there might be a great possibility that the spending on ads might increase. However, the threat posed by the weak economy could actually prevent this from happening. Due to this, it would be best for media entities to expect that car makers would spend less on ads since they would surely prioritize more important things.