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11. 2009
AUTO ADVERTISING
Executive Summary Only
2009 BORRELL ASSOCIATES INC. ALL RIGHTS RESERVED
OUTLOOK 2010:
RUNNING ON EMPTY
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2. Executive Summary Only
Borrell Associates Management
Colby Atwood, President
CAtwood@borrellassociates.com
Gordon Borrell, CEO
GBorrell@borrellassociates.com
Kip Cassino, Vice President of Research
KCassino@borrellassociates.com
Peter Conti, Jr., Senior Vice President
PConti@borrellassociates.com
www.borrellassociates.com
Design and layout by Anya Pavlenko http://a-pavlenko.com 416.557.9889

3. AUTO ADVERTISING OUTLOOK 2010: RUNNING ON EMPTY Executive Summary Only
TABLE OF CONTENTS
INTRODUCTION 4
EXECUTIVE SUMMARY 5
CHAPTER 1: New Car Ad Spending Outlook 6
Fig. 1.1: Average New Vehicle Sales per Dealer, 2000-2010 6
Fig. 1.2: U.S. New Vehicle Sales in Millions, 2003-2010 6
Fig. 1.3: Projected 2009 Ad Spending per New Vehicle Sold, by Dealership Employee Range 7
Fig. 1.4: Average Dealer New Vehicle Ad Spending per Location, 2008 - 2010 8
Fig. 1.5: U.S. Total New Vehicle Ad Spending, 2008 - 2010 9
CHAPTER 2: Used Car Ad Spending Outlook 10
Fig. 2.1: U.S. Total Used Vehicle Ad Spending, 2008 -2010 10
Fig. 2.2: Car Sales Share of Total Dealer Revenue 11
CHAPTER 3: Auto Ad Spending Online 13
Fig. 3.1: Online Ad Spending Supporting New and Used Vehicle Sales, 2008-2010 13
Fig. 3.2: Dealer Perceptions vs. Study Results – Information Source Leading to Walk-in Tra c 14
Fig. 3.3: Online Auto Ad Spending by Category, 2008-2010 15
Fig. 3.4: National and Local Shares of Online Ad Formats Spending for Auto Sales
Compared, 2008-2010 16
Fig. 3.5: CBSAs showing Highest and Lowest Online Auto Ad Spending in 2009 17
APPENDIX A – Sample Automotive Data Table (Table A) available as a separate download.
APPENDIX B – 2009 Online Auto Ad Spend Projection for 900 CBSA markets available as a separate download.
COMPANY PROFILE
c 2009 BORRELL ASSOCIATES INC. ALL RIGHTS RESERVED

4. AUTO ADVERTISING OUTLOOK 2010: RUNNING ON EMPTY Executive Summary Only
INTRODUCTION
This report is based on Borrell Associates’ Automotive Table (Table A) which monitors the pulse of local ad spending
by U.S. auto dealers, dealer associations, and manufacturers. Updated quarterly, the Automotive Table is compiled
from numerous data sources, including:
• Dun & Bradstreet.
• The National Auto Dealer Association (NADA).
• The National Independent Auto Dealer Association (NIADA).
• Mannheim Auctions.
• Scarborough Research.
• Internal Revenue Service (IRS).
• The Bureau of Transportation Statistics (BTS).
• The Bureau of Labor Statistics (BLS).
• The Television Bureau of Advertising (TVB).
• The Newspaper Association of America (NAA).
• Annual and quarterly nancial information from General Motors, Chrysler, and Ford.
An explanation of our methodology is available at
http://www.borrellassociates.com/products/marketdata/localadspend
A sample of a complete Automotive Table is attached as an addendum. The Automotive Table can be ordered for
any local market as de ned by DMA, CBSA, metro area, counties or ZIP codes. It is also available for the entire U.S.
The Automotive Table is used to understand the amount of local advertising spend in your local market. It is used to
improve and increase auto ad sales and to understand the local ROI in this important business vertical.
For more information about how an Automotive Table can increase your sales,
e-mail Martin Nyberg mnyberg@borrellassociates.com, or call 1. 253. 678. 1975
We look forward to hearing from you.
c 2009 BORRELL ASSOCIATES INC. ALL RIGHTS RESERVED
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5. AUTO ADVERTISING OUTLOOK 2010: RUNNING ON EMPTY Executive Summary Only
EXECUTIVE SUMMARY
There is no doubt about it, 2009 has been a wretched year for the people who sell cars, and for the media companies
that help them. Between the general economic tailspin and the ongoing transformation of the media landscape –
• New-car sales are down 39 percent from 2005
• Only 20,000 dealers are left to sell them
• At least four factors are combining to keep dealer ad spending down
• Smaller dealers are being squeezed out of the market by economies of scale
• Automotive ad spending is down 16 percent this year over last
• Newspapers and television have been hit the hardest
But there are signs of recovery – and permanent change – ahead
• 2010 will be better than 2009 for new car marketing – although not by much
• Dealerships are getting leaner
• Cars sold per dealership are heading up
• Manufacturer co-op spending is turning the corner and will begin to rise
• Independent dealers are nding new sources of revenue
• Large dealers will continue to gain share in the used-car arena
• Online “ad spend” will surpass all media for new-car advertising
The Web is having a profound e ect on automotive advertising, as it is in so many industries. Within online automotive
advertising, major trends are emerging that guarantee no return to the good old days. Revenue from display banners,
pop-ups and classi ed listings is dropping 20 percent this year, while spending by auto marketers on e-mail and
social networking campaigns is growing by 20 percent; a cross-over is expected next year. However, it is streaming
audio and video that will show the most growth this year and is positioning itself for “break-out” growth in 2010.
U.S. Total New Vehicle Ad Spending, 2008 - 2010
($ in Millions) %
Media 2008 2009 % Change 2010 Change
Broadcast TV* $6,712.7 $5,183.9 (22.8) $5,284.0 1.9
Cable $935.3 $855.2 (8.6) $887.0 3.7
Cinema $67.2 $65.4 (2.6) $77.3 18.0
Direct Mail $1,133.3 $1,000.5 (11.7) $1,012.6 1.2
Directories $262.7 $250.1 (4.8) $229.9 (8.1)
Newspapers $4,782.1 $3,418.0 (28.5) $3,547.0 3.8
Online $4,111.0 $3,895.5 (5.2) $4,338.7 11.4
Other Print $1,633.7 $1,481.5 (9.3) $1,473.9 (0.5)
Outdoor $337.2 $303.1 (10.1) $314.9 3.9
Radio $1,885.6 $1,688.6 (10.4) $1,730.3 2.5
Telemarketing $258.4 $254.6 (1.5) $261.3 2.6
TOTAL $22,119.3 $18,396.5 (16.8) $19,156.8 4.1
Dealer Share 40.8% 39.8% 39.4%
Association Share 9.2% 9.3% 9.2%
Manufacturer Share** 49.9% 50.9% 51.3%
* Broadcast TV share includes network and syndicated spending
** Manufacturer share includes co-op spending
Source: Borrell Associates, Table A, update Q309
Auto dealers, dealer associations and manufacturers will spend a projected $18.4 billion advertising cars and light
trucks this year (collectively called vehicles in this report). Almost $4 billion (5.2 percent) of this spending will go to
online advertising. In 2010, we expect overall ad spending to increase to $19.2 billion,while online ad spending will
climb more than 10 percent, to $4.3 billion.
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6. AUTO ADVERTISING OUTLOOK 2010: RUNNING ON EMPTY Executive Summary Only
COMPANY PROFILE
Borrell Associates is an advertising research and consulting rm with a concentration on
online media. We help media companies develop and implement successful strategies for
maximizing their local ad revenue.
We uncover the advertising potential in a local market by drawing on primary research and
our comprehensive data model of ad spending at the local level.
Simply put, we help media companies make money.
Market Intelligence
WebAudit™ Report - Get a detailed look at online ad spending in your local market. The data include local online
ad shares by type of Web site operator (pure-play, TV, newspaper, etc.) and comparisons with peers. A WebAudit
helps managers identify and size strategic sales opportunities by comparing the local spending patterns of individual
business categories and major vertical market segments (Auto, Jobs, General Merchandise, etc.) with U.S. norms
and analyzing the di erences. Ad reps can use the report to strengthen presentations and enhance their role as
consultants in the sales process.
LA$R (Local Ad Spend Report) - This market data provides comprehensive estimates of ad spending across 11
major media types (newspapers, TV, billboards, online, etc.) by each of the top 100 business
categories in a market. Conversely, the report also presents the amounts that each medium
receives from each of the business categories, with a summary of their relative shares of total ad
spending. Both views give estimates of spending by advertisers located inside and those
located outside the market.
WebSegment™ - This data divides a market’s population into ve segments de ned by the amount of time a person
spends using the Internet (ranging from no time to more than 20 hours per week). The report o ers insights into a
market’s demographics, media usage patterns and purchasing behavior based on the amount of time a person
spends using the Internet.
Media Pro le - This report provides a snapshot of local media usage – including usage of newspapers, coupons,
online services, and overall broadband and Internet patterns – in a speci c market. This report also illustrates levels
of online spending by consumers on key items such as clothing, computer software, books, etc. We use a combination
of Scarborough Research’s data (updated twice a year) and data from Claritas.
Custom Market Data - Our researchers can generate unique data sets that provide insight for a variety of market
segments. For example, we have developed detailed trending analyses of local automotive ad spending in multiple
markets for a network of cable companies and have provided deep segmentation of ad-spending data by business
size for a national portal.
c 2009 BORRELL ASSOCIATES INC. ALL RIGHTS RESERVED

7. AUTO ADVERTISING OUTLOOK 2010: RUNNING ON EMPTY Executive Summary Only
COMPANY PROFILE
Other Products and Services
Online-Sales Training - Our program provides hands on, in-the- eld training that utilizes local Web usage patterns
and ad spending data from your market to build dynamic, compelling sales pitches. The program also o ers guidance
on sales recruitment, compensation, sta structure, rates and marketing materials. The typical program is two to
three days per market, including one day of "classroom" training followed by sales calls with your sales team.
Consultation - Uncover the advertising potential in your local marketplace by drawing on the research we conduct
throughout the year on thousands of local media operations. We work with Internet businesses, online media compa-
nies, newspapers, TV and radio stations, and vendors who provide enabling technology to these outlets. We provide
executive-level strategies that focus on helping your company grow local advertising revenues exponentially rather
than incrementally.
Research Reports - We publish 10 to 12 research reports per year that provide an in-depth look and analyze major
trends in local online advertising. Reports include annual revenue benchmarking for local media sites; reports on the
automotive, real estate and recruitment verticals; and an annual outlook report published in early fall designed to
provide next-year budget guidance.
Presentations - We conduct a large number of presentations every year, typically for executive management,
industry seminars and trade conferences. Each presentation is tailored to your needs. We tie the "big-picture" analysis
into actionable information about the audience's speci c markets. These presentations are challenging, insightful
and lled with facts about the future direction of new advertising formats and trends.
Webinars - Borrell Associates can host and deliver an exciting Webinar for your organization or association.
Our topic list is extensive and we tailor a presentation for each audience. We o er research and factual
evidence backed by real-world experience.
For more information and to download data samples, visit www.borrellassociates.com
c 2009 BORRELL ASSOCIATES INC. ALL RIGHTS RESERVED