Manufacturers are at risk of "cannibalising" their advertising budget by targeting the same people with display advertising and lead generation, according to consumer new-car enquiry site motoring.co.uk.
In 2011, about £137m of the £550m total advertising spend of the automotive sector was on online advertising, the website has estimated.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Whilst online display advertising has grown nearly 20% since 2009, lead generating has grown exponentially over the same period, according to figures from the Source Advertising Bureau.
The growth of the latter has led to the development of online lead generation tools by both manufacturers’ captive finance providers and independent finance houses.
Lion’s share, not cannibalism
Chris Green, sales director of motoring.co.uk, warned "marketing directors of large OEMs and their marketing agencies need to make sure they don’t pay twice for a new car lead when spending on display and performance marketing and that’s why they need to look at spreading their spend and choosing their partners carefully, having a multi-channel approach through email marketing, live data, and using a mix of automotive publishers guarantees ROI without cannibalisation.
"Automotive brands need to spread their risk and spend to make sure they are getting the absolute best coverage and ROI, without having to spend more money with leading automotive websites that are already taking the lion’s share of display advertising budgets."
Aside from a new area to advertise in, searching online for cars has apparently empower consumers, according to both Manheim-owned motors.co.uk and Alphera Financial Services, a topic also discussed by Jamie Dixon, sales director at GForces at the Finance & Leasing Association’s Used Car Seminar during the summer.
