Advertising spending for the Automotive Industry in 2006 declined 1% to 13.5 billion, with gains in seen in Spot TV (4%), Network TV (3%), and Spot Radio (8%), according to Nielsen Monitor-Plus, the global advertising information service of The Nielsen Company. Nearly 80% (10.5 billion) of automotive advertising in 2006 was placed on television and 11% (1.45 billion) was spent in national magazines.
Budgets in Local Newspapers were cut 41% (243 million); National Magazines lost 10% of automotive advertising, accounting for 165 million; and Cable TV advertising dropped 9% (151.4 million). These declines contributed to an overall reduction in ad spending of 197 million.
Advertising for Local Automotive Dealerships also declined in 2006. They accounted for 4.8 billion in spending in 2006, 4% less than in 2005 (176 million). The majority of spending was in Local Newspapers, representing 3.2 billion. However, ad budgets for this medium dropped 10% compared to 2005 (360 million). Spot TV, the second largest medium, rose 7% (62 million) to just over 1 billion in 2006. Spot Radio showed significant growth (31% or 114 million), reaching 477 million.
The Top 10 Automotive Advertisers spent 12.7 billion in 2006, slightly down (-1%) from 2005. Half of the advertisers raised budgets, while half cut back. General Motors remained the number one advertiser, with 2.8 billion in spending, even with a 10% decrease of 10% from 2005. Hyundai showed the greatest percentage increase (22%), reaching 609 million in ad dollars.
Automotive companies placed the most advertising dollars in General Drama programs (1.92 billion), up 3% from 2005. General News Programs followed closely at 1.88 billion, but showed a decrease of 4%. Quiz Shows, attesting to their growing popularity, increased 16% to 283 million. The Automotive category spent 221 million on the top three Quiz Shows. Wheel of Fortune was the number one program with 125.2 million, followed by another classic, Jeopardy, with 75.8 million. Deal or No Deal, a new program, benefited from 20.3 million in auto advertising in 2006.
The top 10 automotive brands had 2,359 brand occurrences on Network Television in 2006. Chevrolet Trucks was the top brand with 470 placements, followed by Toyota Trucks and Mercedes-Benz Autos, each with 294 placements.
The top 10 programs on Network TV that featured automotive product placements accounted for 2,281 occurrences in 2006. Amazing Race was the number one program, with 513 placements. Six of the top 10 programs were on
1.16 billion was spent by all auto brands that had advertising activity in 2006 but not in the prior year. Collectively, the top 10 brands spent 721 million, ranging from Mazda CX-7 Truck with a budget 141 million to Lincoln MKZ spending 48 million.
