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Sunday, June 24, 2007
Online vs. Television Advertising for Auto Dealers
Back to my original questions: as DVR becomes more mainstream, how will TV advertising change for car dealers? I'm sure the cable companies give out viewer numbers/reach when trying to sell advertising spots, but how accurate are those numbers when you take the "commercial skippers" into account? At this point I can't imagine internet users leaving a reputable site because of advertisements, but what's down the road? Popup blockers have already impacted online ad conversion rates. The bottom line in our present world of advertising is that online currently offers a high level of targeted advertising. The more targeted, the higher the conversion rates, in theory at least. The targeting is getting to be more and more precise (behavioral targeting being a great example of the next level), and who knows how precise it will get. So is it better to have highly targeted ads to a small group of prospects, or is it better to have a broader reach with lower conversion percentages? This is obviously a debatable issue, since car dealers use both. As someone who isn't paying the advertising bills at a dealership, I say you cover your bases with diversification.