Do TV ads sell cars?

Do TV ads sell cars?
Not according to a new study by Cap Gemini Ernst & Young and reported in today’s AdAge. The study, of 700 car buyers, found only 17% said TV ads influenced their car-buying decisions. Ads on Internet search engines influenced 26% of consumers. Nearly half, or 48%, of the consumers said a direct-mail offer from a car dealer would influence their vehicle purchases, but the most influential measure was word-of-mouth, cited by 71% of consumers. Auto advertising has traditionally accounted for 22% of TV station ad revenue, so if accepted by the auto industry, this report could have a significant impact on local TV ad revenue. However, there is already considerable disagreement with the study. Jim Sanfilippo, executive vice president of Omnicom Group’s auto consultancy AMCI and former vice president for marketing of Kia Motors America said, “TV absolutely produces traffic for dealers,” he said, noting that TV gets robust revenue from the auto industry “because it works.”

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