TV stations lose in automotive ad shift

Local TV big losers in new auto industry report
In report to be released Thursday, the research firm, Borrell Associates, paints a realistic portrait of local TV asleep at the wheel when it comes to online advertising. The report, Automotive Advertising Online: Review & Outlook, says the automobile industry is shifting tens of millions of dollars to the Internet, much of which used to be spent on television branding campaigns. The reason is simple: 60% of car buyers are referencing car information on the Internet, according to the report. Newspapers are big gainers, but Borrell says the big losers are local TV stations. “While auto advertisers are beseiged by online applications, our research found that nearly two-thirds of local TV stations don’t even have a rudimentary one to offer. This seems shortsighted (Borrell is being kind here) for an industry that derives 22 percent of its revenue from the automotive category.”

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