Automotive Dealers Turn to Direct Mail: Survey

Almost half of all auto dealers surveyed will move ad dollars into direct mail and other measurable media this year, according to a study by Aspen Marketing Services.

This shift will occur as 90% of the dealers cut back or hold the line on their overall advertising expenditures, Aspen reported.

Fifty-four percent of the dealers surveyed use direct mail. In addition, 71% use promotions and 68% use special events.

"Clearly, these findings represent an opportunity for direct marketers," said Patrick O’Rahilly, CEO of Aspen, in a statement. "Since dealers don’t plan on increasing their advertising budgets in 2003, they will need to look for effective, cost-efficient, creative marketing practices to grow their business."

Aspen also reported that 26% believe the industry will move to a "cash back with 0% financing and no money down" promotion." Two thirds expect that manufacturers will limit their promotions to their current level of activity.

In addition, 60% believe the market will grow this year by an average of 7%, according to West Chicago-based Aspen.

The telephone survey was conducted by Consumer and Professional Research, Chicago. The firm interviewed 50 foreign and domestic dealers.