Want proof that newsprint is too expensive? Here it is.
Do some auto dealers advertise in newspapers because they are small … or are they small because they advertise in newspapers?
NADA (National Automobile Dealers Association) recently published some data on key trends in auto dealer ad spending. Good information to have, but one thing should stand out to retailers who might still be beholden to print — or think it’s a cheap alternative (it’s not).
Amongst the various data points NADA furnished, you might notice that today’s “small” dealer spends way more than their bigger competitors to sell a vehicle — nearly twice as much. You may have also noticed their print advertising allocation (as a percentage of budget) is more than double that of the bigs, while they use one-third as much TV.
This information should not surprise anyone, and is about as close to a smoking gun you will find. When you understand the underlying math and cost efficiencies of the media, the options become clear as day, and the outcomes make perfect sense.
So, we ask again: Do some stores use newspaper because they are small … or are they small because they use newspaper?
Here’s the important part: this information — though released by NADA — is not just about the automotive market. It is about the local market in its entirety. Use it wisely.
Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition. He plays baseball, but isn't that Dave Eckstein.