Automotive manufacturers are projected to invest $9.8 billion in direct marketing to generate $108 billion in sales by 2012, according to report findings released by the Direct Marketing Association.
According to the 122-page report auto manufacturers spent $8 billion on direct response advertising last year, which resulted in $77.8 billion in sales. Auto dealers spent $7.3 billion on direct marketing campaigns in 2007, which generated $248 billion in sales, based on DMA figures.
Automotive retailers generated greater than a $33 return for every dollar invested in direct marketing in 2007, which represents the highest ROI of 52 industries tracked by the DMA.
Roughly 75% of direct marketing efforts in the automotive industry target consumers, while the rest are business-to-business promotions. The majority of direct mail is used for customer prospecting.
Among domestic brands, Ford, Chrysler and Dodge pumped out the most direct mail in third quarter of 2007. Among foreign brands Toyota, Mercedes-Benz and Honda sent out the most mail during the same quarter. Toyota also sent out the most mail promoting auto service.
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