According to a survey conducted by Chicago-based marketing firm Aspen Marketing Services, most automotive dealers in the U.S. this year will hold their advertising spending, while 43 percent said they will spend more marketing

dollars in different channels in 2003.

The survey, commissioned by Aspen in January, found that while nearly

all automotive dealers (98 percent) use advertising, nine out of 10 said

they will either not spend more or will decrease their advertising

budgets this year. However, to help sales, 43 percent of those surveyed

said they plan to spend more on direct mail and other measurable

marketing programs.

The survey found automotive dealers have several marketing channels they

can use more frequently to help them meet their goals for 2003. Among

the dealers who responded, 71 percent said promotions were part of their

marketing mix, 68 percent used special events, 68 percent used

sponsorships, 64 percent used branded products, and 54 percent used

direct mail marketing.

"Clearly, these findings represent an opportunity for direct marketers,"

said Patrick O'Rahilly, president and CEO of Aspen Marketing Services.

"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. Direct marketing providers

with specialized automotive capabilities, such as Aspen, are positioned

to benefit from the trends."

"To grow your business without new promotions or increased spending

calls for proven, measurable, effective marketing," O'Rahilly said.

"Direct marketing allows dealers to adjust offers, hooks, creative ideas

and messaging within a short lead time. This capability is crucial

because of the continual shifting of incentives on certain vehicles by

manufacturers."

O'Rahilly added that manufacturer offerings are frequently the same

(like the "0% financing and no money down") and that it is up to the

dealers and marketing agencies to create innovative ways to bring

prospects to the dealership.

Other key survey findings include:

• More than one-quarter of those surveyed (26 percent)

believe that the industry will move to a "cash back with 0 percent

financing and no money down" promotion.

• Two-thirds of dealers surveyed (68 percent) do not

expect manufacturers to conduct additional promotions beyond their

current activity.

• Cash back bonuses and 0 percent financing dominate 2003

promotional activities to date, with 68 percent and 66 percent,

respectively, manufacturers employing those incentives.

• The industry is evenly split on whether the current

trend is sustainable.

• Nearly two-thirds (60 percent) of the dealers surveyed

believe the market will grow in 2003 by an average of 7 percent.

Aspen Marketing Services is a provider of direct marketing to

automotive dealers and manufacturers across the country.

Headquartered in West Chicago,

Ill., with regional offices in Atlanta, Boise, Detroit, Los Angeles, and

Tampa and sales offices in Dallas and Birmingham, Aspen has over 275

employees servicing more than 5,000 automotive dealers across the

nation. Aspen offers an extensive array of integrated, best-in-class

services in disciplines including: event marketing, direct marketing,

promotions, interactive, premiums/branded products and strategic

planning.