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1 of 1 3/23/2008 4:37 PM

Dealers Shift Toward Online Technology, Marketing

March 10, 2008

PRINCETON, N.J. — More and more dealers plan to start using Web 2.0technology in their advertising campaigns, and most intend to increase spendingon Internet marketing in the next year, according to a recent study.

A survey from The Kelsey Group indicated that 59 percent of dealers said they would utilize Internet video on their Web sites in the next 12 months, versus the 33 percent who already use the technology.

Additionally, the number of dealers who implement online customer ratings andreviews is expected to rise from 29 percent to 43 percent, officials indicated.

Meanwhile, 33 percent of respondents indicated they will use social networking sites, an increase from 15 percent.

"These findings point to a significant disruption in the auto dealer advertising space," explained Neal Polachek, chief executive officer of The Kelsey Group.

"There are valuable opportunities for traditional and new media companies that tune into dealers' adoption of Web 2.0 technologies and align with dealers' online media-buying intentions," Polachek added.

Dealers are also shifting the manner in which they advertise. Sixty-two percent of respondents claimed they plan to boost online media spending in the next 12 months. Only 17 percent said they will do the same for traditional media.

Likewise, only 8 percent of dealers intend to cut online spending, while 46 percent will decrease traditional media spending.

The Kelsey Group gathered information for the study through an online survey in February. The next study is scheduled for the fall.

For more information, visit www.kelseygroup.com.