Honda Intends to Bump Up Digital Ad Budget


According to an article recently completed by Automotive News, the Honda Division announced at their 2014 Honda Dealer Advertising Conference held on the twenty fourth and twenty fifth of June that they intend to shift their advertising budget around, as to allow for more opportunities to advertise digitally. In 2015, the Honda Division intends to increase their spending in digital advertising to twenty four percent, up from 2014’s eighteen percent.

The announcement detailed that the funds will come out of television ad spending, which will be lowered to seventy two percent, from the previous seventy eight percent. Print and radio, on the other hand, will remain the same, with each receiving two percent of the advertising budget allotted by the Honda Division. No details on future plans for the digital advertising campaign could be obtained, as Honda spokeswoman wouldn’t comment on the announcement any further.

Rob Sabbagh, vice president of Bay Ridge Honda in New York City and president of the 61-store Tri Honda advertising group, spoke on the issue, in full support of the decision. To him, boosting the digital advertising campaign and funding is the only move forward that makes sense, as it is clear that consumers rely on the Internet to research and compare prices online, before making their way to the dealer. Pulling on that research base is only logical to draw in further customers from competing carmakers. Sabbagh’s approval is pivotal, as Tri Honda serves as the regional advertising group for New York City, consisting of a large base of Honda’s shoppers. Their success results in forty million dollars granted annually for their own advertising needs, given directly from the Honda Division; this figure is based off of one percent of invoice price of vehicles sold by Honda dealers in their market.

The announcement at the conference also addressed some concerns of conflict and overlap in Google ad results, between Acura and Honda. It is a general rule of thumb that the first option on Google receives twice the number of hits as the second. Therefore, the first slot becomes quite the coveted prize. However, the Honda Division seems to struggle with a bit of overlap. Bidding on ad space was the proposed solution at the conference.


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