From a report published by Wall Street Journal:
Auto ads, a major source of newspaper-classified advertising, have been slipping steadily for nearly two years. But the slippage may be turning into a landslide.
Last week, Tribune Co. said auto-classified revenue at its newspapers plunged 16% in December. Also last week, Lee Enterprises Inc., publisher of papers such as the St. Louis Post-Dispatch, reported a 15.2% drop in auto advertising for the fourth quarter. On Wednesday, McClatchy Co. reported a 20% decline for December, saying the downturn in car ads had finally reached its West Coast papers, the biggest of which is the Sacramento Bee, in the heart of California’s car culture.
We’re seeing a similar fall here in the buying and selling category – titles focusing on classifieds like Trading Post. I don’t have data for auto classified revenue in Australian newspapers. Anecdotally I’d say it’s down. This is why Saturday sales are challenged as it was usually a strong auto and general classifieds day.
Later in the WSJ article:
Dealers are finding Web ads generate strong responses. “Eight out of 10 customers that walk into our dealership have already looked at our Web site,” says Wes Lutz, who owns Extreme Dodge/Hyundai in Jackson, Mich. Demand from the Internet is so keen that three years ago he designated a new position at his dealership: Internet manager. That person’s job is to reply to all Internet inquiries within an hour.
Mr. Lutz still advertises with the local paper, but not nearly as much as he did 10 years ago. “They’re just really antiquated,” he says. “They’re just stuck in time.”
I was talking to a local car dealer on Friday and his comment was that newspaper advertising is now more about the brand whereas just a few years ago it was about the brand and specific stock opportunities. They have moved their stock opportunities online because online ads are searchable and, he says, because “that’s where they buyers are”.