Truck advertising hits record low as truck manufacturers move to curb ad spending
NEW YORK, NY–(Marketwired – Mar 27, 2017) – Trucks are moving to a lower-cost, higher-margin model that helps them stay competitive in the trucking industry, according to the head of a new truck advertising and marketing agency.
The industry is undergoing a significant transition to an all-inclusive model, where companies have begun to look to a low-cost option such as advertising as a way to compete with high-end brands, according Todd Gershwin, who is head of advertising and branding at AdWords for the National Trucking Associations.
“It’s been a long time coming, but we’re going to make a big change in how we do business and how we communicate to the customers and our community,” Gersharwin said.
Trucking companies are beginning to offer more than a few options in an effort to cut costs and attract more customers, and it’s helping to drive a lot of innovation, he added.
The new ad spending model that allows advertisers to make money by targeting specific customers, instead of spending ads on all the people they know, is known as ‘targeted advertising,’ or TAA.
The model allows advertisers an additional amount of money to spend in a single spot on a particular vehicle or segment, but it also reduces advertising costs, Gershurwin said, by reducing the amount of time that the advertiser spends in the targeted spot, and making it much more cost-effective.
“We’re in a very good place,” he said.
“The ad industry is moving to this model, and we’re seeing it being adopted by major truck manufacturers, and the ad dollars are going down, as well as the revenues.
The industry has been doing this for a long period of time.
We have the ability to do it now, and I think it’s the right thing for the industry.”
The new TAA model has been introduced as part of the Federal Trade Commission’s “Stop Ads From Being Targeted” initiative, which aims to curb the rampant targeting of people by advertising companies and other entities.
Advertisers and others who work in the advertising and design industries, such as architects and designers, have long believed the all-you-can-eat advertising model to be the gold standard.
In 2015, a survey by the AdWords Association, a trade group for the ad industry, found that about 70% of all online traffic in the United States came from ads that target specific people.
The survey also found that the most popular ad spending method for advertisers in the U.S. was TAA, or targeted advertising.
TAA is an online advertising system where advertisers can spend as little as $0.01 per click, on average, on a single ad.TAA is not available in the offline world, however, which has been a problem for some advertisers in recent years.
According to a 2016 study by the University of California-Berkeley, nearly half of all advertisers had been affected by a high-frequency ad spamming attack that targeted advertisers.
“For advertisers who work on the offline side, TAA can be really frustrating because they have to constantly monitor the entire network,” Galshwin said in a phone interview.
“For advertisers that work online, they don’t have the same issues.”
Advertiser groups like the National Retail Federation and the National Association of Realtors say that TAA has helped them to significantly lower the costs of advertising, and that it is a significant part of their overall advertising efforts.
The NARF, which represents the truck manufacturers’ marketing departments, estimates that TAAA has saved them up to $250 million since it began its transition to the TAA format in 2010.
“In a lot more cases than not, our marketing budgets are actually higher,” said NARf president Mark Hallett.
“That’s because TAA allows us to spend less time in the same ad.
It allows us more time to spend on what we need to do to get the most out of that ad.”TAA was introduced in 2015, and has since been widely adopted by trucking companies.
Advertisers now spend less on online ads, and have less of a need for those ad dollars to reach their customers.
The average TAA-spammer spends about $0 for an average of just $0 per click.
TDA has also been effective at keeping costs low, and helping trucking and marketing departments keep prices competitive with other industries.
“The TAA platform has been extremely beneficial for trucking, because it’s been able to lower costs and help keep prices up,” said Gershon.
“It’s an excellent way for the average trucker to do business, and now it’s allowing the industry to compete on the same level with other brands.
It’s been really beneficial for the companies that have gone through that transition, because they’re able to compete as they should.”