With the onset of GM and Chrysler going down, the car dealerships are taking major hits. With these two companies going down, a mandatory shutdown of 1,889 auto dealers is going to happen in mid June. In 2008, there were about 20,000 dealerships in the US and last year, about 900 of them went down due to the economy. As a result, money spent on advertising with US media companies, will see a steep decrease because of all the companies that are out of commission. Not only are auto dealers going out of business, but now GM and Chrysler are forcing some profitable dealerships to shut down??

Here are some of the numbers about the money auto dealers acutally spend:

- Across all ad categories, newspaper revenues fell 16.6% in 2008 to $37.8 billlion, local TV dropped 6.5% to $20.1 billion and radio fell 8.6% to $19.5 billion, according to statistics obtained respectively from the Newspaper Association of America, BIA Advisory Services and the Radio Advertising Bureau.

- Auto classified advertising in newspapers fell 29% in 2008 to a 25-year low of $2.3 billion, representing less than half of the $5 billion in car ads sold by publishers as recently as 2004.

- As of 2007, newspapers garnered 27% of the advertising dollars spent by auto dealers across the country, according to the NADA. This is down by almost half from the 52% of dealer dollars that newspapers controlled in 1997.

- The NADA reports that TV and radio broadcasters each sell about 17% of the auto advertising sold in the nation, which made their respective shares of the market worth about $1.5 billion apiece in 2008.

With all of the decreased advertising budgets, how will the remaining auto dealers get the word out?

A means of more efficient means of advertising is required. By extending the effectiveness of their marketing dollars, car dealerships can compensate for smaller budgets.

Enter mobile advertising.