Chicago Tribune via Ledger-Enquirer
One way to understand the rough times of the newspaper business is to talk with Greg Besson, an executive with Houston’s Group 1 Automotive Inc. He says his company’s 101 auto dealerships don’t use newspapers like they used to, but increasingly turn to the Internet.
A dealer can spend $2,000 to get on a car shopping Web site that will generate 100 live leads and 10 to 12 buyers. “We can pretty much measure it–cost per lead,” Besson says. “But if you put an ad in the Sunday paper, it will probably cost more than $2,000 and you have no idea who comes through the door because of it. We’ve wasted a lot of money that way.” Besson’s approach is one example of a big shift in the way advertisers think about reaching customers.