Neilsen recently reported that advertising spending in the first quarter of 2009 fell 12 percent. The decline happened pretty much across the board, but it was particularly bad in the automotive sector.

Auto factory and dealer association advertising dropped by more than 27 percent, and local dealers cut their spending by more than 24 percent. No surprise there. What blows my mind, however, is the fact that more than three thousand car dealers cut their advertising to zero. Zip. Nada. Nothing.

While the reasons why are understandable, they don’t change the reality that the marketplace is never static, and competition doesn’t take a day off. To wit, AAMCO has just launched the largest campaign in its history, spending $30 million in an effort to win simple service occasions like oil changes and tire rotations from troubled (and shuttered) car dealers. Nothing like kicking an industry when it’s down.

But that’s what the free market is all about–creative destruction. Not only is this a great opportunity for AAMCO to seize market share, it will help the brand as it continues its evolution away from transmission service alone. And it shows real guts to take this step in the troubled economy. Good for them.

While I feel sorry for the auto dealers, many of whom are being shafted by decisions made in D.C. and Detroit, it’s encouraging to see the invisible hand continue to work. The more companies that have the nerve to follow AAMCO’s example and look for creative ways to advance their interests, the sooner the economy as a whole will recover.