Where Is The Automotive Ad Money Going?

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Zenith is out with its latest automotive advertising forecast data which states “The automotive industry faces substantial disruption over the next few years as it copes with more technological change than many other industries.” So how does that affect how much money the category spends on advertising? Let’s dig deeper into the data.

According to Zenith, more than 50% of all automotive advertising expenditure goes to television.

However the company says that number has started to come down thanks to the way consumers shop. “We estimate that television’s share of automotive ad spend fell from 54.9% in 2017 to 54.4% in 2018, and we expect its share to fall further to 52.1% by 2020. Brands have been shifting more of their budgets to internet advertising, which – to be clear – includes advertising on all the online video services that deliver television-like content over the internet.”

Zenith says the automotive category is behind the market when it comes to internet advertising, spending only 22.9% of budgets online in 2018, compared to the global average of 40.6%. “The fact that sales are almost exclusively finalized offline makes it more difficult for auto brands to optimize their online activity for sales than for brands in many other categories. Consumers now conduct much of their research and consideration of auto brands online, however, so it’s important for auto brands to maintain a strong online presence so they can reach consumers at this key phase in the path to purchase. We forecast the internet’s share of automotive ad spend to rise to 25.6% by 2020.”

So what about radio?

Zenith says, other than print, the rest of the traditional media is doing pretty well. “We expect radio, cinema and out-of-home to either maintain or fractionally increase their share of automotive advertising between 2018 and 2020. Radio – which many consumers experience in their car – works particularly well for automotive brands, attracting 7.3% of auto ad spend, compared to 6.0% of ad spend across all categories globally.”

You can read the full Zenith report HERE

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