Automotive Advertising to Reach $15.8 Billion in 2020
Automotive advertising is increasing in 2020. In its latest vertical industry report, “Automotive Industry: Insights Into Local Advertising 2020,” BIA Advisory Services estimates that businesses in the automotive vertical will spend $15.8 billion on local advertising in 2020. The largest spenders in this group, consisting of 80 percent of spend: Automotive Manufacturers (OEM), Automobile Local Dealers Associations, and Automotive Dealers (New and Used).
Traditional media will receive the larger share of the ad spend, followed by digital media. Broadcast TV gets the largest share of the automotive spending pie, $3.7 billion (23.3 percent), although it’s forecasted to decline 6.0 percent from spending of $3.9 billion in 2019. Broadcast radio will see a slight decline, 2.0%, reaching $1.7 billion.
In 2020, digital media will see spending increase to $7.4 billion (46.5 percent of all paid media). The fastest growing digital ad platforms on a relative basis are OTT (18.5 percent), Mobile (11.3 percent), Email (11.3 percent), Radio Online (10.3 percent).
According to Rick Ducey, managing director of BIA Advisory Services, “The biggest digital ad format is digital video. Auto marketers value video, but like the audience targeting and attribution that they get on digital ad platforms. Traditional media have been developing and rolling out new competitive solutions to challenge digital’s current and growing dominance.”
The report also discusses strategies local media sellers might adopt to become better marketing partners with their current and prospective Automotive clients.
Accessing the Report
BIA ADVantage subscribers can login to access the report and run custom auto reports for local markets. The report can be purchased from our shop.