Digital advertising has grown exponentially since the birth of the web banner in 1994. Although dealers were at first reluctant to shift ad money from traditional to digital, by now it’s safe to assume that most all of them have some kind of online advertising presence. Whether you’re taking advantage of the full digital spectrum or just doing the bare minimum, there’s no doubt that automotive digital marketing is an extremely important weapon in your arsenal.
Being able to track the progress of your automotive marketing campaigns in real time through advertising metrics lets you know what is working, what’s working really well, and what needs to change. This allows you to make the necessary adjustments to ensure the efficiency of your ad dollars and a maximum ROI. So, it’s no wonder that digital ad spending in the U.S. overall has steadily increased year over year.
And then…2020 happened.
According to the newly released eMarketer report on U.S. Automotive Digital Ad Spending 2020, the U.S. auto industry will see the largest reduction in digital ad spend by an industry after travel, where spend will contract by 41%. The reason, of course, is Covid-19. During the onset of the pandemic, car shoppers delayed purchasing, while manufacturing plants and dealerships closed or operated at limited capacity.
Over the years, automotive spending has been fairly even across Search, Video, and non-video Display ads. However, amid the pandemic, auto advertisers started focusing on brand marketing over direct-response, as reflected in the area most impacted, Search, which will have a 32.9% reduction in ad revenues versus Display, reduced by 10%, and Video by 5%.
So, what does this mean to you? Opportunity. With fewer auto advertisers using Search, now’s your chance to “get in on the ground floor” if you’re not doing it already. Or, if you are still investing in Search, you can either stay the course, or even increase your budget, to take advantage of what will likely be a lower Cost Per Click (CPC) and a larger impression share.
Now more than ever, it’s imperative that your advertising dollars are being spent in the right places and at the appropriate levels. Click here to learn more about Intermark Automotive’s Digital Marketing services.
by Shea Posey, Senior Account Executive/Compliance & Co-op Specialist