The advertising investment of car brands will grow around 0.8% in 2019, 1.5% less compared to 2018, according to the first Zenith study “Automotive Advertising Expenditure Forecasts”, published yesterday. Car brands expect 2019 to be a difficult year as they face continued tension in trade relations – especially between the US and China – and the possible imposition of tariffs on the import of cars into the US. making it more expensive for manufacturers to purchase raw materials and parts, as well as to sell outside their borders. Zenith therefore forecasts 2% growth in 2020, when the Summer Olympics in Tokyo and the UEFA Euro 2020 football championship will become the most effective showcases for car advertising.Automotive advertising is underperforming the overall advertising market, which is growing by 4% annually. New technologies and the changing needs of consumers represent a fundamental challenge for the way in which the automotive industry conducts its business. The incorporation of green fuels, new connected technologies and new ownership models, as well as the use of new digital channels with which to reach potential buyers online, will be key to accelerating the growth of brands in the coming years.We conducted our first survey, exclusively on automotive advertising, in 14 key markets globally *, based on our accredited “Advertising Expenditure Forecasts” studies, which we have published for 31 years. We estimate that the total advertising investment in the automotive sector reached 35.5 billion dollars in these markets throughout 2018.The US is by far the largest automotive market in this report, with $ 18 billion invested in advertising during 2018, almost three times more than China, nextlargest market, with 6.3 billion dollars. Ad spend by car brands in the US has declined steadily since 2012, declining 12% between 2012 and 2018. Meanwhile, auto ad spend in China grew by 47% over the same period. The fastest growing market is India, where we expect automotive ad spend to increase an average of 12.8% annually through 2020.Television dominates automotive advertising, but internet advertising is growing rapidlyMore than 50% of all automotive advertising spend goes to television -54.9% in 2018, well above the global average of 32.9% in all categories. Television continues to be the best channel to transmit emotional images of brands and maintain them over time. However, the continued decline in conventional television ratings in more developed markets has raised the price of the remaining audience.
This means that brands are now diversifying their advertising investment in online video China WhatsApp Number List and other digital formats. We estimate that the share of car advertising investment on television will fall from 54.9% in 2018 to 54.4% in 2019 and, subsequently, to 53.1% in 2020.Car brands have been gradually changing their budget towards online advertising, which includes advertising in all online video services offered by television – such as content through the Internet. Car brands are slightly behind the market when it comes to investing in digital advertising, with just 20.9% of their budget online in 2018, compared to the global average of 40.6%. The fact that vehicle sales take place almost exclusively offline makes it more difficult for car brands to optimize conversion from their online activity than it is for brands in most other categories.
The consumer now conducts much of their searches and reflections on car brands online, so it is important to maintain a strong presence in that channel to reach consumers in this key phase, prior to purchase. We estimate that the online share of advertising investment in the automotive sector will increase by 24.4% by 2020.Except for the printed media, which continue to suffer a continuous decrease in their runs, the rest of the traditional media are holding up quite well in terms of advertising investment in the automotive sector. We estimate that radio, cinema and abroad will maintain their share of car advertising between 2018 and 2020. Radio, which many consumers listen to in their car, works especially well for these brands, attracting 7.2% of the world’s advertising. automotive sector compared to 6.0% of advertising investment of the rest of the categories worldwide.
The brand automobile s face new challenges in communication Auto brands face the same pressure as other industries when they tackle transforming the way they communicate with consumers and display their paid advertising. But they also face new challenges. Rapidly growing consumer demand for SUVs has created much greater competition between suppliers. This means that advertisers must target potential SUV buyers more effectively, and analyze the ROI of their advertising more rigorously, both by channel and by model. Meanwhile, government intervention and consumer demand are forcing brands to invest in green technology and impact, with values linked to innovation, on consumers who