Car brands invest more in television than the global average: it continues to be key to building the brand of mass audiences, also in Spain with 52% investment in TV.Automotive ad spend is projected to decline by around 21% in 2020 in the 10 key markets, according to Zenith’s “Automotive Advertising Expenditure Forecasts” released today *. This decline is two and a half times faster than the decline in the advertising market as a whole in those markets.The spread of the new Coronavirus and its effect on the global economy have left consumers uncertain about their financial future and unwilling to commit to large purchases. Automakers have also suffered disruptions in their supply chains, as lockdowns shuttered factories in different countries at different times. Faced with pressure on supply and demand, car brands slashed their advertising budgets as the severity of the crisis became apparent. April and May were the months of greatest decline in most markets.
Since then, the year-on-year declines have eased and Zenith expects them to gradually moderate during the rest of the year.However, global advertising investment in the automotive sector will exceed market growth in both 2021 and 2022, with an estimated rise of 10.5% in 2021 and 11.4% in 2022. Initially, the big drop in 2020 will facilitate comparison in 2021 The delay in purchasing decisions and the persistent reluctance to use public transport and shared transport mean that the first growth in car sales is expected since 2017, thus driving a sustained growth in the advertising of the automotive sector between now and 2022 .Global automotive ad spend in 2022 will remain below its level in 2019Despite the speed of recovery in 2021 and 2022, automotive advertising spend is forecast to be 2.8% lower in 2022 than in 2019.
It will have regained less lost ground than the global advertising market as a whole, of which USA Email List It is forecast to be just 0.6% below its 2019 level in 2022, giving automotive advertising the potential to outperform the market beyond 2022.Car brands lag behind the market in digital Digital advertising is the most important channel for car brands globally, although the media mix of the automotive sector is less digital than that of the market as a whole. Car brands invested 42% of their budgets in digital media in 2019, while the global media mix is 49% in digital. Car brands also have a lower investment weight in magazines and abroad.Television is the second largest medium for automobile advertisers, who spend substantially more on television (32%) than the average (27%). Television remains a key platform for mass audience branding, although premium digital environments are beginning to take on that role for some audiences.
Car advertisers are also investing more in film, which is good for brand building among young and relatively well-off audiences, and in radio, a particularly relevant medium given that much of radio listening takes place in the car.Car brands also invest substantially more in newspapers (11%) than the average (7%). This is mainly due to two markets, Germany and India, where newspapers still have a great reach in targets with a high socio-economic and educational level and the capacity of the printed medium is used to convey more detailed information, such as brand values, specifications. and accessories.But digital advertising is the only medium that is expected to grow Zenith predicts that digital will be the only medium in which car brands invest more in 2022 than in 2019.
Brands will focus more on premium digital video to offset declining prime-time television ratings and make better use of your customer data to target digital advertising more effectively. Even before the pandemic, digital media was becoming more important in the purchasing decision process, and the pandemic has only accelerated that trend. Zenith expects this situation to continue for years to come. Auto brands are projected to invest 9% more in digital media in 2022 than in 2019.Newspapers and magazines have been losing share in the media mix for years as their readers migrated to online, and it is projected that by 2022 they will barely recoup some of the ad revenue they lost in 2020.
Press ad spend will be 27% lower in 2022 than in 2019 and in magazines it will be 28% lower. However, exterior and cinema are expected to rebound strongly in 2021 and 2022 from the steep losses caused by social distancing restrictions. Even so, advertising investment in automobiles is expected to decrease by around 10% net between 2019 and 2022 abroad, while in cinema it will decrease by 16%.Television and radio will continue to be relevant media for advertising in the automotive sector, with relatively moderate drops of 6% and 7% respectively between 2019 and 2022.Australia and Canada pioneers in automotive digital marketing Australia and Canada are the most advanced markets in digital advertising for the automotive sector, each dedicat