Auto Ad Spend Soaring, but It's Selective and Focused

Spend has been up has been up every week since the trough of April 20 when it was down 61 percent and is now down a modest 23 percent year over year quotIt39s an improving picture much less catastrophicquot Krizelman said Among the companies increasing their spending dramatically are Toyota General Motors Nissan and Subaru Also up is spending by auto insurance companies parts suppliers and repair chains The latter in fact shows a 12 percent increase over 2019 year over yearNow the interesting part SUVs and pickups have been as much as 70 percent of the total US auto market but as the advertising spending rachets up again the money devoted to off roaders doesn39t quite reflect that dominance quotThe SUV spending isn39t recovering at the same pacequot Krizelman said quotBut pickup advertising is almost back to normalquotSpending on sedans was at 6 million in the US during the first week of July which may mean a 25 million month The slower recovery of SUVs has to be put in context however because the spending on them was still 20 million for the week of June 20 three and a half times what it is for the aforementioned sedans quotBut relative to where it was last year it39s further offquot Krizelman said The fourweek moving average ending the week of June 22 was down 28 million year over year down 59 percentPickups are almost back to normal too with spending of about 3 million the week of June 20 This could reflect a lot of deferred construction projects coming back on line and the industry seeing a rampedup demand The industry as a whole saw a lot of pentup demand for vehicles and advertising helps the companies grab a share of that return to showroomsJeremy Anspach CEO of PureCars said back in midJune that auto dealer advertising was already almost back to previrus levels From June 8 to June 14 advertising was up compared to the previous week on YouTube 206 percent Google search 81 percent and Bing 23 percent It was down on Facebook 21 percent Waze 32 percent and DoubleClick 96 percentAs I documented here Americans are getting very interested in RVs and motorhomes as a way to safely escape quarantine Ad spend for RVs is up by a factor of 11 ie more than 1000 percent What had been a very predictable industry is now in uncharted waters Look at the graph below from Google Trends DataAnd this same interest is reflected in the actual content of all the auto advertising It39s focused on getting out and seeing America taking a safe vacation You know where your car39s been which can39t be said of share cars from Lyft and Uber planes or public transit RVs offer the added benefit of carrying their own bathroom Here39s one of those car ads quotLet39s Road Tripquot from Kia quotIt39s time to reclaim the road tripquot says Kia quotIt may be a while until we can see America from 35000 feet but the view from six feet is even betterquotThe outlook for increased auto advertising is fairly bright especially if televised sports via the NFL NBA NHL and maybe even MLB with or without an audience comes back quotThere will be more places to market carsquot said KrizelmanWithout sports March and April weren39t great US auto spending on TV fell between 55 and 70 percent in late March and April says iSpot which tracks national TV adsClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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Auto Ad Spend Soaring, but It's Selective and Focused

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Jim Motavalli

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

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Auto Ad Spend Soaring, but It's Selective and Focused

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Jim Motavalli

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

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