Automotive Advertising Market Expected to Reach $48.0 Billion by 2032

According to a new report published by Allied Market Research, titled, “Automotive Advertising Market," The market size of automotive advertising industry was valued at $18.5 billion in 2022, and is estimated to garner $48.0 billion by 2032, growing at a CAGR of 10.2% from 2023 to 2032.

Automotive marketing is referred to as a strategy for promoting automotive products and services to potential and existing consumer base. This mode of advertising includes traditional advertising, such as radio, television, print, and traditional media, as well as digital marketing channels, including website, social media, email marketing, and search engine advertising. Further, automotive advertising is defined as a promotional activity and campaign that is typically performed by automotive manufacturers, dealers, and related businesses to promote their products and services. It includes a range of marketing tactics and channels targeted at increasing brand awareness, driving consideration, and eventually influencing purchasing decisions within the automotive sector.

Increasing penetration of social media and digital marketing for automotive advertising, coupled with the growing number of automotive advertising agencies are some of the factors expected to contribute to driving the market growth. Further, the rise in awareness of particular models and focused brand awareness are expected to propel market growth. However, the huge cost of innovative advertisements, along with the fierce market competition among advertising agencies is likely to hamper the growth of this market. On the other hand, the increasing adoption of AI tools for an automotive marketing strategy is projected to deliver lucrative opportunities for the expansion of the market over the forecast period.

Furthermore, the shift toward digitalization and online shopping alters automotive advertising channels and strategies. Numerous automotive brands invest in digital advertising platforms, social media marketing, and e-commerce initiatives to involve consumers throughout their purchasing journey and drive online sales. For instance, in July 2023, Accenture collaborated with Smart Europe to develop its data-driven, direct-to-consumer (DTC) business model in Europe. These companies often aim to generate easier and more personalized car shopping experiences. Implementing the direct sales model including an entirely digital-driven buying experience where the consumer selects the journey and data offering a significant personalization. These significant developments have increased worldwide growth prospects for the automotive advertising market.

In addition, with an increasing level of market competition among automotive brands, automakers have placed their focus on organizing marketing campaigns to promote digital experiences across the customer base. For instance, in July 2023, Skoda Auto India introduced its new concept – “Let’s Explore”, with a high-impact marketing campaign, “Make every KM count.” This development is a part of the company’s larger brand strategy that started in 2022 with the debut of the Vision 7S design study and the announcement of the new logo. Such developments and innovations are projected to contribute toward the market expansion.

However, the big limiting factor for this market growth is the budget constraint, as advertising and marketing costs in the automotive sector are substantial but finite, which requires careful allocation and prioritization of resources. Increase in return on investment and efficiency while managing costs presents a considerable risk for automotive advertisers, which in turn obstructs market growth. Moreover, the growth of markets might be slowed down due to compliance with stringent regulations and advertising standards that add complexities to advertising campaigns, especially in the global market, and poses a threat to market vendors

Region-wise, the automotive advertising market was dominated by North America in 2022 and is expected to retain its position during the forecast period, owing to the diverse consumer preference and demand for automobiles, along with the rising focus of automotive advertisers to promote alternative mobility solutions or positioning brands in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the growing rate of vehicle ownership in Central and Southern Asia, along with the rise in technological innovation in the automotive industry, particularly in electric vehicles and autonomous driving, across the Asia-Pacific region.

The automotive advertising market is segmented into type, product, end user, and region. Depending on type, it is categorized into location-independent advertising and location-based advertising. On the basis of product, it is divided into online advertising, traditional media, pre-roll advertisements, and others. By end user, it is fragmented into automotive groups, automotive dealerships, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Key Findings of the Study

• On the basis of type, the location-based advertising segment is anticipated to exhibit significant growth in the automotive advertising industry in the near future.
• By product, the pre-roll advertisements segment is projected to exhibit significant growth in the market during the forecast period.
• By end user, the automotive groups segment is predicted to exhibit significant growth in the market in the predicted years.
• By Region, North America is anticipated to register the highest CAGR during the forecast period.

Key players covered in the automotive advertising market report include Adpearance, Inc., CMB Automotive Marketing Limited, Force Marketing, Google LLC by Alphabet Inc., HigherVisibility, Microsoft Corporation, Meta Platforms, Inc., Omnicom Group Inc., Social Media 55, and Visarc.