The Global Automotive Advertising Market size is expected to reach $42 billion by 2031, rising at a market growth of 10.0% CAGR during the forecast period.
North America, particularly the United States, is home to a significant portion of the global automotive sector. Thus, the North America region acquired 37.5% revenue share in the market 2023. Major automotive manufacturers, including General Motors, Ford, and Chrysler, alongside numerous international brands, have a substantial presence in the region. This strong automotive industry drives considerable advertising investment as brands compete for consumer attention and market share. Thus, these factors can lead to increased demand in the segment.
The surge of digital platforms, social media channels, and online marketing tools has ushered in a new era of advertising for automotive brands. In this dynamic landscape, automotive advertisers are harnessing the power of cutting-edge technologies such as data analytics, artificial intelligence (AI), and machine learning algorithms to revolutionize their marketing strategies.
Additionally, by fostering emotional connections and tapping into shared values, advertisers can cultivate brand loyalty and advocacy and foster long-term customer relationships that transcend mere transactions. In an era where consumers are inundated with advertising messages, the power of storytelling lies in its ability to cut through the clutter, engage audiences on a personal level, and leave an indelible mark on their hearts and minds.
However, advertisers operating in the automotive sector are subject to a variety of advertising standards and regulations imposed by governmental and industry bodies. These standards dictate the content, format, and presentation of advertisements to ensure they are truthful, accurate, and not misleading to consumers. Consumer protection laws are designed to safeguard consumers from deceptive or unfair advertising practices. Thus, these aspects can lead to reduced demand in the coming years.
North America, particularly the United States, is home to a significant portion of the global automotive sector. Thus, the North America region acquired 37.5% revenue share in the market 2023. Major automotive manufacturers, including General Motors, Ford, and Chrysler, alongside numerous international brands, have a substantial presence in the region. This strong automotive industry drives considerable advertising investment as brands compete for consumer attention and market share. Thus, these factors can lead to increased demand in the segment.
The surge of digital platforms, social media channels, and online marketing tools has ushered in a new era of advertising for automotive brands. In this dynamic landscape, automotive advertisers are harnessing the power of cutting-edge technologies such as data analytics, artificial intelligence (AI), and machine learning algorithms to revolutionize their marketing strategies.
Additionally, by fostering emotional connections and tapping into shared values, advertisers can cultivate brand loyalty and advocacy and foster long-term customer relationships that transcend mere transactions. In an era where consumers are inundated with advertising messages, the power of storytelling lies in its ability to cut through the clutter, engage audiences on a personal level, and leave an indelible mark on their hearts and minds.
However, advertisers operating in the automotive sector are subject to a variety of advertising standards and regulations imposed by governmental and industry bodies. These standards dictate the content, format, and presentation of advertisements to ensure they are truthful, accurate, and not misleading to consumers. Consumer protection laws are designed to safeguard consumers from deceptive or unfair advertising practices. Thus, these aspects can lead to reduced demand in the coming years.
Type Outlook
Based on type, the market is segmented into location-independent advertising and location-based advertising. In 2023, the location-based advertising segment garnered 63.8% revenue share in the market. The proliferation of mobile devices and smartphones has enabled the proliferation of location-based advertising.End-Use Outlook
Based on end-user, the market is divided into automotive groups, automotive dealerships, and others. In 2023, the automotive dealerships segment witnessed 30.6% revenue share in the market. To maintain visibility and stay top-of-mind among potential buyers, automotive dealerships invest in high-frequency advertising campaigns.
Product Outlook
On the basis of the product, the market is divided into online advertising, traditional media, pre-roll advertisements, and others. In 2023, the traditional media segment witnessed 41.8% revenue share in the market. Traditional media channels, including television, radio, print, and outdoor advertising, have long been mainstays of automotive advertising, offering broad reach and brand visibility to mass audiences.Regional Outlook
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe segment acquired 26.1% revenue share in the market. Europe boasts a multifaceted media environment that incorporates conventional advertising channels (e.g., print, radio, television, and outdoor) alongside digital platforms.Recent Strategies Deployed in the Market
- Jan-2024: Omnicom Group Inc. took over Flywheel Digital Limited, a suite of digital commerce solutions. Under this acquisition, Flywheel will be integrated with Omnicom's offerings across retail and brand media, digital and in-store commerce, as well as precision marketing. Additionally, Flywheel Commerce Cloud will allow Omnicom to offer its clients unmatched insights and analytics.
- Jan-2023: Force Marketing launched Audience IQ, a full-scale customer data platform (CDP). The product is designed to enable auto dealer groups to enhance their customers’ experiences and increase marketing effectiveness and advertising return on investment. Additionally, the Audience IQ is designed for automotive customers to enhance customer lifetime value in automotive, transforming the brand-to-consumer experience with enhanced communications.
- Mar-2021: Force Marketing completed the acquisition of GSM Acquisition Corp. (GS Marketing), an automotive marketing company. Through this acquisition, GSM will add fixed-ops marketing capabilities for parts and service departments to Force Marketing's existing suite of variable-ops solutions for dealership vehicle sales.
List of Key Companies Profiled
- Meta Platforms, Inc. (Meta)
- Microsoft Corporation
- Google LLC (Alphabet Inc.)
- Force Marketing
- Omnicom Group Inc.
- CMB Automotive Marketing Limited
- Highervisibility, LLC
- Visarc Limited
- Social Media 55
- Adpearance, Inc.
Market Report Segmentation
By Type
- Location Independent Advertising
- Location-Based Advertising
By End-User
- Automotive Groups
- Automotive Dealerships
- Others
By Product
- Traditional Media
- Online Advertising
- Pre-Roll Advertisements
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Global Automotive Advertising Market by Type
Chapter 5. Global Automotive Advertising Market by End-User
Chapter 6. Global Automotive Advertising Market by Product
Chapter 7. Global Automotive Advertising Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Meta Platforms, Inc. (Meta)
- Microsoft Corporation
- Google LLC (Alphabet Inc.)
- Force Marketing
- Omnicom Group Inc.
- CMB Automotive Marketing Limited
- Highervisibility, LLC
- Visarc Limited
- Social Media 55
- Adpearance, Inc.
Methodology
LOADING...
