Automotive to Spend $15.1 Billion on Local Ads

RADIO ONLINE | Tuesday, May 12, 2015

In its latest vertical industry report, "Insights into Local Advertising -- Automotive Vertical," BIA/Kelsey estimates automotive organizations will spend more than $15.1 billion on local advertising in 2015, representing 11.1% of the $137.9 billion total local ad market. Of this amount, 77% is expected to be allocated to traditional media, including radio -- which is expecect to receive an 11.6% share.

"The auto industry and television came of age together as keystones of twentieth-century American culture," said BIA/Kelsey Senior VP/Chief Economist Dr. Mark Fratrik. "The two industries remain closely tied, with the auto industry being dependent on over-the-air television advertising, and all auto vertical subcategories relying heavily on traditional media to get their message to their audience."

BIA/Kelsey estimates 33.9% of local automotive ad budgets is spent on over-the-air television, and another 1.7% on TV online advertising. In addition to the heavy use of television, newspaper (14.7 percent), online (12%) and over-the-air radio (11.6%) account for meaningful traditional market shares in automotive local ad spending.

"Despite traditional media's dominance in the current automotive marketing mix, digital advertising is on the rise, and will represent nearly one-third of automotive local ad spending by 2019," added Dr. Fratrik.