Automotive Businesses To Spend $15.1 Billion On Local Advertising In 2015
Radio Expected To Gather 11.6%
May 12, 2015 at 6:47 AM (PT)
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 advertising market. Of this amount, 77% is expected to be allocated to traditional media -- largely TV, but including radio.
“The auto industry and television came of age together as keystones of twentieth-century American culture,” said Dr. MARK FRATRIK, SVP/Chief Economist. “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 advertising 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%), 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.