A new report from Borrell & Associates says the challenges automotive dealers are facing with inventory shortages will not negatively impact overall advertising. However, radio will not be the beneficiary of ad growth in the category, according to the report.
Borrell is forecasting that after a 15% increase in overall automotive advertising in 2021, local dealer advertising will increase 8.8% in 2022 to $9.4 billion.
After seeing a 21.4% increase in 2021, to $444.4 million, the category will decline for radio over the next four years if Borrell’s projections come true. For 2022 Borrell is forecasting a drop of 4.8% in automotive spending, to $422.9 million, followed by a decline of 8.6% in 2023, another drop of 6.2% in 2024 and a decline 10.6% in 2025. Back in 2020 the category was off by 27%, to $366.1 million from $501.3 million in 2019, according to Borrell’s stats.
So where will the ad money be going in 2022?
Streaming Video/OTT will jump 20%, after a 35.7% increase in 2021. Borrell says that by 2023 automotive dealers will spend $1.9 billion on OTT, more than they’ll spend on paid search. Borrell is also projecting a 20% increase in spending on Streaming Audio and podcasting for 2022. Targeted banners will also be up double digits.
