Auto Industry Digital Ad Spend Continues To Grow

According to a new eMarketer report, the U.S. auto industry accounts for the second largest share of digital ad spend in the country. In 2015, it is estimated that the auto industry will spend $7.30 billion on digital advertising, and will continue to grow, reaching $12.08 billion by 2019.

In eMarketer’s fourth annual edition of its “Digital Ad Spending Benchmarks By Industry” report series, the market research company estimates that overall digital ad spending in the U.S. will increase by 17.3 percent this year. While retail represents the largest digital ad spend, the auto industry is the second largest with an estimate that 12.5 percent of the overall digital ad dollars in the U.S. will be spent by the auto industry this year. The company estimates that the auto industry will experience faster-than-average growth rates over the next four years, with the expectation that by 2019, it will represent 13.2 percent of U.S. digital ad spending.

According to its report, eMarketer predicts that 60 percent of the auto industry spend will be on direct-response efforts. The research company found that the auto industry utilizes direct-response ads more than most others in the U.S., with only travel (72 percent), retail (65 percent) and financial services (62 percent) estimated to spend a greater share of digital outlays on ads that are designed to elicit a direct response as opposed to branding-oriented initiatives.

According to eMarketer’s estimates, mobile accounts for 47 percent of the auto industry digital ad spending, while just over half goes toward desktop advertising initiatives.

Victoria Petrock, principal analyst at eMarketer, noted that while digital ad expenditure continues to grow across all industries, “it is not one-size-fits-all.”

“Nuances among sectors reflect a variety of trends in the ways each industry approaches its market, targets consumers and closes sales,” said Petrock. “For 2015, mobile, digital video and programmatic buying are the brightest stars in the digital advertising lineup.”

The report by eMarketer is based on the analysis of hundreds of data sources as well as interviews with executives at ad agencies, brands and digital ad sellers.