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.
The category includes auto dealers, other vehicle dealers, including those selling motorcycles and RVs, auto parts and accessory stores, tire dealers and gas stations.
While BIA/Kelsey SVP and Chief Economist Dr. Mark Fratrik said the auto industry and television “came of age” together and the two are closely tied, radio is part of the advertising mix too.
There are approximately 17,600 new vehicle auto dealers in the United States. BIA/Kelsey projects the average auto dealer will spend more than $640,000 on local advertising this year.
Some 11.6% of local automotive advertising budgets is spent on over-the-air radio. That compares to 33.9% for TV, 14.7% for newspaper and 12% for online. Some 1.7% is spent on TV online ads.
While traditional media dominates now, digital advertising is on the rise and will represent nearly a third of automotive local ad spend by 2019, according to Fratrik.
Pure online advertising, consisting primarily of search, is the largest digital automotive channel. BIA/Kelsey projects all growth in local advertising for the automotive vertical category will occur on online/digital media, reaching 30% of total local advertising by 2019, up from 12% in 2015.
The predictions are part of BIA/Kelsey’s latest report “Insights into Local Advertising — Automotive Vertical,” available for purchase.
