Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on automotive advertising
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on auto advertising, October 2020
- Challenges and Opportunities
- Car buyers are ready to move past COVID-19
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- Figure 2: Perceptions of recently seen display ads, July 2020
- As advertising evolves, TV ads remain important
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- Figure 3: Most recently seen auto ad, July 2020
- Car buyers want (and get) information
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- Figure 4: Top types of enjoyable ads, July 2020
- Communicate vehicle specs, details and discounts
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- Figure 5: Desired auto advertising content, July 2020
The Market – Key Takeaways
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- COVID causes OEMs to hit pause on digital ad spend
- Consumers maintain their long-term purchase intent
- Automakers can convince consumers to become multi-car households
Auto Advertising Landscape
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- Spending on digital automotive advertising
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- Figure 6: Monthly digital automotive advertising spend, January 2017-September 2020
- Impact of COVID-19 on automotive advertising
- Impact on spend
- Impact on creative
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- Figure 7: Monthly digital auto advertising spend, by channel, January-December 2019
- Figure 8: Monthly digital auto advertising spend, by channel, January-September 2020
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- Figure 9: Short-, medium- and long-term impact of COVID-19 on auto advertising, October 2020
- Lockdown
- Re-emergence
- Recovery
- Learnings from the last recession
Market Factors
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- Vehicle sales won’t recover until unemployment rates do
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- Figure 10: Unemployment and underemployment, January 2007- September 2020
- Consumers continue to lack optimism in the economy
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- Figure 11: Consumer Sentiment Index, January 2007-September 2020
Market Opportunities
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- A third of car buyers use ads as research
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- Figure 12: Consumers who seek out auto ads, by purchase intent, July 2020
- More US households could become two-car homes
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- Figure 13: Vehicle ownership, July 2020
- Opportunity to create more used car content
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- Figure 14: Desired used car content, by purchase intent, July 2020
- COVID-19 hasn’t affected long-term purchase intent
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- Figure 15: Vehicle ownership, July 2020
Competitive Strategies – Key Takeaways
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- Successful auto campaigns understand what drives consumers
Competitive Strategies
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- Key challenge: differentiation
- Mintel Global Trend Drivers
- Experiences
- Nostalgia: Jeep Grand Wagoneer
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- Figure 16: Jeep, Rearview, August 2020
- Adventure: Kia’s “Let’s Road Trip”
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- Figure 17: Roper Kia – Let’s Road Trip, July 2020
- Identity
- Community: Ford domestic production
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- Figure 18: Ford, Built for America: The Connection, May 2020
- Rights
- Protection: Honda’s “Safety for Everyone”
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- Figure 19: Honda, Safety for Everyone, September 2019
The Consumer – Key Takeaways
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- TV ads are the most recalled kind of auto advertisement
- Auto ads fail to influence consumers’ purchase decisions
- Consumers have lukewarm feelings toward auto advertisements
- Consumers are burnt out on COVID car commercials
Auto Advertising Recall
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- TV trumps all other forms of recognized ad content
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- Figure 20: Most recently seen auto ad, July 2020
- Auto ads fail to resonate with a third of older consumers
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- Figure 21: Most recently seen auto ad, by age, July 2020
- Auto ads effectively target short-term car buyers
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- Figure 22: Most recently seen auto ad, by purchase intent, July 2020
- Consumers recall video streaming ads more than social media ads
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- Figure 23: Toyota Facebook ad, February 2020
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- Figure 24: Reach of streaming and social media news feed ads, by age, July 2020
Influence of Auto Ads
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- Auto ads aren’t effectively influencing purchase decisions
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- Figure 25: Honda, Desktop ad, May 2020
- Figure 26: Volkswagen, Desktop ad, July 2020
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- Figure 27: Influence of recently seen auto ads, July 2020
- Timing and content can affect brand and vehicle consideration
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- Figure 28: Influence of recently seen auto ads, by purchase intent, July 2020
- TV ads might be popular, but they’re also ineffective
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- Figure 29: Effectiveness of ads, by channel, July 2020
Perceptions of Auto Ads
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- Overall, automotive ads are functional
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- Figure 30: Perceptions of recently seen ads, by type of ad, July 2020
- Display ads are helpful and informative, but lack influence
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- Figure 31: The Ridge Wallet LLC, Desktop display ad, May 2020
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- Figure 32: Perceptions of recently seen display ads, July 2020
- Wanted: enjoyable content
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- Figure 33: Perceptions of recently seen ads – creative, entertaining or interactive, July 2020
- Campaign spotlight: Hyundai “Smaht Pahk”
Auto Advertising Content
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- Information is a top request
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- Figure 34: Top types of enjoyable ads, July 2020
- Young consumers want a laugh out of auto ads
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- Figure 35: Humor as a component of an auto ad, by generation, July 2020
- Auto ads should focus on vehicle specs, details and discounts
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- Figure 36: Desired auto advertising content, July 2020
- Holiday car ads fall flat with consumers
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- Figure 37: Perceptions of themed advertising content, July 2020
- Car buyers are done hearing about COVID-19
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- Figure 38: Perceptions of recently seen display ads, July 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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