Auto Advertising: Incl Impact of COVID-19 - US - October 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Report scope
COVID-19: Market context
EXECUTIVE SUMMARY 
Top takeaways 
Market overview 
Impact of COVID-19 on automotive advertising
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
Figure 2: Perceptions of recently seen display ads, July 2020
As advertising evolves, TV ads remain important
Figure 3: Most recently seen auto ad, July 2020
Car buyers want (and get) information
Figure 4: Top types of enjoyable ads, July 2020
Communicate vehicle specs, details and discounts
Figure 5: Desired auto advertising content, July 2020
THE MARKET – KEY TAKEAWAYS
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
Spending on digital automotive advertising
Figure 6: Monthly digital automotive advertising spend, January 2017-September 2020
Impact of COVID-19 on automotive advertising
Impact on spend
Impact on creative
Figure 7: Monthly digital auto advertising spend, by channel, January-December 2019
Figure 8: Monthly digital auto advertising spend, by channel, January-September 2020
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 
Vehicle sales won’t recover until unemployment rates do
Figure 10: Unemployment and underemployment, January 2007- September 2020
Consumers continue to lack optimism in the economy
Figure 11: Consumer Sentiment Index, January 2007-September 2020
MARKET OPPORTUNITIES 
A third of car buyers use ads as research
Figure 12: Consumers who seek out auto ads, by purchase intent, July 2020
More US households could become two-car homes
Figure 13: Vehicle ownership, July 2020
Opportunity to create more used car content
Figure 14: Desired used car content, by purchase intent, July 2020
COVID-19 hasn’t affected long-term purchase intent
Figure 15: Vehicle ownership, July 2020
COMPETITIVE STRATEGIES – KEY TAKEAWAYS 
Successful auto campaigns understand what drives consumers 
COMPETITIVE STRATEGIES
Key challenge: differentiation
Mintel Global Trend Drivers
Experiences
Nostalgia: Jeep Grand Wagoneer
Figure 16: Jeep, Rearview, August 2020
Adventure: Kia’s “Let’s Road Trip”
Figure 17: Roper Kia – Let’s Road Trip, July 2020
Identity
Community: Ford domestic production
Figure 18: Ford, Built for America: The Connection, May 2020
Rights
Protection: Honda’s “Safety for Everyone”
Figure 19: Honda, Safety for Everyone, September 2019
THE CONSUMER – KEY TAKEAWAYS  
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
TV trumps all other forms of recognized ad content
Figure 20: Most recently seen auto ad, July 2020
Auto ads fail to resonate with a third of older consumers
Figure 21: Most recently seen auto ad, by age, July 2020
Auto ads effectively target short-term car buyers
Figure 22: Most recently seen auto ad, by purchase intent, July 2020
Consumers recall video streaming ads more than social media ads
Figure 23: Toyota Facebook ad, February 2020
Figure 24: Reach of streaming and social media news feed ads, by age, July 2020
INFLUENCE OF AUTO ADS
Auto ads aren’t effectively influencing purchase decisions
Figure 25: Honda, Desktop ad, May 2020
Figure 26: Volkswagen, Desktop ad, July 2020
Figure 27: Influence of recently seen auto ads, July 2020
Timing and content can affect brand and vehicle consideration 
Figure 28: Influence of recently seen auto ads, by purchase intent, July 2020
TV ads might be popular, but they’re also ineffective
Figure 29: Effectiveness of ads, by channel, July 2020
PERCEPTIONS OF AUTO ADS
Overall, automotive ads are functional
Figure 30: Perceptions of recently seen ads, by type of ad, July 2020
Display ads are helpful and informative, but lack influence
Figure 31: The Ridge Wallet LLC, Desktop display ad, May 2020
Figure 32: Perceptions of recently seen display ads, July 2020
Wanted: enjoyable content
Figure 33: Perceptions of recently seen ads – creative, entertaining or interactive, July 2020
Campaign spotlight: Hyundai “Smaht Pahk”
AUTO ADVERTISING CONTENT
Information is a top request
Figure 34: Top types of enjoyable ads, July 2020
Young consumers want a laugh out of auto ads
Figure 35: Humor as a component of an auto ad, by generation, July 2020
Auto ads should focus on vehicle specs, details and discounts
Figure 36: Desired auto advertising content, July 2020
Holiday car ads fall flat with consumers
Figure 37: Perceptions of themed advertising content, July 2020
Car buyers are done hearing about COVID-19
Figure 38: Perceptions of recently seen display ads, July 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations