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As people continue to switch from traditional TV to smart TVs and streaming devices, car companies are following suit, using connected TV (CTV) advertising campaigns to reach potential buyers. In this article, we discuss how advertising in the automotive industry is changing, including the shift from traditional automotive TV ads to automotive internet advertising, the benefits of automotive CTV advertising, and tips for making the most of ads in this new digital space.
Why Video Matters for Advertising in the Automotive Industry
Video matters for advertising in the automotive industry because it allows companies to show their cars in a way that’s visually engaging. This gives potential buyers the chance to see features in action, such as the car’s design, upgrades, and new technology. Videos can also create a connection with people by demonstrating scenes where the vehicle is the hero, helping people picture themselves as the owner. With the rise of CTV, video ads allow car companies to reach a broader audience through platforms like YouTube, Apple TV+, and Hulu, making it a great tool for driving brand awareness and influencing decisions from viewers.
Do Automotive TV Ads Work?
Automotive TV ads can be very effective, particularly for companies who want to increase their brand awareness. TV advertising allows car companies to create engaging content that shows their vehicles in action. These ads are usually centered around the driving experience and safety features while at the same time connecting with people through storytelling.
While traditional TV ads can work well for large-scale awareness campaigns, the shift to Connected TV (CTV) has added new advantages. With CTV, brands can serve their ads to specific demographics, retarget users based on their online behavior, and measure performance more accurately. Automotive TV ads, especially when used alongside other digital strategies, are becoming a popular way to influence consumer decisions.
The Benefits of Automotive Internet Advertising
According to surveys, car buyers spend 59 percent of their time researching vehicles online. In response, car companies are increasingly turning to automotive CTV advertising as a way to reach these car buyers. Here, we break down a few of the benefits of automotive internet advertising as well as how they impact companies who choose to run these types of campaigns.
Interactive Ads
For companies advertising in the automotive industry, shoppable ads have changed the game. These ads allow viewers to engage directly with the ad by customizing their vehicle, exploring features, scheduling test drives from their smart TV, and more. They also tend to give users a more memorable experience than traditional ads, which can shorten the path to a sale.
Targeted Advertising
Automotive internet advertising allows car brands to use targeting to reach specific audiences. This means companies can break their viewers down by demographics like age, income, and even their interest in luxury or eco-friendly vehicles. Instead of running traditional automotive TV ads, which are broad and untargeted, car companies can serve ads that are tailored to viewers who are thinking about buying a car right now. Using this strategy can make ad campaigns more effective.
Cost Efficiency
Automotive CTV advertising allows auto marketers to bid for ad space in real time, targeting specific viewers who are actively looking to purchase a car while keeping ad costs reasonable. This helps make sure auto brands are reaching the best customers and improves their return on investment.
Better Storytelling with Video
CTV platforms allow car companies to create beautiful, engaging video content. This can include vehicle walkthroughs, customer testimonials, or stories that show what it feels like to own the car. This type of video storytelling gives car companies more freedom to advertise their values, vehicle technology, and design, which can attract buyers.
High Engagement
With digital automotive TV ads, advertisers can measure ad engagement in real time, including clicks, views, and conversion rates. By tracking metrics, auto brands can optimize their campaigns in real time, making sure that their money is being spent effectively.
Benefits for Local Dealerships
Advertising in the automotive industry is notoriously expensive, and it used to be that local dealerships had a hard time affording the cost of traditional automotive TV ads. With CTV, local car dealerships can target potential buyers within their area at a reasonable cost. Dealerships can also run tailored offers such as limited time promotions or financing deals, which often work well with people in their local markets, further increasing their return on investment.
The Best Features for Automotive CTV Advertising
Automotive companies can take advantage of CTV features to attract customers in new ways. Here, we break down some best features for automotive CTV advertising.
Targeted Ads
CTV platforms allow advertisers to segment audiences by age, income, location, and even search history, which means ads are only served to people who fit the profile of a likely buyer. This ability to target specific audiences is one of the most powerful features of automotive CTV advertising.
Personalize Ads
CTV platforms allow car companies to personalize their ads based on who is viewing them. For example, they may show different car models, features, or offers to different audience segments. This can improve engagement and drive higher sales.
Local Campaigns
CTV allows car companies to target specific geographic areas, helping dealerships connect with people who live nearby. Car companies are using this feature to run more regional ads with localized offers or incentives to drive people to their showrooms.
Video Vehicle Launches
CTV ads can build excitement around a new car launch, generating buzz that leads to preorders and test drives. Some car brands are using CTV campaigns for new vehicle releases, using video ads to introduce the car’s design.
Learn More About Automotive CTV Advertising with CTV Blueprint
CTV allows car brands to reach specific audiences based on their demographics, location, interests, and even online behavior, helping their ads find potential buyers who are in the market for a vehicle. With interactive elements like clickable links or integrated dealership locators, CTV ads can also drive viewers directly to websites, allowing them to schedule test drives or explore financing options. To learn more about advertising in the automotive industry, contact CTV Blueprint today.
