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As consumers continue to move away from traditional TV in favor of smart TVs and streaming devices, advertisers are following suit, turning to connected TV (CTV) advertising in 2024. The automotive industry in particular has emerged as one of the biggest adopters of this type of advertising, and more car brands than ever are using CTV to reach potential buyers.
In this article, we’ll break down automotive CTV stats for 2024, why CTV for auto is rising in popularity, and the future of CTV auto trends.
Automotive CTV Stats
CTV ad spend in the automotive sector grew by over 24 percent in 2023 and is expected to continue rising through 2024. This increase reflects the adoption of CTV platforms as one of the main marketing channels for car companies who want to reach customers through digital ads.
Part of this rise can be attributed to the success of CTV campaigns themselves. Automotive ads on CTV have been shown to achieve engagement rates up to 25 percent higher than traditional TV ads. Additionally, CTV offers more personalized ad formats, making it easier for companies to capture viewers and encourage them to take action, such as scheduling a test drive or learning more about a vehicle.
According to PR Newswire, 75 percent of car buyers would prefer to purchase a new car with a mix of digital and in-person elements, and 72 percent of auto buyers reported that they were influenced by digital video, including CTV, during the car-buying process. This highlights the importance of video-driven storytelling in guiding buyers through research stages, making CTV an important tool for auto brands.
Additionally, according to the same survey, 87 percent of consumers use multiple devices while researching cars, often engaging with the same auto brand across various platforms. This draws attention to the importance of integration across devices for car marketers, as consumers often switch between devices when making big purchases like cars.
Nearly all auto dealers (87 percent) indicate that digital retailing solutions such as CTV have had a positive impact on at least one area of their business, reducing time spent, improving efficiency, and also benefiting sales, profits, and relationships with customers. As time goes on, more and more dealers are investing in CTV ads due to their ability to target niche audiences, making their advertising campaigns more efficient and cost-effective.
Why CTV for Auto Is Rising in Popularity
The automotive industry is increasingly turning to CTV as a tool for reaching potential car buyers, and there are many reasons why. Here, we break down a few of the CTV auto trends we’ve been seeing in the industry, as well as why these trends matter and their impact on advertising for cars.
Targeted Advertising
CTV allows car brands to use data-driven targeting to reach specific audiences. This includes demographics like age, income, and even interest in luxury or eco-friendly vehicles. Instead of broad, untargeted TV ads, car manufacturers can serve ads that are tailored to viewers who are thinking about buying a car right now, making campaigns more effective.
Interactive Ads
Shoppable CTV ads allow viewers to engage directly with the ad by customizing their vehicle, exploring features, scheduling test drives from their smart TV, and more. These ads give users a better experience, shortening the path to conversion. Consumers can also explore vehicles in-depth without leaving their homes, increasing the likelihood of engagement.
Better Storytelling with Video
CTV platforms allow brands to create longer, more engaging video content than traditional TV ads. This can include vehicle walkthroughs, customer testimonials, or stories. Storytelling gives automakers more freedom to showcase their values, vehicle technology, and design, which can attract buyers.
High Engagement
With CTV for auto, advertisers can measure ad engagement in real time, including clicks, views, and conversion rates. The ability to track metrics means auto brands can optimize campaigns on the fly, ensuring their marketing dollars are spent effectively.
Cost Efficiency
Programmatic ad buying enables automakers to bid for ad space in real time, targeting the right viewers at the right time while keeping ad costs in check. This helps make sure auto brands are reaching the best customers, maximizing return on investment.
Benefits for Local Dealerships
Local car dealerships can use CTV to target potential buyers within their area and drive foot traffic. Dealerships can reach audiences with tailored offers such as limited-time promotions or financing deals, which resonate with consumers in their local markets.
CTV Auto Trends in 2024
Automotive companies are taking advantage of CTV trends to attract customers in new ways. Here, we break down some of the trends we’ve seen in automotive CTV ads in 2024.
Hyper-Targeted Ads
One of the most popular CTV trends of 2024 is using data-driven targeting to reach potential buyers based on their specific interests and behaviors. CTV platforms can segment audiences by age, income, location, and even search history and car companies are using this feature to serve ads to people who fit the profile of a likely buyer.
Personalized Ads
In 2024, many car companies are using dynamic ad insertion to personalize creatives based on viewer preferences. For example, they may show different car models, features, or promotional offers to different audience segments. This can improve both engagement and purchase intent.
Promoting New Vehicle Launches
Some car brands are launching CTV campaigns for new vehicle releases, using video ads to introduce the car’s design, technology, and performance features. CTV ads can build excitement around a new model, generating buzz that leads to preorders and test drives.
Local Campaigns
In 2024, car companies are running more regional ads that feature localized offers, promotions, or incentives to drive traffic to their showrooms. CTV allows car companies to target specific geographic areas, helping dealerships connect with people who live nearby.
Partner with Influencers
One of the emerging CTV trends we’ve seen in 2024 is that car companies are partnering with influencers to create branded content that can be distributed via CTV. Influencers can share their experiences with the vehicle, showcasing it to their audience in an authentic way. Influencer-driven content tends to feel more organic, which can build trust for people who like to see others share their real-world experiences.
Learn More About CTV Trends with CTV Blueprint
CTV is becoming a main strategy used by car dealerships in 2024, transforming the way vehicles are marketed and sold. To learn more about running connected TV ad platforms for the auto industry, contact CTV Blueprint today.
