Global Automotive Online Advertising Markets, 2019-2020 & Forecast to 2025: Influence of AI, ML, Voice Search, & DOH to Drive Future Markets

DUBLIN, Oct. 22, 2020 /PRNewswire/ -- The "Automotive Online Advertising Market - Forecast (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.

Global automotive online advertising market generated a value of $9,321.44 mn in 2019 and is estimated to reach $22,925.89 mn by 2025, growing at CAGR of 16.2% during the forecast period of 2020-2025.

Automotive consumers are becoming more and more demanding in what they want from the vehicle, requiring key features ranging from comfort and spaciousness to heated seats and push-button starts so dealers and manufacturers should focus on content based ads to target the consumers i.e. the media formats and locations used to promote the vehicles should mirror the values of innovation that drives the demand for green models by early tech adoption can inform more effective targeting of potential buyers.

Key Takeaways

• Programmatic advertising is attracting automotive advertisers with new technologies such as artificial intelligence, machine learning, voice search and digital out of home, hence driving the market growth in the coming years.
• Pre-roll advertisements comes in-built with internet browsers which is hindering the growth of the market.
• IoT technologies and services have transformed the marketing and advertising ecosystem of automobiles and are witnessing a steady influx of new advertising service providers.
• North America is the major region dominating the Automotive Online Advertising Market owing to the high rate of digital spending by the automotive companies and the presence of key players in the region.

Drivers - Automotive online advertising market

Growth of IoT Technology

IoT technologies and services have transformed the marketing and advertising ecosystem of automobiles and are witnessing a steady influx of new advertising service providers. The continuing evolution of the trends in advertising and its impact on customers are set to drive the market. The extensive use of IoT is set to generate leads. Inbound marketing and Outbound marketing is a way of informing prospective automotive customers about new automobile releases and newsletters.

It provides data and insights into new, unexplored markets and demographics and how they analyse and assess their efforts. This data information through IoT platform is used for customer relationship management and informing new product development. It can also be used to optimize advertisement marketing messages while potentially delivering them through new online channels.

Advertisements Put Out Through Video And Audio Streaming Platforms

Digital video advertising is a strategy that can work for any type of company; B2B or B2C, enterprise or SMB, high-tech or analog products. According to industry estimates, expenditure on mobile video advertisements and others advertisements are expected to skyrocket. OTT streaming video presents an opportunity to speak to an audience that is increasingly difficult to reach through traditional media channels.

It gives the users more intuitive content, customized to users' different preferences, more integration with dealer sites and inventory search functions, compare additional options within an automaker's product line. Automotive advertisements are often aired through streaming platforms such as YouTube, Spotify, Hulu and others where there are copious amount of users from which there would be prospective buyers.

Challenges - Automotive online advertising market

Possibility Of Ignorance Or Avoidance Of Advertisements

Most of the individuals prefer an undisturbed content viewing process and often skip or ignore any form of advertisements. Pre-roll advertisements have been set up in few content viewing platforms which have helped in tackling the challenge to an extent. This unavoidable circumstance have given rise to software such as Ad blockers or Ad filters that are capable of removing any form of advertisement from any website. These software/application comes in-built with internet browsers which is hindering the growth of the market. Moreover, some users feel that online advertisements may contain malicious codes that spread malware and poses threat to the files on their computer or device. These factors have been acting as a hindrance for the growth of Automotive Online Advertising Market.

Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the automotive online advertising market. Automotive online advertising market is expected to be dominated by major companies such as CMB Automotive Marketing Ltd., WDA Automotive Marketing, Digital Throttle, P.Ten Marketing, Make & Model, Limelight Digital, R6 Digital, DBC2, Modix, Zerolight, Amzon.com Inc., Facebook Inc., Google Inc., Microsoft Corp., Cox enterprises Inc., Edmunds and Bobit Business Media among others.

Acquisitions/Technology Launches/Partnerships

• In June 2020, -Sincro, an Ansira company, and Facebook announced a partnership that introduces Sincro as an automotive vendor on Facebook's partner integrations platform to offer vehicle catalogs to auto dealers. As a result, dealers are now able to request a vehicle catalog from Sincro directly from their Facebook Business Manager, streamlining the process of creating Automotive Inventory Ads.
• In February 2018, Cars.com Inc. announced that it has entered into a definitive agreement to acquire privately-held Dealer Inspire and Launch Digital Marketing, market-leading technology companies that provide digital solutions to automotive dealers, for $165 million in cash at closing with potential additional consideration based on future performance. Cars.com will supplement Dealer Inspire's and LDM's sales of innovative dealer technologies by integrating and distributing relevant digital solutions through the Company's sales network for the benefit of its more than 20,000 dealer customers nationwide.

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