Dublin, Oct. 15, 2020 (GLOBE NEWSWIRE) -- 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.
Automotive online advertising market Type - Segment Analysis
The Automotive online advertising market is segmented into direct and programmatic by type. By Type, Programmatic segment held the major share in 2019 and is estimated to grow at a fastest CAGR of 17.6% during the forecast period 2020-2025. Programmatic advertising is attracting automotive advertisers with new technologies such as artificial intelligence, machine learning, voice search and digital out of home. Programmatic online advertising is enhancing the automotive advertisers to buy digital space. Programmatic online advertising allows the advertisers to serve the right advertisement creative, at the right time to the right leads.
With programmatic advertising automotive advertisers can capture the search data of consumer and serves the right content to those potential buyers. Programmatic advertising allowed the automotive advertisers to focus on more strategic areas of their client accounts by automating most of the management and bidding process. Data matched with programmatic sales is key for the automotive advertisers to strengthen relationship with brands in a more strategic manner. Applied data by programmatic advertising allows automotive advertisers to identify what really engages an audience , detect areas where improvement can be applied and more effective ways of targeting audience such as social platforms.
Format - Segment Analysis
By Format, the search engine marketing segment dominated the automotive online advertising market in 2019 and is estimated to grow at a CAGR of 11.9% during the forecast period. However, Social Media Influencer Advertising segment by format is estimated to grow with the fastest CAGR of 25.1% during the forecast period 2020-2025. This is owing to the increasing time spent in video platforms and it focuses on impression-based buying with the increase in online viewing across multiple devices. The use of extensive keyword lists power unique SEM campaigns, and each keyword produces a targeted ad that generates solid leads for dealership.
Automotive SEM campaigns are ideal for the competitive automotive industry for several reasons, including: Dealership Customization, Measurable Results, Increased Online Presence. In 2020, Automotive SEM depends on the recent data as today's consumers are obsessed with research. This primarily affects PPC for auto dealers, instead of SEM. But, this search trend is important to understand for either channel because of the increasing need to understand proper attribution.
Geography - Segment Analysis
North America is the major region dominating the Automotive Online Advertising Market with revenue of $2592.66 mn in 2019 and is expected to grow at a CAGR of 13.9% during the forecast period of 2020-2025 to generate a revenue of $5649.40 mn in 2025. U.S. in North America region is dominating the Automotive Online Advertising Market generating a revenue of $2129.17 mn in 2019.
This is owing to the high rate of digital spending by the automotive companies present in the region and the presence of key players in the country. Rapidly increasing internet penetration and expansion of digital content have made digital advertising in North America a multi-billion-dollar industry. Automotive marketers know that more shoppers are turning to the internet to do their research.
Rapidly increasing internet penetration and expansion of digital content have made digital advertising in North America a multi-billion-dollar industry. Moreover, the rise of OTT video platform viewership that includes digital TV is enhancing the automakers to increase spending on this type of platform for online advertisement. Automotive marketers know that more shoppers are turning to the internet to do their research. Instead of visiting multiple dealerships to compare brands, buyers can now compare brands, models, colors, and prices on multiple online sites.
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.
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.
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