The global automotive advertising market is projected to hit $57.2 billion by 2030 as electric-vehicle competition and the shift to digital marketing drive manufacturers and dealerships to intensify efforts to attract buyers and strengthen brand recognition.

IndustryARC forecasts a compound annual growth rate of 12.8 per cent between 2024 and 2030, reflecting the growing importance of advertising amid technological innovation, changing consumer expectations and competition between established automakers and new entrants.

Other research firms also anticipate growth, although their estimates differ. Allied Market Research valued the market at $18.5 billion in 2022 and projects it will reach $48 billion by 2032, at a 10.2 per cent annual growth rate. Similarly, KBV Research estimates $42 billion by 2031, representing a compound annual growth rate of 10 per cent.

A major driver is the transition to electric vehicles (EVs). Established manufacturers must convince consumers that their brands can compete in the electric mobility era, while newer entrants need to build awareness, establish credibility and convert interest into purchases.

Consequently, advertising has become essential to both groups. Traditional automakers must promote changing product portfolios and communicate their relevance to consumers exploring electric mobility. Meanwhile, newer manufacturers must develop distinctive identities and earn consumer confidence in markets dominated by established automotive names.

Dentsu’s 2024 global advertising forecast anticipated a 3.6 per cent increase in automotive advertising expenditure that year, driven by competition for EV market share. As supply-chain constraints eased, some manufacturers also faced greater pressure to sell available vehicles, making marketing more important for stimulating demand and strengthening brand consideration.

Digital platforms are transforming how automotive companies allocate advertising budgets. Beyond television, radio, print and outdoor displays, manufacturers and dealerships are investing in search advertising, social media, online video, streaming services and automotive marketplaces. This shift reflects how consumers research vehicles, compare models and explore purchase options before visiting dealerships or completing transactions.

Artificial intelligence is accelerating the transformation. Through data analytics, machine learning and AI-enabled tools, automotive marketers can identify audience preferences, improve targeting, personalise messages and assess campaign performance. Additionally, programmatic advertising helps companies direct advertisements towards selected audiences and allocate budgets more efficiently.

IndustryARC cites MediaRadar data showing that more than 9,300 businesses spent money advertising 13,400 models, brands or product lines in 2023, highlighting the intense competition for consumer attention.

Beyond conventional digital channels, connected vehicles are opening new opportunities for personalised engagement. Internet-enabled vehicles and advanced infotainment systems could allow advertisers to deliver relevant information, location-based offers and nearby service recommendations. However, responsible data use and relevant messaging remain important as these formats expand.

Regionally, North America dominated the market in 2023, accounting for 41.5 per cent, according to IndustryARC. High vehicle ownership, established manufacturers, developed digital infrastructure and substantial investment in data-led marketing support the region’s position. The United States accounted for the largest national contribution within North America, with automakers increasingly using consumer data to refine targeting, personalise campaigns and monitor performance.

Elsewhere, Asia-Pacific and Europe remain important growth centres. Rising vehicle demand, manufacturing activity and expanding electric mobility, particularly in China, are creating opportunities for automotive advertisers. Nevertheless, companies must adapt their messages to varying consumer preferences and competitive conditions across these markets.

IndustryARC’s market assessment covers online and offline advertising, including search and display ads, social media, video, influencer marketing, television, radio, print, billboards, promotions and events. Its competitive landscape includes Google, Meta, Cox Automotive, CarGurus, TrueCar, Cars.com, Edmunds, eBay Motors and Amazon.

In September 2024, digital advertising company Invibes Advertising introduced products designed specifically for the automotive sector, according to IndustryARC. The products aimed to improve engagement and brand awareness while incorporating sustainability considerations.

Overall, electrification, digital media, data analytics and new consumer engagement opportunities are reshaping automotive advertising. For manufacturers and dealerships, the challenge extends beyond showcasing vehicles to communicating product value, building brand preference and reaching buyers across multiple channels.

As competition intensifies, advertisers that combine relevant messaging, effective targeting and measurable campaign performance will be better positioned to win consumer attention in the global automotive market.