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Automotive Will Spend $16.3 Billion on Local Advertising in 2017

by | Sep 6, 2017 | BIA, Blog, Local Advertising Forecast, SAM, SMBs, Verticals

BIA/Kelsey’s newest report Insights into Local Advertising — Automotive Vertical examines local media spending trends and consumer media usage habits in the automotive category. “Technology and consumers shifting shopping behaviors have had a large impact on the auto industry, even for repair shops, gas stations and tire companies. While digital (especially mobile and targeted media) continue to grow in share of auto spend, 38% of total local market spend in 2021, traditional channels continue to be the foundation of omni-channel marketing. Video is becoming more important than ever for car shoppers along their purchase and maintenance of their autos.” — Celine Matthiessen, Vice President, Analysis & Insights

You can read an excerpt from the report’s executive summary below.

Excerpt from the Executive Summary

The automotive vertical, as defined by the U.S. government, represents an estimated $16.3 billion of local advertising spending in 2017. It consists of five subcategories:

  1. Auto dealers & manufacturers
  2. Other motor vehicle dealers
  3. Auto parts & accessory stores
  4. Tire dealers
  5. Gas stations & auto repair

Auto dealers and manufacturers constitute the largest subcategory of automotive ad spending. Dealers and manufacturers are projected to spend $12.06 billion on local advertising in the U.S. during 2017.

This advertising spend represents nearly 75 percent of the defined vertical and should be a focus of media and platform companies’ automotive activity.

There are approximately 16,708 new vehicle auto dealers in the United States. NADA reports the average auto dealer selling domestic brands has upped ad spending only 1.5 percent to $244,835 this year. The average car dealers spend 8.2 percent of gross on advertising.


The full Insights into Local Advertising — Automotive Vertical report is now available in the BIA ADVantage dashboard, and is available for purchase in our estore. You can download a complimentary copy of the full executive summary from the estore as well.