The automotive industry is one of the largest and most competitive industries in the world. Automotive marketers need to constantly adapt to the latest trends and developments to remain competitive and successful. In this blog post, we will explore automotive marketing statistics that demonstrate the growing importance and impact of marketing in the automotive industry.
Key Automotive Marketing Statistics 2023 – MY Choice
- Hyundai conducted research into where sales happen in the automotive industry. They found that 95% of all purchases made happen at the dealership.
- In 2021, automotive accounted for 8.1% of all US digital ad spend. We know that paid spend drives around 38% of traffic on average so competition is fierce. As such, the automotive industry will represent a large portion of marketing spend in the US, and likely other divisions too.
- Automotive consumers visit an average of 4.2 websites in their purchasing process. And, they’ll often use multiple devices throughout this process.
- In the last two years, the watch time of “test drive” videos on YouTube has grown by more than 65%. This highlights the key role of social and long-form content.
- Auto shoppers use digital to start their customer journey. Think with Google found that 95% of vehicle buyers use digital channels as a source of information. And that, in fact, twice more start their research online as opposed to in the dealership.
Automotive Marketing Stats
Automotive Marketers Will Invest More in Digital Ads in 2023
|Automotive digital ad spend increase in 2022||13.7%|
|Automotive digital ad spend increase expected in 2023||11.7%|
|Automotive as percentage of all retail sales in 2023||23%|
|Potential car buyers who know the exact vehicle they want to purchase||1 in 3|
|Average cost for an automotive lead||$250|
Many Vehicle Shoppers Researching Online Make First Contact by Calling
|New and used vehicle shoppers who contact dealership by calling after a search||61%|
|Automotive calls generated by search engines that come from paid search||66%|
|Consumers searching for vehicles on mobile who would call the dealership from a call extension||60%|
|Consumers who call about vehicles from a search ad call extension to schedule an appointment||57%|
|Total calls to dealerships that result in an appointment||31.6%|
The Automotive Consumer Journey Often Begins Online
|Vehicle buyers who use digital as a source of information||95%|
|Automotive consumers who start research online vs at dealer||2x|
|New and used vehicle shoppers who run a search before buying||76%|
|Automotive consumers who visit an average of 4.2 websites in purchasing process||N/A|
|Automotive shoppers who spend 33% of their research time on a mobile device||N/A|
|Watch time growth of “test drive” videos on YouTube in the past 2 years||65%|
|Car buyers who spend an average of nearly 14 hours online during their search||N/A|
Automotive Marketing Spend
Automotive companies invest heavily in marketing to promote their products and services.
- The global automotive advertising market is expected to reach $35.7 billion by 2025.
- In 2019, automotive companies spent an estimated $49 billion on advertising.
- Digital advertising accounts for approximately 50% of automotive advertising spend.
Automotive Consumer Behavior
Understanding consumer behavior is essential for automotive marketers.
- 67% of car buyers start their search online.
- The average car buyer spends 59% of their time researching online.
- Car buyers visit an average of 2.3 dealerships before making a purchase.
Automotive Digital Marketing
Digital marketing is becoming increasingly important for automotive companies.
- Automotive companies are expected to spend $14.1 billion on digital advertising in 2020.
- 75% of car buyers say that online research has influenced their purchasing decision.
- Social media is the top online source for car buyers, with 61% using social media to research vehicles.
Automotive Search Engine Optimization (SEO)
SEO is critical for automotive companies to ensure their websites rank highly in search engine results pages (SERPs).
- The top 3 organic search results receive approximately 75% of clicks.
- Automotive-related searches on Google have increased 80% in the past 5 years.
- 80% of car buyers use search engines to research vehicles.
Automotive Content Marketing
Content marketing is an effective way for automotive companies to engage with their audience and provide valuable information.
- 70% of consumers prefer getting to know a company via articles rather than ads.
- Content marketing generates 3 times as many leads as traditional marketing.
- Automotive content with video receives 157% more organic traffic from search engines.
Automotive Video Marketing
Video marketing is becoming increasingly popular for automotive companies.
- Video content accounts for 80% of all internet traffic.
- Videos on social media generate 1200% more shares than text and image content combined.
- 84% of consumers say that they have been convinced to buy a car after watching a video.
Automotive Email Marketing
Email marketing is an effective way to reach and engage with potential customers.
- Email marketing has an average ROI of 122%.
- Personalized emails have a 29% higher open rate and 41% higher click-through rate.
- Automotive email campaigns have an average open rate of 21.84%.
Automotive Mobile Marketing
Mobile marketing is essential for automotive companies to reach consumers on-the-go.
- 48% of car buyers use their mobile devices to research vehicles.
- Automotive-related searches on mobile devices have increased 51% in the past year.
- 70% of car buyers who use mobile devices to research vehicles end up visiting a dealership.
Automotive Social Media Marketing
Social media marketing is an effective way for automotive companies to engage with their audience and promote their products and services.
- Automotive companies spend an average of $460,000 per year on social media marketing.
- Facebook is the most popular social media platform for automotive companies, with 92% of them using the platform.
- Social media advertising for automotive companies has an average cost-per-click (CPC) of $1.32.
Automotive Influencer Marketing
Influencer marketing is becoming increasingly popular for automotive companies to reach younger audiences.
- 63% of consumers trust influencers more than brands.
- The automotive industry is the second largest industry for influencer marketing, behind only fashion.
- Automotive influencer marketing campaigns have an average engagement rate of 3.21%.
Automotive Customer Reviews
Customer reviews are an important part of the automotive buying process.
- 84% of car buyers say that online reviews influence their purchasing decision.
- 94% of car buyers would consider buying from a dealership with a 4-star rating or higher.
- Dealerships with positive reviews receive 32% more traffic to their website.
The above automotive marketing statistics demonstrate the significant impact and importance of marketing in the automotive industry. Automotive companies need to constantly adapt to the latest trends and developments to remain competitive and successful.
By investing in digital marketing, SEO, content marketing, video marketing, email marketing, mobile marketing, social media marketing, influencer marketing, and customer reviews, automotive companies can engage with their audience, promote their products and services, and drive sales.