The data on lead response isn’t a guideline; it’s the rulebook for a winner-take-all competition. The trust in virtual experiences is now so strong that 64% of buyers are willing to skip a physical test drive if a high-quality 360° video is available . According to Think with Google, three-quarters of auto shoppers say video content impacts their choice .

Most third-party websites also offer comparisons between multiple cars so shoppers can evaluate options. Therefore, they’re increasing digital ad spends, reaching more leads. Dealerships are taking note of the changing ‘online to offline’ customer journey. Gen Z buyers are clearly more comfortable taking the buyer journey online than any other demographic. In fact, 28% of millennials have searched for automotive information online in the past 30 days. And another 24% did their research both online and offline (at the dealership).

Fullpath campaigns within Google and Facebook utilize Smart Bidding strategies. Fullpath builds audiences using advanced targeting techniques so that only the most relevant and likely to convert users see your ads. https://www.escolacontinental.com.br/difference-between-revenue-profit-and-income-with/ Fullpath does all three so as a dealer you could forgo an agency not just because you can run media, but also because Fullpath automatically generates creatives and is built around coverage strategies. It is what drives us to pursue excellence and innovation in our products to support our dealer clients in achieving their goals through the power of data and AI. The AI identifies and prioritizes high-performing ads with zero manual interference. Fullpath optimizes your ads around the clock, reallocating budgets and retargeting audiences.

The Modern Car Buyer: A Data-Driven Look at the Digital Research Journey

The numbers reveal a startling truth about where dealership profits originate. It stands as the most powerful engine for generating profit and ensuring customer retention. Often overlooked, the service department is the financial backbone of the modern dealership.

81% of car shoppers use smartphones for price comparisons, influencing 40% of final purchases. Video content on automotive websites increased conversion rates by 80% for luxury car brands in 2022. 56% of buyers test-drove 3+ vehicles before purchase in 2023. A great customer experience is no longer a simple perk; it is a premium product that buyers are actively willing to purchase. Service campaigns achieve a 12.61% conversion rate, giving them a 2.2x advantage over the 5.72% rate for vehicle sales campaigns . The efficiency of service marketing isn’t just better than sales marketing; it’s in a different league.

Influence of Branded AppsCustomers using branded apps are 73% more likely to buy from the dealership and schedule 25% more service appointments. New Vehicle Sales ProjectionsNew vehicle sales are projected between 15.6 million and 16.3 million in 2025, a slight increase from 16 million in 2024. Digital Ad Spend GrowthAutomotive digital ad spend witnessed an 11.7% increase in 2023, indicating a continued upward trajectory in digital advertising investments. Effectiveness of Search AdsAutomotive-related search ads had the highest conversion rate of any industry in 2024, at 12.96%.

Drive Success With These Ten Must-Know Automotive Marketing Statistics

  • This has also influenced automotive businesses to adapt their processes.
  • The service department is the undisputed financial engine of a dealership, generating nearly half (49%) of all gross profit from just 12% of total revenue .
  • Buyers start their purchase journey by searching for information on their options through third-party websites.
  • Celebrity endorsements like Ryan Reynolds for Mint Mobile-Auto tie-ins lifted brand recall 55%.
  • Then, we’ll take a look at some of the major challenges facing the automotive industry and how companies can evolve to address these challenges.
  • Brands that treat calls as data-rich experiences will gain deeper consumer insights.

Print ads in magazines still captured 8% of budget, $2 billion in 2023. Global ad spend on TV for cars reached $12.5 billion in 2023, 22% of total budget. Senior Researcher specializing in consumer behavior and market trends. Ultimately, success in 2026 is a function of mastering a complex equation of speed, service, and digital fluency.

TOP AUTOMOTIVE MARKETING STATISTICS 2025 #13. Rise in EV Sales

This top-tier performance is paired with remarkable cost efficiency, making service marketing a significantly more profitable paid search activity than vehicle sales. As ad spend continues to rise in 2025, leading automotive marketers are taking a data-driven approach to their inbound calls. This trend also expands the role of remarketing campaigns targeting previous shoppers. In 2025, online used car marketplaces and dealership trade-in tools will be heavily promoted. Automotive made up 8.1% of total U.S. digital ad spend in 2021, and that share is expected to grow as brands chase online leads.

Even when leads are properly identified, a Foureyes report found that 43% of qualified leads are mishandled . Data from Invoca shows that 37% of leads are simply lost due to poor or nonexistent follow-up . This failure to respond quickly is compounded by broken internal processes that hemorrhage potential sales. A landmark study in the Harvard Business Review found that leads contacted within five minutes are up to 100 times more likely to convert than those contacted after 30 minutes .

Brands & consumer perspectives

Marketing-advertising-and-promotional-spending-to-revenue-ratio This strategy is bolstered by the unique Tesla ownership experience, innovative product launches, and mission-driven approach focusing on sustainability and the transition to electric vehicles. It’s pretty clear that they reach consumers and influencing purchasing decisions – just what you want your advertising to do! Vehicle wraps have been proven to be one of the most successful forms of business advertising available.

Audience Segmentation

  • This isn’t a side business; it’s a colossal market with incredible growth potential.
  • The efficiency of service marketing isn’t just better than sales marketing; it’s in a different league.
  • Brands must prioritize intuitive UX and data security to encourage downloads and retention.
  • Annually, the average dealership invests a substantial $528,923 to $543,539 in advertising .
  • From AI-powered insights to video-first campaigns, the strategies shaping 2025 are more personalized, data-driven, and customer-centric than ever.
  • Its success also suggests rising demand for voice data privacy and ethical AI use.
  • Buyers who share more detailed information don’t have to verify their information again at the dealership.

As the customer journey evolves, how can your business leave a mark in a competitive automotive sector? Today, they spend more time online on research than they do at dealerships. The share of car owners intending to purchase new cars registered a 3% year-on-year increase in 2023.

The ongoing trend of automotive advertising through digital channels, such as social media platforms, and online marketplaces to reach and engage consumers, particularly younger demographics, has further fueled the growth outlook of the automotive advertising market. Surge in social media influence & digital marketing for automotive advertising, along with the rise in number of automotive advertising agencies drive the growth of the automotive advertising market demand. In contrast, Ford and General Motors have historically invested substantial sums in traditional advertising methods, including television commercials, print ads, and digital marketing campaigns. In fact, 65% of automotive marketers say they are increasing their social media advertising spending this year. Thus, the presence of a large number of AI tools makes automotive marketing easier and offers improved customer engagement opportunities, which in turn drives the growth of the automotive advertising industry during the forecast period.

We’re in the midst of an electric vehicle revolution, so it’s no surprise that many automotive brands are leading the way here. Automotive search ads perform better than other industries when they reach the right audience of potential customers. In this blog post, we’ll explore https://truecovenantcb.com/a-complete-guide-to-days-inventory-outstanding-dio/ ten industry statistics that can shape your marketing efforts, providing practical tips to integrate these insights into your strategy. Region-wise, the automotive advertising market was dominated by North America in 2022 and is expected to retain its position during the forecast period.. Key 2026 auto marketing stats on digital spend, consumer research, lead response, channel ROI & AI. Since a car is an expensive and highly considered purchase, buyers prefer ask questions and get reassurance https://truecovenantcb.com/a-complete-guide-to-days-inventory-outstanding-dio/ from a human agent. Used vehicle marketing is no longer an afterthought—it’s a major channel for growth. Paid digital ads now drive around 38% of traffic to auto sites, showing how vital they are in the sales funnel.}

Autonomous Vehicle Rideshares US Adults Have Taken, Jan 2026

Marketers can now utilize AI advertising solutions to predict and deliver the ads that are most likely to increase engagement and conversions. Huge investments are needed to switch to electric car production, yet electric vehicles (EVs) are less profitable than gas vehicles (especially in the short term). It’s becoming harder to target and influence prospective auto shoppers due to shifts in data collection and consumer privacy. Consumers will likely decide on their vehicle prior to going to a dealership, if they even make the in-person visit.

Dealers can also instantly check the availability of the preferred car or its anticipated delivery time. Customers today understand that to receive personalised recommendations, they must share a certain amount of data. So, adding a personal touch makes the buyer happy and more likely to purchase from you. You can not only collect incoming lead data, but you can also track each lead throughout their journey.

It’s time to shift to better, more focused automotive marketing solutions. And one aspect of their digital marketing strategy that you can emulate is streamlining the omnichannel shopping experience. Collecting quality lead data continues to be a problem when automotive businesses don’t have the right system to validate leads. Yet, only 8% of automotive dealers completely trust lead data collected online. At the same time, 39.5% of car advertising statistics marketers believe that having more accurate data in their systems may improve their efforts.