A recent article in Radio and Television Business Report contained a recent analysis by BIAS regarding advertising on radio. According to the article:
“Some operators are growing concerned over slowing Automotive ad spend in 2024. However, the sector is poised for a strong rebound in 2025 as auto brands return to capitalize on AM/FM. That’s according to BIA Advisory Services.”
BIA Managing partner Rick Ducey noted that the dip in auto spending is due in large part to ads being crowded out by political advertising. According to the article:
“Ducey explained that the automotive sector, particularly local spending, has decreased by about 2.3% this year. This decline is largely driven by the high volume of political ads, which are taking up a significant portion of ad inventory across all media, including radio. Although the auto industry has overcome many supply chain issues, and interest rate cuts are stimulating demand, political spending has crowded out much of the automotive ad space in 2024."
Nonetheless, despite the dip during a political year, Ducy predicted that automotive advertising would bounce back:
Despite this temporary dip, automotive advertising remains a major force, especially in digital. In 2024, total automotive ad spending is expected to reach $12 billion, with about 56.8% going toward digital media. Ducey highlighted the growing appeal of connected TV and over-the-top platforms for auto advertisers, with automotive ranking third among industries investing in Connected TV advertising.
The article is worth reading. The complete article in Radio and Television Business Report can be found here.