As we enter the fall season, outside events like football season, the election cycle, and the holiday shopping rush are creating a significant impact on advertising. The pressure on traditional digital media has become even more intense. Prices are rising, and ad space is limited. But while many advertisers are competing for attention through traditional TV and digital channels, dealerships have an opportunity to stand out by leveraging Connected TV (CTV).
In the first week of the 2023 NFL season, automotive companies spent over $85 million on TV advertising alone (tvb.org/news). This enormous spending highlights how crucial this season is for the industry. But what if your dealership could get the same or better reach, at a fraction of the cost, with a more targeted strategy?
Why buy the hour when you can buy the audience?
Traditional and cable television advertising is built on buying time slots during programs you hope your target audience is watching. It’s a broad strategy, and it’s expensive. You’re paying for the chance that enough people interested in your product are watching a specific program at a certain time.
Connected TV (CTV) works differently. Instead of paying for time, you’re paying for the specific audience, regardless of what program they’re watching. This means you’re not bound to any single event or show. You can reach in-market shoppers whenever and wherever they’re streaming content.
Here’s the big difference: while national TV ads reach a wide audience, CTV delivers your dealership’s ads to those actively in-market for a new vehicle. These ads follow the audience, not the program.
The Election and Holiday Season Impact on Advertising
Election season and the holidays bring increased competition for digital ad space, driving up costs across all channels—not just traditional TV but also platforms like Facebook, Instagram, and Google. Prices are inflated, and the available ad space is limited, meaning your budget doesn’t go as far as it normally would. projected to hit a record $12 billion during the 2024 election cycle, with a substantial portion—156% higher than the last cycle—going towards digital platforms (Strike Social, Marketron Broadcast Solutions).
The more advertisers that pile on, the more expensive these platforms become, especially during key times like election cycles.
But Connected TV isn’t subject to the same crowding. With CTV, your dealership can bypass inflated digital ad costs and reach a targeted audience on streaming platforms without competing with political ads. You don’t need to fight for attention in a cluttered space—your message is delivered directly to viewers who are actually interested in buying a car.
How Can Dealerships Use Connected TV to Benefit from National and Regional OEM TV Ad Spending?
OEMs spend huge amounts of money on national and regional TV ads during events like football season, election cycles, and the holidays. But while the OEMs may generate overall brand awareness, your dealership can step in and take advantage of these advertising efforts by using Connected TV.
Here’s how:
Follow-Up with Local Offers: While OEMs spend on national TV spots, your dealership can use CTV to follow up on that awareness with localized ads. You can target your specific region with offers that encourage viewers to visit your dealership, rather than just knowing the brand.
Reinforce Brand Awareness with Targeted Ads: OEMs often focus on building broad brand recognition. With CTV, you can target local buyers who have already seen those national ads but are closer to making a purchase decision. You can present the specific vehicle models they’re interested in, with local dealership incentives attached.
Extend the Reach: While national TV ads are focused on one-time events, CTV allows you to extend your reach by targeting viewers continuously as they stream content. Instead of relying on one costly event, you can be in front of your audience repeatedly as they watch their favorite shows.
Why CTV Is the Smart Choice for Dealerships in Election and Holiday Seasons?
Targeting In-Market Shoppers: Traditional advertising is like casting a wide net. CTV allows you to narrow that net, ensuring your ads reach people who are actually interested in buying a car. This is especially valuable when competing with the influx of political and holiday ads.
Cost-Effective Advertising: When traditional TV and digital media are crowded and expensive, CTV offers a cost-effective alternative. You pay only for the ads that reach your specific audience, not for broad, untargeted exposure.
Stretch Your OEM Co-op Funds: Many dealerships are already using OEM co-op funds for CTV. This allows you to stretch your budget further by offsetting your CTV costs. With co-op dollars, your dealership can run more ads, more often, without the strain of additional out-of-pocket expenses.
The Stats Speak for Themselves
Consider this: In 2024, Connected TV (CTV) ad spending is expected to surpass $29 billion, specifically projected to reach $23.23 billion, which represents a 16.8% year-over-year growth from 2023. This surge highlights the growing adoption and effectiveness of CTV as more businesses, including those in the automotive industry, shift to more targeted advertising on streaming platforms. This continued growth is fueled by the rise in consumer time spent on streaming platforms and the superior targeting capabilities CTV provides, compared to traditional TV (eMarketer).
Consumers are also spending more time on Connected TV, with adults in the U.S. expected to spend around 123 minutes per day with CTV in 2024, putting it ahead of desktop and laptop use (eMarketer). This shift in viewing habits makes CTV a prime channel for reaching potential car buyers, especially as traditional digital platforms face crowded ad space and rising costs during peak times like the holiday season and election cycles.
Is it Time to Make the Shift?
As we move through football season, the election cycle, and the holiday rush, dealership advertising space is going to get more competitive—and more expensive. But with AET Automotive Streaming Studio, you have a tool that allows you to reach your customers where they are: in their living rooms, on their streaming devices, and on their terms. Why settle for traditional TV’s inflated prices when you can connect directly with in-market shoppers?
It’s time to buy the audience, not the hour. Let AET Streaming Studio help you take advantage of the season, drive in-market shoppers to your dealership, and deliver real results.
Are you ready to shift your strategy and start winning with Connected TV?
