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Reading: Ad Spend In Auto Sector Up 8%, With Electric Vehicle Media Spend Up Sevenfold
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B&T > Advertising > Ad Spend In Auto Sector Up 8%, With Electric Vehicle Media Spend Up Sevenfold
Advertising

Ad Spend In Auto Sector Up 8%, With Electric Vehicle Media Spend Up Sevenfold

Staff Writers
Published on: 20th August 2024 at 9:17 AM
Edited by Staff Writers
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Rose Lopreiato, Nielsen Ad Intel’s Australia commercial lead.
Rose Lopreiato, Nielsen Ad Intel’s Australia commercial lead.
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Australia’s automotive industry has seen an 8 per cent year-on-year increase in ad spend for the sector, topping $690 million for FY 2024, Nielsen data revealed. Electric vehicle media spend was up sevenfold since 2021.

Nielsen’s most recent Ad Intel and Consumer and Media View (CMV) showed that the increase in automotive advertising was driven by strong investment from the sector’s key players. It was reflected by the list of top 10 ad spenders for the auto sector for FY 2024: Toyota, Hyundai, Mitsubishi, Kia, Nissan, Volkswagen, BMW, Mazda, American Special Vehicles, Isuzu UTE.

Additionally, Nielsen CMV data showed a growing consumer interest in electric vehicles (EVs) with 985,000 Australians of driving age saying the next car they buy will likely be electric – a 4.2 per cent increase over the last 12 months.

These changing consumer preferences are reflected in the media spend, with ads in the EV sector jumping from $8.2 million in FY 2021 to $66.5 million in FY 2024 – an increase of 711 per cent – bookending the exponential growth of $25.2 million in FY 2022 and $57 million in FY 2023.

The top five electric car models by ad spend in Australia for FY 2024 were Kia EV9, Toyota BZ4X, Nissan X-Trail SUV, Polestar 2, and Kia EV6 GT.

“In today’s highly competitive automotive market, understanding where and how your competitors are investing in advertising is crucial. With the rapid rise of EVs, the shifting media landscape, and the influx of new players contributing to the overall increase in the sector’s ad investment, having a clear view of competitor advertising spend and media allocation enables them to make informed decisions, optimise their strategies, and gain a competitive edge, regardless of whether they’re in the top 10 or not,” said Rose Lopreiato, Nielsen Ad Intel’s Australia commercial lead.

“Nielsen Ad Intel provides the transparency needed to do that, enabling brands to stay ahead in this rapidly evolving and complex industry”.

“As the automotive industry ramps up ad spend, especially on EVs, the need for precise and actionable insights has never been greater. The rise in both consumer interest and ad spend in the market highlights the need for advanced analytics tools, like Nielsen CMV, which provides the kind of quality data the market is crying out for, particularly when it comes to ensuring auto brands connect with their desired consumers at a time of massive change,” said Glenn Channell, Nielsen’s pacific head of advanced analytics.

In terms of media channels, the automotive sector’s advertising spend for FY 2024 was split across metro TV (33 per cent), general display (20 per cent), regional TV (12 per cent), radio (12 per cent), social media (9 per cent), out of home (9 per cent), print (4 per cent), and cinema (1 per cent).

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Fredrika Stigell
By Fredrika Stigell
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Fredrika Stigell is a journalist at B&T with a focus on all things culture. Fredrika is also completing a Master of Archaeology, focusing on Indigenous rock art and historical artefacts in Kakadu National Park. Previously, she worked at a heritage company helping to organise storage collections for Sydney historical artefacts. Fredrika majored in English during her Bachelor's and is an avid reader with a particular interest in 19th and 20th century literary fiction.

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