Australia’s automotive market broke all-time records for new vehicle sales in 2023. Over 1.2 million cars were sold, with Toyota, Ford and Mazda alone making up around 30 per cent of those sales. During the same period, car manufacturers accelerated their advertising spend investing $661 million on advertising – over $60 million more than 2022, writes Richard Wheeler, head of sales for Samsung Ads ANZ.
Connected TV (CTV) has become one of the most powerful ways to drive sales in the automotive market. From economical, mass-produced cars to low-volume electric and luxury vehicles, CTV has the advertising capabilities to benefit both ends of the spectrum.
Discover your designated driver
Aussies spend an average of $37,362 on a new car, according to Canstar Blue’s latest survey. Leveraging CTV’s reach to drive mass awareness of affordable, household car brands has become a key part of many advertisers’ Total TV strategy — especially in today’s streaming-first landscape.
On the other side of the coin, however, high-value, low-volume luxury cars have a much smaller pool of potential purchasers. By tapping into CTV’s data-driven audience insights, luxury vehicle brands can boost their marketing power by tailoring ads to reach the right buyers, including households who have already been exposed to their linear advertising. This approach not only maximises campaign impact through increased relevance and targetability but also ensures advertisers are getting the most out of their advertising budget
Cruise ahead of the competitors
According to a recent study by carsales.com.au and Ipsos, the average consumer journey — from deciding to buy a new car to ownership — is currently 5.7 months. The first two months, known as ‘landscape’, is the initial active phase in the auto purchasing journey. About 29 per cent of respondents express a need to be inspired during this time, with 23 per cent being more driven by feeling than thinking. CTV enables brands to connect with viewers from diverse backgrounds, occupations, ages and more, ensuring key advertising messages resonate far and wide, without the risk of under- or over-exposure.
What’s more, CTV can target audiences who have been exposed to competitor advertising, enabling brands to retarget these consumers across the entire TV landscape.
A race to the ‘unreachables’
Being able to identify target audiences is a big piece of the advertising puzzle – but getting in front of them is not always as straightforward. While it is critical for brands to be visible during the active consideration phase, ongoing brand awareness and share-of-voice is important to ensure brands remain top of mind.
In the first half of 2023, Samsung Smart TV owners who were considering purchasing a premium vehicle spent 70 per cent of their total TV hours in streaming environments, and over half of this time (61 per cent) was within SVOD platforms. With such a large segment opting for TV experiences with no or reduced ads they have become one of the most ‘unreachable’ audiences.
Connecting with these viewers the moment they switch on their TV – before they head into their ad-free environments – is key. One of the more effective means of doing that is through first screen native ads on CTV. Whether marketers want to promote branded content or drive audiences to a microsite, the built-in ad placement will be the first thing target audiences see when they turn on their TV.
The advanced capabilities of Connected TV have opened up a world of possibilities and insights that can significantly improve the advertising experience for both viewers and brands. Engaging with precision, delivering seamless experiences and doubling down on investments will keep marketers in the driving seat.
