Why switch from broadcast ads to digital video ones? Today, it’s all about narrowing target audiences, but TV continues “broad”-casting – trying to hit the widest range of viewers possible. It’s a strategy that no longer works in the specialized world of automotive marketing and advertising.
An article in The New York Times showed TV’s fading popularity with marketers, reporting that, from 2014 through 2017:
Broadcast ad spend stayed flat: just under to just over 70 billion
Digital ad spend grew: 50 to over 90 billion
If we were casting characters for the Clint-essential movie, we’d go with “The Good” (digital video ads); “The Bad” (broadcast TV ads); and “The Money” (dealership rewards for striking up a strategic partnership).
Digital Video Ads: The Good
In a duel, digital video ads are sure to beat out broadcast TV ads. Because not only is digital video spend forecast to increase: 13.9% in 2019; 12.8% in 2020 and 12% in 2021 – the average time people spend watching digital video is expected to grow too. From 78.89 minutes per day in 2017 up to an estimated 108.86 minutes in 2021.
But the power of digital video doesn’t stop there. Video ads create top-of-mind awareness and drive buying decisions, especially in the automotive market. Consider some recent findings:
37% of car shoppers consider a brand after viewing digital video ads
69% of car shoppers who use YouTube are influenced by what they see
In fact, YouTube is the most influential video site when it comes to purchasing decisions for mobile users age 18 to 54. Digital video is the way buyers want to learn about cars they’re interested in, so it’s no surprise watch time for “which product to buy” videos doubled between 2017 and 2018.
Related Content: Find out the top three types of videos in-market car shoppers want to see. And how long the videos should run, depending on your target audience.
Digital video ads deliver precise audience targeting options, so your dealership doesn’t waste impressions – and offer transparent reporting, so you can tract those hard-earned impressions from views to clicks to conversions.
Broadcast TV Ads: The Bad
Broadcast bad boys continue to limp along, battling issues that range from:
Lack of audience targeting
High cost of campaigns
Inability to personalize messaging
Difficulty getting – and keeping – audience’s attention
Reliance on anecdotes instead of data
Plus, TV audiences are shrinking each year – from 295.4 million viewers in 2017 to an estimated 282.7 in 2021. Some of broadcast’s decline can be attributed to “cord-cutters,” people who drop TV subscriptions in favor of streaming services and “cord-nevers,” people who don’t own (or have never owned) a television. Predictions say these groups will total 48 million US households by 2020. (The New York Times)
But back to cord-nevers – they’re often younger individuals, which brings up the generation gap. And there is one, when it comes to where and how viewers get their content. Live TV is heavily skewed toward audiences age 50 to 64. And while this older audience also spends more hours on smartphones than “the youngs,” the 25-34 year-olds spend a greater percentage of their time watching phone screens. (The New York Times)
25-34 years 50-64 years
Live TV 18.4 hrs 39.6 hrs
Smartphone web/app 17.9 hrs 21.6 hrs
Smartphone video 1.2 hrs .7 hrs
Strategic Partnership: The Money
“The Good, The Bad and The Money” stars your dealership. And the plot of the production centers on you finding a fortune, not spending one. Which is exactly what happens when things take a twist and a dealership rides off into the sunset with broadcast TV. And a high price tag is just one of this outdated media’s “crimes” against effective automotive marketing.
That’s why you need a partner that’s got your back. A team of experts that’ll grab hold of your goals and capture target audiences with strategic digital video ads that inform, inspire, entertain and motivate them from one end of the sales funnel to the other. It’s the cost-effective way to drive customers to take action – and to do so at your dealership.
Ready to saddle up and ride digital video ads hard? Our team’s know-how is market tested and dealership approved. Let’s form a strategic partnership and hit the trail to happy rewards.
Contact us to learn more about digital video ads and how to replace “the bad” with “the good” and bring “the money” to your dealership.