The news: Automakers are re-evaluating their relationships with TV advertising as economic pressures mount. The industry’s TV spending dropped 23% in June compared with last year and has shifted away from local advertising, according to iSpot.TV.
By the numbers: Car brands spent a hefty $161.3 million on TV advertising last month with a greater focus on national ads and sporting events.
How we got here: Manufacturers saw diminishing returns from TV ads in the year’s first half and are looking for other places to reinvest their spending, especially in the face of economic uncertainty.
Sign of the times: Mounting economic worries are starting to hit consumers and industries, and automakers are investing more in consumer experience and loyalty programs rather than linear TV.
The big takeaway: Economic uncertainty paired with a relatively dry TV event calendar lead to a steep drop in ad spending for automakers in June, but several major sporting events in the year’s second half and strong job reports mean there’s opportunity for ad spending to recover.