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The Surge in OTT/CTV Spending in the Automotive Sector: Navigating the New Digital Roads

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The automotive advertising landscape has evolved dramatically with the rise of Over-the-Top (OTT) and Connected TV (CTV) platforms. With recent changes in streaming habits and spending patterns, it’s clear that dealerships need to be where their audience is — and OTT/CTV is where the action’s at.

Unpacking the Streaming Spend Landscape:

July has always been an exciting month for the streaming world, and the most recent data highlights this trend.

  • Overall platform spend saw a significant increase of 30.1% when comparing July 2022 to the recent July data. Despite a 3% decrease from the previous month, it’s worth noting that this was not unique to CTV. The broader media landscape observed a sharper dip of 22.7%.
  • Some platforms faced challenges. MAX experienced a year-on-year growth decline, and its spend even shrunk by 20% from June to July, making room for competitors like Peacock.
  • A noteworthy mention is the strong performance by Paramount+. Not only did its spending surpass Pluto TV, but it also reached a peak of over $150M in July.
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Zooming in on the Automotive Sector:

When we dive deep into industry-specific spending patterns, the automotive sector emerges as a standout:

  • Automotive Ad Spend Trend: The automotive sector marked an increase in spend by $10M from June to July, reaching approximately $93M.
  • Big Players Making Big Moves: Toyota’s recent strategy shift is particularly striking. They allocated 44.3% of their AVOD (Advertising Video On Demand) and linear (Traditional Broadcast TV) budget to AVOD in July, up from just 12% in June. Chevrolet wasn’t far behind, increasing their AVOD spend by a whopping 325% month-over-month.

A Glimpse at Big Auto Spenders:

Prominent automotive brands like Toyota and Chevrolet provide critical insights:

  • Toyota: They’ve shown an increasing trust in AVOD platforms, with a major shift in their spending habits from June to July.
  • Chevrolet: Their bold move, increasing AVOD spend by 325% month-over-month, indicates a strong belief in the platform’s return on investment.

Opportunities in the Horizon:

  • The observed dips in spend on platforms like MAX and Pluto TV signal opportunities for brands to venture into untapped areas of the market.
  • With the overall spend decreasing by $33.2M and shifts in spend across different industries, it’s evident that the landscape is in flux, offering astute dealerships opportunities to make impactful moves.

The Automotive Advertising Agency (TAAA) & OTT/CTV:

With such dynamic changes in the automotive OTT/CTV space, it’s crucial to have an expert by your side:

  • In-depth Expertise: At TAAA, we pride ourselves on our deep-rooted knowledge of automotive campaigns, and more specifically, our mastery over automotive OTT campaigns.
  • Optimizing for Results: Leveraging our expertise, we ensure that dealerships don’t just navigate the OTT/CTV world but thrive in it. From understanding platform-specific nuances to tapping into industry-specific trends, our strategies are tailor-made for success.

The OTT/CTV landscape is evolving, and the automotive sector is accelerating at full throttle. Brands ready to harness the potential of this platform stand to gain immensely. With TAAA’s expertise, we can help dealerships shift gears smoothly, ensuring they lead the pack in the OTT/CTV race.

Ready to drive your dealership’s OTT/CTV campaigns to success? Connect with The Automotive Advertising Agency to accelerate ahead in the digital advertising highway.

Source: https://www.vivvix.com/blog/july-2023-streaming-recap

Marco Camacho, Principal, TAAA
About the author

Marco Camacho is the Founder and Principal of The Automotive Advertising Agency, with decades of experience in the automotive advertising industry. With a passion for cars and marketing, Marco has dedicated his career to helping auto dealerships achieve unparalleled success through strategic and innovative advertising campaigns. Leading a talented team of experts across offices in Austin, Los Angeles, and New York, Marco oversees operations and ensures the agency’s continued excellence. Marco’s journey began 35 years ago in car sales at Lone Star Volkswagen in San Antonio, Texas. Excelling in understanding customer needs and providing exceptional service, he expanded his expertise to prestigious brands like Ferrari and Lamborghini. However, driven by ambition and a desire for innovation, Marco transitioned into advertising and media, following in his father’s footsteps as a broadcasting pioneer. Starting as an advertising sales professional at a local radio station, he merged his passion for automobiles with his growing knowledge of marketing and media dynamics.