Ad spend among the automotive sector was up in May and June as brands use advertising to engage consumers who are thinking more closely about personal transportation than mass transit options.
According to Nielsen Ad Intel data, Australia's advertising spending in the automotive industry registered an uplift between the two months, based on automotive internet sites, SUV brands and dealer group activity.
At the start of the pandemic, new car sales plunged while consumers were forced indoors during lockdown restrictions.
But after falling 48.5% in April, the auto industry is recovering and at the end of June was only 6.4% down on the same month a year ago.
This result was driven mainly by consumers and businesses looking to take advantage of enticing end-of-financial-year deals and the federal government’s valuable instant asset write-off scheme.
Australians purchased more than 110,000 new cars in June, prompting worries about a possible inventory shortage in the coming months.
Nielsen research shows that brands that go totally dark for the rest of 2020 could be facing revenue declines of up to 11% in 2021.
Taking a closer look into the profile of potential auto shoppers, latest Nielsen Consumer & Media View (CMV) data, based on February to April 2020 Survey, shows a positive trend in the demand for both new and used cars, especially among males in the 25 to 39 age band.
During the same period, intention to buy a new car among people from 18 to 24 years old living in regional and rural areas doubled. It now sits at 8% when compared with the prior three month period from December to February.
Consumers 25 to 39 years old in metro areas have demonstrated the strongest increase in appetite to buy a new car, growing from 9% during December to February to 12%.
Audi, BMW, JEEP and Toyota have increased for consideration among consumers looking to purchase a new car in the next six months.
When it comes to advertising spend Toyota Motor Corp., Hyundai and Mitsubishi are leading the top 10 automotive advertisers by spend ranking from January to June 2020.
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