Connected TV revolutionises automotive advertising strategies

As streaming services continue to gain traction, innovative solutions are reshaping the automotive advertising landscape, with one company positioning itself at the forefront of this transformation. Jeff Brown, the Chief Operating Officer of Force Marketing, recently discussed the significant impact of connected TV on how car dealerships engage with their target audiences during an episode of Inside Automotive.

According to Brown, the advent of streaming media marks a departure from traditional advertising methods, where dealerships relied on purchasing ad space in a bid to reach potential customers. He explained that connected TV allows dealers to pinpoint their ideal customers with unprecedented precision, utilising detailed data to optimise advertising effectiveness.

At the heart of this strategy is the ability to leverage both first-party and third-party data, which ensures that advertisements are delivered to the most relevant viewers. The analysis of customer data—encompassing vehicle ownership, demographic details such as age, and various market behaviours—enables dealerships to craft tailored ad campaigns. Interestingly, Brown highlighted that targeting pre-market audiences, individuals who are estimated to be 31 to 90 days from making a purchase, results in performance metrics that are notably superior to those of in-market audiences. Specifically, he stated that these pre-market audiences perform 2.4 times better, underscoring the importance of engaging potential buyers early in their purchasing journey.

In addition to demystifying the mechanics of data-driven advertising, Brown elucidated how dealerships can effectively utilise popular streaming platforms such as Hulu, Peacock, and Disney+ to place their ads in front of a highly specific audience, thereby ensuring minimal waste in their media budget. Notably, connected TV campaigns can be dynamically adjusted according to performance data, adding a layer of sustainability and repeatability to the advertising process for car dealers.

When addressing budget considerations, Brown recommended that dealerships allocate a significant portion of their advertising spend—specifically 20–30%—to streaming media. This shift, Brown argues, is becoming increasingly vital as the consumption of connected TV continues to rise. Current statistics suggest that 87% of US households will have connected TV access by the end of 2023, with the average household dedicating approximately two hours and 34 minutes each day to streaming content.

As the connected TV market matures, dealers who swiftly adapt to this innovative form of advertising stand to benefit from a cost-effective and highly efficient means of capturing both current and future customers.

“87% of U.S. households are connected TV enabled. By the end of this year, U.S. households will spend 20% of their total media time with connected TV. That’s two hours and 34 minutes,” Brown emphasised during his conversation, highlighting the significance of this rapidly evolving trend in the automotive advertising domain.

Source: Noah Wire Services