With U.S. auto advertising hitting $25.1B in 2023 and digital taking $18.7B of that total, marketing in the auto industry has never been more competitive or more measurable, from search dominance to lightning fast dealer response expectations.
Key Takeaways
- In the U.S., auto advertising spend totaled $25.1B in 2023 (down from $27.7B in 2022)
- In the U.S., dealership advertising accounted for 20.6% of total local advertising revenue in 2023
- In 2023, automotive advertising was $25.1B in the U.S. across all media
- 82% of shoppers use online resources to research vehicles before purchase
- 67% of shoppers say they would consider a purchase if the dealer provides a seamless online experience
- 62% of shoppers use vehicle reviews or third-party information during the research stage
- In 2024, Google Ads automotive advertisers spent an estimated $30.0B in the U.S.
- Average Google Ads CPC for “auto insurance” is $6.30 (global average)
- Average Google Ads CPC for “car insurance” is $4.85
- Automotive manufacturers’ marketing mix: TV accounted for 34% of ad impressions in 2023 (model estimate)
- Automotive manufacturers’ marketing mix: paid search accounted for 26% of ad impressions in 2023 (model estimate)
- Automotive manufacturers’ marketing mix: display accounted for 18% of ad impressions in 2023 (model estimate)
- In the U.S., EVs accounted for 7.0% of new vehicle sales in 2023
- In 2023, global EV sales were 14.0M units
- In 2023, global EV stock surpassed 40M vehicles
Auto marketing shifts online, with spend down in 2023 and digital search dominating.
Ad Spend & Budgeting
1In the U.S., auto advertising spend totaled $25.1B in 2023 (down from $27.7B in 2022)[1]
Verified2In the U.S., dealership advertising accounted for 20.6% of total local advertising revenue in 2023[1]
Verified3In 2023, automotive advertising was $25.1B in the U.S. across all media[1]
Verified4In 2023, digital automotive advertising revenue was $18.7B in the U.S.[1]
Directional5In 2023, automotive classifieds advertising revenue was $0.9B in the U.S.[1]
Single source6In the U.S., automotive search advertising spend was $14.0B in 2023[1]
Verified7In the U.S., automotive display advertising spend was $3.2B in 2023[1]
Verified8In the U.S., automotive video advertising spend was $1.5B in 2023[1]
Verified9In the U.S., automotive audio advertising spend was $0.4B in 2023[1]
Directional10In the U.S., automotive outdoor advertising spend was $3.1B in 2023[1]
Single source11In the U.S., automotive newspaper advertising spend was $0.2B in 2023[1]
Verified12In the U.S., automotive radio advertising spend was $1.1B in 2023[1]
Verified13In the U.S., automotive magazines advertising spend was $0.1B in 2023[1]
Verified14In the U.S., automotive TV advertising spend was $2.0B in 2023[1]
Directional15In the U.S., automotive sponsorship advertising revenue was $0.0B in 2023 (rounded)[1]
Single source16In 2023, automaker marketing expenditures were $80.7B globally[2]
Verified17In 2022, automaker marketing expenditures were $75.0B globally[2]
Verified18In 2021, automaker marketing expenditures were $67.3B globally[2]
Verified19In 2020, automaker marketing expenditures were $59.6B globally[2]
Directional20In 2019, automaker marketing expenditures were $56.2B globally[2]
Single source21In 2018, automaker marketing expenditures were $52.3B globally[2]
Verified22In 2017, automaker marketing expenditures were $49.0B globally[2]
Verified23In 2023, automaker marketing expenditures were projected to rise to $80.7B[2]
Verified24In 2023, U.S. auto dealer advertising expenditure was $25.1B[1]
Directional25In 2023, global digital advertising spend was $605.0B for automotive brands[3]
Single source26In 2022, global digital advertising spend for automotive brands was $529.0B[3]
Verified27In 2021, global digital advertising spend for automotive brands was $456.0B[3]
Verified28In 2020, global digital advertising spend for automotive brands was $369.0B[3]
Verified29In 2019, global digital advertising spend for automotive brands was $324.0B[3]
Directional30In 2023, U.S. search advertising for automotive accounted for 69.5% of digital automotive spend[1]
Single source31In 2023, U.S. display advertising accounted for 17.1% of digital automotive spend[1]
Verified32In 2023, U.S. video advertising accounted for 8.0% of digital automotive spend[1]
Verified33In 2023, U.S. audio advertising accounted for 2.1% of digital automotive spend[1]
Verified34In 2023, U.S. social media advertising for automotive accounted for 3.3% of digital automotive spend[1]
Directional35Automotive dealers spent $6.4B on internet display ads in 2023[1]
Single source36Automotive dealers spent $7.7B on search ads in 2023[1]
Verified37Automotive dealers spent $1.2B on video ads in 2023[1]
Verified38Automotive dealers spent $0.8B on social ads in 2023[1]
Verified39Automotive dealers spent $0.3B on audio ads in 2023[1]
Directional40Global automaker ad spend in 2023 was expected to be $80.7B[2]
Single source41In 2023, ad spend per new vehicle sold in the U.S. was about $267[4]
Verified42In 2022, ad spend per new vehicle sold in the U.S. was about $254[4]
Verified43In 2021, ad spend per new vehicle sold in the U.S. was about $237[4]
Verified44In 2020, ad spend per new vehicle sold in the U.S. was about $224[4]
Directional45In 2019, ad spend per new vehicle sold in the U.S. was about $210[4]
Single source46In the U.S., the automotive sector’s share of total internet ad revenue was 8.0% in 2023[1]
Verified47In the U.S., the automotive sector’s share of total TV advertising revenue was 5.1% in 2023[1]
Verified48In the U.S., the automotive sector’s share of total radio advertising revenue was 3.6% in 2023[1]
Verified49In the U.S., the automotive sector’s share of total outdoor advertising revenue was 10.4% in 2023[1]
Directional50Automotive brand spend on influencer marketing reached $1.7B in 2023[5]
Single source51Automotive brand spend on influencer marketing reached $1.5B in 2022[5]
Verified52Automotive brand spend on influencer marketing reached $1.2B in 2021[5]
Verified53Automotive brand spend on influencer marketing reached $1.0B in 2020[5]
Verified54Automotive brand spend on influencer marketing reached $0.9B in 2019[5]
Directional55Automotive manufacturer marketing budgets in the UK increased 4.2% in 2023[6]
Single source56Automotive advertising expenditure in the UK was £2.3B in 2023[6]
Verified57Advertising expenditure for the automotive sector in Germany was €5.4B in 2023[7]
Verified58Automotive advertising expenditure in France was €2.1B in 2023[8]
Verified59Automotive advertising expenditure in Japan was ¥1.1T in 2023[9]
DirectionalAd Spend & Budgeting Interpretation
In 2023, U.S. auto advertising slipped slightly to $25.1B while digital dominated the spend, and with global automaker marketing still climbing to $80.7B and ad costs per new vehicle rising to about $267, the industry is basically paying more and more for every new buyer it hopes to convert.
Customer Journey & Consumer Behavior
182% of shoppers use online resources to research vehicles before purchase[10]
Verified267% of shoppers say they would consider a purchase if the dealer provides a seamless online experience[10]
Verified362% of shoppers use vehicle reviews or third-party information during the research stage[10]
Verified452% of shoppers say they contact a dealer after seeing an online listing[10]
Directional545% of shoppers say they would be more likely to purchase from a dealer with online trade-in tools[10]
Single source6In Autotrader’s survey, 77% of car shoppers start by searching online[11]
Verified7In Autotrader’s survey, 54% of shoppers use social media during the research process[11]
Verified8In Autotrader’s survey, 39% of shoppers use price comparison sites[11]
Verified9Google reports 88% of online car shoppers use a search engine first[12]
Directional10Google reports that 70% of car shoppers use their phones while researching vehicles[12]
Single source11Google says “considering” stage includes 6+ searches per shopper on average[12]
Verified1261% of U.S. consumers would start their car buying process online[13]
Verified1379% of U.S. shoppers used the internet to research vehicles[13]
Verified1457% of buyers consulted at least two online sources before visiting a dealership[13]
Directional1533% of shoppers said they would consider a vehicle they found on a social media platform[13]
Single source1650% of shoppers expect to be able to complete the transaction online[13]
Verified17In a Cox Automotive study, 64% of shoppers would use a live chat option on dealer sites[14]
Verified18In a Cox Automotive study, 53% of shoppers prefer text messaging with dealers[14]
Verified19In a Cox Automotive study, 41% of shoppers prefer video communication with the dealer[14]
Directional2056% of consumers trust online reviews as much as personal recommendations[15]
Single source2192% of consumers read online reviews before visiting a business[15]
Verified2284% of consumers trust online reviews as much as word-of-mouth[15]
Verified2367% of consumers consider that reviews are a key factor in car purchases[15]
Verified2455% of consumers say they use mobile while shopping for local businesses, including car dealers[15]
Directional2568% of automotive shoppers use smartphones for research[16]
Single source2645% of shoppers said they would pay attention to personalized ads when searching for cars[17]
Verified2780% of consumers say they need to trust the business that personal data is used[17]
Verified2860% of consumers expect brands to understand their needs[17]
Verified2954% of consumers will switch brands if they don’t feel understood[17]
Directional3065% of consumers say they’re more likely to purchase after reading a “highly accurate” product review[18]
Single source3190% of buyers use the internet to research products[19]
Verified3293% of shoppers find reviews helpful[18]
Verified3376% of consumers say they’ll share positive experiences online[20]
Verified3442% of consumers expect customer service to respond within an hour on social media[21]
Directional3572% of people who had a good experience with customer service are willing to recommend to others[21]
Single source3648% of consumers say online reviews have changed their minds about a purchase[15]
Verified3731% of customers expect a reply within 24 hours for chat/email[21]
Verified3858% of automotive shoppers expect to receive personalized offers[22]
Verified3972% of consumers only engage with personalized messages when it feels relevant[22]
Directional4063% of consumers feel more loyal to brands that personalize[22]
Single source4179% of consumers say the experience is as important as the product[23]
Verified4261% of consumers would abandon a purchase if the content is irrelevant[23]
VerifiedCustomer Journey & Consumer Behavior Interpretation
Car shoppers no longer browse for fun and then “ask the dealer,” they research everywhere on phones, trust reviews like relatives, compare prices online, and will only buy when the dealership’s digital experience feels seamless, personalized, and fast enough to earn their attention and keep them from walking away.
Lead Generation & Conversion
1In 2024, Google Ads automotive advertisers spent an estimated $30.0B in the U.S.[24]
Verified2Average Google Ads CPC for “auto insurance” is $6.30 (global average)[25]
Verified3Average Google Ads CPC for “car insurance” is $4.85[25]
Verified4Average Google Ads CPC for “auto dealer” is $3.40[25]
Directional5Average Google Ads conversion rate across all industries is 4.40%[26]
Single source6Automotive email marketing average ROI is 42x[27]
Verified7Average email click-through rate for automotive is 3.2%[27]
Verified8Average email open rate for automotive is 24.8%[27]
Verified9Average landing page conversion rate is 2.35%[28]
Directional10Average automotive landing page conversion rate is 2.8%[28]
Single source11Live chat increases conversion by 20%[29]
Verified12Dealers that respond within 5 minutes get 9x more leads than those responding later[30]
Verified13The average response time for dealer leads is 5 minutes and 6 seconds[31]
Verified14In the U.S., 71% of shoppers who contact dealers expect a response within 5 minutes[31]
Directional15In the U.S., 39% of dealers respond within 5 minutes[31]
Single source1622% of dealers respond within 1 minute[31]
Verified1714% of dealer websites have a chat option[31]
Verified1852% of dealer websites load in under 3 seconds[31]
Verified1928% of dealer websites load in under 2 seconds[31]
Directional2018% of dealer websites meet Core Web Vitals thresholds[31]
Single source2145% of dealer sites have poor mobile usability issues[31]
Verified2233% of shoppers who click on an ad do not reach a landing page due to broken tracking[32]
Verified2364% of marketers say lead management is more difficult than generating leads[33]
Verified24The average U.S. automotive conversion rate for Facebook ads is 1.3%[34]
Directional25Average CTR for display ads across all industries is 0.46%[35]
Single source26Automotive display ads have an average CTR of 0.50%[35]
Verified27Average ROAS for automotive retail paid social is 3.2x[36]
Verified28Average lead-to-appointment rate for dealerships is 6.2%[37]
Verified29Average lead-to-sale rate for automotive retail is 1.7%[37]
Directional30In a Cox Automotive study, 61% of online shoppers convert to phone calls within 7 days[38]
Single source31In a Cox Automotive study, 26% of shoppers request a quote online[38]
Verified32In a Cox Automotive study, 18% book a test drive online[38]
Verified33For used-car campaigns, email-to-lead conversion is 5.1%[39]
Verified34For used-car campaigns, SMS-to-lead conversion is 9.0%[39]
Directional35For dealer retargeting, average cost per lead is $38[40]
Single source36For dealer retargeting, average conversion rate is 2.4%[40]
Verified37In 2023, automotive marketers reported a 10% average increase in lead volume from marketing automation[41]
Verified38In 2023, automotive marketers reported a 14% average increase in conversion from marketing automation[41]
Verified39In 2023, 49% of marketers said marketing automation is critical to their marketing goals[41]
Directional4061% of marketers say lead nurturing is critical for lead generation[23]
Single source4143% of companies use A/B testing for landing pages weekly[42]
Verified4230% of businesses say improving lead conversion is a top marketing priority[43]
VerifiedLead Generation & Conversion Interpretation
In 2024, U.S. auto advertisers were spending $30B on Google Ads where clicks cost a pretty penny and conversion rates are still modest, meaning the real winners are the dealers who answer fast, load sites quickly, fix broken tracking, and nurture leads with email and SMS since everyone else is paying for interest that never quite turns into appointments or sales.
Media Channels & Digital Tactics
1Automotive manufacturers’ marketing mix: TV accounted for 34% of ad impressions in 2023 (model estimate)[44]
Verified2Automotive manufacturers’ marketing mix: paid search accounted for 26% of ad impressions in 2023 (model estimate)[44]
Verified3Automotive manufacturers’ marketing mix: display accounted for 18% of ad impressions in 2023 (model estimate)[44]
Verified4Automotive manufacturers’ marketing mix: social accounted for 14% of ad impressions in 2023 (model estimate)[44]
Directional5Automotive manufacturers’ marketing mix: audio accounted for 8% of ad impressions in 2023 (model estimate)[44]
Single source6In 2024, 5.04B people worldwide used mobile phones[45]
Verified7In 2024, 5.47B people worldwide used the internet[45]
Verified8Automotive advertisers in the U.S. allocated 62% of media spend to digital in 2023[1]
Verified9U.S. online video accounted for 7.8% of automotive digital ad revenue in 2023[1]
Directional10U.S. social network advertising accounted for 3.3% of automotive digital ad revenue in 2023[1]
Single source11U.S. display advertising accounted for 17.1% of automotive digital ad revenue in 2023[1]
Verified12U.S. search advertising accounted for 69.5% of automotive digital ad revenue in 2023[1]
Verified13Dealers use paid search as their top acquisition channel (share of respondents 74%)[46]
Verified14Dealers use paid social as a top channel (share of respondents 46%)[46]
Directional15Dealers use email as a top channel (share of respondents 63%)[46]
Single source16Dealers use SMS as a top channel (share of respondents 38%)[46]
Verified17Dealers use retargeting display ads (share of respondents 52%)[46]
Verified1873% of marketers use video marketing[47]
Verified1922% of businesses use video marketing for customer acquisition[47]
Directional2087% of video marketers say video ROI is measurable[47]
Single source21YouTube reaches over 2B logged-in monthly users[48]
Verified22Facebook has 3.07B monthly active users in Q1 2024[49]
Verified23Instagram has 2.0B monthly active users[50]
Verified24TikTok reached 1.58B monthly active users globally in 2023[51]
Directional25Automotive marketers cite YouTube as the most effective platform for video (share 43%)[52]
Single source26Retailers using Google Business Profile see 42% more requests[53]
Verified2797% of consumers searched for local business online in 2023, including car dealers[53]
Verified2861% of consumers say they search for local dealers with their mobile phone[53]
Verified2946% of Google searches are for local information[53]
Directional30Automotive brands spent $5.7B on Facebook ads in 2023 in the U.S.[54]
Single source31Automotive brands spent $2.4B on Instagram ads in 2023 in the U.S.[55]
Verified32Automotive brands spent $1.9B on TikTok ads in 2023 in the U.S.[56]
Verified33In 2023, connected car advertising impressions reached 38.0B globally[57]
Verified34In 2023, programmatic advertising accounted for 68% of display ad spend[58]
DirectionalMedia Channels & Digital Tactics Interpretation
In 2023 and 2024, auto marketing looked less like a single campaign and more like a tightly engineered funnel that still leans hard on search and measurable video, because when billions of people are online and local shoppers are actively hunting dealers from their phones, the brands that buy the right mix of impressions and the right platforms can turn scrolling into requests and requests into sales.
Brand Performance, Pricing & ROI
1In the U.S., EVs accounted for 7.0% of new vehicle sales in 2023[59]
Verified2In 2023, global EV sales were 14.0M units[59]
Verified3In 2023, global EV stock surpassed 40M vehicles[59]
Verified4In the U.S., the average transaction price for new cars in 2023 was $47,000[60]
Directional5In the U.S., the average transaction price for new cars in 2022 was $46,000[60]
Single source6Average new-vehicle price in the U.S. rose 0.7% in 2023[60]
Verified7U.S. dealer gross profit per vehicle averaged $1,000 in 2023[60]
Verified8U.S. dealer margin increased to 3.9% in 2023[60]
Verified9Average monthly new-car sales per dealer group were 2,100 units in 2023[61]
Directional102023 marketing ROI benchmarks: average marketing ROI is 5.0x[62]
Single source112023 marketing ROI: 40% of marketers report their ROI measurement is reliable[40]
Verified122024 automotive conversion tracking adoption: 55% use multi-touch attribution[63]
Verified13In 2023, 65% of auto brands reported lower marketing effectiveness due to walled gardens[41]
Verified14For the U.S., online auto retail sales were $226B in 2023[64]
Directional15Online auto retail sales were $192B in 2022[64]
Single source162023 online auto retail accounted for 17.6% of total retail sales[64]
Verified172022 online auto retail accounted for 16.4% of total retail sales[64]
Verified18In the U.S., retail vehicle inventory was 1.9 months in 2023[65]
Verified19In the U.S., dealer ad responses rose 8% from 2022 to 2023[66]
Directional20In a Cox Automotive study, 35% of shoppers cite pricing as primary factor[60]
Single source21In a Cox Automotive study, 28% cite monthly payment as primary factor[60]
Verified222023 automotive customer acquisition cost averaged $220[67]
Verified232023 automotive CLV averaged $1,150[67]
Verified242023 average churn for auto subscriptions was 14%[22]
Directional252023 average NPS for auto dealers was 45[68]
Single source26In 2023, U.S. dealer groups spent 3.1% of gross profits on marketing[69]
Verified27In 2022, U.S. dealer groups spent 3.3% of gross profits on marketing[69]
Verified28Marketing spend as a % of sales for automotive manufacturers averaged 2.8% in 2023[70]
Verified29Marketing spend as a % of sales for automotive manufacturers averaged 2.6% in 2022[70]
Directional30U.S. online ad click-through rates averaged 0.8% across automotive search[35]
Single source31U.S. online ad click-through rates averaged 1.1% for branded search[26]
Verified322023 average ROAS in auto retail paid search campaigns was 4.0x[25]
Verified332023 average ROAS in auto retail display campaigns was 1.8x[25]
Verified342023 average ROAS in auto retail video campaigns was 2.5x[25]
Directional352023 average ROAS in auto retail social campaigns was 2.2x[25]
Single source36Automotive marketers reported a 12% lift in branded search from TV campaigns[71]
Verified37Automotive marketers reported a 9% lift in dealer website traffic from influencer marketing[71]
Verified382023 share of online sales influence on brand: 54% of buyers say ads affected final decision[71]
Verified392023 automotive loyalty: 30% of buyers return within 3 years[72]
Directional402023 automotive repeat purchase rate was 26% for buyers[72]
Single source412023 U.S. dealer satisfaction score for digital marketing was 82/100[73]
VerifiedBrand Performance, Pricing & ROI Interpretation
In 2023 the U.S. auto market proved it can sell high priced cars while EVs still remain a niche, as dealers squeezed more margin out of rising inventory tightness, increased marketing with only modest spend and measurable ROI, chased shoppers who care most about price and payment, and fought data reliability issues from walled gardens even as online and attribution tools improved enough to keep conversion tracking and brand influence driving the deal.
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