Traditionally, automotive ads focused on hitting up major media channels, especially during the fall TV season, to reach the all-important 25- to 54-year-old sweet spot. This demographic was seen as the golden ticket for boosting awareness and sales, and big upfront media spends were a necessity.
But things have changed. With media splintering and consumer habits evolving, the old tactic of targeting by age has become less effective. Streaming services like Netflix are shifting the focus to personalized content, and car companies like Tesla are showing us the power of targeted marketing. It’s clear the auto industry must adapt to these trends.
Today’s consumers expect more personalized experiences, and with 50 new vehicles set to launch in the U.S. in 2025, the time to recalculate marketing strategies is now.
Here are five ways to update your automotive marketing strategy in an increasingly complex landscape.
1. Embrace advanced audience targeting
Demographic-based buying, particularly spends targeting the 25- to 54-year-old age group, no longer guarantees results. For example, the share of new U.S. vehicle sales to 18- to 34-year-olds is at a record low 9.2%. Meanwhile, the 65-plus age group now makes up over 26% of new vehicle sales, its highest share on record. Today’s market needs a more nuanced approach.
Action steps:
- Segment your audiences: Go beyond basic age demographics. Focus on advanced audience segments, frequent buyers in other product categories or customers loyal to certain brands.
- Use data insights: Target households that are not only capable but also ready to buy, rather than wasting resources on broader groups. For instance, focusing efforts on the 52 million U.S. households with the potential to buy a new car rather than the broader 60 million households that don’t ever buy new, can be far more effective.
2. Maximize media investments with addressable media
With new vehicle costs in the U.S. up 30% since 2019 and brand loyalty at around 52%, reaching the right consumers with the most conversion potential is crucial.
Action steps:
- Invest in addressable media: Though it might seem pricey, addressable media targets specific households based on their purchase behavior and intent, offering better returns.
- Analyze performance: Advanced audiences buy at a significantly higher rate than demographic audiences. Measuring your addressable media against the right metrics can show that the higher cost more than pays for itself.
3. Prioritize business outcomes over proxy metrics
Traditional metrics like click-through rates or website visits can be misleading. It’s called the streetlight effect: We tend to measure results we can see (clicks and traffic) rather than the results we actually care about delivering with advertising (sales)
Action steps:
- Focus on sales impact: Use tools to measure real sale increases and purchase rates, rather than just vanity metrics. Ask what the campaign’s true impact was on revenue.
- Optimize in-flight: Use real-time data to adjust your strategy mid-campaign, and shift resources to the most effective channels while reducing waste. Real-time sales data can provide actionable insights for optimizing your media spend and improving key performance indicators like cost-per-vehicle sale.
4. Prepare for increased vehicle launches and EV trends
The U.S. automotive industry is gearing up for a surge in new cars: Next year will see more than 50 new vehicle launches, and over half will be EVs.
Action steps:
- Stay ahead of trends: Be ready for the influx of new models, and implement agile campaign frameworks and real-time trend analysis to understand how the EV market may be shifting. Foster cross-departmental collaboration to ensure alignment between marketing, product development and sales for cohesive launch strategies.
- Adjust targeting strategies: As new models and technologies enter the market, continuously refine your audience targeting to align with evolving consumer preferences and buying behaviors. S&P Global Mobility research shows that the customer who moves from a gasoline-powered SUV to an electric crossover may not be who you might think.
5. Leverage data for smarter decisions
Consumers have more choice in what kind of car to drive and what type of media to consume than ever before. The only way to navigate that complexity is with better data.
Action steps:
- Adopt advanced analytics: Aim to understand who your actual customers and prospects are, not a broad demographic or psychographic persona of who they could be. Then measure and optimize your campaigns to reach that more relevant target and drive sales.
- Integrate data across channels: Modern ad campaigns operate across a fragmented media ecosystem. A centralized data strategy for both targeting and measurement will help you manage reach and frequency and drive better return on your media investment.
The automotive and media worlds are each undergoing massive change, with more choices and innovations than ever. Much like the seismic automotive shift from internal combustion engines to electric, media is making significant moves from traditional to addressable media.
The formerly popular notion that half of any advertising spend is wasted on the wrong audiences should become as antiquated as the Model T. Advertising can and should reach actual buyers.
With a growing number of vehicle launches in 2024-2025, including EV and hybrid models, there are new opportunities for automotive marketers armed with the right targeting tools. The Polk Audiences’ Electrification Impact report offers insights on advanced audience segments that marketers can use to elevate their automotive campaigns—as well as comprehensive data on the latest EV, hybrid and ICE buying patterns.