From demographic data to dynamic targeting—the future of automotive marketing

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: 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: 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: 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: 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: 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. About S&P Global Mobility S&P Global Mobility is the global leader in automotive intelligence and the industry benchmark for clients around the world. The Polk Automotive Solutions portfolio is designed for automotive marketers and includes Polk Audiences marketing activation for measurement and insights and Polk Data Services to help amplify and augment our clients’ first-party data assets.

From demographic data to dynamic targeting—the future of automotive marketing

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