Automotive advertising expenditure is forecast to shrink by 21 per cent in 2020 across 10 key markets, according to Zenith’s Automotive Advertising Expenditure Forecasts. That’s two-and-a-half times faster than the decline of the ad market as a whole in these markets.
The spread of COVID and its effect on the global economy have left consumers uncertain about their financial futures and unwilling to commit to large purchases. Car manufacturers have also suffered from disruption to their supply chains, as lockdowns shut down manufacturing in different countries at different times. Faced with pressure on both supply and demand, car brands cut their ad budgets very sharply when the severity of the crisis became clear. The months of April and May had the greatest decline in most markets. Year-on-year declines have since eased, and Zenith expects them to moderate progressively over the rest of the year.
However, automotive ad spend is