The Car Sales Industry in 2022 increased focus on branding and EV marketing. That combined with anticipated improvements in production this year, is looks like auto marketing is poised for growth in 2023. Experts predict that the automotive category will experience an increase in marketing spending for the first time in a few years.
Notably, commercials promoting EVs made up 24% of auto makers’ TV spending in 2022, up from 13.8% in 2021, indicating a greater emphasis on promoting electric vehicles. Kia, for example, continued its marketing spend in support of future demand, recognizing the ongoing transformation to EVs. They even utilized the Super Bowl to introduce their EV6, not for immediate high sales volume, but to establish themselves as a legitimate EV brand and generate interest in their forthcoming models like the EV9.
However, not all brands are adopting the same approach. Ford CEO Jim Farley, for instance, expressed skepticism about spending on traditional marketing, advocating for customer incentives and vehicle updates instead. Nevertheless, the focus on EVs has become more prominent, as automakers shift their advertising efforts towards vehicles that they want consumers to be aware of, given the decreased need for sales incentives.
Overall, with the importance placed on branding, the rise of EVs, and an anticipated rebound in production, the outlook for auto marketing in 2023 appears promising.