The Australian automotive industry has seen an 8% year-on-year rise in ad spend, growing to $690 million for FY 2024, according to Ad Intel and Consumer and Media View (CMV) data from Nielsen.
The increase in automotive advertising was driven by strong investment from the sector’s key players, as reflected by the list of Top 10 Ad spenders for the auto sector for FY 2024. This was led by Toyota, Hyundai, Mitsubishi, Kia, and Nissan in Fifth. In sixth was Volkswagen, followed by BMW, Mazda, American Special Vehicles, and Isuzu UTE in tenth.
Nielsen CMV data also showed a growing consumer interest in electric vehicles (EVs). Over the last 12 months, there has been a 4.2% increase, or 985,000 Australians (of driving age) saying the next car they buy will likely be electric.
The change in consumer preferences reflected in media spend, with ads in the EV sector jumping 711% from $8.2 million in FY 2021 to $66.5 million in FY 2024. This was bookending the exponential growth of $25.2 million in FY 2022 and $57 million in FY 2023.
The top five electric car models by ad spend in Australia for FY 2024 were: Kia EV9, Toyota BZ4X, Nissan X-Trail SUV, Polestar 2, and the Kia EV6 GT.
Rose Lopreiato, Nielsen Ad Intel’s Australia commercial lead, said: “In today’s highly competitive automotive market, understanding where and how your competitors are investing in advertising is crucial.
“With the rapid rise of EVs, the shifting media landscape, and the influx of new players contributing to the overall increase in the sector’s ad investment, having a clear view of competitor advertising spend and media allocation enables them to make informed decisions, optimise their strategies, and gain a competitive edge, regardless of whether they’re in the Top 10 or not.
“Nielsen Ad Intel provides the transparency needed to do that, enabling brands to stay ahead in this rapidly evolving and complex industry.”
Glenn Channell, Nielsen’s Pacific head of advanced analytics added: “As the automotive industry ramps up ad spend, especially on EVs, the need for precise and actionable insights has never been greater.
“The rise in both consumer interest and ad spend in the market highlights the need for advanced analytics tools, like Nielsen CMV, which provides the kind of quality data the market is crying out for, particularly when it comes to ensuring auto brands connect with their desired consumers at a time of massive change.”
Looking at media channels, the automotive sector’s advertising spend for FY 2024 was split across Metro TV (33%), General Display (20%), Regional TV (12%), Radio (12%), Social Media (9%), Out of Home (9%), Print (4%), and Cinema (1%).