Automotive advertising has fallen sharply as carmakers pull back spending amid shifting market dynamics, including the slowing near-term momentum of EVs.
The details: According to Guideline, automotive advertising is on track to account for less than 10% of total ad category spending for the first time since the ad intelligence and media planning company began tracking the sector, Inside Radio reported.
Historically, automotive advertising has represented roughly 10% to 12% of total ad spending, making it one of the industry’s core categories.
The category contracted about 7% in 2025, with spending in the first quarter of 2026 still under pressure.
Automakers spent an estimated $131.9 million on national linear TV advertising in April, down 18% year over year from $160.8 million in April 2025, according to iSpot.tv.
What they’re saying: “Our forecast for this year pegs that by the end of the year, auto will have fallen below 10% for the first time ever in terms of what we can measure in our data,” said Guideline Chief Insights and Analytics Officer Sean Wright during a podcast, per Inside Radio. “They are just not spending a ton on advertising.”
Why it matters: Reduced automaker ad spending could mean less top-of-funnel consumer awareness flowing into dealerships, potentially putting more pressure on retailers to drive their own traffic and marketing efforts.
It also signals continued caution from manufacturers as they reassess product and demand strategies.
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Between the lines: The pullback reflects broader shifts in auto marketing, from scaled-back EV investments amid slowing sales to a greater focus on experiential and social media campaigns aimed at influencing shoppers.
New EV sales—which just a few years ago attracted millions in advertising dollars—totaled an estimated 76,889 units in April, down 23.1% year over year and 6.2% month over month, according to Cox Automotive.
A late 2024 study found that 64% of companies allocate between 11% and 30% of their marketing budgets to experiential initiatives, with automotive seeing notable growth in that category.
While automakers rarely disclose social media spending, U.S. brands are expected to spend $13.7 billion on influencer marketing by 2027, up from $10.5 billion this year, according to a March eMarketer forecast.
Bottom line: Automakers may be spending less on traditional advertising, but the burden of attracting and converting shoppers doesn’t disappear. For dealers, that could mean a greater need to invest in localized, experience-driven marketing and more robust social media campaigns to fill the gap.
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