Comprehensive data on Connected TV performance, audience reach, and return on investment for automotive marketing
Key Takeaways
- Streaming dominance is undeniable – CTV now captures 47.3% of total TV viewing time, surpassing broadcast and cable combined, while 89% of vehicle owners are ad-supported CTV viewers
- CTV delivers exceptional ROI – Campaigns achieve 30% higher ROI than other marketing channels with 61% of car shoppers reporting CTV ads influenced their purchase decision
- Massive budget allocation gap exists – Despite superior performance,CTV: 30% Higher ROI, But Just 7% Of Media Budgets CTV receives only 7% of typical automotive media budgets, creating a significant competitive opportunity
- Hyper-local targeting drives sales – 55% of car sales occur within 5 miles of dealerships, with CTV enabling precise geographic targeting impossible with traditional TV
- Advanced attribution proves value – Real campaigns show 112% sales lift and 237% sales increase with proper CTV attribution and targeting
- Integration with inventory data maximizes impact – Dynamic creative optimization produces 77% lift in click-through rates when synchronized with real-time inventory feeds
CTV Market Penetration & Audience Reach
1. Connected TV streaming now captures 47.3% of total TV viewing time, surpassing combined broadcast (22.7%) and cable (27.4%) for the first time. This fundamental shift in media consumption has moved the automotive audience to streaming platforms, making CTV advertising essential for reaching in-market buyers where they spend their time.
2. 89% of people who own or lease a vehicle are ad-supported CTV/OTT viewers. The near-universal adoption of streaming among vehicle owners means dealerships can reach virtually their entire target market through Connected TV campaigns.
3. 90% of those planning to purchase a car in the next 12 months are ad-supported CTV/OTT viewers. High-intent shoppers are actively engaged with streaming content, creating prime opportunities for automotive advertising during their research phase.
4. 71% of car buyers notice automotive advertisements during their streaming viewing sessions. The engaged, full-screen viewing environment of CTV creates exceptional ad recall compared to other digital formats where ads are often ignored or skipped.
5. 19% of ad-supported CTV/OTT viewers like to get a new car every 2-3 years. This frequent replacement cycle creates a consistent, addressable audience for automotive retailers through CTV platforms.
CTV Advertising Performance & ROI Metrics
6. CTV campaigns achieve 30% higher ROI than other marketing channels. The superior return on investment demonstrates CTV’s effectiveness in driving measurable business outcomes compared to traditional and digital alternatives.
7. 61% of car shoppers report CTV ads influenced their purchase decision. The immersive nature of CTV advertising creates genuine influence on buyer behavior, moving beyond simple awareness to actual purchase consideration.
8. CTV delivers 95% video completion rates versus 65-82% for other digital video formats. The high completion rate ensures your message is fully delivered to engaged viewers, maximizing the impact of your creative investment.
9. Honda regional dealership campaigns achieved documented 237% sales lift specifically from CTV exposure. This dramatic increase demonstrates CTV’s direct impact on vehicle sales when properly implemented with precise targeting.
10. Dynamic creative optimization produces 77% lift in click-through rates for automotive campaigns. Personalized, data-driven creative significantly outperforms static ads, showing the importance of integrating inventory and customer data with CTV campaigns.
Geographic Targeting & Local Impact
11. 55% of car sales occur within 5 miles of dealership, with 71% within 10 miles. This hyper-local buying behavior validates the importance of precise geographic targeting that CTV enables at the zip code level, unlike traditional TV’s broad DMA approach.
12. Pennsylvania auto dealership achieved 472 in-store visitors, 2.7M+ impressions, and 97.8% video completion rate through targeted CTV campaigns. The ability to drive measurable foot traffic demonstrates CTV’s effectiveness in bridging digital advertising with physical dealership visits.
13. Pennsylvania local auto group achieved 400,000 monthly impressions through targeted CTV campaigns. Consistent, high-volume impressions within specific geographic areas build brand awareness and top-of-mind consideration among local shoppers.
14. Cherry Hill Audi achieved 96.4% inventory turnover through targeted CTV campaigns—first time any regional Audi dealer exceeded 90%. The ability to move inventory efficiently demonstrates CTV’s direct impact on dealership operations and profitability.
15. Cherry Hill Audi campaign delivered 500,000 impressions and 2,565 qualified website visitors. The high-quality traffic generated shows CTV’s effectiveness in driving consideration-stage engagement with serious buyers.
Cost Efficiency & Budget Allocation
16. Average car dealership spends $528,923 annually on advertising. With substantial marketing budgets already allocated, shifting investment toward higher-performing CTV channels represents a significant opportunity for improved ROI.
17. CTV currently receives only 7% of typical automotive media budgets despite superior performance. This massive underinvestment creates a competitive advantage for dealerships that recognize CTV’s value and allocate resources accordingly.
18. Honda campaigns maintained cost-per-website-visit ranges of $3.90-$7.61 through CTV. These efficient acquisition costs demonstrate CTV’s ability to drive qualified traffic at competitive rates compared to other digital channels.
19. CTV campaign generated 969 website visits at $7.61 cost per visit, with 62% exploring specific vehicle pages. The high engagement rate with vehicle-specific content shows CTV’s effectiveness in driving serious consideration.
20. 65% of advertising dollars now flow to digital channels for automotive dealerships. The digital shift creates natural alignment with CTV advertising, which bridges the gap between traditional brand awareness and digital performance marketing.
Sales Attribution & Conversion Metrics
21. Premion campaign drove 17 new car sales—a 112% lift in sales compared to non-Premion audiences. Advanced attribution methodologies prove CTV’s direct impact on vehicle sales, moving beyond vanity metrics to revenue generation.
22. Auto dealership in top 5 market achieved 114 new vehicle sales, generating minimum profit of $456,000. The substantial profit contribution validates CTV as a revenue-driving channel rather than just a brand awareness tool.
23. 88% of car buyers use digital sources for vehicle research compared to 28% using traditional sources. The digital-first research behavior creates natural alignment with CTV advertising, which reaches buyers during their streaming research sessions.
24. 81% of car shoppers note that online activities improved the car-buying experience. CTV advertising enhances the digital research experience by providing relevant vehicle information in an engaging format.
Audience Behavior & Research Patterns
25. 21% of car shoppers have been planning their purchase for more than a year. The extended consideration cycle requires sustained advertising presence, which CTV’s cost-effective reach enables over time.
26. 16,835 franchised dealers collectively invested $8.9 billion in advertising in 2019. The massive industry investment creates competitive pressure to adopt the most effective channels, with CTV’s superior performance making it essential for market share defense.
27. Automotive CTV/OTT ad spending hit $354 million in 2022 and was projected to grow to $379.3 million in 2023. The steady growth trajectory validates CTV’s effectiveness and increasing adoption across the automotive industry.
28. 71% of consumers prefer personalized advertising experiences. The demand for relevance aligns perfectly with Demand Local’s Link1Data platform, which enables personalized CTV campaigns based on first-party customer data.
29. 88% of consumers visit or call within one day of local mobile searches. The immediate action intent of automotive shoppers validates the importance of connecting CTV brand awareness with local search and call tracking for complete attribution.
Competitive Advantage & Industry Investment
30. Automotive dealerships spend $105,256 annually per dealership for search engine marketing. The significant investment in digital channels creates natural synergy with CTV advertising as part of a comprehensive digital strategy.
31. Third-party listing sites command $109,487 annually per dealership investment. The high cost of third-party leads makes CTV’s efficient customer acquisition particularly valuable for reducing dependency on expensive lead sources.
32. National automotive brand achieved 779M+ impressions and 70M+ unique reach with frequency cap of 5 per month. The massive scale achievable through CTV demonstrates its effectiveness for both local and national automotive campaigns.
FAQs on CTV Advertising ROI for Auto Dealers
Q: How does VIN-level targeting on CTV improve ad performance for dealerships?
A: While general research shows that dynamic creative optimization produces 77% lift in click-through rates for automotive campaigns, VIN-level targeting takes this further. Demand Local’s automotive inventory advertising capabilities enable VIN-level targeting that synchronizes real-time inventory data with CTV creative, ensuring ads promote only available vehicles with accurate pricing and imagery. This precision prevents customer frustration and maximizes conversion rates by matching viewer intent with actual dealership inventory.
Q: Can CTV advertising help clear aged inventory for auto dealers?
A: Absolutely—the Cherry Hill Audi case study demonstrates this effectively, achieving 96.4% inventory turnover through targeted CTV campaigns, the first time any regional Audi dealer exceeded 90%. CTV’s precise geographic targeting and high engagement rates make it ideal for promoting specific inventory to local in-market buyers. Dealerships can dynamically adjust creative to feature aging inventory, incentives, or seasonal promotions in real-time.
Q: What kind of attribution reporting is available for automotive CTV campaigns?
A: Advanced attribution methodologies can track CTV’s impact on actual vehicle sales, as demonstrated by the 112% sales lift and 114 new vehicle sales documented in real campaigns. Demand Local’s proprietary attribution reporting provides ad influence insights and purchase tracking that ties CTV spend directly to revenue. This includes cross-device tracking, showroom visit attribution, and integration with dealership CRM and DMS systems for complete customer journey visibility.
Q: How does first-party data enhance CTV advertising effectiveness for car dealerships?
A: First-party data enables personalized advertising that resonates with specific customer segments, and since 71% of consumers prefer personalized advertising experiences, integration significantly improves performance. Demand Local’s Link1Data platform ingests CRM and DMS data to build custom audiences for retargeting service customers, conquest campaigns, and loyalty initiatives. This first-party approach enables dynamic creative that speaks directly to individual customer needs and vehicle preferences.
Q: Is CTV advertising more effective than traditional TV for reaching in-market auto shoppers?
A: Yes, significantly—CTV enables precise geographic targeting down to the zip code level, while traditional TV forces dealerships to pay for entire DMAs when 55% of sales occur within 5 miles. Additionally, CTV delivers 95% video completion rates in an engaged viewing environment, and 89% of vehicle owners are ad-supported CTV viewers, ensuring your message reaches the right audience. The combination of superior targeting, engagement, and attribution makes CTV dramatically more cost-effective than traditional broadcast.
