48 OTT Video Ads for Car Brands Statistics

Comprehensive data on the transformative impact of connected TV and streaming video advertising in the automotive sector

Key Takeaways

• Historic shift from linear to streaming TV – Streaming captured 38.7% of total TV viewing in July 2023, surpassing combined broadcast and cable for the first time ever, while automotive linear TV spend declined 9.45% year-over-year
• Exceptional performance metrics drive adoption – CTV campaigns achieve 30% higher ROI than other marketing channels with 97% completion rates for automotive ads and 61% of car shoppers reporting CTV ads influenced their purchase decision
• Massive budget allocation gap creates opportunity – Despite superior performance, CTV currently receives only 7% of typical media budgets, leaving significant room for dealerships to gain competitive advantage through early adoption
• Precision targeting aligns with automotive sales patterns – 55% of car sales occur within 5 miles of the dealership, making hyper-local CTV targeting through platforms like Demand Local’s CTV & OTT solutions perfectly aligned with actual customer behavior
• Cross-device strategies dramatically amplify results – Integrated campaigns deliver 200% increase in conversions compared to CTV-only approaches, highlighting the importance of omnichannel strategies powered by platforms like LinkOne Data
• Market investment accelerating rapidly – Automotive CTV/OTT spending grew 15.7% year-over-year to $356.7 million in 2024 and is projected to reach $46.89 billion industry-wide by 2028

Market Growth & Investment Trends

• Automotive advertisers will spend $356.7 million on CTV/OTT advertising in 2024, representing a 15.7% increase year-over-year. This growth demonstrates the automotive industry’s recognition of CTV’s superior performance and audience reach. While traditional media channels show declining returns, automotive marketers are strategically reallocating budgets to streaming platforms where their target audiences increasingly spend their time. This investment trend validates the business case for dealerships to implement CTV & OTT solutions as part of their comprehensive digital strategy.

• U.S. CTV ad spend is projected to reach $33.4 billion in 2025. The explosive growth in connected TV advertising reflects consumers’ rapid adoption of streaming services and cord-cutting behavior. For automotive marketers, this massive addressable audience represents an unprecedented opportunity to reach high-intent car buyers in their preferred content environments. The scale of this market makes CTV investment essential for any dealership aiming to maintain competitive market share.

• Connected TV advertising spending is expected to grow to $46.89 billion by 2028. This 63% growth over four years indicates CTV is not a temporary trend but a fundamental shift in media consumption and advertising effectiveness. Forward-thinking automotive marketers who establish early expertise in CTV advertising will build significant competitive advantages that compound over time. The sustained growth trajectory validates long-term investment in automotive inventory marketing and CTV capabilities.

• Automakers spent an estimated $2.1 billion on linear television advertising from January to early December 2023, down 9.45% from 2022. The decline in traditional TV spending directly correlates with audience migration to streaming platforms. This budget reallocation represents a strategic pivot by major automotive brands recognizing that their target audiences are increasingly unreachable through conventional broadcast channels. Dealerships follow this lead by shifting budgets to OTT platforms aligned with manufacturer co-op priorities and consumer behavior patterns.

• 56% of global marketers plan to increase OTT/CTV spend in 2025, led by sectors like Automotive and Healthcare. The automotive industry’s leadership position in CTV adoption reflects the channel’s unique alignment with vehicle purchase cycles and high-consideration buying behavior. This planned investment increase indicates automotive marketers expect continued strong ROI from streaming advertising and are positioning for long-term success in the evolving media landscape.

Viewership & Streaming Adoption

• Streaming reached a historic milestone in July 2023, capturing 38.7% of total TV viewing and surpassing combined broadcast (23.1%) and cable (29.6%) for the first time ever. This watershed moment marks the definitive transition from traditional television to streaming as the dominant video consumption method. For automotive advertisers, this shift means that CTV advertising is no longer optional but essential for reaching the majority of potential car buyers. The milestone validates strategic investment in CTV platforms and creative development.

• 89% of U.S. households have a video streaming subscription. The near-universal adoption of streaming services creates an exceptionally large and engaged audience for automotive advertisers. This penetration rate exceeds most other digital channels and provides consistent, high-quality ad inventory across diverse content categories. The widespread adoption makes CTV advertising accessible to dealerships of all sizes and market positions.

• 88% of cord-cutters’ viewing time is spent on free ad-supported content. Ad-supported streaming services (AVOD) have become the dominant model for cord-cutters, creating high-quality, brand-safe environments for automotive advertising. This viewing preference validates the business model of major streaming platforms and ensures sustainable, scalable ad inventory for automotive marketers. The engagement with ad-supported content demonstrates viewer acceptance of advertising in exchange for free or reduced-cost entertainment.

• Over 51 million U.S. households use OTT services. This massive addressable audience provides automotive advertisers with unprecedented scale and targeting precision. The household penetration enables both broad brand awareness campaigns and hyper-local targeting strategies tailored to specific dealership markets. The audience size supports sophisticated segmentation and frequency management strategies that maximize campaign efficiency.

• 72.4% of U.S. TV time is ad-supported. The dominance of ad-supported viewing models creates sustainable, long-term opportunities for automotive advertisers across both traditional and streaming platforms. This high percentage indicates viewer comfort with advertising-supported content and validates the economic model that funds premium streaming services. For dealerships, this means consistent, predictable ad inventory availability across major platforms.

Performance & Effectiveness Metrics

• CTV campaigns achieve 30% higher ROI than other marketing channels. This exceptional return on investment demonstrates CTV’s unique ability to drive measurable business outcomes for automotive advertisers. The superior ROI stems from CTV’s combination of premium content environments, high completion rates, and precise audience targeting capabilities. This performance advantage makes CTV investment essential for dealerships seeking to maximize marketing efficiency and sales conversion.

• 97% completion rates for automotive ads on CTV platforms. The near-perfect completion rate reflects CTV’s premium, full-screen viewing environment where ads cannot be skipped or blocked. This exceptional engagement ensures that automotive brand messages are delivered completely to attentive audiences, maximizing message retention and brand impact. The completion rate dramatically outperforms other digital channels and provides confidence in message delivery.

• Ad completion rates on OTT devices reach 98%, far surpassing desktop (84%) and mobile (86%). The technical and environmental advantages of CTV—full-screen viewing, inability to multitask, and lack of ad blockers—create the highest-engagement digital advertising environment available. For automotive brands investing in high-production-value creative, CTV ensures maximum return on creative investment through guaranteed message delivery.

• 61% of car shoppers report CTV ads influenced their purchase decision. This direct attribution to purchase decisions validates CTV’s role in the automotive consideration and decision-making process. The influence percentage demonstrates that CTV advertising doesn’t just create awareness but actively drives sales conversations and showroom visits. This measurable impact makes CTV essential for dealerships focused on driving actual vehicle sales rather than just impressions.

• 71% of car buyers notice automotive advertisements during their streaming viewing sessions. The high notice rate reflects CTV’s premium, non-cluttered advertising environment where automotive ads stand out effectively. Unlike crowded digital channels with competing messages, CTV provides focused attention that ensures brand messages are seen and remembered. This visibility advantage translates directly to brand recall and consideration.

Automotive-Specific Advertising Impact

• Hyundai was the most-seen auto brand on streaming TV with an 11.6% impressions share of voice. Hyundai’s streaming leadership demonstrates the effectiveness of strategic CTV investment in building brand visibility and market share. The higher share of voice on streaming versus linear TV (where Lexus led with 9.76%) indicates that early CTV adopters gain competitive advantages in audience reach and brand building. This leadership position validates CTV as a primary channel for automotive brand building.

• Cherry Hill Audi achieved 96.4% inventory turnover through targeted CTV campaigns. This exceptional inventory performance demonstrates CTV’s direct impact on dealership operations and profitability. The high turnover rate indicates that CTV advertising effectively drives qualified traffic and sales conversations that convert to actual vehicle purchases. This case study validates CTV as a performance marketing channel, not just a brand awareness tool.

• The 30-second format accounts for 91% of CTV impressions. The dominance of the 30-second format provides automotive advertisers with standardized creative requirements and predictable production costs. This format length is ideal for automotive messaging, providing sufficient time to showcase vehicle features, pricing, and calls to action while maintaining viewer attention. The format standardization simplifies campaign planning and creative development for dealerships.

• NFL reached 70.69% share of auto intenders through automotive advertising. Sports programming remains highly effective for reaching automotive purchase intenders, with NFL football delivering exceptional audience alignment. The effectiveness of sports content validates strategic placement of automotive ads during live sporting events on streaming platforms. This audience alignment makes sports-focused CTV campaigns particularly valuable for automotive advertisers.

• Cadillac “OPTIQ” ad achieved 70% purchase intent. High purchase intent scores demonstrate CTV’s ability to drive measurable consideration and purchase motivation among target audiences. The exceptional performance of automotive creative on CTV platforms validates investment in high-quality, vehicle-specific advertising content. These intent metrics provide confidence in CTV’s ability to move audiences through the purchase funnel.

Consumer Behavior & Digital Research

• 88% of car buyers use digital sources for vehicle research. The overwhelming preference for digital research validates comprehensive digital marketing strategies that include CTV as a key component. This research behavior indicates that car buyers expect to find comprehensive information about vehicles across multiple digital touchpoints, including streaming video content. Dealerships must meet buyers where they research to remain competitive.

• 75% of auto shoppers report online video directly influenced their shopping or purchases. Video content has become essential in the automotive research and decision-making process, with three-quarters of shoppers acknowledging its direct impact. This influence percentage validates strategic investment in video advertising across platforms, with CTV providing the highest-quality viewing environment for automotive content. The data supports comprehensive video strategies that include CTV, YouTube, and social platforms.

• 95% of vehicle buyers use digital sources during their shopping journey. The near-universal adoption of digital tools throughout the car buying process makes comprehensive digital presence non-negotiable for automotive retailers. This digital dependency creates multiple touchpoints where CTV advertising can influence purchase decisions and drive showroom traffic. Dealerships without strong digital strategies essentially don’t exist for modern car buyers.

• 41% of buyers use YouTube for research before purchasing. YouTube’s role as a research platform validates integrated video strategies that span both CTV and digital platforms. The research usage indicates that car buyers seek comprehensive video content about vehicles, including reviews, test drives, and feature demonstrations. This behavior supports coordinated campaigns across CTV and YouTube to maximize reach and frequency.

• 71% of consumers prefer personalized advertising experiences. The strong preference for personalization validates data-driven CTV advertising strategies that deliver relevant messages based on consumer demographics, interests, and behaviors. For automotive advertisers, this means leveraging first-party data and audience segmentation to deliver targeted vehicle recommendations and offers. Platforms like LinkOne Data enable this personalization at scale across CTV and other channels.

Targeting Precision & Geographic Insights

• 55% of car sales occur within 5 miles of dealerships, with 71% within 10 miles. This hyper-local sales pattern validates precise geographic targeting capabilities available through CTV advertising platforms. The concentration of sales within short distances makes CTV’s zip code-level targeting perfectly aligned with actual customer behavior and dealership marketing needs. This precision enables efficient budget allocation and maximum ROI from local advertising spend.

• FAST channels provide cost-effective reach expansion at $10-15 CPMs compared to premium inventory’s $25-40 CPMs. The pricing flexibility across CTV inventory tiers enables strategic budget allocation based on campaign objectives and performance requirements. FAST (Free Ad-Supported Television) channels provide efficient reach expansion for awareness campaigns, while premium inventory supports high-impact brand messaging. This pricing range makes CTV accessible to dealerships with varying budget levels.

Platform-Specific Performance Data

• Roku commands 37% of U.S. programmatic CTV ad inventory share. Roku’s market leadership in programmatic CTV inventory makes it an essential platform for automotive advertisers seeking broad streaming reach. The dominant market share validates Roku as a primary channel for CTV advertising campaigns and ensures access to premium streaming inventory across multiple content providers. This leadership position makes Roku integration essential for comprehensive CTV strategies.

• Over 50% of 18-49-year-olds watch sports on streaming platforms. The high streaming adoption among the key automotive demographic validates sports-focused CTV advertising strategies. This viewing behavior indicates that automotive advertisers can effectively reach prime car-buying audiences during live sports content on streaming platforms. The demographic alignment makes sports programming on CTV particularly valuable for automotive campaigns.

• Programmatic buying will hit 75% of OTT inventory by 2027 (from 50% in 2024). The rapid growth in programmatic OTT buying validates automated, data-driven CTV advertising strategies that integrate with broader digital marketing ecosystems. This trend supports platforms like LinkOne Data that enable seamless data activation across programmatic channels including CTV. The increasing programmatic availability makes CTV more accessible and efficient for automotive advertisers.

• Global OTT ad spending is projected to hit $207.52 billion in 2025, representing a significant shift from traditional TV. This massive market size validates CTV as a mainstream advertising channel with sustainable long-term growth prospects. The scale of investment demonstrates industry confidence in CTV’s effectiveness and audience reach. For automotive advertisers, this market size ensures consistent, high-quality ad inventory availability across diverse content categories.

Cross-Channel Integration & Advanced Strategies

• Cross-device strategies deliver a 200% increase in conversions compared to CTV-only campaigns. The dramatic performance improvement from integrated campaigns validates omnichannel strategies that combine CTV with other digital channels. This data supports platforms like Demand Local’s LinkOne Data that enable seamless data sharing and coordinated messaging across search, social, CTV, and display channels. The conversion lift demonstrates that CTV works best as part of comprehensive marketing ecosystems.

• Integrated retargeting approaches achieve 48% higher click-through rates across connected devices. The effectiveness of cross-device retargeting validates data-driven strategies that follow consumers across their digital journey. This performance improvement demonstrates that CTV exposure increases engagement with subsequent digital touchpoints, creating synergistic campaign effects. The data supports sophisticated attribution models that recognize CTV’s role in driving downstream conversions.

• Interactive CTV formats deliver 2.8x higher engagement rates than standard digital video. The exceptional engagement with interactive CTV formats validates investment in advanced creative capabilities that enable viewer participation and direct response. For automotive advertisers, interactive formats can include features like vehicle configurators, inventory browsing, and direct contact options. This engagement advantage makes interactive CTV particularly valuable for high-consideration purchases like vehicles.

• Dynamic creative optimization produces 77% lift in click-through rates. The dramatic performance improvement from dynamic creative validates data-driven personalization strategies that deliver relevant messages based on real-time data. For automotive advertisers, this means leveraging inventory feeds, pricing data, and audience characteristics to deliver personalized vehicle recommendations through CTV. This capability aligns perfectly with Demand Local’s inventory marketing solutions.

• Despite superior performance, CTV currently receives only 7% of typical media budgets. This significant underinvestment creates a massive opportunity for early adopters to gain competitive advantages through strategic CTV allocation. The budget gap indicates that many automotive advertisers have not yet recognized CTV’s exceptional ROI and audience reach. Dealerships that reallocate budgets to CTV can capture market share from competitors still focused on declining traditional channels.

Tier-Specific Automotive Spending Patterns

• Tier 1 Automotive Manufacturers will spend $114.7 million on CTV/OTT in 2024, a 19.9% increase year-over-year. Manufacturer-level investment validates CTV as a strategic channel worthy of significant budget allocation and demonstrates confidence in the medium’s effectiveness. This spending growth indicates that major automotive brands expect continued strong performance from CTV advertising and are positioning for long-term success in streaming environments.

• Tier 2 Local Automobile Dealers Associations will spend $94.1 million on CTV/OTT in 2024, a 17.0% increase year-over-year. Regional association investment demonstrates CTV’s effectiveness at the market level and validates coordinated local advertising strategies. This spending pattern supports co-op advertising programs that enable individual dealerships to participate in larger, more effective CTV campaigns through association partnerships.

• Tier 3 New Car Dealers will spend $110.5 million on CTV/OTT in 2024, an 11.1% increase year-over-year. Individual dealership investment validates CTV as an accessible and effective channel for single-location retailers with appropriate budget scaling. The spending growth indicates that dealerships recognize CTV’s unique ability to drive local showroom traffic and vehicle sales through precise geographic targeting.

• CTV/OTT represents 2.9% of total automotive advertising spending but shows top relative year-over-year share growth. Despite its relatively small share of total automotive advertising spend, CTV’s rapid growth rate indicates it’s the fastest-growing channel in the automotive marketing mix. This growth trajectory validates strategic investment in CTV capabilities and positions early adopters to benefit from the channel’s expanding influence and audience reach.

• Automotive impressions were generated over 819,700 ad airings, down 17.02% year-over-year. The significant decline in linear TV airings validates the strategic shift toward CTV and other digital channels where automotive audiences are increasingly concentrated. This reduction in traditional TV presence creates opportunities for automotive brands to reallocate budgets to more effective streaming platforms where their target audiences are actually watching content.

Advanced Measurement & Attribution

• Global consumer spending on OTT video and pay TV will grow to $318.5 billion by 2029. The sustained growth in consumer spending validates the long-term viability of streaming platforms and ensures consistent, high-quality ad inventory for automotive advertisers. This consumer investment creates sustainable business models for streaming services and supports continued innovation in advertising capabilities and targeting precision.

• U.S. OTT revenue is forecasted at $146.30 billion in 2025, with 64% driven by advertising. The massive advertising-driven revenue validates the business model that funds premium streaming content and ensures sustainable ad inventory availability. For automotive advertisers, this revenue structure guarantees consistent access to high-quality, brand-safe environments for vehicle advertising across diverse content categories.

• Video ads alone will contribute $93.88 billion to OTT revenue in 2025. The exceptional contribution of video advertising to streaming platform revenue validates strategic investment in CTV advertising as a sustainable, long-term marketing channel. This revenue dependence ensures that streaming platforms will continue to prioritize and innovate video advertising capabilities to meet advertiser needs.

Future Projections & Strategic Implications

• The 2023 automotive linear TV spend generated 133.9 billion impressions, down 17.76% year-over-year. The significant decline in linear TV impressions validates the audience migration to streaming platforms and supports strategic reallocation of advertising budgets to CTV. This reduction in traditional TV reach creates opportunities for automotive brands to capture audiences on streaming platforms where competition may be less intense and performance metrics superior.

• CTV/OTT spending in the automotive sector will grow to $391.6 million by 2025. The continued growth trajectory validates CTV as a strategic priority for automotive marketers and ensures sustained investment in streaming advertising capabilities. This projection supports long-term planning and platform investment decisions for dealerships and automotive marketing agencies.

• College football was second at 52.56% share of auto intenders reached. The effectiveness of college football programming for reaching automotive purchase intenders validates strategic placement during live sports content on streaming platforms. This audience alignment makes sports-focused CTV campaigns particularly valuable for automotive advertisers targeting specific demographics and regional markets.

• 64% of consumers respond to interactive ad formats. The strong consumer response to interactive advertising validates investment in advanced CTV creative capabilities that enable direct response and engagement. For automotive advertisers, this means leveraging interactive features like vehicle configurators, inventory browsing, and immediate contact options to drive measurable business outcomes from CTV campaigns.

FAQs on OTT Video Ads for Car Brands

Q: What are OTT video ads and why are they particularly relevant for car brands in 2025?

A: OTT (Over-The-Top) video ads are advertisements delivered through streaming services like Hulu, YouTube, and Amazon Prime Video, and they’re particularly relevant for car brands because streaming now captures 38.7% of total TV viewing—surpassing traditional broadcast and cable. With 61% of car shoppers reporting that CTV ads influenced their purchase decisions and automotive CTV spending growing 15.7% year-over-year, OTT advertising has become essential for reaching modern car buyers where they actually consume content. The combination of high completion rates (97%) and superior ROI (30% higher than other channels) makes OTT a critical component of automotive marketing strategies.

Q: How do car brands measure the effectiveness of their OTT video ad campaigns?

A: Car brands measure OTT effectiveness through multiple metrics including 97% completion rates for automotive CTV ads, 30% higher ROI compared to other marketing channels, and direct attribution like 61% of car shoppers reporting CTV ads influenced their purchase decisions. Advanced platforms like Demand Local’s LinkOne Data enable sophisticated attribution that tracks sales match-back, vehicle detail page views, and cost-per-lead metrics, allowing marketers to tie OTT spend directly to revenue outcomes rather than just clicks or impressions. Cross-device strategies also deliver a 200% increase in conversions compared to CTV-only campaigns, providing comprehensive performance measurement across the customer journey.

Q: What’s the biggest advantage of OTT advertising for automotive dealerships compared to traditional TV?

A: The biggest advantage is precision targeting aligned with actual customer behavior—55% of car sales occur within 5 miles of the dealership, and OTT platforms enable hyper-local targeting down to the zip code level. Combined with 97% completion rates versus declining linear TV audiences (down 17.76% in impressions year-over-year), OTT delivers superior performance with precise geographic targeting that matches how customers actually buy cars. Additionally, dealerships can leverage inventory marketing solutions to ensure OTT ads always feature current vehicle availability and pricing. The ability to reach the right local audience with relevant, timely inventory messages makes OTT far more effective than traditional broadcast TV.

Q: How much should automotive dealerships budget for OTT advertising?

A: Despite CTV delivering 30% higher ROI than other channels, it currently receives only 7% of typical media budgets, creating a significant opportunity gap for early adopters. Industry data shows automotive CTV/OTT spending reached $356.7 million in 2024 with continued growth projected to $391.6 million by 2025. Successful dealerships are reallocating budgets from declining traditional channels to OTT, with multi-location groups achieving cost efficiencies of 20-30% through consolidated buying. The key is starting with manageable budgets focused on high-performing inventory like sports programming that reaches 70.69% of auto intenders, then scaling based on measurable performance results.

Q: Can OTT advertising help dealerships move aged vehicle inventory?

A: Absolutely—CTV advertising has proven highly effective for inventory management, with case studies like Cherry Hill Audi achieving 96.4% inventory turnover through targeted CTV campaigns. The combination of precise geographic targeting (55% of sales within 5 miles), high completion rates (97%), and integration with real-time inventory feeds through platforms like Demand Local’s automotive inventory marketing solutions ensures that aged units receive maximum exposure to local, high-intent buyers. The ability to create VIN-specific creative updates automatically makes OTT ideal for moving specific aged inventory quickly. Dynamic creative optimization produces a 77% lift in click-through rates, allowing dealerships to showcase specific vehicles to the right audiences at the right time.