The Impact of the COVID Pandemic on Automotive OTT
From COVID to Cord Cutting
Remember when COVID hit? It feels like just yesterday, yet simultaneously a world away.
Before the pandemic, traditional media advertising was the name of the game. Dealers poured sizeable budgets into morning and prime-time slots on major networks, crossing their fingers for a sales boost. Then, COVID slammed the brakes on everything, disrupting supply chains ultimately, leaving dealers with a surplus of cars they couldn’t move.
As demand surged post-COVID, dealers found themselves selling cars at unprecedented profits. With customers lined up, advertising budgets seemed unnecessary. After all, why spend when cars are selling themselves?
Fast forward to today, and inventory levels have rebounded. Dealers are swimming in inventory, yet many haven’t returned to traditional advertising. This hesitance to reallocate budgets could be impacting sales in ways they haven’t yet realized.
Why? Because the landscape has changed. Streaming services have taken over, with a staggering 60% of the audience cutting the cord. This means the traditional advertising channels dealers relied on may not be reaching their target market like they used to.
So, what’s the takeaway? Adaptation is key. It’s time for dealers to rethink their advertising strategies, reallocating budgets to meet their audience where they are: online.
Are you ready to ride the wave of change in automotive advertising? Let’s chat about how you can stay ahead of the curve!
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