The automotive industry has seen its fair share of ups and downs over the past few years.
With shifting consumer buying trends, declining vehicle sales, supply chain backups and rising inflation, auto OEMs have had to dance a nimble dance while remaining competitive, contending with the stemless martini glass marketing funnel and adapting to generational loyalty preferences.
To help prepare you for success, we’ve compiled a list of some of the top marketing trends to look for in 2025. These should hopefully help give you detailed information to act upon with your own marketing strategies.
1. Auto Ad Spending Will Plateau
Although the total spend is bouncing back from the pandemic-induced slowdowns, don’t expect to see a huge industry increase in ad spending in the coming years. Per EMARKETER, total media ad spending will only increase by 0.1% in 2025 (from 7.7% to 7.8%, respectively). 2024 saw an increase in ad spending due to tentpole events like the Summer Olympics and the start of the NFL season, but there won’t be a significant spike in spending in 2025.
EMARKETER predicts that digital ad spending will only increase 11.1% in 2025 to $24.47 billion — compared to 14.7% in 2024. Auto OEMs are also continuing to invest less ad dollars in linear advertising like other B2C companies, with traditional ad spending due to decrease by 2.1% in 2025. All formats of media ad spending are due to increase at decreased rates in 2025 compared to 2024, including display (10.5%), search (13%), social (11.1%) and video (12.7%).
What This Means for You
With decreased ad spend from your competitors, consider increasing your ad spend on key channels to take advantage of the opportunity of more real estate to promote your products. But if you plan on holding back on your spend, consider using incrementality testing or media mix modeling to identify what ads have the most impact on consideration and purchases and what media mixes are best to invest in.
2. Social Media Will Influence “Big Ticket” Purchases
A recent report from Adtaxi indicated the growing importance of social media on “big ticket” purchases including automotive purchases. The automotive marketplace is undergoing significant change, with traditional dealerships still central but facing new competition from social media channels. About 45% of Americans are open to buying their next car through social media — a number that rises to 67% among recent buyers, highlighting a shift towards these platforms in the purchasing journey. Consumers are also increasingly open to alternative buying options, with 48% willing to buy directly from a manufacturer, 35% considering car-buying services, and 15% open to platforms like CarMax.
When it comes to influential social platforms for car searches, Facebook leads with 38% overall and 53% of recent buyers, followed by Instagram, YouTube and TikTok. Among adults aged 18-29, TikTok’s influence is especially strong, nearly tripling its reach in this age group and underscoring its impact on younger buyers.
What This Means for You
It’s imperative to have a robust social media strategy that captures demand from these buyers. In your marketing campaigns, emphasize the positive benefits of purchasing from dealerships outside of just price. Highlight the convenience of visiting a dealership, the expertise of your employees and the benefits of warranties for consumers. Don’t be afraid to showcase your competitive pricing as well. Emphasize brand awareness to create a favorable impression with buyers.
3. Electrical Vehicles (EVs) Will Continue To Drive Interest
As research from this year showed, EV sales have come with hiccups along the way, with consumers being hesitant to buy EVs because of a lack of charging station availability and their higher costs compared to gas-powered vehicles. They’ve also become a hot-button political issue. Nevertheless, we can expect to see EV sales increasing over the next few years. JD Power even projects that 1.2 million EVs will be sold in the U.S. by the end of 2024.
According to EMARKETER, the number of U.S. electric car drivers will rise significantly by 2028 to 30.7 million. In 2025, EV drivers are predicted to increase by 46.7% to 12 million. Meanwhile, Gartner estimates that the number of EVs in use will grow 33% in in 2025 and that 73% of EVs will be battery EVs in 2025. With incentive spending tracking above the industry average and consumers increasingly being influenced by sustainability, it’s no surprise that EVs are predicted to surge in growth.
What This Means for You
When making your marketing campaigns for 2025, factor in your supply of hybrid and EVs. Continue to market incentives to help overcome buying objections. Demonstrate your company’s commitment to sustainability. Have an expansive strategy in place to meet this rising demand. And be prudent: Common sense and restrained vigor must be acknowledged based upon the geographical areas that best support EV sales as profitability remains stubbornly slim, and the appetite is fickle.
Wrapping Up
As we look to 2025, it’s clear the automotive landscape is shifting in significant ways. With plateauing ad spends, the growing influence of social media on high-value purchases, and increasing interest in electric vehicles, auto marketers will need to be agile, strategic and ready to meet changing consumer expectations.
Embrace these trends by investing in targeted ad strategies, enhancing social media engagement and promoting sustainability initiatives. By aligning with these key developments, you can stay competitive and build stronger connections with the next generation of car buyers.
Rich Powell is the senior vice president – national multi-location sales at Goodway. He oversees the multi-location sector, where his responsibilities include the development and execution of a go-to-market strategy for revenue growth, sales development, marketing and profitability analysis.