Car Ads May Be in Shorter Supply This Holiday Season, Thanks to the Supply Chain Mess

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Car Ads May Be in Shorter Supply This Holiday Season, Thanks to the Supply Chain Mess

As we enter the second holiday season of the COVID-19 pandemic, automakers and their dealers are faced with a new dilemma: how best to advertise their vehicles when the supply of those vehicles is limited. Given the challenges of the global supply chain—and the well-documented auto manufacturing plant shutdowns that have taken place this year—there just aren’t as many vehicles for sale as there usually are. And that leads to questions about how much to encourage demand.

The answer, it seems, is to dial things back. A recent report by Reuters found that both car companies and local dealerships have decided to reduce the amount of advertising spending they plan on doing this year.

Ad dollars have already been in decline during the pandemic. Analytics firm Pathmatics found that automakers reduced their digital advertising spending by around $24 million, around 10 percent, between late July and the end of October, compared to the same time frame in pre-pandemic 2019. Another analytics firm, EDO, found that spending on broadcast television commercials during those same months was down $57 million, or five percent again compared to 2019.

“Winter sales events are such an institutionalized event that it’s hard not to do them,” EDO CEO Kevin Krim told Reuters. “But if they do their jobs really well, they could make people unhappy if the cars aren’t there.”

For the full story, check out this article from Car And Driver.

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