The coronavirus pandemic has brought US auto sales to a 30-year low. As a result, the US automotive industry will spend just $10.94 billion on digital advertising this year, down by 18.2% from 2019.
Despite 2020 shaping up to be a grim year for automotive overall, the recent rise in used car sales may indicate a pent-up demand for car purchases. If the pandemic subsides and economic conditions stabilize, we expect automotive digital ad spend to rebound by 21.4% in 2021 to $13.29 billion, a figure closer to pre-pandemic levels.
We expect entertainment digital ad spending to decrease 6.9% in 2020, down by roughly $520 million from 2019 and well behind the overall digital ad market’s 1.7% growth this year. It’s a stark drop compared with the 28.2% growth that the industry saw last year. But we anticipate a strong rebound of 20.7% next year to $8.48 billion, as parks, theaters, and event spaces reopen.