In the past few years, major Auto brands have gradually shifted advertising budgets from TV networks to Facebook and YouTube. With advanced targeting capabilities and lower cost per view, digital ads enable brands to drive awareness and conversions at scale — and at a fraction of the cost. As car sales slowed during the past year, this enabled brands to curb spending in favor of other promotional activity.
However, YouTube’s recent advertising faux pas with ads being placed on extremist videos resulted in major brands boycotting the major video platform and looking elsewhere for visibility. Earlier this month, Discovery announced a joint venture with Los Angeles-based media company “The Enthusiast Network”, which owns properties like Automobile, Hot Rod, and subscription streaming service Motor Trend. The partnership brings together Discovery’s automotive cable network and TEN’s digital, social, video and live event holdings to attract buyers.
With Auto brands being the largest spending category in terms of ad buys, this partnership will enable brands to target super-fans across channels more effectively and provide cost savings. Yet it could also diminish spend on digital-first platforms, posing a challenge for YouTube and Facebook.