Car ad networks are being forced to compete with each other to attract ad dollars.
But they can’t compete with one another to drive ad clicks and revenues.
Read moreCar ad networks are also having a tough time keeping up with a growing market for paid advertising.
“The new generation of advertisers is not as innovative and focused on targeting as the old generation,” says AdAge’s Andrew Deane.
“The networks that are most focused on ad spending are not as willing to pay to reach new audiences, especially younger ones.”
According to AdAge, car ads spend about $40 billion per year.
But the biggest ad networks have yet to catch up.
In fact, the majority of car advertising ad dollars are going to the highest-margin, fastest-growing brands, such as BMW, Mercedes, and Nissan.
That’s partly because the networks are trying to stay ahead of the curve and not let their rivals take the lead.
According to the Car Ad Network Association (CARNA), more than 60% of all new car advertising spending is spent by the car brands themselves.
But that’s just a drop in the bucket compared to the industry’s $300 billion global advertising market.
“It is a really competitive marketplace,” CARNA President Kerry O’Connor said.
That’s because it’s becoming easier for advertisers to reach a broader audience and drive more clicks.
“The car industry has grown so quickly that there’s a lot of people competing to reach that market.
But if you don’t have a clear target audience, it’s a difficult task to compete,” O’Connor says.
And while car ad spending is expected to grow at a similar pace to other industries, many of those ad dollars go to brands with niche appeal.
Car ad spending has also gotten bigger in recent years, but it’s been slower to grow than other forms of advertising.
But Car Ad Network Alliance CEO John Jansen says the industry is facing a problem with advertising.
“It’s really hard for an ad network to compete and grow.
That needs to change,” he says.
Car ad markets are growing, but not fast enough to drive growth in the advertising industry.
The CARSA’s Jansen believes car ads are too expensive for a broad audience.
There’s also a fear that the growth in advertising is unsustainable.
One of the biggest concerns is that the industry can’t afford to keep up with rising ad costs.
Advertisers are now asking car companies to invest in new technology, such as new cameras, or new advertising software, or even new models.
So car ad networks, like all other ad networks need to get their ads out to new audiences.
As more brands get into the car industry, the car ad market is expected to grow by another $150 billion by 2026.
That would translate to about 2% of the global advertising economy.
However, car advertising is expected only to grow by about 4% per year until 2026, according to CARFA.
Some companies are trying to compete on price, but other car ad networks believe that they can drive the growth by offering lower-cost products and services.
Carrying on the car ad boom could put an end to the ad industry’s slow growth.
If cars are driving the growth of the ad market, then the advertising market could grow by as much as 2% per annum.
While car ad budgets are rising, the industry needs to find ways to keep pace with the growing advertising economy.
“Car ad spend is going to be more expensive than the ad spending industry,” Jansen says.
“We’ve got to make it more affordable.”
Car Advertising Alliance President Carleton McBride agrees.
“There’s a bit of a Catch-22 right now because you’ve got a growing industry that has increased expenses, but also you’ve got a growing population that’s growing.
The car industry is going to grow for a long time, but then the advertising industry will go to the same place,” McBride says.Read more Follow CNNMoney on Twitter and Facebook