With the Push Towards Electric, Which Automakers Advertise Most?
Despite electric vehicles currently comprising only 1% of American cars and about 2% of new U.S. car sales annually, growing consumer interest, supportive policies like President Biden's executive order targeting 50% EV sales by 2030, and increased advertising spending—already surpassing 2019 levels—reflect automakers' and policymakers' efforts to accelerate EV adoption amid challenges such as higher costs and limited charging access for lower-income buyers.
Only 1% of cars on American roads today are electric. However, this is expected to change significantly over the next decade due to growing consumer interest, policy initiatives from the Biden administration, and support from automakers. Electric vehicles (EVs) are projected to become more common and accessible.
Although the automotive industry experienced a downturn last year and advertising spending decreased, EV advertising in 2021 has already surpassed spending from the first seven months of 2019.
Electric Vehicle Ownership and Sales Growth
For each of the last three years, electric vehicles have accounted for about 2% of new car sales in the U.S. Despite this, 39% of Americans say they would seriously consider buying an EV for their next car, according to Pew Research Center.
The growth rate of EV sales is outpacing that of gasoline-powered cars. Plug-in vehicle sales more than doubled year-over-year during the first half of this year, compared to a 29% growth rate for total vehicle sales. Hybrid car sales grew 142% in the same period.
Early adoption is primarily driven by high-income consumers with single-family homes, who can more easily accommodate plug-in vehicles and potentially use solar panels to reduce charging costs. Lower-income individuals face higher barriers to entry, such as higher vehicle costs, less impactful tax credits, and limited access to charging stations, especially for those living in apartments.
Despite these challenges, politicians, utility companies, and automakers are implementing policies to further promote EV sales. President Biden signed an executive order, supported by automakers, aiming for half of all new vehicles sold in 2030 to be electric. This initiative is part of a broader climate change pledge and an effort to remain competitive with China and Europe, both of which have more supportive policies and stricter regulations for EV adoption.
Changing consumer behavior remains a significant challenge, and advertising plays a crucial role in this transition.
MediaRadar Insights
Electric vehicle ad spending has reached $33 million so far this year, within a $2.9 billion automotive advertising market. While EV advertising is still a small portion of total car advertising, it has increased by 69% from 2019, when spending totaled $19.5 million over the same period. EV ad spending in 2020 was almost nonexistent.
Note: The figures above refer to spending on fully electric vehicles; hybrid vehicle ad spend is included in total automotive spend.
Top Spending EV Models in 2021
- Volkswagen ID.4
- Lucid Air
- Chevrolet EV
- Atlis Motor Vehicles
- BMW ix
- Nissan Leaf
Of these, only the Nissan Leaf was also among the top six in 2019. The top spending models in 2019 were:
- Nissan Leaf
- Hyundai Kona
- Iconiq Motors
- Volkswagen e-golf
- Pininfarina
- Lotus Evija
Tesla is notably absent from these lists because the company does not use traditional paid advertising channels. CEO Elon Musk has stated his dislike for advertising, and Tesla relies on word-of-mouth marketing and Musk's personal influence, particularly on social media.
As EVs become more common, attention will focus on companies that use traditional marketing methods to promote their products.
For more updates like this, stay tuned to the blog for additional news.
Related
Ad Spend Intelligence Platform
MediaRadar is an ad spend intelligence platform that enables marketing, sales, agency, and strategy teams to track and benchmark competitive advertising investments and category trends across multiple channels—including digital, CTV, paid social, programmatic, paid search, video, print, and OOH—in real time, providing tailored insights for brands, agencies, and publishers to monitor spend shifts, build data-driven plans, and enhance pitches with up-to-date competitive spend data.
Q4 2023 12 for ‘24 - Travel
MediaRadar's Q4 2023 analysis reveals that travel industry advertising reached $5.25 billion through November with a modest 5% annual increase, marked by significant quarterly fluctuations and a strong late-year surge signaling optimism for 2024, while twelve key travel advertisers—including Avis Rent A Car System, which saw a 1000% YoY ad spend increase—collectively boosted their spending by 126% to over $954 million, emphasizing a strategic shift toward digital and online video investments.
2023 Advertising Prediction: Retail Advertisers Continue Ramping Up Spend
In 2022, despite economic challenges like inflation and recession fears, U.S. retail advertisers significantly increased their spending—totaling $11.1 billion through Q3 with a 13% year-over-year rise—particularly in categories such as general retail, food and drug, apparel, home furnishings, and online department stores, signaling strong confidence in consumer demand heading into 2023.
Construction Prepares for a Good Year
The construction industry is poised for significant growth in 2021, driven by anticipated government infrastructure investment from President Biden’s Build Back Better bill and a surge in single-family home construction exceeding one million units, despite challenges like zoning laws and labor shortages, while advertising spend in the sector has yet to fully rebound, with Q1 2021 seeing a 23% decline to $30.5 million across 2,700 brands.
From Signal to Strategy: Navigating What's Next in Media Investment
In 2025, U.S. media investment plateaued at $281 billion with digital media dominating 65% of spend, prompting advertisers to shift from broad, scale-driven omnichannel strategies to precision-focused, outcome-led investments that prioritize high-engagement formats like social (+9.9%) while reducing spend in declining areas such as mobile apps (−3.4%), reflecting a disciplined approach centered on measurable returns amid fragmented consumer attention.
Q4 2023 12 for ‘24 - Beauty
In 2023, the beauty sector saw a 3% year-over-year decline in ad spend totaling over $5.2 billion across 5,200 companies and 11,600 brands, with TV still dominating at 34% of spend despite a 10% drop, while online video and native ads surged by 35% and 41% respectively, driven by increased investments in deodorant (up 72%), skincare, and hair care, alongside notable spending spikes from companies like P&G, and a mixed performance with declines in oral hygiene and bath & shower advertising, as MediaRadar highlights 12 key beauty advertisers poised for growth in 2024.