Display Marketing that Works in Automotive Marketing: A Winning Strategy for 2025

The automotive industry, like many others, has undergone a transformation in recent years. From the rise of electric vehicles (EVs) and the integration of AI-powered technologies to the shift toward online car buying and subscription models, automotive marketing in 2025 requires adaptability and innovation. One of the most dynamic and influential forms of digital advertising for automotive companies is display marketing.

Display marketing—also known as display advertising—refers to the use of banner ads, images, videos, and other visual content across websites and apps to attract attention and drive customer action. For the automotive industry, where visual appeal and brand image play a pivotal role in consumer decisions, display marketing provides a powerful platform to engage and convert prospects. In this op-ed, we’ll explore the strategies, trends, and best practices that make display marketing effective in automotive marketing and advertising, drawing on real-world examples and insights from leading automotive brands.

1. The Power of Visual Appeal in Automotive Marketing

In the automotive industry, display marketing is inherently designed for the medium’s strengths: visual storytelling. A car is more than just a product; it represents a lifestyle, a brand promise, and a deep emotional connection for the consumer. Display ads, with their use of high-quality images, video content, and interactive elements, are uniquely suited to this kind of marketing.

The Importance of High-Quality Imagery

Consumers looking to purchase a car want to see it in all its glory. High-quality imagery can make or break a display ad, as it’s often the first impression a consumer has of a vehicle or a brand. For automotive display ads to work, they must capture the essence of the car, from sleek designs to luxurious interiors. A well-executed ad that showcases the vehicle’s aesthetic appeal is likely to spark curiosity, driving engagement and interaction.

Video Content: Bringing Cars to Life

Videos in display ads are particularly effective for automotive marketing, as they allow potential buyers to experience the vehicle in action. A video that showcases the car’s features, like handling on the road, smooth acceleration, or the ease of using advanced technology features, can be more persuasive than static images. For example, a display ad featuring a luxury SUV driving through various terrains not only highlights the vehicle’s design but also its performance capabilities.

Interactive Ads and 360-Degree Views

With technology constantly evolving, automotive brands are increasingly using interactive ads, which provide users with an immersive experience. Interactive ads can allow users to “build” their dream car, customizing colors, trims, and options. 360-degree car views within display ads enable consumers to take virtual tours of a vehicle’s interior and exterior, making it easier to understand the car’s features before setting foot in a dealership.

The innovation of virtual reality (VR) and augmented reality (AR) technologies also plays a role here, allowing users to visualize the car in their own environment, such as in their driveway or garage. These immersive experiences help potential buyers engage with the car more deeply, which increases the chances of them taking the next step—whether it’s scheduling a test drive, making an online inquiry, or visiting a dealership.

2. Targeting the Right Audience: Precision in Display Ads

While eye-catching visuals are crucial, successful display marketing also relies heavily on targeting the right audience. In 2025, automotive marketers are using advanced data analytics and AI-powered tools to ensure that their display ads are reaching the people most likely to make a purchase. This precision targeting is what separates effective campaigns from the rest.

Behavioral Targeting: Reaching In-Market Buyers

Behavioral targeting allows marketers to reach individuals who have demonstrated specific behaviors that indicate an intent to purchase a vehicle. For example, if someone is frequently searching for information on car models, reading reviews, or comparing prices online, they are likely in the market for a new vehicle. Display ads targeting these individuals with ads for specific car models or offers related to their browsing history can dramatically increase engagement and conversions.

For instance, a luxury car brand might use behavioral targeting to serve display ads to individuals who have been researching high-end vehicles or browsing related websites like automotive news outlets or review sites. These tailored ads are far more effective than generic ones, as they speak directly to the consumer’s interests and needs.

Geographic Targeting: Reaching Local Audiences

Another important strategy in automotive display marketing is geo-targeting, which focuses on reaching consumers in specific geographic locations. A local dealership, for example, could use display ads to target people within a certain radius, offering localized incentives like limited-time discounts or service deals.

Geo-targeting allows brands to adjust their messaging based on the location of the audience. A car dealership in a city might highlight different models than one in a rural area, aligning its messaging with the specific needs and preferences of its local customer base.

Demographic and Psychographic Targeting

Demographic targeting allows marketers to tailor ads based on factors like age, income, gender, and family status. For example, ads for family-friendly SUVs or minivans might be targeted at middle-aged consumers with young children, while sports cars may be aimed at younger buyers seeking performance and excitement.

Psychographic targeting takes this a step further by focusing on consumer lifestyles, interests, values, and attitudes. A display ad for an electric vehicle (EV), for instance, could be served to individuals who show an interest in sustainability, environmentalism, or cutting-edge technology. This deeper level of segmentation ensures that the content of the ad is relevant to the recipient, increasing the likelihood of conversion.

3. Dynamic Retargeting: Converting Interested Consumers

One of the most powerful tools in display marketing is dynamic retargeting. This strategy allows automotive brands to follow up with individuals who have interacted with their website, social media pages, or previous ads but have not yet completed a desired action, such as filling out a lead form or making a purchase.

Personalized Follow-Ups for Abandoned Visits

When a consumer visits a car dealership’s website but leaves without scheduling a test drive or filling out a contact form, dynamic retargeting enables marketers to show them display ads reminding them of the vehicle they were considering. These ads can be highly personalized, featuring the exact model the consumer was browsing, along with offers, trade-in incentives, or test drive invitations.

For example, if a user visited a webpage for a specific SUV model, they might be served a display ad showcasing the same model, along with a special financing offer or a reminder about a limited-time sale. By reminding the consumer of the vehicle and offering an incentive, these retargeting ads help push the prospect down the sales funnel.

Cross-Platform Retargeting

Effective retargeting strategies extend across devices. If a potential customer browses a car brand’s website on their desktop but leaves without engaging further, that same person may later see retargeted ads for the same vehicle when using their smartphone. Cross-platform retargeting ensures that the brand stays top-of-mind across multiple touchpoints, giving prospects several opportunities to convert.

4. Seasonal and Event-Based Campaigns

The automotive industry is no stranger to seasonal fluctuations and event-based opportunities. From end-of-year clearance sales and holiday promotions to car expos and new model releases, these events provide great opportunities for display marketing campaigns that create urgency and drive traffic.

Seasonal Offers and Promotions

Display ads that promote seasonal sales events—such as Black Friday deals, summer sales, or year-end clearance events—can generate a lot of attention. Limited-time offers create a sense of urgency, encouraging customers to take immediate action. For example, a dealership may run a “Holiday Sales Event” ad showcasing exclusive discounts on select vehicles, paired with a countdown timer to build urgency.

Leveraging Major Automotive Events

Automotive events such as the North American International Auto Show or the Geneva International Motor Show attract car enthusiasts, media, and influencers. Display ads during such events can generate buzz and create anticipation around new vehicle launches. Automakers can create dynamic, visually compelling ads to showcase their vehicles at these events, driving awareness and interest from consumers who follow the latest automotive trends.

5. Measuring Success and Optimizing Display Ads

One of the most significant advantages of display marketing is its ability to measure success through detailed analytics. Automotive brands can track performance metrics such as click-through rates (CTR), conversion rates, impressions, and return on investment (ROI), all of which are vital for optimizing future campaigns.

A/B Testing for Continuous Improvement

To ensure their ads are effective, automotive marketers should regularly perform A/B testing. By testing different ad designs, copy, CTAs, and targeting parameters, brands can refine their campaigns and determine which combinations yield the best results. For example, an automaker might test two different headlines for a display ad: one focused on performance (“Unleash the Power of Our Latest SUV”) and one focused on luxury (“Experience the Comfort and Luxury of Our New Sedan”).

Refining Audience Targeting and Frequency

Analyzing display ad performance allows marketers to fine-tune their targeting strategies, ensuring that ads are reaching the right people at the right time. By adjusting frequency caps, automakers can prevent ad fatigue and ensure that consumers are not overwhelmed by too many impressions. A well-balanced approach ensures that customers stay engaged without feeling overwhelmed or annoyed.

6. The Future of Display Marketing in Automotive Advertising

As we move further into 2025, display marketing in the automotive industry is poised to evolve even further. With the integration of artificial intelligence (AI) and machine learning, automotive brands can expect increasingly sophisticated targeting options and more personalized ad experiences. Moreover, the use of interactive elements, augmented reality, and virtual showrooms will continue to push the boundaries of what display ads can offer.

AI-Powered Personalization

In the future, AI could help create even more tailored display ads based on deep learning models that track and predict consumer behavior. These algorithms could analyze a potential buyer’s past browsing history, preferences, and past purchases to offer highly relevant car recommendations and incentives.

Augmented Reality (AR) Integration

The next frontier of display marketing in the automotive industry may lie in integrating AR directly into display ads. Imagine a consumer receiving a display ad for a car model and being able to use their phone’s camera to view the car in 3D within their own environment. This kind of immersive experience would allow brands to showcase their vehicles in new and exciting ways, further blurring the line between the digital and physical worlds.

Display marketing offers automotive brands the ability to capture attention, engage prospects, and drive conversions through visually compelling and highly targeted campaigns. In 2025, as the industry continues to evolve, display ads will remain a cornerstone of automotive marketing strategies. By combining high-quality visuals, precise targeting, dynamic retargeting, and measurable outcomes, automotive brands can create campaigns that resonate with customers at every stage of the buyer’s journey.

Through innovation, personalization, and a deep understanding of consumer behavior, automotive brands can harness the full potential of display marketing to stay competitive in a rapidly changing marketplace. As technology continues to evolve, the future of display marketing in the automotive industry is bright, offering endless opportunities for brands to connect with consumers in meaningful ways.