Auto Dealerships are spending more than ever to win each new customer

In 2024, advertising spend per new vehicle sold averaged $705—up from $582 in 2020.

Why?

• Fierce competition for buyers
• Fewer salespeople on the floor, replaced by digital outreach
• OEM incentives pushing dealers to advertise new model launches and EVs

Digital now represents 73% of total spend, as dealers demand measurable ROI and shift dollars away from traditional media.

This trend is reshaping dealership P&Ls—and creating opportunities for M&A across the advertising and digital marketing space.

Colonnade Advisors is seeing more M&A interest in the automotive digital advertising space.

Contact us to discuss your long term exit strategy.