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Why Dealerships Are Using OTT Automotive Ads Amid Shortages

Why Dealerships Are Using OTT Automotive Ads Amid Shortages

Car dealerships are up against many challenges that make driving traffic to their locations and increasing sales difficult. The ongoing chip shortage is at the forefront of these challenges, ultimately reducing their available inventory despite sky-high demand.

According to CNBC, an AlixPartners study revealed that the semiconductor chip shortage is now foreseen to cost the global automotive industry $210 billion in revenue in 2021, which is nearly double the $110 billion predicted back in May. Moreover, production loss is also anticipated to be much higher for the year, increasing from the initially expected 3.9 million to 7.7 million units of production lost.

Here's how OTT automotive ads will not only get you through this shortage but smooth the pathway for your dealership to reach and resonate with the right buyers.

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Following the pandemic and major factory shutdowns, the supplies needed for chip manufacturing have become scarce. This scarcity has now impacted the production of many products that rely on these chips. 

The national chip shortage crisis has affected much more than the production of new cars. It's impacting everything from smartphones, TVs, and gaming consoles to robotic vacuum cleaners and home appliances. None, however, have felt the heat quite as significantly as the auto industry. Not only has research found that 4 million fewer vehicles were produced this year, but $110 billion in sales has been forfeited in the industry.

Thus, dealerships have been forced to increase new car sale prices to make up for it, but used cars have also been impacted. In August 2021 alone, wholesale used cars prices averaged $14,712, which is 3.2% more than just a few months earlier in July and nearly 9% more than the same month a year before. 

As for new cars, CNET reports that the average price is about $45,000. The report also found that we're seeing record high price tags on new vehicles sold in America for the sixth month in a row, with pricing only increasing from here. It was just this past September that the number hit $45,031, making it the first time in history that the average went higher than $45,000.

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Since you're likely familiar with the problem, let's dive into the solution: OTT automotive ads. 

While some dealers are cutting back on advertisements because they don't have anything to sell, now is the perfect time to build your brand and remain relevant. This way, when inventory is back, your dealership is the first choice.

After all, consumers might be hesitant or frustrated with making a vehicle purchase right now. However, they'll undoubtedly be ready to purchase when the shortage ends and more options are available. Naturally, you'll then want to be at the forefront of this transition. 

CTV/OTT advertising is crucial in this sense because you can build campaigns to generate website traffic, build brand awareness, and keep your dealership top of mind with the right audience. For example, you can advertise to used car sellers looking to sell their cars and car buyers interested in ordering a vehicle when inventory is replenished with customizable messaging.

Utilizing OTT/CTV advertising, it becomes easier to generate brand awareness, deliver targeted messages, and track the campaign's results for effectiveness.

Let’s see it in action:

A local car dealership wants to generate brand awareness and drive website traffic to improve car sales and future orders. In order to accomplish this, the dealership implements a four-step campaign utilizing OTT/CTV advertising tactics:

  • Developed a full-funnel strategy that builds upper-funnel brand awareness with advertisements delivered via a CTV device
  • Follow up with a cross-device retargeting strategy that retargets viewers while they're already engaged, delivering relevant, clickable calls-to-action on their mobile phones, tablets, laptops, and desktops.
  • Perform a layered targeting strategy to reach in-market auto shoppers and retarget users who had visited the website with CTV ads.
  • Observe and evaluate verifiable tracking methods on the website to measure the campaign's effectiveness and the number of viewers who visited the dealership site following exposure.

Utilizing a campaign similar to this, you can drive more people to your website and create a favorable brand impression that will stick with them throughout the purchasing process.


By now, OTT advertising is undeniably efficient for nearly all industries, especially since studies show that CTV and OTT ads have a completion rate of 97% among viewers, and at least 60 million households are predicted to watch content on their TV exclusively through streaming by 2025.

Believe it or not, it's even more beneficial for the automotive industry. This is because it has become so crucial that you connect with your consumers on a more personalized level to elicit purchases later rather than right now amid inventory shortages.

This is possible through OTT since you have access to real-time tracking and measuring when your campaign goes live. Essentially, OTT automotive ads have become the missing link for filling gaps in your consumers' buyer journey, strengthening relationships that will convince the right people that your dealership is the place to go when it comes time.

For the best results, contact our team at Strategus for more customized and experienced insights. To learn more about OTT/CTV in the automotive industry, download our case study!

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Andy Dixon is a seasoned Content Writing Specialist at Strategus, renowned for his expertise in creating engaging and impactful digital content. With over a decade of experience in content creation, Andy has honed his skills in a variety of niches, ranging from technology and marketing to education.

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