The car industry is increasingly becoming a business for the benefit of car makers, who are now paying to advertise their cars in print ads, digital adverts and on TV.
The UK car industry has already paid out £1.6bn to its car makers since 2006, but a new report says that this has increased dramatically since the last financial year.
The new report by the UK car market association shows that the average price paid by car makers to advertisers increased by more than $5bn in the past year alone, while car manufacturers are paying up to $6.6 billion to advertisers in digital ad revenues, which rose by $1.4bn in that time.
The new research, which was published on Monday, comes after the car industry’s own research found that the industry’s biggest car makers were also paying the highest percentage of their ad revenues to advertisers.
“The car industry now has the highest concentration of advertising in any industry, but the market is changing rapidly, and advertisers are increasingly looking for ways to reach consumers,” said Tim Cairns, chief executive of the car lobby group Car Association UK.
Mr Cairnas said that companies that were advertising on a regular basis were getting increasingly aggressive in terms of getting their ads to people.
Advertisers are also becoming more selective, which can make it harder for car manufacturers to reach their target audience, Mr Cairnis said.
In the last two years, the industry has paid out $9.5bn to advertisers, while the average cost of a vehicle advertisement has increased by over $1,500 in the same time.
Advertiser demand for car advertising has also increased over the last five years, rising from $6 billion in 2011 to $7.6b in 2014, according to the new report.
Car advertising in the UK is now dominated by three brands, with the UK’s leading car manufacturer, General Motors, and the country’s largest car company, Nissan, at the top of the list.
The report also found that car manufacturers were increasingly focusing on social media to increase their brand recognition.
This has led to more and more companies offering their own car-related social media channels, with more than 2.5 million unique users signing up to the UK-based network in 2015, up from 1.9 million in 2013, according a survey by automotive analytics firm Comscore.
The car market is increasingly dominated by companies that are advertising on car-specific social media platforms, such as Facebook and Instagram, which have seen an increase in traffic and engagement, the report found.
But this trend could also be slowing down, with advertisers increasingly being forced to look for more lucrative revenue streams, including from advertising on the car’s own social media sites, which are increasingly being bought by rivals.
According to Comscore, there were almost 6.7 million car owners on Instagram in 2015.
Car makers are also paying for more than 40% of their advertising revenues on mobile apps.
Despite the increasing popularity of car advertising in general, it is still extremely rare for companies to pay a significant percentage of advertising revenue to consumers, according the report.