As tariffs loom and political factors rattle the TV upfront market, automotive advertising agencies face unique challenges—especially when consumer vehicle prices could jump by 10%-15%. Here’s how you can adapt your media strategies and leverage the advantages of programmatic Streaming TV (STV):
1. Recognizing the New Reality
Effective April 2, a 25% tariff on imported cars and parts raises production costs, prompting automakers to re-examine advertising commitments. And for agency partners, being prepared for a heightened focus on profitability and cost control.
Key Concern We’re Hearing: “How should we think about maintaining strong reach without giving up ROI or compromising on low-quality inventory?”
How To Solve It: Create Value Around the Edges
- Broadening Your Inventory Portfolio: Rather than relying solely on high-cost, high-visibility placements, consider tapping into emerging or niche OTT/CTV channels, FAST services, and targeted display networks. These “edge” placements often have lower CPMs but can still deliver highly engaged audiences when paired with relevant messaging.
- Leverage Dynamic Creative Across Video & Display: By customizing creative to specific viewer segments or even device types, agencies can wring more impact from each impression. For instance, you might tailor EV-focused ads to markets with high charging infrastructure, while running different offers in regions known for truck sales.
How To Solve It: Activate More Inventory with Dynamic Targeting
- Data-Driven Audience Segmentation: Use deterministic and probabilistic data (e.g., from DMPs or ID resolution solutions) to refine who sees each ad. By matching creative to each segment’s pain points—like fuel efficiency for cost-conscious consumers—agencies can expand inventory sources without diluting relevance or brand safety.
- Supply Path Optimization (SPO): Ensure your DSP partners filter out low-quality or fraudulent inventory to protect brand reputation and budget. This approach combines the scale you need while maintaining strict quality controls.
How To Solve It: Quantify Outcomes with Headless Analytics
- Centralized Performance Visibility: Headless analytics stacks—where data from different sources feeds into a unified layer—make it easier to measure performance across every channel (CTV, display, mobile, social) in real-time.
- Outcome-Based Metrics: Go beyond CTR or CPM. Instead, focus on incremental sales lifts, qualified leads generated, or dealership foot traffic. The deeper insights you get from headless analytics help refine spend allocations and keep the focus on actual ROI.
2. Why Programmatic STV Makes Sense Right Now
Historically, significant economic or political events—such as COVID lockdowns—accelerated the shift from locked-in linear TV plans to more adaptable programmatic media buys. New tariffs might be the next catalyst. With programmatic STV, you can flex budgets in real time and allocate spend to high-performing segments.
Practical Advantages:
- Real-time Optimization: Adjust campaigns on the fly, simple.
- Addressable Targeting: Incorporate first-party data into every buy.
- Measurement & Attribution: Stop guessing. Break through the black box of streaming analytics and attribution with Headless Analytics.
Key Takeaways:
- Reinforce how transparency and agility in programmatic STV help clients pivot quickly to attributable, demand-based strategies and tactics without a contract.
- Use concrete examples: “Let’s ramp up mid-size SUV creative in real time if an EV initiative hits supply constraints.”
3. Future-Proofing Automotive Ad Strategies
In an uncertain environment, sometimes it’s best to focus on what’s ahead. It is already April after all and major television events are in the queue – 2026 Winter Olympics, FIFA World Cup, the upcoming U.S. midterm elections. These high-profile moments create spikes in viewership —prime opportunities for brands to stand out. Position your agency as the partner who understands how to maximize the biggest moments.
4. Your Next Move
With tariffs shaping global market dynamics, flexibility in media buying becomes a critical differentiator. Lean into programmatic STV’s real-time control, advanced targeting, and robust measurement to secure your clients’ confidence and budget allocations.
And no matter what happens…
