The news: Automakers spent 7.7% less on US TV advertising in the first two months of 2026 than in the year prior, per iSpot data, the first sign that the sector may pull back significantly on ad spend as a result of macroeconomic pressures and now the war in Iran.

• The sector’s TV ad spend in January and February was $457.2 million, versus $495.1 million in 2025.
• Ad impressions fell in kind, down 11.7% YoY to 15.1 billion.

Zooming out: Once among the largest TV advertising spenders, the automotive industry has spent less on the channel in recent years. US automotive traditional media ad spend—a category that includes radio, print, and TV—will fall 7.2% this year to $6.01 billion, per our forecast. That’s down from $16.34 billion in 2023.

Instead, spending is shifting toward digital channels. Automotive US digital ad spend will grow 10.1% this year to $24.49 billion, dwarfing traditional spend. The shift in spending reflects not only consumers’ steady transition to digital video but also a change in priorities for the embattled auto sector.

Pain points to come: Over the last several years, a combination of factors including inflation and tariffs have put pressure on the US auto industry.

Before the Iran war, the cost of owning a vehicle had jumped 40% between 2020 and August 2025, per the Navy Federal Credit Union, and 53% of consumers cited cost of living as the main issue preventing them from owning a vehicle. But since the war broke out, gas prices have spiked more than 33% on the month, according to AAA, setting the stage for automotive industry conditions to worsen.

Surging gas prices have led to greater consumer interest in electric vehicles, but the Trump administration’s 2025 elimination of the electric vehicle tax credit means costs will still be prohibitive for many.

Implications for marketers: As consumers begin to feel the pain of war-related cost increases, the automotive sector’s ad spend on traditional channels is likely to dip further, while digital spending growth will slow. During times of economic hardship, brands often shift strategies toward shorter campaign cycles and low-cost, high-ROI channels like performance marketing or loyalty programs.