Let’s start off with a quick question: Would you buy a Rolls Royce Phantom online? What about a Bentley Continental GT? I, and I’m sure most people, would simply say “no”. However, way back in 2006, Leadpile.com published an article predicting that luxury auto shoppers would move their entire purchasing decision online. That being said, Leadpile.com stated that “many luxury automobile shoppers will buy their cars 100% online in the future, and may never even step foot in the dealership.
Mercedes Maybach. Image Credit: How good is that?
To be honest, this is quite extreme in relation to the luxury car market. When you decide to part with R4m for an automobile, you would expect to be treated like royalty, and such personal service cannot solely be accomplished online. However, the Internet has definitely changed the way in which auto manufacturers and dealers market their offerings. It has allowed them to differentiate themselves in terms of the buying experience and value-added services they can offer. According to iMedia Connection, “today’s biggest trends in the automotive industry all revolve around e-commerce.” It seems Leadpile.com was on the right track.
The above trends refer to the electronic tools and information buyers now use when researching and ultimately buying a vehicle, as well as the raw, sheer power of Internet services that are available to auto marketers. These services are Web 2.0 tactics, which range from viral videos, web services, SEO, Email Marketing and Social Media. Using these services to increase consumer confidence is ever so important, especially in recessionary times and in an industry which is taking a big knock globally.
This Fact Box will focus on providing some interesting insights, facts and figures on how the auto sector is embracing the Internet and Web 2.0 tactics.
From Clickz.com - Auto Dealers Moving Fast Toward Online Video, Web 2.0 Marketing (May 2008)
(This is an old article, but it relates to the early adoption of Web 2.0)
- 59% of the responding dealerships said they plan to use online video on sites during the next 12 months, up from the current 33%.
- 62% planning to increase online media spending in the next 12 months, compared with only 17% for traditional media.
- 46% of dealers surveyed said they plan to decrease spending on traditional media during the next year, compared with only 8% for online media.
- 15% of the dealers said they are involved in social networking site marketing but 33% said they plan to try it during the next year.
1. Online Advertising and Spend.
From iMedia Connection - How to rescue the flailing auto sector (April 2009)
- In 2006, dealers spent $8.25 million on ads, while the industry as a whole spent $26.46 million.
- In 2007, dealers spent $7.59 million, when the industry spent $24.36 million as a whole.
- In 2008, dealers cut their ad spend to $5.85 million when the industry cut its total budget to $20.9 million.
- In 2009, ad spend is expected to be way down.
From Biz Report – Borrell: Auto Industry online ad spend to rise next year (November 2009)
- Auto advertising across all segments is set to rev up again, rising 4.1% to just over $19 billion in 2010.
- Online advertising will account for around 5% of total ad spend this year.
- Auto manufacturers will increase online spending by 14% next year, while new- and used-car dealers will up theirs by around 9%.
From Clickz.com - Top 50 Internet Advertisers by Media Value (September 2009)
- #13: Chevrolet Camaro: domestic auto - $7,571,900 media value.
- #23: Cadillac SRX: domestic crossover utility vehicle - $4,053,600 media value.
- #27: Chevrolet Equinox: domestic crossover utility vehicle - $3,178,700 media value.
- #35: Kia Forte: Asian auto - $2,677,900 media value.
- #48: Ford Focus: domestic auto - $1,994,800 media value.
- #50: Ford Taurus: domestic auto - $1,962,900 media value.
2. Social Media.
From iMedia Connection - How to rescue the flailing auto sector (April 2009)
- 88% (the bulk) of automotive-related discussions are occurring on message boards.
- Blogs capture 10% of the discussion.
- Social networking sites and user groups account for 1%.
- Twitter holds a small 0.35%.
- Message boards and lesser known blogs are influencing shoppers and driving car purchases more than their well-known counterparts.
- 50% of raw-test conversations online come from car owners.
- YouTube sits at the top of the video space with 40% of new vehicle buyers being reached by the site.
From Slideshare.net - Luxury Auto Social Media Use Study - MH Group Communications (November 2009)
- Porsche and BMW are the leading luxury auto brands within social media.
- German automakers dominate this business category.
- Most luxury auto brands enjoy a largely positive relationship with consumers within social media.
- 90% of the commentary and content created is positive.
- The desire among luxury auto brands to promote exclusivity conflicts with the demographic and accessible nature of social media.
- Japanese brands are largely absent within social media.
- Facebook and YouTube are the brand’s social networks of choice.
- Twitter activity initiated by the brands is insignificant.
- Consumers online are discussing admiration of the brands, sales and deals, news and questions about features, service and accessibility.
- All brands face an extraordinary amount of online clutter in the form of fan-made unofficial Facebook pages, Twitter feeds, YouTube channels and Flickr communities.
3. Search Engine Marketing.
From iMedia Connection – Key innovations from the world of auto marketing (May 2008)
- Third-party lead generators are helping dealers to skip the middle man and generate their own leads by using SEO to drive consumer traffic to these pages.
From iMedia Connection - How to rescue the flailing auto sector (April 2009)
- Search strategies are needed for third-party sites, OEM sites, and search engines.
- 48% of those surveyed said that their next vehicle would be a new one (therefore online search is important in their research).
- With regard to the growing green market of car buyers, SEO strategies have totally changed to match the growing interest in gas-efficient cars.
From MarketingProfs - Top 15 Auto Industry Search Terms (June 2009)
Image Credit: MarketingProfs
It is evident from the above graph that people search for websites which aggregate franchised, non-franchised dealers, independent dealers and private sellers – all of whom are interested in buying and selling automobiles.
4. Mobile Marketing.
Many auto brands are designing nifty mobile applications in order to optimise the mobile marketing communication channel. Below are a few examples taken from Mayo Lounge:
Also check out:
Another interesting fact is that women are now outnumbering men when it comes to internet usage, says Abrahams. Making a Newsletter
Posted by Making a Newsletter on 2010/02/12