The internet has become an increasingly vital part of the car purchasing experience with 50 percent of customers making their car purchasing decisions online. While the internet has made it easier for consumers to seach for what they need, it has also fostered a highly crowded and competititive marketplace making the customer online experience and brand engagement increasingly important.
Automotive brands have been experimenting in the social marketing world with interactive and creative initiatives and campaigns. Ford Motor’s Global Sales and Marketing VP, Jim Farley, talks about the success of Ford’s online application called the Mustang Customizer, which allows users to virtually create a Mustang to their specifications and compete for votes on design. 4.3 million Mustangs have been designed since the application launched and Mustang sales have increased by 18% this year. According to Farley, it “isn’t about the Mustang, it’s about building the Ford brand” and the auto maker will continue to increase use of social media platforms, especially Facebook, to engage consumers and build the company’s image.
Korean automotive KIA’s campaign ‘Inspired by What you Like’ encourages consumer engagement and interaction with the brand through Facebook. Recently, KIA invited consumers to enter an online competition to help co-create its new global brand campaign through the submission of videos on what it means to have ‘the power to surprise’.
“We live in the age of participation where people want to be more involved with the brands they support. By opening up our creative process we are not only acknowledging that, we are actively seeking very unusual take on the KIA spirit, as a source of constant reinvention and challenges for our brand.”
Myung-Seob Kim, Digital Strategy Team
General Manager at Kia Motors Corporation
Borrel Associates estimates automotive advertising to reach $31 billion by the end of 2012, a 14% increase from 2011. Digital marketing will account for almost 90% of this increase as companies invest more in online consumer touch points such as video commercials, targeted social media advertising and mobile marketing. By year end, it is forecasted that approximately 40% of automotive advertising dollars will be spent on digital media.
McKinsey & Company discusses eight trends shaping digital marketing in the auto industry and a recent article in Mashable Business discusses what we can learn about online marketing from automotive brands.
Key insights include:
- Select advertising themes thoughtfully and continue with what resonates with consumers
- Integrate online and offline strategies to ensure consistent messaging and branding across communication channels.
- Leverage consumer profiling and segmentation to create better targeted advertisements based on communication objectives.
- Be intentional with online advertisements to ensure consumer engagement and value creation.
- Effective use of online videos through social channels to encourage participation and engagement
Today, car purchasers use online touch points as a comparison shopping tool and an informational source to aid in decision making. It is apparent, however, that the internet is more than another information source or tool for customers. It has changed consumer behaviour and the car purchasing process. Understanding online behaviours and the influence of customer purchasing decisions will allow companies to better segment customers, tailoring its messaging and marketing channels to offer the optimal integration of online and offline communication strategies.
The internet and social media offers ample opportunity for companies to interact and engage with its consumers. The automotive industry recognizes the importance of this and is effectively investing in and utilizing online platforms for advertising. The ability to translate these initiatives to enhance the consumer experience and purchasing decision is integral.
How many companies are leveraging online channels to pay attention to what their customers are saying and hear their conversations? How many companies are utilizing insights from mass dialogue and translating it into an actionable plans to better understand the consumer and develop the customer experience?
What ways are you listening to your customers? Is it working?