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AUTOMOTIVE BRANDS IN 2012

As is the norm for the New Year, various retailers have announced their latest sales results and made predictions for their specific sector growth in 2012. The motor industry is no different.

IHS Automotive, the market researcher, has forecast sales for the sector in 2012 of 7.02 million cars, up 13 per cent from last year. As Ian Robertson, BMW's sales chief said recently at an auto show, "We do see growth next year for the overall car market and an accelerated growth for premium cars." Elsewhere it’s been shown that car purchases have dropped to the lowest levels in a decade in the UK, according to The Society of Motor Manufacturers and Traders (SMMT). In an article in Marketing Week this week, the society has called for “automotive marketers to focus on producing consistent brand strategies and points of differentiation from rivals to reverse the slump in new car sales.” The article does reveal however that Honda has outperformed in the market despite supply problems in 2011 after the Japanese tsunami and flooding in Thailand.


But selling cars is now no longer simply about the car itself. At this year's Consumer Electronics Show in Las Vegas there have been various announcements for the auto sector with cars in 2012 and beyond integrating more technology to enhance drivers experiences. Cars will soon have built-in internet browsers which can show video content, news and rich content. "We're putting all our efforts toward making the gap between the experiences people have with consumer electronic devices and with entertainment in cars as small as possible", said Francesco Miticocchio, manager of the infotainment division of Magneti Marelli, an international automotive systems supplier.

For automotive brands in 2012 their advertising and marketing strategies must continue to evolve in parallel with the innovative manufacturing techniques of the cars themselves, the technology within them and the behaviour of customers. For today's 'switched on' consumer, campaigns must seamlessly integrate across multiple channels of engagement. For many that medium will be video. It’s been shown that video can play a crucial role in brand engagement, customer retention and sales. It builds an ongoing and trusted communication with customers, demonstrating the latest products, innovations and valued services the brand offers.

For automotive brands there are two phases of customer purchasing behaviour that marketing strategies must target and where video can play a crucial role.

1. Active car purchasers who are further ahead in the buying cycle are those that want all relevant information from price to specification, before making a commitment. Videos targeted toward this customer group must contain detailed facts. 
2. Further down the buying cycle is the passive car purchaser, those who are contemplating a new car and can be enticed with an engaging and entertaining campaign, rather than an informative one.

The automotive sector is no stranger to online video campaigns. In 2010 Kia's Black Sheep ad was voted by Nielson Automotive Advertising Awards as the "Automotive Ad of the Year", attributing a sales increase of 10%. Kia now has a monopoly on the hamster characters and in 2011 released Party Rock Anthem.


Social video for automotive brands is particularly popular. The VW commercial titled The Force saw 47.5 million views and nearly 5 million shares. For many consumers they will only purchase a new car every few years so automotive brands must build a long-term emotional relationship with its customers. This move toward a more sustainable level of brand engagement has raised the stakes for marketing strategies in 2012. We will likely see the more successful brands being those that understand their audience, in whichever stage of the purchasing cycle they’re in, and create content that provides both an entertaining and informative experience.

To provide further insight for campaigns in 2012, please find below a list of statistics relevant to the automotive industry; from online video to customer purchasing behaviour.

MULTICHANNEL VIDEO: 

• 30% of luxury car shoppers watched videos on their mobile phones prior to a purchase (Source: study by Google, Compete and Polk)

• Luxury car shoppers were twice as likely as volume car shoppers to watch consumer-generated online video on their PC and on their mobile device (Source: study by Google, Compete and Polk)

• Respondents said that online photos and videos were integral to the purchase process for luxury and sports cars than for other types of cars (Source: Ad-ology Research survey on auto purchasers)

• 65% of consumers watch videos about cars (Source: Google at IAB auto conference)

• 80% of auto shoppers use video (Source: Google at IAB auto conference)

ECOMMERCE:

• Ebay sells 2,000 cards a year in the UK (Source: Google at IAB auto conference)

• 40% of consumers use a mobile phone app while at a car dealership

SEARCH:

• 66% of consumers use the internet to gather more information before making a car purchase (Source: TribalFusion)

• 15% of UK total search traffic is for automobile search.