Social innovation for the auto industry

Growing [Auto Brand’s] Brand Through Social June 2013

Having a social strategy as part of your integrated marketing plans is key for success

Why We’re Here

1

2

3

4

The Path to Purchase Responding to Consumers 2013 Trends & Innovation Next Steps

Google Confidential and Proprietary

The Path to Purchase

52% of car owners change brands when buying a new vehicle

Source: Polk Google Confidential and Proprietary

An Opportunity to Influence the Moments that Matter

only

20% buy the first vehicle they research

63% of new car buyers have an initial brand in mind before they start researching, but...

Source: Polk Google Confidential and Proprietary

The Path to Purchasing a Car is Increasingly Social

Source: emarketer, accenture

PURCHASE

21% of auto purchase decisions are influenced by social media – more than any other industry

33% of social network

users follow Auto brands to get advice

on purchases

=

75% of vehicle buyers find social networks useful

94% of Americans are likely to

turn to social media when buying a car


76% of consumers feel that the auto sector significantly lags other retail industries in the use of digital media tools such as video and 360-degree tours

Source: accenture Google Confidential and Proprietary

Responding to Consumer Behaviors

Customers are changing their online behavior, so dealers and automakers need to adjust their strategies to meet those customers where they are online and with the information they’re looking for. Kate Bullach VP Marketing & Communications FordDirect

Source: emarketer Google Confidential and Proprietary

US Automotive Industry Adjusts Media Mix

-25.6%

26%

-13.8%

-13.4%

-8.6%

Digital

Newspapers

Radio

Television

Directories

Source: eMarketer

Ad Spending Growth, 2013 % change vs. prior year


Online Ad Spending is on the Rise

$3.52 $4.35

$5.58 $6.34

$6.90 $7.44

0

2

4

6

8

2011 2012 2013 2014 2015 2016

billions

Source: eMarketer Google Confidential and Proprietary

The Digital Shift

0%

20%

40%

60%

80%

Source: Nielsen

Channel Growth, 2013 % change vs. prior year


2013 Key Trends & Innovation

Key Trends in Auto

It’s The Year of Brand

Advertising

Brands Don’t Sell Brands, People Sell

Brands

Think Globally,

Act Locally

Focus on a Younger Audience


Trend 1: The Year of Brand Advertising

Marketers Focus on Brand Advertising

63% of marketers expect to increase online brand advertising budgets in 2013 vs. only 51% who plan to increase direct response Brand

Advertising 40% Direct

Response 60%

2013 Digital Spend by Objective Automotive Industry

Source: eMarketer Google Confidential and Proprietary

Auto Brands are Fiercely Consistent Across Channels


BMW Engages Consumers with Aspirational Content

As an aspirational brand....we’re constantly looking at types of content—lifestyle content, cultural content and more product-focused content, such as technology or design stories. Keeping our fan base in the know about all things BMW is at the core of what we’re trying to do.

Kate Alini Social Media & Emerging Technologies

BMW of North America

Album received 400k+ likes and 65k+ shares; contest had

1,500 video entries


Rapping Parents are Viral Video Gold

“The Motherhood", promotes the British release of the Fiat 500L and has received over 4M views.


Kia’s Hamster Commercial Goes Viral

Watch Video

A funny, weird and provocative viral-worthy video that captured Kia’s brand identity tagline…a new way to roll.


Smart Car Defends Brand Image with Poop Tweet

. Watch Video

Source: http://industry.shortawards.com

22M+ Impressions

1,755% growth in Twitter followers

27% Increase in positive sentiment

Wildfire customers vs. industry standards

In just 3 days, the tweet generated


Trend 2: Brands Don’t Sell Brands, People Sell Brands


Timothy Mahoney EVP, Chief Product and Marketing Officer Volkswagen America

Source: http://www.bu.edu/

We can do all the amazing advertising in the world, but if a friend or a family member tells you their story, it has a higher level of credibility.


Source: emarketer, April 2011

Source: eMarketer, April 2011 Source: eMarketer, April 2011

Source: eMarketer, April 2011

Car owners who are fans of their manufacturer are stronger advocates than those who aren’t, and are able to share their recommendations with

3x more people than the average Facebook user

Source: http://www.dealermarketing.com Google Confidential and Proprietary



Readers of consumer-generated reviews and “forums” on Edmunds.com, the automotive site, are

590% more likely to buy a vehicle than average site visitors.

Source: edmunds.com Source: eMarketer


Collaborative Car Configurator by Prius

Car shoppers get immediate input on their potential purchase by inviting family and friends to a Google+ Hangout interactive video chat.


Nissan Gets Geneva Motor Show Attendees to Amplify Brand .

. When guests swiped their badges at one of 14 activation points, information was instantly posted to social networks


Ford Uses Crowdsourcing to Release the 2014 Fiesta

Social campaigns in 130 countries since Inception in 2008

300K

Source: http://www.forbes.com

The 2009 Fiesta crowd-sourcing campaign generated 1.8M Facebook fans and 206k Twitter followers – reinforcing that consumers value other consumers testimonials. Ford spent only 10% of what a traditional new-car launch would have cost while still driving 40%+ in awareness and sales of 10,000 units in the first six days of the launch.


Trend 3: Focus on Young Drivers


More than nine of 10 millennials -- "Generation Y" babies born between 1980 and 2000 -- turn to the Internet when shopping for a new car or truck

Source: http://nbcnews.com Google Confidential and Proprietary

Millennials are Using Phones to Connect




Source: The role of Internet in the New Car Purchase, Google

Social Channels, Like YouTube, Can Deliver a Massive Number of Millennials

Watch Video

Six of the top twenty most-watched advertisements on YouTube of all-time are automotive related


Mercedes’ “Generation Benz”

Mercedes created a social community of 20- and 30-something customers, dubbed "Generation Benz," whom Mercedes marketing teams regularly consult about habits and preferences.


Dodge Dart Registry, a First-Ever Crowd-Funded Platform for Car Buyers .

.

Source: http://therealtimereport.com

Since its launch, over 6,000 people have participated in this social experiment by signing up for their own Dart Registry.


Trend 4: Think Globally, Act Locally


31% of car buyers indicated they would likely interact on Facebook with the dealership they purchased from, if that ability were available

36% of buyers make maintenance decisions based on social media

Source: http://drivingsales.com


Ohio Dealership Connects the Ford Brand with the Local Community

We build expectations, relationships and trust through online dialogue, knowing that if we successfully accomplish all three, we will be first in the customer’s mind when it comes time to service or purchase a vehicle.


Advantage Nissan Shifts to Social Marketing & Drives Sales

Advantage Nissan used to spend $25,000 monthly on weekly newspaper, radio and TV advertising. Now the team spends $8,000 on digital ads and social marketing, which results in 68% of business starting online

Source: http://drivingsales.com Google Confidential and Proprietary

Discussion & Next Steps

Social innovation for the auto industry

Automotive

Transcript of Social innovation for the auto industry