Reestablishing brand loyalty through video
A study by S&P Global Mobility has found that brand loyalty, which is defined as the percentage of buyers that go back to the same brand for their next vehicle, fell by an average of 4% for the overall auto industry between January 2020 to April 2022. “The link between loyalty and days’ supply is very strong, and as inventories have fallen, so has loyalty,” according to S&P. As inventories begin to normalize, auto brands will need to regain lost market share and reconnect with their customers to ensure that they remain loyal. Digital video is one of the best ways to do this.
Advertising Tip: Re-engage existing customers with video ad experiences that promote loyalty programs, service offers, upcoming vehicle launches, and redesigns. Embed expert third party content about your brand or vehicle into the ad experience to deepen consumer trust in your brand.
Engaging the Early Majority of EV Adoption
For the automotive industry to fully realize the potential of electric vehicles, the next wave of adoption will need to occur in areas other than where “Early Adopters” and EV enthusiasts tend to flock, such as the west coast of the US. The “Early Majority” consumer is one that is more pragmatic than the Early Adopters, desiring proven solutions to their challenges, brands they know and trust, and consultation available to them during the shopping and ownership stages. They also need their marketing to be informative as well as entertaining since they are adopting a new technology with a steep learning curve.
Advertising Tip: CTV & OTT video units can deliver an emotionally compelling experience that connects auto brands with shoppers. A digital video canvas with multiple interactive tabs enables auto advertisers to draw Early Majority consumers in with informative EV content like vehicle features and benefits.
From digital retailing to automotive eCommerce
According to UBS, a multinational investment bank and financial services company, about 2% of auto purchases in the US and Europe were made fully online as of 2022. That number is expected to reach 50% by 2030. While existing digital retail tools help consumers shop and compare, configure, get trade-in valuations, and estimate payments, manual intervention is still required by dealers to complete the sale. Automotive eCommerce is the future of car buying; a fully online end-to-end purchase experience that is hands-off for the retailer. To prepare consumers for this future vision, marketing must be tailored to both educate as well as enable.
Advertising Tip: Auto eCommerce presents buyers with a completely new way to purchase a vehicle, and consumers might initially feel uncomfortable with the process. Ease feeling of uncertainty and help customers better understand their purchase options by integrating educational information into your ad unit.
The rise of connected services & automotive personalization
Today, around 50% of new vehicles sold globally include connected services, allowing owners to remotely monitor and control their vehicle via a mobile app. By 2030, that number will grow to 95%. As a result, connected services are expected to grow at a CAGR (compound annual growth rate) of 18.1% between 2022 and 2028. This connectivity will introduce the following opportunities:
✔ Recurring revenue streams for OEMs
✔ More personalized purchase experience for drivers
✔ A new consumer touchpoint for marketers
Advertising Tip: The transition from a vehicle ownership experience centered around mechanical upgrades vs. “over the air” digital updates will require an educational approach to marketing connected services, one that is well-suited for video.