As the year comes to an end, we’ve witnessed one of the most turbulent economic periods in recent history, and it has crippled the automotive industry. The past year has seen a dearth in new car sales, changing buying preferences, and large automakers fall from grace. All automakers are not only conscious of what they’re spending when it comes to advertising and marketing, but they’re also increasingly conscious of how these channels can influence their brand image and consumer perception.
Top Dealer SEO recently had the pleasure of attending the 2009 LA Auto Show prior to its doors opening to the public. As a result we got to see firsthand the exciting new concepts and new cars of 2010 and 2011. But what was also exciting for us was the chance to see how automakers were marketing these new vehicles in light of recent economic challenges.
The Web seems to be playing an increasingly important role for automakers, despite the diffciulty larger companies have in maneuvering to address the most current tech trends. But preparing for a new car launch, in particular, is moving closer to becoming an online event. From expandable ads on high-traffic websites like Yahoo! and MSN to developing elaborate video webisodes, automakers are looking for innovative ways not just to be optimized for search engines or to have a mere presence online, they’re also looking for branding and increased engagement.
One aspect that was clearly under plenty of consideration by OEMs was social media. Keeping consumers engaged online isn’t easy, especially when the economy is keeping most consumers away from car dealerships. The best example of social media’s use at the LA Auto Show was from Ford as they used it to build anticipation for the launch of the 2011 Ford Fiesta. The success of their social media campaign, called the Fiesta Movement, was evident from the frenzy of excitement from automotive journalists upon the car’s unveiling. The wall of the Ford exhibit even displayed Twitter conversations about the new small car.
While mingling with the public relations and marketing personnel that were dispersed throughout the show, it was evident that not many automakers have come quite as far as Ford in regard to social media marketing. However, that’s not to say that social media was not on the minds of marketing executives.
For instance, companies such as Acura and Hyundai have activity in the social media landscape. But when asked who coordinates such efforts or who oversees social media strategy, the answer was not clear. It seems that such responsibility is often broken up and given to public relations, marketing, and/or outside agencies. Any activity in social media is better than none at all, but clearly it’s unlikely that such an approach would yield a successful grassroots campaign on the scale of the Fiesta Movement.
Some automakers can get away with minimal social media activity and participation. These are companies such as MINI that have passionate consumers building communities, Facebook fan pages, and other properties on their behalf to communicate and socialize with other MINI enthusiasts online. That being said, social media was still on the radar at the corporate level. MINI’s Yvonne Malmgren explained that a coordinated social media strategy was not currently in place at the brand. And while they may not be an active participant in social media, Malmgren did identify one important role that social media is currently playing at MINI – research. Companies large and small don’t need to create expansive friends lists on Facebook or send out a hundred tweets a day like Guy Kawasaki to benefit from social media. One benefit that often gets lost in the hype is that listening is just as important as talking, and gauging the pulse of conversation online is just as valuable as starting conversation.
By comparison to Ford, another one of the lesser active OEMs in social media is Mazda, which is something they certainly intend to change in the near future. David Harris, Group Manager of Digital Marketing at Mazda North America, alluded that Mazda has reached a bit of a turning point when it comes to social media, particularly amid the launch of the sporty 2011 Mazda2 compact.
For starters, Mazda is interested in reaching out to both automotive and non-automotive bloggers to foster different perspectives on Mazda vehicles. Ultimately, social media has the power to reach automotive journalists, car bloggers, enthusiasts, as well as existing Mazda owners, but one of Mazda’s important requirements with any type of marketing is that the Zoom-Zoom attitude and passion for the driving culture is clearly conveyed. “We don’t sell appliances. They sell appliances,” Harris says while pointing in the general direction of the Toyota exhibit, “We sell cars.”
In addition to fostering a driving culture within online communities, Harris points out that, “Social media is about listening and conversations, not shouting and selling.” Interestingly, during an earlier discussion with Scott Monty of Ford, that same lesson was also highlighted. Unfortunately, this is what many car dealers sometimes fail to realize, but that’s quickly changing.
Amid the poor economy and rampant job losses, Harris also pointed out some of the added benefits to social media for car dealers. By getting dealer employees to participate online, it has the potential to curb turnover, improve moral, and it can boost the productivity of the sales staff during slow periods.
When buying a car, the relationship between the customer and the dealer ultimately revolves around price. But as Harris added, social media gives dealers an opportunity to create a relationship that’s about more than just a dollar amount.
Social media in the automotive industry is truly a natural fit. Evidence of that is the highly successful debut of the 2011 Ford Fiesta. When it comes to promoting new products and driving consumers to trade shows, activity on blogs, Facebook, Twitter, Linkedin, etc., is highly cost effective. But as we’ve discussed previously, there really are also endless opportunities. After visiting with automotive executives from the LA Auto Show, one thing is certain – social media activity in the auto industry is soon going to go into high gear.
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Top Dealer SEO will be profiling more automotive advertising initiatives here shortly.
