Pandemic Forces Change in Automotive Marketing

Over the years, we’ve seen national and global crises impact the auto industry – from the attacks on September 11th to the 2008-09 recession and subsequent bailout to the numerous manufacturer scandals. Still, the industry has always found ways to bounce back. First, it was no interest financing for extended terms, then it was brand consolidation, a focus on electric and hybrid vehicles and, finally, image-building marketing. Now, in 2020, in the midst of a global pandemic that has halted manufacturing and kept potential consumers at home, the industry is responding again. In addition to aggressive offers like 0% financing and delayed or waived payments, brands and dealerships have turned their eyes and their wallets to digital marketing and online retailing.

According to Google, 92% of car buyers research online before they buy. Digital visits throughout the pandemic are over 30% higher than pre-pandemic levels (Source: Comscore). It’s obvious consumers are still shopping. They’re just shopping another way. At-home test drives, online shopping and home delivery are now important considerations for auto intenders. If dealerships haven’t made these policies and processes available, they’re losing out to their competition. A recent CarGurus study shows that before the pandemic, 32% of car buyers were open to buying online. Now, 61% are. Additionally, 66% of those intending to buy in 2020 would prefer to use contactless services.

Car buyers no longer begin their research at a dealership – or even at a dealership’s website. Consumers begin their research using third party sites, review sites, manufacturer sites and even YouTube. When a buyer begins their search, they are often undecided and open to different brands and models. According to the Nielsen Auto Marketing Report, by the time car shoppers are ready to buy, they have twice as many brands under consideration than when they started their search. This means advertising and marketing strategies must target and reach consumers earlier in their research process. Dealerships must have top-of-mind brand awareness so they are under consideration throughout the research and decision-making process. Additionally, data driven online approaches are more important than ever to target and retarget potential customers.

New technology has been introduced and its use has grown exponentially throughout the pandemic. The use of online video in research and marketing has grown in tandem; consumers are taking advantage of virtual test drives, 360˚ views, walk-around videos and video reviews. 85% of all internet users in the United States watched online video content monthly on any of their devices (Statista, 2018) and studies have shown that more than half of consumers want to see more video content from a brand or business they support (HubSpot, 2018). According to Wyzowl, “When asked how they’d most like to learn about a product or service, two-thirds of people (66%) said they’d prefer to watch a short video.” It’s also important to note that more than half of consumers are using their mobile device for research and shopping, so dealerships must ensure a positive mobile experience.

Social media platforms are another important aspect of the new car shopping experience now. Instagram, Twitter and YouTube allow for more creativity and direct customer engagement when it comes to marketing strategies. “Depending on the research source, up to 51% of US adults are using social media at higher rates during the pandemic,” says eMarketer. It’s expected to be a sustained boost. Social media creative should be integrated as part of a larger campaign. It’s also an opportunity for a dealership to harness the power of positive reviews and a good reputation.

The pandemic has changed consumer behavior and requires a change in dealer behavior – when it comes to both sales and marketing. Consumers are becoming more and more comfortable making their purchases online. The ability, legalities and technology to put the entire car buying process online varies across the country, but it’s going to need to become a national reality sooner than expected. Google Surveys tells us, “18% of auto shoppers would buy a vehicle sooner if they could purchase the vehicle they wanted without going to a dealership.” A new Pew Research Center survey finds that 87% of U.S. adults say the internet has been important for them personally during the pandemic, while 53% call it essential – not just important, but essential! Based on the trend lines, this uptick in internet usage and online shopping is not going away. It’s a new day. Understanding customer expectations, research trends and shopping behaviors is critical to finding success in our ‘new normal’.