Automotive Industry Digital Marketing Factsheet by WSI Online

3,053 views
2,925 views

Published on

WSI has made a research in Automotive Industry, collecting together Digital Marketing Facts and Trends.

Automotive Industry:
* Industry Overview
* Business Challenges
* Industry Opportunities
* Digital Marketing Trends
* Advertising Spending Increase
* Traffic to Automotive Retail Websites
* Purpose of visiting Automotive Retail Websites
* Automotive Mobile Websites
* Consumers Use Social Media to Research Vehicles
* Digital Marketing Opportunities

Published in: Automotive, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,053
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
141
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Automotive Industry Digital Marketing Factsheet by WSI Online

  1. 1. Automotive INDUSTRY FACTSHEETIndustry OverviewThe automotive industry includes mechanical repair, collision repair, car washes, and lube or oil changes. This industry’sdemand is dependent upon car usage and the number of cars on the road. Profitability of individual companies can beshaped by the convenience of their location and the strength of their marketing. Typically, large companies canmaximize use of more expensive equipment and can easily leverage advantages in marketing. On the other hand,smaller companies can compete by providing superior customer service or by offering specialized services. Industrycompetition includes venues that also provide automotive services, including gas stations, car dealerships or somebranches of chain stores, like Wal-Mart. Promotional channels in this industry typically include phone directories,signage, local newspaper ads, direct mail, TV and radio.Business ChallengesThe complexity of the various types of purchases in the automotive industry – from the point of sale to ongoing annualmaintenance – also shapes the complex challenges of the industry. Competition From Car Dealers: The sales department is often much less profitable than the parts and service centers of car dealerships. And to compensate for inconvenient locations, many dealers will offer evening and weekend hours. Additionally, if dealerships offer initial warranty services to a consumer’s satisfaction, there is an increased chance that more customers will return for maintenance and repair services even after warranties expire. Public Mistrust: Because of the complexity of cars, consumers are unable to easily judge whether they have been treated fairly by a repair shop. Polls indicate that a high percentage of consumers believe that repair shops overcharge, perform unnecessary repairs, or use inferior parts. Growing Car Complexity: As cars become more technologically complex, maintenance and repair services have followed suit and have become more difficult and expensive. There is a stronger need for shops to invest in special diagnostic equipment and tools to perform repairs to advanced systems. Service technicians also require additional training to work on the latest car models.Industry OpportunitiesThe opportunities in this industry directly reflect the growing trends and desires of consumers, as well as the variety oftechnological advancements in everyday vehicles. Alliances with Car Dealers: Often, owners of expensive cars are more likely to prefer using the service department at their car dealer. By allying with a car dealership, local repair shops can be referred new business from a dealership in exchange for purchasing auto parts from the dealer. Collision repair in particular is a key opportunity for shops because an increasing number of dealerships are opting out of offering body shop services. Copyright © 2011 by Research and Management. All rights reserved.
  2. 2. Automotive INDUSTRY FACTSHEET Servicing Non-Traditional Vehicles: Growing sales of fuel-efficient vehicles – like hybrids, electric cars, and cars that operate on alternative fuels – have increased the demand for specialized repair services. Additionally, some consumers may require restoration, custom paint jobs, “retro” engine parts or special attention. Auto repair shops can leverage such needs and create a niche by developing expertise in non-traditional or specialized vehicles. Non-traditional vehicle owners tend to be passionate about their cars and are much more likely to spend more money to maintain them. Service for Car Electronics: In recent years there has been a proliferation in electronic devices in cars. This includes cell phones, CD players, MP3 players, navigation systems, video systems and Internet access devices. Naturally, this provides greater opportunities for shops that develop expertise with these systems.Digital Marketing TrendsAdvertising Spending IncreaseThe automotive industry saw the largest advertising spending growthin 2010 among other industries, according to a statistic released byeMarketer citing a press release from The Nielsen Company. In 2010,companies in the automotive industry increased their totaladvertising spend by 20.3%. Meanwhile, those in the financialindustry increased their ad spending by 17.9%. Clothing andaccessories companies spent 10.8% more on advertising that year,while the media and entertainment industries increased their adspending by 6.1% and 5.5% respectively. Traffic to Automotive Retail Websites When evaluating how worldwide website visitors arrive at automotive retail websites, we see that search engines are the most common channels. In Q1 of 2010, 32.2% of traffic to automotive retail sites came through search engines. The following quarter, search engine traffic to automotive retail websites account for 33.4% of total traffic. While some people use search engines, others type specific URLs into a browser. In Q4 2010, 27.3% of total website traffic came from typing in URLs. Meanwhile, 6.7% of traffic came through ads during the last quarter of 2010. Other paths used to get to automotive retail websites include: bookmark/favorites, email links, blog links and referral links. Copyright © 2011 by Research and Management. All rights reserved.
  3. 3. Automotive INDUSTRY FACTSHEETPurpose of Visiting Automotive Retail WebsitesStatistics indicate that people visit automotive retail websitesfor a number of reasons, one of which is to compare models. Inthe last quarter of 2010, 17.4% of those who visitied anautomotive retail website did so to compare models.Meanwhile, 13.3% of respondents admitted they visitiedautomotive sites to research prices before purchasing. Almost11% use automotive retail websites to compare vehicle brands,while 8.9% research car features online. Other reasons Internetusers worldwide visit automotive retail websites include:learning about companies and to check inventory. Automotive Mobile Websites Automotive retailers are also leveraging mobile websites to reaach their consumers. About 21% of companies that provide automotive parts have a mobile website. On the other hand, 15.66% of automotive dealerships offer a mobile version of their website. Interestingly, almost 5% of gas stations have mobile websites.This shows great opportunity for companies in the automotive industry to expand their current mobile activities.Consumers Use Social Media to Research VehiclesThe majority of consumers worldwide use social media sitesto read opinions and reviews about specific brands andmodels when researching vehicles (34% of respondents in2010). On the other hand, 27% of consumers use socialmedia to find special deals and offers, while 26% look forhelpful hints on social media sites. Twenty-four percent ofrespondents said they use social media to stay up-to-date onnews about new vehicles. Other consumers use social mediasites to discuss automotive topics with other consumers(24%) and with auto experts (24%). Copyright © 2011 by Research and Management. All rights reserved.
  4. 4. Automotive INDUSTRY FACTSHEETDigital Marketing OpportunitiesImmediate Areas of Focus for Social and MobileWhen we look at the latest digital marketing opportunities of social media and mobile for businesses in the automotivesector, their main considerations and focus should be on how they can use these technologies to increase brandawareness, increase customer engagement, drive sales, support specific promotions and strengthen their overallcustomer relationship marketing. On the social front, automotive companies are leveraging social technologies likeFacebook, Twitter, YouTube, blogs, forums and review sites to enable the sharing of opinions, reviews and discussionsamongst consumers about their brand and models, communicate special deals, provide information and news aboutvehicles, and provide automotive expertise to the general consumer population.On the mobile front, companies in the automotive sector are primarily focusing on how they can leverage mobilemarketing to create brand awareness, drive leads to dealers and/or enable “in-your-pocket” exploration and interactionwith their products, streamline ways to communicate with prospects and improve the sales experience by making iteasier for their customers to research their brand and models while they are on the go. When it comes to socialtechnologies and mobile marketing, below is where we see the majority of building and construction companies makingconsiderations from a strategy standpoint. Social Technologies Blog Facebook Twitter LinkedIn YouTube News Feeds/ Social Forums Review Social Alerts Bookmarking Sites Mobile Marketing Mobile Mobile Local Mobile Mobile Site Search Ads/ Text Apps Copyright © 2011 by Research and Management. All rights reserved.
  5. 5. Automotive INDUSTRY FACTSHEETPopular Pay-Per-Click Keywords Keyword Advertiser Global Monthly Estimated Cost Competition Searches per Click used cars 0.9 1000000 $1.39 car rental 0.96 550000 $3.01 cars for sale 0.87 550000 $1.59 car sales 0.37 368000 $0.56 rental cars 0.96 368000 $3.20 used cars for sale 0.94 201000 $1.49 car loan calculator 0.45 135000 $1.13 car hire 0.99 135000 $3.42 car parts 0.63 135000 $0.66 classic cars 0.4 135000 $0.37 car dealerships 0.35 110000 $5.85 electric cars 0.89 110000 $4.05 cheap car rentals 0.99 90500 $2.72 car auctions 0.76 90500 $0.94 cheap cars 0.96 74000 $2.06 second hand cars 0.89 74000 $0.89 used car 0.7 74000 $1.30 hybrid cars 0.79 74000 $6.99 new cars 0.8 74000 $4.11 rental car 0.97 74000 $3.12 Check for more Copyright © 2011 by Research and Management. All rights reserved.

×