By Kim Stonehouse, Head of Automotive
The last two years brought a flurry of unknowns to the auto industry. Whether retooling plants, adapting supply chains or launching vehicles virtually, this industry continued to do what it does best: Adapt, innovate and thrive.
We’d all love nothing more than for things to settle. But the truth is the unknowns will persist. If 2020 and 2021 threw new unknowns at us, 2022 is turning out to be the year of known unknowns. There are three unknowns, each with opportunities to harness for marketers in the auto industry and beyond.
The first known unknown is around the semiconductor shortage. While the shortage timeline is difficult to forecast, one aspect of this challenge is known: persistent demand.
Shoppers still want to purchase on their original timelines and are now expanding their consideration sets. In fact, 25% would be extremely or very likely to consider switching brands. This provides an opportunity for marketers to draw new people into their brands.
In fact, brand efforts can also drive short term sales for the vehicles automakers do have. In Meta’s analysis of 34 advertisers across 10 industries, the results were consistent: 94% of campaigns that run brand advertising see an increase in brand awareness and conversions.
Why? On mobile, consumer attention doesn’t differentiate between brand and direct response. Everything is a brand experience, and everything is about performance because your finger is right there to act.
And there’s a new playground of tools in this space—from augmented reality to Facebook and Instagram Reels to creator content—allowing today’s leading automakers to show off their creativity while building brand and attracting new customers. When Volvo wanted to increase awareness of its first pure electric SUV model, the XC40 Recharge, the automaker leveraged augmented reality ads and saw a 6.7% lift in awareness, in addition to significant incremental conversions on its site, proving the power of innovative brand campaigns on direct response.
Covid-19 has dramatically accelerated the shift to digital retail—from grocery delivery to holiday shopping to how we purchase vehicles. In a 2020 Meta-commissioned study of 1,154 auto buyers ages 18-plus, 70% of new car intenders surveyed prefer to do most of the research and exploration before even visiting a dealership. But with stores open again, is this trend here to stay? Yes, because consumer expectation for convenience is here to stay.
When digital tools are deployed, customer satisfaction goes up. According to Cox Automotive, in 2021, nearly three-quarters of franchise auto dealers surveyed said that they had seen an uptick in usage of digital retailing tools since Covid-19. And with that, the percentage of shoppers who were “highly satisfied” with the overall shopping experience rose dramatically—a full 12 percentage points—during that same time after little movement over the previous four years of reporting.
Messaging, or conversational commerce, is another source of convenience for today’s automotive shoppers. Consumers have become so used to the instant exchange of texting that messaging has become their preferred method of interacting with friends and businesses alike. Based on a Meta-commissioned study in 2020 of 2,500 people ages 18-24, nearly 70% of consumers surveyed said that being able to interact with businesses through messaging apps helps to build a relationship with them.
Today’s leading automakers see this as an opportunity to focus on launching conversations, and not just campaigns. Renault saw a 2.6 times increase in total direct communication with its customers after implementing WhatsApp as a customer service channel in a bid to boost engagement.
The advertising ecosystem is undergoing massive change. Between regulatory and platform changes, advertisers are losing key consumer insights that have guided their investments, especially for direct response. But there is opportunity in this unknown.
Measurement is evolving to be privacy-first. Advertisers are now measuring causality between ad exposure and business outcomes through a secure server to server integration which controls how data is shared, while respecting customers’ privacy choices.
Another key tool is media mix modeling (MMM). Automotive marketers already rely on MMM, but today, MMM is experiencing a renaissance toward a cookieless world. Leading automakers recognize that the future is modeled, with high fidelity data leading the way.
Just as the automotive industry has adapted resiliently so many times before, today’s known unknowns present new opportunities ready for your marketing expertise. New customers, new levels of convenience and the next era of measurement are all on our doorstep. For more inspiration, visit Facebook.com/Auto.
4 Ways to Reach New Audiences With Cross-Border Business
By Clément Schvartz, Head of Mid-Market Sales, Meta
3 Ways to Build Brand Love by Elevating Small Businesses
By Jim Therkalsen, Creative Lead, Financial Services, Meta
3 Reasons Why Live Shopping Is Transforming Digital Commerce
By Kat Akbari, Industry Director for Ecommerce, Meta
Creator Karen X Shares Her Secret to Successful Brand Partnerships
By Guia Golden, Instagram Business Marketing Lead, North America, Meta
3 Marketing Tactics That Local Businesses Can Adopt to Drive Profitability
By Bob Lanham, Head of Automotive Retail, Meta
5 Mindset Shifts for a Privacy-Focused Marketing Era
By Zach Beatty, Customer Growth Strategy Lead, Meta
5 Reasons to Use Branded Content on Social Media to Connect With Customers
By Joe Pospisil, Industry Manager, Entertainment , Meta
What’s Holding the Industry Back From More Inclusive Advertising? A Conversation with Deloitte’s Nicole Patterson
By Katherine Shappley, VP Mid-Sized Business, Global Business Group North America, Meta
3 Ways a Growth Mindset Can Unlock Your Team’s Potential
By Stacy Malone, Director, North America Marketing, Meta
Why Digital Video and Influencers Are Shaking Up Travel Marketing
By Sanjay Bhatia, Industry Manager, Travel, Meta
Petco Reveals the Creative Video Tips That Helped It Achieve a Big Impact
By Alicia LeBeouf, Head of Industry, Retail, Superstores & Grocery, Meta
What’s Next for Media Measurement in an Evolving Advertising Ecosystem
By Brittany Swanson, Marketing Manager, Measurement Solutions, Meta
Launching Health Brands With Facebook
By Jenny Streets, Head of Industry, Health, Meta
Forward-Thinking Marketers Know That More Viewing Options Means Happier Movie Fans
By Alison Smith, Industry Manager, Entertainment, Meta
Are You Able to Accommodate the New Shopper Mindset?
By Mariel Poole, Industry Manager, Retail, Meta
How Can Brands and Retailers Prepare for the 2021 Holiday Season?
By Alicia LeBeouf, Head of Industry, Retail, Superstores & Grocery, Meta
Helping Protect Brands and People From Problematic Content Online
By Ram Ramanathan, Director, AI Product Management Team, Meta
Webex and GoDaddy CMOs Share How They Build Genuine Connections Through Emotional Storytelling
By Julie Cullinane, B2B Industry Manager, Meta
6 Tips to Help Women Break Into the Boardroom
By Michelle Klein, VP Global Customer Marketing , Meta
As People Turn to Digital Spaces to Connect, Video Viewership Rises and Brand Opportunities Increase
By Katrina Craigwell, Director of Brand Solutions Marketing, Meta
What Would Your Media Strategy Look Like If Your Company Was Founded Today?
By Brad Auerbach, Head of Industry, Insurance, Meta
A Digital-First Mindset Positioned Liberty Mutual as an Industry Leader for Customer Experience
By Brandon Guishard, Customer Growth Consulting Lead, Meta
10 Ways Your Brand Can Help Women Thrive By Driving Inclusive Representation
By Michelle Klein, VP Global Customer Marketing , Meta
How Instagram Brought Black Creatives and Small Businesses Together to Collaborate on Visual Storytelling
By Guia Golden, Instagram Business Marketing Lead, North America, Meta
Rebuilding the Economy With DEI at the Core: A Conversation With ADCOLOR’s Tiffany R. Warren
By Arielle Gross Samuels, Head of Global Business Strategy and Engagement, Meta
Lessons From the Entertainment Industry to Help Marketers Succeed in 2021
By Shannon Snow, Head of Industry for Entertainment , Meta
How Business Leaders Can Champion Equity and Inclusion: A Conversation With AT&T’s Anne Chow
By Crystal Worthem, Global Director of Client and Agency Marketing, Meta
What National Franchises Are Doing to Help Local SMBs Find Their Digital Advertising Footing
By Keith Watts, Head of Industry, Real Estate, Meta
3 Future-Proof Marketing Strategies to Help Cable and Internet Companies Thrive
By Megan Carnes Fazzari, Industry Manager, Mobile & Connectivity, Meta
4 Value-Based Marketing Lessons Inspired by a Delivery App
By Ian Simons, Head of Industry, Ecommerce, Meta
3 Ways CPGs Can Grow Market Share, Meet Customer Needs and Share Their Story
By Edlynne Laryea, Director, Head of Industry, Consumer Packaged Goods, Meta
Underrepresentation and Misrepresentation Have No Place in Advertising Today—Insights from the Geena Davis Institute’s CEO
By Fernanda Alcantara, Marketing Science Researcher—Creative Shop, Meta
It’s Time for Automotive Marketers to Accelerate Their Digital Transformations
By Kim Stonehouse, Head of Automotive, Meta
How Authenticity Can Help Brands Connect With Consumers This Holiday Season
By Anjali Martin, North America Business Marketing Lead, Meta
3 Tips to Help Pivot Your Marketing Strategy Right Now
By Amy Brooks, Director or Business Education, Global Business Marketing, Meta
Reinventing Restaurants With Digital Commerce
By Katie Stratton, Head of Industry for U.S. Restaurants, Meta
Building Strategic Partnerships for Today’s Marketing Challenges
By Nerissa MacDonald, Head of Partner Solutions, Meta
3 Ways Your Brand Can Stand Out This (Unusual) Holiday Season
By Thomas Shim, Creative Strategist—Creative Shop, Meta
Device Use Is Soaring, But Are You Removing Friction From Your Mobile Experiences?
By Brandon Guishard, Customer Growth Consulting Lead, Meta
4 Ways to Evolve Your Brand for the Ecommerce Boom
By Ian Simons, Head of Industry, Ecommerce, Meta
Small Businesses Are Struggling but Remain Hopeful, New Facebook Research Finds
By Laura McGorman, Policy Lead, Data for Good, Meta
3 Ways Small Business Can Band Together With Big Businesses to Lift Up Communities
By Rich Rao, VP, Small Business, Meta
The Way Forward for Telecoms
By Stephanie Latham, Director, Head of Industry for Technology, Mobile and Connectivity, Meta
The Streaming Marketer’s Roadmap to Profitability
By James Smith, Head of Industry for Entertainment, Meta
Covid-19 Has Created a Huge Opportunity in Video
By Jennifer Howard, VP of Entertainment, Technology and Connectivity, Meta
3 Ways Virtual Events Build Stronger Communities
By Stephanie Latham, Director, Head of Industry for Technology, Mobile and Connectivity, Meta
How Brands Will Need to Rethink Holiday Planning as They Navigate the New Abnormal
By Eva Press, VP, Consumer Packaged Goods, Retail, and Health Care, Meta
Building Relationships With Mobile—What Your Customers Need From You During Covid-19
By Katherine Shappley, VP Mid-Sized Business, Global Business Group North America, Meta
What Using Tech for Good—as One Community—Looks Like
By Stephanie Latham, Director, Head of Industry for Technology, Mobile and Connectivity, Meta
Adweek is the leading source of news and insight serving the brand marketing ecosystem.