How is data fuelling digital marketing in the automotive sector?

How is data fuelling digital marketing in the automotive sector?

Big data, predictive analytics and machine learning are common topics that have risen within the digital marketing space and are rapidly gaining traction from many industries due to the opportunities it provides.

The automotive sector is no exception to the widespread phenomenon, gather real-time consumer data from sources such as social media, web, previous transactions and more. In fact, the applications associated with data and analytics in the automotive industry are huge for online marketing services, as it can be used to transform the consumer experience through personalised products and services. Therefore, it is no surprise the industry has collectively invested $2.8 billion into big data this year in order to drive value for the consumer. 

Evidently, thanks to the adoption of online mediums, the consumer path to purchase has fundamentally changed in recent years. In fact, the consumer journey has become heavily reliant on digital, with some studies suggesting that two-thirds of consumers visit only one car dealership before committing to the high ticket purchase.

The path to purchase has also significantly decreased as a result of digital platforms, with consumers taking only 2-3 months to make a decision with 70% of their consideration and research being conducted online. However, while the journey may be shorter as a result of online mediums, these platforms actually provide automotive marketers with exceptional insights. 

Despite this, many of these insights are disregarded once a consumer has made a purchase, with marketers struggling to keep these customers loyal and engaged moving forward. In fact, over 600,000 Australian's were expected to purchase a brand new vehicle this year, yet only a small portion will continue to engage with marketing messages from their car manufacturer or dealer. Fortunately, the investment into big data is changing this for the automotive industry, with predictive analytics and connected technology allowing marketers to create personalised and captivating consumer experiences that go beyond the purchasing phase.

Personalisation has become a necessity for digital marketing, used as a competitive advantage to provide consumers with the most relevant experiences and avoiding the likelihood of disregarded messages. In fact, arguably, the automotive industry is some of the biggest adopters of various personalisation techniques, which are only strengthened by significant opportunities to leverage big data to ensure a holistically personalised consumer experience from the consideration phase through to brand loyalty.

One of the opportunities for greater consumer engagement is the personalisation of automotive websites. Consumers may be visiting a website to achieve different goals, and by understanding consumer behaviour, their needs may be better met. Mazda recently realised this with their Dutch market and altered their website to present different web pages to both new and returning website visitors, that were more relevant to what the consumer may be trying to achieve. For example, new visitors were presented information and videos on different makes and models, allowing them to consider the various products on offer. Meanwhile, returning visitors were presented with a homepage showcasing previously viewed car models, promotions, financing options and more, which provided additional, in-depth information as the consumer begins to make a decision.

Personalisation can also be strengthened through the use of email marketing. A recent study revealed that currently 24% of car-related emails failed to effectively target the intended recipient and were immediately identified as spam. What automotive marketers need to consider, is that consumers often provide their email address to dealers when they are in the market to purchase a car. 

However, once that purchase had been made consumers may not be interested anymore, therefore becoming less receptive to email marketing messages as time goes on. However, through better use of big data, machine learning and predictive analytics consumers can be individually targeted with personalised messages that are more relevant to their changing needs and wants. These marketing messages may target the consumer with aftermarket upgrades or services that are relevant to the behavioural and lifestyle data collected. For example, data sets may allow the automotive industry to develop and market customised insurance policies that are personally suited to the consumers needs. 

The introduction and adoption of connected cars will continue to drive personalisation for automotive marketers. In fact, this space is set to skyrocket, with connected cars and services predicted to account for $40 billion in annual revenue by 2020. While currently, the development of the connected car is limited to technology such as Wi-Fi connectivity, it is expected that these vehicles will have the technology and software to be to monitor engine performance, automatically update software systems, identify faults as well as potentially learn consumer behaviours and lifestyle preferences. For example, could there be a potential link between the type of music an individual likes listening to and the places they visit, and what products can be developed to satisfy these preferences?

This has immense implications for digital marketing in the automotive sector, as consumers will be able to be better targeted throughout the whole consumer life cycle, as well as facilitating the omnichannel experience. For example, if connected software throughout the car can determine potential faults, perhaps the automotive marketers can target consumers on Facebook with solutions, providing the consumer exactly what they need at the right time. Furthermore, such technology will have a great impact on integrated marketing strategies and justifying advertising spend. For example, is there any data to justify radio advertising expenditure if it is determined consumers avoid radio advertisements by changing the station or playing their own music?

Furthermore, as consumer behaviour changes at an overwhelmingly fast pace, data collected can often become stale quickly. A potential benefit to the use of connected devices is the ability to gather consumer insights rapidly, allowing for profitable decisions to be made. 

Big data and analytics also provides marketers with the ability to identify potential upcoming needs of the consumer, providing automotive brands with greater opportunity and a competitive advantage. By considering data sets such as call logs, buying trends and other customer data, predictions can be made about what the consumer may be purchasing next, ensuring they remain engaged with the brand after the initial car purchase. Through gathering insights and determining customer needs, consumers become less likely to shop around and go with a competitor. In fact, this can go beyond obvious aftermarket services, with some automotive brands utilising localised geographical data to engage with their consumers when there is hail storm expected in their area, for example. By using relevant data to do so, these brands are creating a more engaging consumer experience that goes beyond the path to purchasing a vehicle, and stays relevant to nurture a loyal customer.

Big data and analytics has great benefits for automotive marketers and their digital marketing and advertising services. In fact, some studies suggest that automotive dealerships who embraced consumer data, saw increases of 15% in their sales. As marketers continually aim to improve their consumer's experiences through more relatable content and message, it is essential to leverage data from various sources to develop more personalised strategies to keep the consumer engaged throughout the entire customer journey and beyond. 

At RGC Advertising, we are an online marketing agency in Sydney and offer a range of digital marketing services that connects consumers to brands. To find out how we can help your brand leverage data and customer insights to better inform your automotive digital strategy, please contact Richard on (02) 8883 2988 or email This email address is being protected from spambots. You need JavaScript enabled to view it. 

 

Like to see how we could
connect consumers to your brand?

 



https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_Voice_Shopping.jpg
How Smart Speakers Are Amplifying Sales In The Retail Sector
It is with no doubt that the digital age and online environment has had a major impact on the retail industry in recent years. While foot traffic into physical stores declines, online shopping and e-commerce sales have grown massively.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_virtual_reality_in_building_industry.jpg
How Virtual Reality is Changing Digital Marketing in the Building & Real Estate Industry
As the Oculus Rift, HTV and other virtual reality (VR) headsets increasingly creep into our homes and the augmented reality (AR) app phenomenon, Pokémon Go, took over our smartphone screens in mid-2016, VR and AR technology has been hot on everyone's lips.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_digital-transformation-in-education.jpg
Get Schooled On How Digital Marketing Is Transforming The Educational Industry
In Australia, the education industry is a $121 billion market and according to IBIS World has expanded at a faster rate relative to population growth in the past five years. 
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_insurance_chatbots_customer_service.jpg
Chatbots improve customer experience for the insurance industry
Technology has long played an important role in providing exceptional customer experience for many brands, including the insurance industry.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_Shoppable_Instagram_For_Retail.jpg
Instagram Shopping in Australia is Helping Create A Seamless Retail Experience
With over 9 million monthly active users, Instagram has become one of the most popular photo sharing, social media applications amongst consumers and businesses alike.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_automotive-seo.jpg
Keep your automotive website on track with a local SEO strategy
Long gone are the days where consumers pass through the doors of multiple dealerships to find their dream car. It is unsurprising that consumer shopping habits have evolved across many industries, including automotive, with a greater emphasis on the digital landscape to research, experience and in some cases even purchase a new vehicle.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_QSR-online-delivery.jpg
How QSR's can feed their audience's appetite for online food delivery
Satisfying after-hours' cravings or maximising convenience in our busy lifestyles has become increasingly popular in recent time through the significant adoption of online ordering and delivery.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_Retail_GDPR.jpg
How the GDPR is Going to Affect Retail Digital Advertising
Online shopping has inevitably prospered in recent years and has completely changed the retail game by providing consumers with a virtually limitless market and unprecedented convenience. 
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_data-for-automotive-digital-marketing.jpg
How is data fuelling digital marketing in the automotive sector?
Big data, predictive analytics and machine learning are common topics that have risen within the digital marketing space and are rapidly gaining traction from many industries due to the opportunities it provides.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_Facebook_Algorithm_Update.jpg
What Facebook's Update Means for Your Brand
The beginning of the new year often signifies change for many, and Facebook is no exception. In fact, just last week, co-founder and CEO of the social media giant announced a significant update to the platform that is creating a seismic shift for brands, advertisers and marketers.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_RGC-Webaward2017_MobileAward_BlogImage.jpg
RGC wins at the 2017 Best Mobile Application Awards
For the past 6 years, the Web Marketing Association recognises the best in responsive mobile web and application development with the MobileWebAward (MWA) competition, and is the only industry-based advertising award to do so.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_qsr-social-media.jpg
Why QSR's need to serve up an engaging social feed
Australian consumers are amongst some of the most active individuals on social media accounts today, accessing news, entertainment and interacting with others through various platforms. Social media channels have also significantly changed the way consumers interact with brands leaving companies constantly looking for new ways to utilise the platforms to engage their audiences.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_programmatic-advertising-for-retail.jpg
See How Retail Can Use Programmatic to Personalise Advertising
Digital marketing has fundamentally transformed the retail industry, providing an unprecedented opportunity to engage with consumers on a 1:1,  personalised level.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_digital-marketing-insurance.jpg
The Digital Disruption in the Insurance Sector
The digital age has caused significant disruption to many industries, but no sector has felt a complete shake-up in comparison to the competitive insurance industry. In fact, prior to the shift to digital, consumers and insurance companies shared a closed relationship where information from the insurer to the consumer was simple and easy to digest.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_automotive-websites.jpg
How can a website help the automotive industry?
The automotive industry is no stranger to the fast lane, particularly when it comes to the highly competitive nature of the business. In fact, according to recent studies, the industry is geared up and expected to spend over $14 billion by 2020 on digital advertising expenditure in order to position themselves favourably amongst consumers.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_online_shopping.jpg
The challenges of online shopping for e-retailers
In 2013, consumers worldwide parted with $1.2 trillion, to purchase a variety of products via the global online marketplace. What's more, a further $4 trillion worth of goods annually also had the potential to be sold, however, resulted in shoppers abandoning the sale.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_afterpay.jpg
Embracing Technology For Success In The Digital Age
The digital age and the rise of social media have had a great effect on customer satisfaction and ultimately customer loyalty. Think about it. When you scroll down your social feed, undoubtedly, you will be exposed to hundreds of products. 
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_instagram_stories.jpg
How Instagram Stories Can Benefit Brand's Content Marketing Strategy?
Every single day marketers are faced with the challenge to engage audiences with relevant and appealing content in crowded and noisy marketplaces. In fact, the average consumer is exposed to at least 285 pieces of content via social media on a daily basis, highlighting the necessity to consistently conceptualise, curate and refresh innovative marketing content that truly captivates an audience. 
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_image_recognition.jpg
Open Your Eyes: How Image Recognition Is Changing Social Media Marketing For Brands?
It's no doubt that the online world today is a highly visual habitat. In fact, the search giant Google demonstrated this only a few years ago when they tested over 40 different shades of blue within their logo and measured how consumers reacted. As it turns out, the purplish blue shade that we see today has reportedly earned the company an extra $200 million.
Read More


Click here to view more articles

https://www.rgcadvertising.com.au/images/easyblog_shared/2e1ax_wunderkind_home_Big-Data.jpg
What's The Big Fuss About Big Data?
Did you know that in 2011, approximately 1.8 Zettabytes of data was created? To put this into perspective, such an amount of data would completely fill 57.5 billion standard 32GB Apple iPads, or equate to 200 billion HD movies taking 47 million years to watch.
Read More


Click here to view more articles