Auto Advertising: Past The Tipping Point

Over the last few weeks, we’ve had many conversations on the topic of “new media:  which kinds, how much, and how”.  In answering these questions, we find that the context needs to be re-set.  We’ve characterized context shifts in the following ways:

1. A technology shift – from fewer media and formats, toward many more form factors and many formats;
2. A channel and message shift – from control of a message you distribute, toward influence over a message distributed by customers themselves;
3. A targeting shift – from segments of many, defined demographically, to segments of one, defined behaviorally.

The implications for how marketers engage customers run deep:  more experimentation, more inclusion, more sensitivity.  In fact, so deep that it may be more than most organizations feel they can absorb.  But the data on new media’s penetration into the buying process for many customers suggests marketers may no longer have the luxury of changing practices at their own pace.  For example, this morning, Jeffrey sent me the following release:

Polk Calls Traditional Media 'Nearly Obsolete' Among New Auto Buyers
Joe Mandese

Describing traditional mass media as "nearly obsolete" among first-time car buyers, a well regarded auto industry researcher Tuesday released findings of a new study showing the Internet now is the dominant medium among new car buyers. The study, by the Polk Center for Automotive Studies, shows that TV has fallen to 8.2 percent, magazines to 4.4 percent, newspapers to 3.6 percent and radio to 1.1 percent of consumers who deem them the "most important informational tool" in their first-time car purchase.

"The Internet's relevance in the 18- to 30-year age group has reached critical mass and is completely reconfiguring how car companies need to reach out to first-time buyers," said Lonnie Miller, managing director at Polk, who said that shift is reflected in more aggressive Internet marketing efforts by both manufacturers and local auto dealers. She predicted other emerging technologies including online podcasts, mobile media, and video-on-demand would further change the way the auto industry markets itself.

"Harnessing mobile media technology will be the automotive industry's most important marketing challenge -- and opportunity -- in the next decade," she said, emphasizing that the so-called Y generation is abandoning traditional forms of advertising, and that it is imperative for automakers to develop deals with emerging media technology developers.

The findings come as more bad news for the traditional media marketplace - especially local TV stations - where automotive advertising is the largest single advertising category, but which has been eroding rapidly.

A total of 366 first-time vehicle buyers (ages 18-30) participated in the study between November 4 and 10, 2005. Complete results of the report are available on http://www.polk.com .

Click to read this article on the MediaPostPublications.com website.

Comments

[Katarina Gizzi]

There is no doubt about it – the Internet has become the dominant media among new car buyers today. I can’t even remember how many cars I checked online after seeing them on the street or TV. As more car shoppers go online, both car makers and dealers are shifting their ad spending to the Internet.

But what really struck me was to hear about a new TV commercial for Pontiac (airing regionally in the U.S.) where GM is encouraging people to "Google Pontiac." This ad, which is creating a lot of buzz, shows an actual Google screenshot with Pontiac typed in and voice saying:

"Don't take our word for it, Google 'Pontiac' to find out!"

And what struck me even more is all of the free publicity Pontiac is getting by running this ad. Just Google this topic and you’ll find numerous responses and reactions to this commercial, mostly on blogs, where people are discussing why GM did it, how efficient it may be, what is cool/ not cool about it, etc. Regardless of how successful this TV ad campaign will be, GM managed to shock people. GM head of marketing Mark LaNeve says, "We're touting Google, frankly, because it stands for credibility and consumer empowerment, and we like the association."

I wouldn’t be surprised to see more visits to the Pontiac’s websites and dealers, translating into more sales. After all, Google is very HOT today, and no wonder people want to take advantage of it. Smart move, GM!

The complete 30 second commercial is available on YouTube: http://www.youtube.com/w/Google-Pontiac-Commercial?v=gE2DXLfrFD4&search=google%20pontiac

Read more about this ad here: http://blog.searchenginewatch.com/blog/060126-185815
http://localzing.com/blog/local-advertising/gm-says-google-pontiac