GM to Boost China Production Capacity to 5M

BEIJIN (AP) -- The president of General Motors said Sunday that the company and local partners are boosting production capacity for GM-brand vehicles in China to 5 million.

Speaking at the Beijing auto show, Dan Ammann said the company also expects sales of its Cadillac luxury cars to double to 100,000 next year.

General Motors Co. and its Chinese partners are in the midst of what the company has said is a $12 billion investment program through 2017.

Matt Tsien, President of GM China, said that includes three factories due to open this year and two more next year. He said they would raise the capacity for production of GM-brand vehicles in China to 5 million.

'I think the addition of the several new plans currently under construction will helps us reach the capacity of 5 million units by the end of 2015,' Tsien said. 

GM is neck and neck with Germany's Volkswagen AG to be China's most popular vehicle brand. GM said earlier that its 2013 sales rose 11. percent to 3.1 million vehicles.

Ammann said the company expects to grow at least as fast as the market this year. Forecasters expect the overall market to expand by 8 to 10 percent. That could raise GM sales to 3.4 million. 

'We are moving full speed to keep up,' said Amman. 'We count on China for another record year in 2014'.

The company plans to increase production capacity in China by 65 percent by 2020, Tsien said.

The company said it, along with local partners, will invest $12 billion in China between this year and 2017. 

GM manufactures sedans, minivans, pickup trucks in joint ventures with state-owned Shanghai Automotive Industries Co. and Liuzhou Wuling Motors CO. The three companies also launched a seperate low-cost brand, Baojun.

http://www.manufacturing.net/news/2014/04/gm-to-boost-china-production-capacity-to-5m

GM to Boost Chevrolet China Sales With Redesigned Cruze
By Bloomberg News

General Motors Co. (GM) will debut a redesigned Chevrolet Cruze sedan this month in Beijing, picking China for the model’s global rollout as the carmaker seeks to boost sales of the brand in its biggest market.

The Cruze, Chevrolet’s best-selling model in China last year, is one of the six new or refreshed models under the brand being brought to the nation this year by GM. The Detroit-based company is also showing 36 other vehicles at the Beijing auto show, starting April 20.

GM, which edged out Volkswagen AG (VOW) in sales volume in China in the first three months of this year, is banking on 19 new or refreshed models to boost sales by 10 percent in 2014, Matthew Tsien, president of GM’s China operations, said in February. Chevrolet sales in the nation failed to keep pace with the market last year, rising 4 percent as overall passenger-vehicle sales jumped 16 percent.

“This model is the most important one, for sure,” said Yale Zhang, a Shanghai-based managing director at Autoforesight Shanghai Co. “In China, the compact segment is the most important.”

Cruze sales in China increased 6.1 percent last year to 246,890 vehicles, edging out the Chevrolet Sail, a compact sedan. The current Cruze model is priced from 108,900 yuan($17,500).

That places it in the same price category as Ford Motor Co.’s Focus, Volkswagen’s Lavida, Toyota Motor Corp. (7203)’s Corolla and Kia Motor Corp.’s K3, according to data from autohome.com, China’s most popular automobile information website.

Lavida, Focus

The Lavida and Focus outsold the Cruze in the first quarter of this year, when the Lavida was the nation’s top seller while the Cruze ranked 10th, according to the state-backed China Association of Automobile Manufacturers.

With the new model, the Cruze could “easily” move up to become one of China’s five best-selling models, Zhang said.

China is Chevrolet’s second-largest market, with 652,077 vehicles sold in 2013, trailing the 1.95 million units delivered in the U.S.

The Cruze was GM’s top-selling car in the U.S. last quarter, excluding trucks, according to data compiled by Bloomberg.

GM will use the Chevrolet brand to spearhead its expansion into China’s smaller cities and the nation’s western region, where rising incomes are creating a new class of consumers that are able to afford cars, former GM China chairman Tim Lee, who retired April 1, said in October.

The largest U.S. automaker is also spending $11 billion in China through 2016 to boost products and manufacturing capacity.

Holden to get Camaro and other Chevrolets after 2017

Holden looks set to follow the lead of Ford and give grieving fans an iconic V8 muscle car to ease the pain of its 2017 factory closure. Ford will introduce a Mustang just as the last Falcon is about to roll off the Broadmeadows production line and it now seems General Motors is hatching a similar plan by introducing the Camaro just as the Commodore comes to an end.

The former boss of Holden, Mark Reuss, who is now in charge of all global vehicles at General Motors, told Australian media on the eve of the Detroit motor show: “On all our products going forward we’re going to try and do right-hand-drive.”

Mr Reuss would not speculate which cars in the Chevrolet line-up would make it to Australia, but vehicles that are built in left-hand-drive only for now include the iconic Camaro and Corvette sports cars, and the range of Chevrolet full-size pick-ups and SUVs.

Holden has been thrashed in the pick-up sales race by the Toyota HiLux, Ford Ranger, Nissan Navara and Mitsubishi Triton. The arrival of the iconic Chevrolet pick-ups would help Holden claw back some ground. Demand for US-only utes in Australia is so strong that a number of local businesses have been converting them to right-hand-drive and selling them for in excess of $100,000. In the US, their prices start at less than $30,000.

Holden was close to getting a right-hand-drive version of the current Camaro until the Global Financial Crisis crushed those plans. The preliminary engineering work on the Camaro was even done by Holden in Australia. But Holden fans shouldn’t get too excited about every vehicle in the Chevrolet range being available in Australia.

At the same function last year, the then boss of General Motors, Dan Akerson, told News Corp Australia that the new Corvette would be made in right-hand-drive for the first time in 50 years. But less than 24 hours later the company made a U-turn on the comments, with GM’s second-in-charge Tim Lee telling News Corp Australia: “I have no idea what [General Motors CEO Dan Akerson] said but we have no plan to put a right-hand-drive under that bonnet. The Corvette is a Chevrolet, it’s not a Holden, it never will be, next question.”

When pressed on how the boss of the company could get such a key fact wrong during a media presentation, Mr Lee said: “We can spend the entire 20 minutes talking about this. This is a non-story from my point of view. You can write what you want to write, I really don’t give a shit. But it is not in the mainstream plan.”

Last night Mr Reuss was asked to clarify his right-hand-drive comments and he repeated: “Everything from now on we’re trying to do right-hand-drive.” General Motors made the same decree in the lead-up to the Global Financial Crisis and the plans were scrapped. But the company has more support this time around.

News Corp Australia understands that Mr Reuss, having been a boss of Holden, understands the frustration of a limited model line-up. General Motors’ new boss of International Operations, former Volkswagen and Volvo executive Stefan Jacoby, is also understood to have been surprised by Holden’s inability to get highly desirable US-only models. Out-going Holden boss Mike Devereux, whose replacement is yet to be named, has also been pushing for more right-hand-drive models be made available in Australia.

With high-level support at three key stages of General Motors’ management, Holden has its best chance yet of getting sought after US cars. However a Holden spokesman said the plans for any right-hand-drive versions of US models were yet to be approved, and would then need to undergo a feasibility study.

Meanwhile, the shutdown of Holden’s factory in 2017 is almost certain to change the face of the Commodore of the future. Originally, when the model was to be made locally, the 2018 Commodore was going to share its design with a Chinese-built Buick.

But News Corp Australia understands Holden now has three options on the table: the Chinese Buick design, or it can take the Chevrolet or Opel equivalents of the new large sedan. This means the next Commodore could be made in China, Europe or North America, with which Australia has a Free Trade Agreement.

The future Commodore will still switch to front-wheel-drive (after 65 years of large rear-wheel-drive Holden sedans) but executives in Australia are reportedly fighting to make a V6 available as an option to avoid a buyer backlash. Initially, the next Commodore was going to be four-cylinder-only proposition. One thing is for certain. There will be no V8 or ute version of the new generation Commodore.

http://www.carsguide.com.au/car-news/holden-to-get-camaro-and-other-chevrolets-after-2017-20140113-23441#.U4w5LvmSyiQ

Australia's Automotive Industry is Set to Boom, says New Report

Future of the auto industry ... Adam Fry has started an apprenticeship at Mike Carney Toyota. Picture: Fiona HardingSource: News Limited

THE closure of car manufacturing plants will not kill Australia’s auto industry, according to a new report from Auto Sills Australia.

The industry is instead predicted to grow as the research reveals a national shortage of 21,175 workers in key skills areas of the car industry.

Light vehicle mechanics and panel beaters account for more than 50 per cent of the shortage and as the number of cars owned by Australians grow more than 400,000 each year, they will continue to be in high demand.

“Our report shows that employment gains within car and parts wholesaling, repair and maintenance and tyre retailing has more than compensated for declines in employment within car and component manufacturing,” says Mr Geoff Gwilym, CEO of Auto Skills Australia.

“Even before the announcement of the car manufacturer closures, the retail, service and repairs sector comprised 87 per cent of Australia’s automotive industry,” Mr Gwilym said.

“So while manufacturing is facing tough times, retail, services and repairs represents the biggest part of the industry and it’s searching for workers to maintain the nation’s growing vehicle fleet.”

Call to young ... there are millionaire mechanics out there. Picture: Thinkstock Source: Supplied

For those who have lost jobs, Mr Gwilym said the expected growth in caravan manufacturing may see jobs available for Ford, Holden and Toyota workers. But upskilling is another possibility.

Phillip Murphy, from automotive training at Kangan Institute, said he is already seeing manufacturing workers being re-skilled to take up new jobs in areas of high demand.

“A number are currently being retrained in the automotive and engineering industries,” he said.

“Their skills can be transferable across multiple sectors.”

And with high demand for workers, both men are also keen to see more younger Australians entering the industry.

“Parents prefer their kids to have a white collar job, but there are millionaire mechanics out there,” said Mr Murphy.

“The focus for higher education has been on university,” Mr Gwilym said.

“But trades should be considered a viable option to help the country build its domestic skills.”

http://www.news.com.au/finance/work/australias-automotive-industry-is-set-to-boom-says-new-report/story-fnkgbb3b-1226868524592

Constant Consideration: Brand Choice on the Path to Vehicle Purchase

THE RUNDOWN

Digital continues to change the purchase path for auto shoppers. For today’s consumers, vehicle attention may rise and fall, but influential brand moments are constant, stretching across a cycle that encompasses pre-market, in-market, and post-market phases. With 63 percent of new vehicle purchasers beginning their search with a specific brand in mind, but only 20 percent purchasing the vehicle they first researched online, it’s clear that brand consideration can be won or lost at any point throughout this loop. By harnessing the unique insights and immersive, personal experiences afforded by digital brand-building, auto marketers can adapt for greater sales and long-term loyalty.

We live in the age of engagement. Digital has amplified the opportunity for brands to connect with consumers at the moments that matter, across an array of platforms, screens, and devices. At the same time, however, there is a growing skepticism--even among ad agencies--as people begin to question whether consumers really care about brands at all.

According to Weiden+Kennedy Amsterdam, 72 percent of Pepsi fans also drink Coca-Cola. Their conclusion: Your consumers are just somebody else's consumers who occasionally buy you. Is this true? And if it is, what is the real value of a fan, a Like, a +1, or a tweet? In fact, how do we define engagement at all?

Happily, our research suggests that there's no need for doom and gloom. Yes, consumer behavior has changed with the digital revolution, but brands should see this as an opportunity, not a cause for despair.

For the auto industry, it means embracing a new model in which marketers no longer view potential customers merely as "shoppers." Rather, they are owners who bring with them strong brand notions based on their experiences before, during, and after their last vehicle purchase.

They are on a continuous journey starting long before they are in-market and continuing long after they buy. Each moment leads fluidly into the next, from the instant the car is driven off the lot, when pictures and reviews are posted online, to servicing milestones and the everyday experience of the vehicle, which shapes consideration the next time the owner is ready to shop for a new vehicle.

We call this continuous feedback loop of vehicle interaction, research, and experience "Constant Consideration." It's a cycle in which brand interest can be won or lost at any point, which is why 100 auto executives surveyed by the IBM Institute for Business Value cited customer management as the part of the automotive value chain that will change most over the next decade. It sounds daunting--a never-ending story of auto marketing--and yet the same force creating the challenge of constant information also provides the solution. By harnessing the unique insights and immersive, personal experiences afforded by digital brand-building, auto marketers can adapt for greater sales and long-term loyalty.

Pre-Market Moments

We use the term pre-market to refer to the phase at which consumers aren't yet actively researching a purchase but are nevertheless exposed to brand marketing.

To dig deeper about how brand notions are formed as a result of pre-market influences, with the help of Polk and Compete, we tracked the online research activity of over 10,000 vehicle buyers leading up to purchase. What we found challenged the conventional wisdom that the search path for a given category (say, luxury) begins with generic search terms before narrowing to a brand of choice. Instead, 63 percent of new vehicle purchasers begin their search with a specific brand in mind, having been influenced in a meaningful way during the pre-market stage.

This can be a lengthy process, sometimes lasting years, and as a result is tough to measure. But a strong digital strategy can undoubtedly help. Not too long ago, brands were limited to broadcasting their content through a limited number of sources to many viewers at once. Today, digital storytelling allows brands to "microcast," or connect with many smaller, concentrated audiences who represent truly passionate viewers. At the moment where consumers are least likely to care about your vehicle, microcasting enables brands to align themselves with something consumers do care about. And in a connected world, brands can combine their storytelling with social interaction.

Case Study

The digital space affords a near-infinite array of passion points. For the all-new 2013 Dodge Dart, the focus was humor and reaching out to millennials who like their information served with a side of comedy and skepticism. That made The Onion a perfect partner. Dodge sponsored The Onion's YouTube channel (with over 200 million views to date) and collaborated on a three-minute video in which advertising for the Dart was cleverly smuggled into a sketch poking fun at... TV advertising. The partnership allowed the Dart to connect with consumers' true passions while affording them the opportunity to share their stories, thus driving engagement and brand favorability.

(For more examples of automotive brand-building, see Google's Creative Sandbox)

In-Market Moments

On entering the market, your potential consumer becomes a shopper, actively researching and planning a purchase. This competition for awareness and favorable opinion gets even more intense. Remember those 63 percent of shoppers who formed an initial consideration set before they entered the market? Well, once in-market, only 20 percent of shoppers actually buy the vehicle they first researched. Over the course of in-market research, search data suggests that 73 percent of in-market activity involves cross-shopping.

Although the brand objective may now have changed, branding itself is more important than ever, especially across multiple screens. Younger, open-minded shoppers--those who consider four or more brands in-market--are increasingly turning to multiple screens for research and discovery: Indeed, they're almost twice as likely to use mobile and tablet devices as their older, more brand-loyal counterparts.

Tablets in particular will quickly become a "killer app" for auto shopping, combining sight, sound, and motion with the convenience of a device that sits in your lap. Our research found that 43 percent of brand-agnostic shoppers use video sharing sites across desktop and mobile devices, while once on the lot, 51 percent take pictures; 49 percent check online reviews; and 44 percent use comparison tools. Mobile and video are changing the shopping ecosystem as it's being built.

Case Study

When Volvo launched the S60 to take on the likes of the BMW 3-Series and Mercedes C-Class, it approached this highly competitive sector with a cross-platform approach that took maximum advantage of digital technology. On desktop, Volvo employed large ad formats like the YouTube homepage masthead, but it was on mobile that the campaign came into its own. Interactive mobile ads allowed consumers to explore a 360-degree view of the S60, swipe for more photos and videos, and locate nearby dealerships. What's more, an augmented reality test drive experience in a YouTube masthead provided something truly groundbreaking. Volvo realized that when it comes to mobile, it's important not to just replicate across screens, but to make use of each screen's unique capabilities--whether it's geolocation, interactivity, or the intuitive fun of swiping. The result was an increase in purchase intent of 88 percent, and brand favorability of 240 percent.

Post-Market Moments

As the buyer drives off the lot, what is often considered the end of the process is actually just the beginning of the next sale.

Service moments and milestones can build or erode long-term brand loyalty. Immediately after purchase, 87 percent of new owners say they're likely to buy the same brand next time. But the reality is a bit different: Only 56 percent end up as repeat purchasers. What happens to that missing third and how can you get them back?

Begin by considering how digital can help owners endorse your brand to others while maintaining loyalty themselves--especially at the dealership. How can you use social, review, and maps channels to get consumers talking about their experiences? More to the point, are those experiences worth talking about to begin with? Owners cite service moments as brand influencers, so treat maintenance moments as branding opportunities with optimized digital service experiences. And once you delight owners, help them pass the message on to others.

Case Study

There are 6.8 million Camry owners in the US--the problem for Toyota was that they were virtually silent online. New shoppers, on the other hand, wouldn't consider buying a Camry until they'd read one or two reviews. Undeterred, Toyota saw an opportunity to utilize digital and social in a way that inspired conversation and redefined the owner's role. Alongside Saatchi & Saatchi, they created an ever-evolving social network with dynamic choose-your-own-adventure questions and real-time stats based on user interaction. Dealers became an important pillar, amplifying the brand message and social outreach through their own channels. Through a final display ad campaign, these real-world stories became the research material of the next in-market shopper, continuing the virtuous cycle of Constant Consideration. The result was an 800 percent spike in real-world Camry interest, and 19 percent more sales leads than pre-campaign.

Conclusion

The data tells us that for automotive consumers, vehicle attention may rise and fall throughout shopping and ownership, but there are brand moments to be won at each stage. As customers form opinions during three phases of the purchase path, brand-building should be a shared responsibility of the brand, in-market, and service teams. Auto marketers who use new digital tools to identify and connect with consumers at the moments that matter will win in this new era.

Key Take-Aways

i) Pre-Market: What you need to know: Sixty-three percent of new vehicle purchasers begin their search with a specific brand in mind. What you need to do: To create consideration, use digital tools to connect with passionate audiences and align your brand with something consumers care about.

ii) In-Market: What you need to know: Only 20 percent of shoppers buy the vehicle they first researched online, while 73 percent of in-market search activity involves cross-shopping. What you need to do: Focus on being found and being favorable. Drive consideration and purchase intent across screens to reach the most open-minded shoppers.

iii) Post-Market: What you need to know: Eighty-seven percent of new owners say they're likely to buy the same brand next time, but only 56 percent end up as repeat purchasers. Owners cite service moments as brand influencers. What you can do: Amplify the attachment. Enable endorsement through social, review, and maps channels. Use newly accessible customer information to anticipate maintenance needs and to delight owners.

http://www.thinkwithgoogle.com/articles/constant-consideration-new-vehicle-study.html

Land Rover Unveils Huge TV and Digital Push
Vehicle's Print Ads are Interactive 

http://www.adweek.com/news/technology/land-rover-unveils-huge-tv-and-digital-push-152181

Land Rover is launching a considerable integrated campaign this week for its 2014 Range Rover Sport that entails inspiration-minded TV spots, an interactive game called "Race the Sun" and iAds, among other elements. All told, per the brand, the effort—dubbed "Driven To Another Level"—represents the automaker's biggest push ever.

The commercials feature very little copy, letting the viewers focus on breathtaking shots as a Range Rover Sport climbs Pikes Peak. A :30 will debut on broadcast and cable this week, while :60 and :90 versions will appear online. Sister agencies Y&R and Wunderman created the spots, while Mindshare handled the media buying.

"The innovation in the TV spot lies in its story line," said Kim McCullough, Land Rover's North America brand vp. "The spot re-creates the real-life feat that Range Rover Sportachieved when it set the world record for a production-standard [SUV] on the Pikes Peak International Hill Climb course earlier this summer."

In terms of TV, the Range Rover will be featured in branded content on weeks-old Fox Sports 1. The programs will entail two drivers competing in all-terrain contests while commandeering a Range Rover Sport.

The aforementioned Race the Sun game will go live in the next week or so. Accessible via mobile or desktop, the game virtually puts the viewer in the vehicle's driver's seat while experiencing five driving scenarios. Components involve testing different speeds, agility, off-road handling and abilities to check out the vehicle's interior and exterior features.

The Britain-based brand's iAd promos will run on mobile sites for major publishers such as The New York Times, while letting people who click through watch videos and customize a Range Rover Sport. And Web banners appearing on sites such as ESPN.com let viewers virtually steer the vehicle as it weaves through scenic landscapes. Also, Land Rover will sponsor infographics on Slate, appear in ads via The Washington Post's Topic.ly platform and be seen in online promos via Kelley Blue Book.

Land Rover is also investing mightily in print this November while zeroing in on the male demographic. Five-page spreads in Wired, Esquire and Car & Driver will feature image-recognition technology that lets readers wave their smartphone over the ad to get more information about the vehicle on their device.

Other print and banner ads will run in Architectural Digest, The Wall Street Journal and Robb Report. One example of the copy being planned: "All the Most Dominant Species Start Out in the Wilderness."

For McCullough & Co., it's all about interactivity.

"Today, consumers build their opinions of brands based on how they present themselves in digital, social and mobile, as well as the value they offer in these channels," McCullough said. "The most innovative aspect of the digital creative is its interactive nature and [it] enables consumers to actually experience multiple aspects of how the [Range Rover Sport] drives from their desktop, smartphone or tablet."

The Road to Winning Drivers: What Drivers Want in Automotive Aftermarket Service

The digital age has ushered in changes in how people make their automotive maintenance decisions. Using Google+, we talked directly with today's drivers to understand how they are researching online before, during, and after their vehicle services. This study takes service providers down the road to winning today's digitally-savvy drivers.

Check out the Research conducted by Google Insights

Nissan: ‘Car brands trail other sectors in digital marketing’

Tue, 4 Jun 2013 | By Rosie Baker

• Marketing Week UK

Automotive brands are falling behind other sectors in digital and social marketing because they are clinging on to the traditional model of using print and TV ads to sell cars through dealerships, according to one of Nissan’s top digital marketers.

Nissan is currently in the second phase of its #Jukeride social campaign, which turned to its community of motorsport fans to help crowdsource the design for a Nissan Juke race car, in an effort to improve the way it uses social and digital media in its marketing.

Speaking to Marketing Week about the development of the #Jukeride campaign, David Parkinson, EMEA and India general manager of social media and digital engagement, said the “democratisation of everything through social and digital is something brands can’t ignore”.

“You shouldn’t underestimate the community. Even though we are the expert engineers, there are great ideas that we wouldn’t think of because we’re too close to it and some ideas could only come from the Playstation generation,” he says.

Car brands’ progress in using digital and social marketing is behind that of sports brands like Nike and Adidas or FMCG brands such as Starbucks, who are “getting there quicker” because they are being more innovative and doing more “test and learn” activity, according to Parkinson.

He cites Ford’s Fiesta Movement social campaign in 2009 as an example of the “first, biggest and last good” social campaign in the automotive sector.

The automotive industry’s reticence to fully adopt digital marketing is through fear of moving beyond the traditional, and still successful, model, says Parkinson.

Parkinson says Nissan’s digital activity is there to supplement the traditional TV and print activity but he believes eventually there will be a tipping point where car brands rely more on digital and social than traditional TV ads.

“That basic [dealership] model works and it sells cars so [marketers] are afraid to mess with that model, but we’re trying to look to the future. The triple screening and media stacking people do is changing the way people consume media. That’s why we’re still doing traditional but we’re doing social in parallel. Eventually there will be slightly less traditional and more social. If you look at Nike, they do very little traditional and nearly all social.” 

http://www.marketingweek.co.uk/news/nissan-car-brands-trail-other-sectors-in-digital-marketing/4006889.article

How Auto Brands Can Win With Mobile

Inmobi Insights on April 18, 2013 | by Shamala DN

The auto industry has traditionally relied on conventional marketing means such as TV advertisements, bill boards and print media to drive sales. But over the last couple of years there has been a tremendous shift towards the Internet, social media and mobile. This was bound to happen with the coming of the Internet and the mobile and the way media has changed over the last few years. People have moved to online, more so to mobile and social media, where they look for vehicle pricing, model information, photo galleries, vehicle reviews, ratings, ownership reviews, and vehicle comparisons.

Why this shift to mobile?

Mobile devices have completely changed the way consumers shop, and search for information and looking for a new or pre-owned vehicle is no exception. Current mobile statistics reveal that there are over 1 billion mobile web users worldwide with more than 90% of smartphone users being mobile Internet users. According to a new mobile focused study by J.D. Power and Associates almost 60% of auto intenders in the US are looking at their smartphone while they are on a dealer’s lot. Briabe’s “Auto Shopping On-the-Go with Mobile: A Study of How Consumers Are Using Mobile Devices in Auto” survey in US found that:

• Three out of five respondents have noticed an auto ad on their mobile phone or tablet
• More than one-third (37 percent) have clicked on auto ads for more information
• Users are most interested in research (85 percent) and / or price comparison (86 percent) when shopping for cars on their smart phones or tablets
• Banner ads (68 percent) and social media ads (69 percent) are the most effective types of ads that cut through the online clutter
• Deals and promotional offers along with ads that highlight car features resonate the most among mobile users with 76 percent of respondents saying they are most likely to click on these types of car ads

Clearly, mobile has become the preferred channel for reviews on dealership websites, social media platforms or just searching for car related services in the locality. Smartphones have become the prime source of information among car shoppers. Consumers are making decisions based on research on their mobile devices. These trends have led the industry to push and adopt mobile media which traditionally has been reluctant to embrace new technologies. It is important for auto manufacturers to recognize this shift and set the stage with innovative and creative mobile ad campaigns.

As with other industries, auto companies need to focus on the following components to drive customer acquisition, strengthen relationships and achieve brand differentiation.

• Content drives traffic: A study by Millennial Media has found that nearly one-quarter of consumers who keep up with auto info (21 percent) read automobile content daily. Content is the key to prospective engagement. Creating original content with a clearly defined keyword strategy can help boost SEO rankings. It is important to frequently update and tailor the content to customer behavior to attract and covert site visitors.
• QR Codes: QR codes provide the ability to interact with customers who examine dealer stores during off hours. They also allow customers to find more information or deals via the brand without being bombarded by advertising. QR codes can also be included in their main website and print advertising. When customers scan the code, they can be directed to the dealership website to obtain more information such as pricing and specifications.
• Location based services: Auto dealers can leverage the mobile medium to deliver geo targeted alerts or push notifications on the offerings. This is very important for auto service companies as customers would be interested in tracking their services on-the-go.
• Mobile video: With every launch and review tracked on video hosting sites such as YouTube which is accessible over mobile, it is important for auto manufacturers to upload images and videos combined with reviews and commentaries to create an impression.
• Optimize and integrate: While most of the OEMs have comprehended the importance of mobile, it is important to optimize mobile search, strengthen mobile marketing and m-commerce for products and services to be purchased online. Integration with social media provides opportunities to auto retailers to engage customers, build brand credibility and loyalty.
• Mobile optimized website: According to the 2012 Automobile Mobile Site Study by JD Powers, 31% of shoppers actively looking to buy a vehicle have visited automotive websites via their smartphones compared with 24% in 2011 and 17% in 2010. Having a mobile optimized website which loads quicker and is simple and easy to navigate is crucial to for differentiation. The site can display the products, latest sale prices, and running offers with optimized mobile ad campaigns to improve user engagement.
• Rich Media: Mobile ads allow for a level of engagement not possible in traditional media and enable brands to expand their customer relationships. Marketers should embrace rich media ads to serve videos and images to create a unique experience which leads to high engagement metrics.
• Better use of targeting capabilities: Targeted and relevant messages will increase the response for auto related mobile campaigns. Automotive companies can target based on a combination of parameters including location, customer’s online behavior, handset, wireless carrier, age, gender, household income or time of day.

The future of mobile advertising looks bright and sophisticated. Although traditional forms of marketing and advertising will always have a place in the industry, the mobile revolution is changing the way businesses transact and traditional media may not be as effective. Mobile is becoming a much bigger part of day-to-day life and businesses can only benefit from understanding all that mobile technology has to offer. Marketers should take advantage of mobile’s unique abilities as a marketing channel to reach customers where they are, develop a richer understanding of mobile consumer usage and refine their efforts to cope with the change.

The One Infographic About the Digital Revolution You Need to Understand

Published in Linkedin on May 7, 2013

One of the challenges of the digital revolution that we’re living through today is its complexity, and the broad range of implications that companies need to wrestle with. Consumers are shopping in different channels, often hopping across them to complete a single purpose – what are the teams you need to have in place to deliver what’s needed across that journey? Consumers are creating showers of data in their wake – how should companies make sense of it, and what skills do they need?

I love this infographic we created not too long ago because it attempts to paint a complete picture of the implications of this revolution. (You can find more on our Pinterest page).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As well as being choc full of useful data, it provides a big picture of what’s going on. This kind of broad perspective is more important than ever because the array of challenges and new technologies create huge temptations to focus on narrow issues without understanding how they fit into the broader business. What this infographic really highlights is that it’s so important to get many things right. Great data insights without a great product? Big waste. Great product that your customers don’t want? Big waste. Wonderful execution of a bad product? Big waste. 

How are you getting the balance across data, design, and delivery right? Who’s doing this well?

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