AUTO. INDUSTRY A Digital Marketing Perspective. Innovative strategies for segmenting and targeting auto audiences

Transcription

1 AUTO INDUSTRY A Digital Marketing Perspective Innovative strategies for segmenting and targeting auto audiences

2 Introduction 2017 has seen mixed results for the automotive industry in the UK. Manufacturers and dealers are dealing with a weakening pound and declining consumer confidence, coupled with changing customer preferences and policies. This has compounded into the following market shifts: - New car sales have cooled down after 5 years of strong growth, with Q2 seeing the largest quarterly fall in more than 6 years of 10.3%. - In contrast, used car sales have risen steadily by 3.4% over Q1, and expected to take share from new car sales over the second half of the year. - Coupled with the government s decision to ban diesel vehicles by 2040 and growing health concerns, diesel car sales have dipped by 15% in June. - Consumers, instead, are rapidly adopting environmental and efficient vehicle options, with electric and hybrid car registrations increasing by over 30% in June year-on-year. (Source: SMMT 2017) Automotive Report Page 2

3 Consumers have also become highly sophisticated with their research and buying cycles. According to Luth Research, a typical car buyer has 900 digital interactions over three months before purchase. In order to target these evolving channels, marketers are shifting away from traditional mediums (with the exception of TV), and investing more in targeted digital advertising and search marketing strategies. Marketers in the automotive industry are now faced with the following challenges: - Determining which channels reap the highest ROI for brand building and targeting - Segmenting audiences with precision at the various stages of the customer s journey - Transforming online prospects into offline buyers through targeted and trackable means In this report, we look at key tactics for manufacturers to identify and target high prospect audiences online. In particular, what steps a manufacturer can take to optimise the customer s journey through their awareness, consideration and decision making stages. Want to know how we get our insights? Click on the icons that appear next to the graphs

4 Table of Contents 1 Capitalising on Online Buzz The Tesla Effect: How the Model 3 has Impacted the Electric Vehicle Market 2 Segmenting Online Audiences Audi Spotlight: One Brand, Many Audiences 3 Activating High Prospects BMW s Two-Tiered Activation Approach: Re-targeting and Competitor Conquesting Automotive Report Page 4

5 1 Capitalising on Online Buzz The Tesla Effect: How the Model 3 has Impacted the Electric Vehicle Market Automotive is well known for its long purchase cycles, so it s paramount for a brand to stay top of mind. Brand building efforts are typically done through outbound marketing, like TV and sponsorships, which can be costly and difficult to track. In this section, we detail another approach for brands - through search and content optimisation. Automotive Report Page 5

6 Tesla s Model 3 vs. Competitors: What Has Happened Online? The Model 3, Tesla s first mass-market and cheapest car to date at $35,000, has attracted a lot of media attention. Searches for the Model 3 have risen by 345% from the start to the end of July, as a result of two key announcements: - 7th July: The first Model 3 rolled off Tesla s production line, and - 28th July: Tesla hosted a handover party for the first 30 cars. Whilst the recent hype has brought a lot of attention for Tesla, the Electric Vehicle (EV) industry has actually benefited as a whole, with searches for electric cars rising in tandem by 346%, over the same time period. In addition, searches for other key EV competitors have surged, such as: BMW i3 (+164%), Nissan Leaf (+125%), Renault Zoe (+125%) and Hyundai Ioniq (+106%). Searches for Electric Vehicles Weekly Search Share 0.006% 0.005% July 7 First Tesla Model 3 produced July 28 Handover party on first 30 cars 0.004% 0.003% 0.002% 0.001% 0.000% 03/06 10/06 17/06 24/06 01/07 08/07 15/07 22/07 29/07 Week Ending Date Tesla Model 3 Nissan Leaf BMW i3 Renault Zoe Hyundai Ioniq % Growth from w-e 1st to 29th : 345% 125% 164% 125% 109% Jul * Source: Hitwise The above chart includes search variations of each model. Automotive Report Page 6

7 Media has further capitalised on the recent EV buzz. Top sites, such as Auto Express, have seen a 162% rise in articles around best electric cars, as opposed to articles solely focused on Tesla Model 3. In the week ending 29th July, articles on electric and hybrid cars had captured 3 out of the top 5 articles on their site. Top Articles on Auto Express Weekly Article Share 0% 1% 2% 3% 4% Best Electric Cars on Sale 2017 Best New Car Deals 2017 Best Electric Cars have grown by 162% since the start of the month Click to tweet! Tyre Reviews - Best Car Tyres 2017 Best Hybrid Cars Sales Week ending date: 29th July 22nd July BMW i3 Best Electric Cars 15th July 8th July * Source: Hitwise Chart includes article share on autoexpress.co.uk Automotive Report Page 7

8 Downstream traffic from search also shows a significant contrast between Tesla and other EV players. In the week ending 29th July, Tesla had a higher share of searches going to media outlets (like The Verge, Alphr and Electrek), whereas, competitors had a higher proportion going directly to their site, or dealerships and classifieds. This implies that whilst audiences of Tesla may be more interested in news hype, audiences of BMW or Nissan could be demonstrating higher intent. In the next chapter, we detail how a manufacturer can then dissect these audiences, in order to identify genuine prospects. Top Downstream Sites from EV Searches Tesla Model 3 Nissan Leaf 1 Tesla Motors 33.80% 1 Nissan Motor UK 42.46% 2 Eleckrek 6.03% 2 Auto Express 7.89% 3 Youtube 4.69% 3 Carwow 7.43% 4 The Verge 4.31% 4 Nissan USA 4.19% 5 Alphr.com 4.04% 5 Autocar 2.75% BMW i3 Renault Zoe 1 BMW UK 33.79% 1 Renault UK 42.21% 2 Autocar 5.76% 2 Carwow 17.64% 3 Clean Technica 4.72% 3 Renault Retail Group 7.66% 4 Auto Express 3.87% 4 Auto Expres 4.09% 5 Carwow 3.83% 5 What Car? 2.89% A higher proportion of Tesla searches went to media sites. Whereas, others had more traffic going to direct, dealership or classified sites. Source: Hitwise Downstream traffic from the above searches, in the week ending 29/07/2017. Top Takeaway Keep a close eye on search trends and terms going to your industry. Capitalise on growing interest. Identify spikes in searches, profile who have shown this interest and where they go online after search.

9 2 Segmenting Online Audiences Audi Spotlight: One Brand, Many Audiences A key requirement for any online strategy is to differentiate aspirational and genuine buyers of a brand. In particular, the ability to identify and track audiences that have demonstrated high intent, such as: people who have searched for a specific dealer, or have booked a test drive. The ability to do so is critical for any targeting strategy. Our analysis shows that even within a single brand, audiences largely differ depending on their intent touch points and interactions on a manufacturer s or dealer s site. Automotive Report Page 9

10 Audi Spotlight: Differentiating Segments by Model and Intent Audi has received over 370,000 unique users to their website in the past 8 weeks*. These users are a combination of different profiles, depending on their model interests, needs and buying intent. For instance, Audi s A3 compact audience significantly differs from their TT sports coupe audience. A3 attracts a more female, older and higher income segment, compared to TT which attracts a higher share of male, younger and aspirational segment. Audi Audience Differences by Model A3 Compact Audience TT Sports Coupe Audience Higher share of females (F - 45 : M - 55) Higher share of males (F - 42 : M - 58) Older audience (66% of audience is older than 35) Younger audience (39% of audience is younger than 34) Higher household income (21% of audience earns more than 60K) Lower household income (58% of audience earns less than 40K) *Source: Hitwise Period: 8 weeks to 22/07/2017. Audiences build on searches and visits to Audi s A3 and TT pages. Audi s audiences further differ by online touchpoint. This is shown on the following chart for the below listed actions: - Audiences that have requested an Audi Brochure - Audiences that have visited or searched for Audi Used Cars - Audiences that have visited or searched for an Audi Dealership. Automotive Report Page 10

11 People who request a brochure tend to be younger, based in London and visit other manufacturer sites. Used Car audiences are older and search for other manufacturers used vehicles. In comparison, audiences interested in Audi dealerships have the highest household income and visit specialised dealership sites dedicated to high-end car brands. A manufacturer like Audi could utilise these insights to know: what types of info each segment is searching for and understand where they go online to inform content and display, which we will detail in the next chapter. Audi Audience Differences by Touchpoint Touchpoint / Area of Interest Who are they? Where do they go online (auto)? What other cars are they searching for? Requested a Brochure 18-24yo London HH income of 20-40K Visits Manufacturers like BMW, Mercedes and Jaguar Jaguar XJS 4.0 BMW M5 Aston Martin Valkyrie Looked for Audi Used Cars 45 yo+ South East HH income of 40-60K Visits Dealerships like Arnold Clark, Motorpoint & Evan Shalshaw Used VW Used BMW Range Rover Evoque Looked for an Audi Dealership 45 yo+ South East and South West HH income of 70K+ Visits Specialised Dealerships like Sytner & Imperial Car Supermarket BMW Mini Malton BMW 330d Xdrive Porsche Macan * Source: Hitwise Period: 8 weeks ending 22/07/2017. Audiences built on visits and searches to Audi s brochure, used car and dealership pages. Top Takeaway Segment your online audience based on their model interests and buying intent. Identify your real prospects using online behaviour, such as visits to dealership or book a test drive pages.

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13 3 Activating High Prospect Audiences BMW s Two -Tiered Approach: Re-targeting and Competitor Conquesting Let s revisit our example from Chapter 1 where we saw an uplift in the Electric Car market. People searching for electric cars have grown by an incredible 108% in July, compared to the previous month. Automotive Report Page 13

14 The hype around the Model 3 saw Tesla s audience size rise by 162%. This buzz also had a positive impact on other manufacturers, such as BMW i3 increasing by 38%. Audience Size for Electric Cars * Electric Cars Tesla Model S, X & 3 BMW i3 People searching for electric cars have grown 108% in July MoM 258, % rise from people searching for Tesla largely contributed 127,707 Plus smaller uplifts from others, like a 38% rise in searchers of BMW i3 Click to tweet! 96, ,686 40,720 48,783 12,009 13,004 17,888 May June July May June July May June July * Source: Hitwise Dates: May = 4 weeks ending 03-06, June = 4 weeks ending 01-07, July = 4 week ending Audience sizes are based on searches. Electric Cars includes variations of electric cars and top 10 EV models according to Carbuyer & AutoExpress. So, how can a manufacturer sustain this interest and guide people along their purchase cycle? An effective way to do so is through targeted display - by transforming audience insights into audience activation.

15 Who was Behind BMW s and Tesla s Growth? For BMW and Tesla, July s growth came from varying audiences. BMW i3 saw a spike in younger and female audiences, compared to older and male audiences for Tesla. Both auto manufacturers had attracted a significant rise in affluent audiences with high household incomes. Who was behind this growth from June to July? BMW i3 Tesla Model 3, S, X year olds (55% rise to 3,887 people) year olds (235% rise to 6,531 people) Females (86% rise to 8,284 people) Males (172% rise to 80,482 people) Upper HH Income (70K+) (51% rise to 3,358 people) Upper HH Income (70K+) (165% rise to 26,085 people) * Source: Hitwise June = 4 weeks ending 01-07, July = 4 week ending Audiences are based on searches to specific models. Automotive Report Page 15

16 Using Audience Insights to Activate BMW s Prospects What can BMW do to capitalise on rising interest in their i3 model? Taking into account the growth from higher household incomes (on the previous page), BMW could deploy the following two-tiered activation approach: 1. Retarget affluent audiences searching for the BMW i3, and 2. Conquest affluent audiences that have shown interest in Tesla (but not BMW). To do so, a deep understanding of the target audience s interests and online behaviour is required. For instance, the below chart shows that the affluent BMW i3 audience is more likely to search for used cars, prices and specs of competitor brands. They are also more likely to spend their time on news sites, such as The Independent and Forbes. BMW i3 Audiences to Retarget Target: Searchers of BMW i3, Household incomes 70K+ What are their interests? Use search behaviour as content inspiration, such as: Where do they visit online? Identify over-indexed websites for targeted white lists, e.g.: Top Searches to Auto Industry Search Term Target Reach Online Pop Reach Reach Average Visits Average Time vw used car dog in saloon car bmw m5 price and specs tesla model s 10.40% 10.40% 8.95% 3.52% 0.03% 0.01% 0.01% 0.08% 44% 18% :36 04:30 lease volkswagen gold gte 2.78% 0.01% Target Online Population Target Online Population Target Online Population * Source: Hitwise Period: 4 weeks ending 29-Jul Automotive Report Page 16

17 Whereas, Tesla s affluent audience (who are not searching for BMW i3) are interested in formula 1 and luxury cars like Aston Martin. In contrast, Tesla s audience are more likely to visit media sites like TechRadar. Tesla Audiences to Conquest Target: Searchers of Tesla 3, S, X AND NOT BMW i3, Household incomes 70K+ What are their interests? Use search behaviour as content inspiration, such as: Where do they visit online? Identify over-indexed websites for targeted white lists, e.g.: Top Searches to Auto Industry Search Term Target Reach Online Pop Reach Reach Average Visits Average Time tesla model s 7.79% 0.08% 26% 8 03:53 formula e standings aeroscreen f1 tesla model 3 review 7.52% 7.52% 2.19% 0.01% 0.01% 0.01% 5% 5 03:18 aston martin db7 for sale uk 0.38% 0.01% Target Online Population Target Online Population Target Online Population * Source: Hitwise Period: 4 weeks ending 29-Jul BMW can then use these insights to inform the what and where of their ad campaigns. Over-indexed search terms can feed directly into their creative, such as showcasing the i3 s unique features in a re-targeting campaign, or emphasising luxury and class in a conquesting campaign for Tesla. Over-indexed sites can also be used to create whitelists or develop partnership opportunities with the likes of The Independent and TechRadar. Top Takeaway Arm your display campaigns with actionable insights. Go beyond demographics by understanding your target s unique interests and behaviours. Feed these insights into the full design and execution of display, including the what and where to feature ads.

18 Want to get these insights? The following Intelligence Tools & Services were featured in this report: Search Insights: What people are searching for and where they go to find these answers, can be found in Hitwise s platform services. Audience Profiler: The Profiler report can be found on Hitwise s AudienceView platform, where a user can identify a target audience and understand their online behaviours. Insight to Activation: Hitwise supports clients in their display campaigns by utilising our insights, such as over-indexed search terms and websites, to activate target audiences. Article Tracker: This custom tool allows clients to discover the types of content consumed on a publisher s site, down to the exact articles and pages. Custom Sections: By looking deeper into a website and breaking out specific pages and sections, clients can understand their customer s behaviour with further precision.

19 Key Takeaways Keep a close watch on online buzz around the electric and hybrid market - identify opportunities to cultivate interest with early buyers Segment your online audience based on their brand preferences, model interests and buying intent Identify genuine prospects by marrying demographics with online touchpoints, such as household income and visits to a dealership page Arm your content and display campaigns with actionable insights know who your target audience is, what are their unique interests and where they go online Feed these insights into the full design and execution of your display campaigns, such as using search to inform messaging and visuals, and utilising over-indexed sites to build whitelists Automotive Report Page 19

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