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Disruption for the Modern Age in Automotive Advertising Campaigns From 2001 on, the auto industry took a new approach for disruptive marketing that aligned with a world that was rapidly changing and evolving. Disruptive marketing is all about standing out from the crowd. In today’s loud, digital, tech-savvy world, businesses are desperately trying to sell you something from every angle, in every space, and on every platform, making it hard to connect with an audience that is already overwhelmed and oversaturated with content and advertising.  Since the technology boom in the 2000s, disruptive marketers are the ones who have been able to cut through the noise and find success – more so than any other time in history, particularly in the auto industry, where competition is fierce, and customers are bombarded with advertising on a daily basis.  Today, disruptive marketing practices are more important than ever. From turning conventional showrooms upside down to selling cars online, disruptive marketers have been shaking up the status quo and driving sales by appealing to customers' sense of adventure and modern technology.  Automotive Marketing in a Post 9/11 World The automotive industry was one of the first to be impacted by the events of September 11th. In the aftermath of the terrorist attacks, GM launched the 'Keep America Rolling' campaign. The objective was to encourage people to buy GM cars to help support the economy. The campaign was highly successful and is credited with helping GM weather the economic downturn. Keep America Rolling was a massive success, with GM sales increasing by 20% in the months following the campaign's launch. It was a perfect example of how a well-executed, disruptive marketing campaign can help a company weather an economic crisis. Cashing In on Clunkers Disruptive marketing is all about making a splash and getting people to take notice. It's about thinking outside the box and coming up with creative ways to get people's attention, and with a looming car shortage in the 2000s inspired one of the most memorable campaigns in auto industry history. Launched in 2009, the program offered consumers a cash rebate for trading in their old cars for new, more fuel-efficient models. The results were dramatic. In just six weeks, the program boosted auto sales by nearly 30%. More importantly, it changed the way people thought about car buying. Suddenly, fuel economy was a top priority for consumers, and automakers were scrambling to keep up. The Cash for Clunkers campaign was a true game-changer for the auto industry, and it's a perfect example of the power of disruptive marketing. Automotive Advertising that Electrified the Industry The Model S was a breakthrough vehicle for Tesla. It was the first all-electric car that had a range of over 200 miles. This made it a viable option for long-distance travel and helped to change people's perceptions of electric vehicles. Tesla's marketing campaigns have been highly influential in driving sales and generating buzz for the company. The beauty of this is that the campaigns were not made by Tesla itself, but rather by someone in the audience. Someone who believes wholeheartedly in the brand, so much so that they felt compelled to create their own version of an advertisement; a creation which has had over 375k views, completely unsolicited by the brand itself: Gallons of Light. Capturing the Power of Black Friday  Taking a cue from major retailers throughout the United States, car dealerships began embracing the “retail frenzy” model known as Black Friday.  Black Friday has been widely embraced as one of the most effective pieces of disruptive marketing in history.  Held on the Friday after Thanksgiving, the Black Friday campaign is widely marked as the official start of the holiday shopping season.  While Black Friday has traditionally been a retail event for big box stores or smaller shopping experiences, the automotive industry began pivoting their marketing dollars in recent years to entice consumers to purchase a car. “Marketing convinced public that that “Black Friday” is a great shopping day to get a jump on the holiday shopping season. This provided a very effective “disruption” of the norm – staying home and watching football with the family,” said Kirk Oleson, President of Graham Oleson .  Marketing While the World Stood Still The unprecedented circumstances of 2020 forever changed the face of industry, commerce, and advertising. Positioned against the backdrop of a catastrophic global pandemic, automotive marketing teams scurried to find a new, impactful advertising approach when most were sheltered in place. As car dealerships remained empty due to social distancing and health concerns, television ads began shifting their tone and approach to connect with car buyers. "While this TV ad campaign wasn't the first to promote buying a car from home, it was launched at the very beginning of COVID and was very successful," said Tony Roland, Automotive Account Executive at Spectrum Reach . "Car buyers weren't going to dealerships at the time. Many people aren't comfortable making such a big purchase without seeing it, touching it, and talking directly to a person." As demonstrated in a commercial that showcased a local car dealer, Joe Maus CDJR, this approach assured the consumer that the process could be both simple and non-threatening. "At a time when many other local dealers were talking about the measures they were taking in their stores to make them clean and safe, this alternative resonated with TV viewers throughout the market," said Roland. Modern Challenges for a New Era in Car Shopping The way consumers behave has changed dramatically in recent years, and businesses have had to adapt their strategies accordingly. One of the most significant changes has been the shift away from weekend shopping. In the past, businesses focused their marketing efforts on getting potential customers to add their products to their shopping list by Friday. In the auto industry, weekends were traditionally when dealerships offered their best deals. However, with more and more people shopping during the week, dealerships have had to adjust their strategies. As a result, the way businesses operate has changed dramatically in recent years, and companies must continue to adapt their strategies to keep up with the changing consumer landscape. Beyond the new challenges of modern shopping patterns, the media landscape has more fragmented than ever before, creating a more saturated environment to connect with audiences. With the rise of digital media, there are more ways for consumers to get their information. This has led to a disruptive marketing environment, where companies must fight for attention. One way that car companies are achieving this is by using cross demographic targeting, allowing advertisers to reach a wider audience with their message. In the auto industry, for example, companies are targeting young adults with social media campaigns. This is because they know that this demographic is more likely to be interested in new car models. By using cross demographic targeting, companies can reach a larger audience and increase their sales, such as the 2022 Acura “Your Turn” campaign with Vince Staples during the NBA Finals.  According to Torrance Hampton, Creative Director and Executive Producer for GFACTOR FILMS , “The disruptive nature of the campaign originates with Vince himself, and you can see his direct influence over the campaign visuals: the artistic 360 freeze frames, jump-cut car performance shots and kinetic camera movements all while showcasing multicultural millennials experiencing the new Acura Integra. It's not about the car, it's about the lifestyle.” Reimagining Disruptive Automotive Marketing in the 21st Century There have been many other disruptive automotive marketing campaigns in the past century. The automotive industry is constantly changing, and so is the marketing landscape. What worked in the past may not be effective today, and what's popular now may be out of style in a few months. To stay ahead of the curve, automotive marketing teams will need to continuously find new, innovative, and disruptive ways to capture the consumer's heart, imagination, and loyalty. If you missed Part One of this series, click here . 

A look at the past, present and future of disruptive marketing in the auto industry Advertising has come a long way since its humble beginnings. There's no doubt about it – marketing remains an ever-changing landscape: What worked a few years ago may not be effective today, and what's popular now may be out of style in a few months. Nowhere is this more relevant than in the automotive industry, where new campaigns hold the potential to make or break a company. This article will explore some disruptive and impactful automotive marketing campaigns throughout the past century. We'll explore what made them successful and see how they changed the marketing landscape forever. Early Automotive Marketing that Set the Stage One of the earliest and most well-known automotive advertising campaigns was Ford's "Model T" campaign, successfully running from 1908 to 1927. The ads featured simple text and images that showed off the car's features and proved highly effective in launching the modern American motoring age. The Model T was a revolutionary car that changed the way people thought about transportation. Ford ran a full-page advertisement in the Saturday Evening Post in October 1908. The ad appealed to middle-income families with a bold headline, "Four-Cylinder, Twenty Horse Power, Five Passenger Touring Car" at just $850.00. The campaign was so successful that it helped make Ford one of the world's biggest and most successful automakers. Innovation and Imagination Throughout the Decades As time passed, new approaches to memorable and impactful marketing took shape, from General Motors' "See the USA in Your Chevrolet" campaign to Volkswagen's iconic "Think Small" approach. As the years continued, other approaches to disruptive automotive advertising blossomed. In the 1980s, we saw the first truly disruptive automotive marketing campaigns start to take shape. Automotive marketing teams needed to find new, innovative, and disruptive ways to capture the consumer's heart, imagination, and loyalty. Saab ran an ad that featured a Saab car driving behind a jet with powerful slow-motion visuals and portrayed a lifestyle admirable to many. The tagline for the campaign was "Nothing on Earth comes close." Focused on the luxury and speed of the vehicle, the ad connected with an audience eager to experience a lifestyle they aspired to. This groundbreaking ad found tremendous success and launched the career of its director, who went on to direct the highly successful movie  TOP GUN . These early automotive campaigns were disruptive because they could reach a broad audience and promote their products in a very different way from what had been done before. They set the stage for automotive marketing campaigns that would come later and continue to be disruptive. Toyota Breaks into the US Market In the late 1960s and early 1970s, Toyota was relatively unknown in the United States. They had a small market share and were not considered a significant player in the automotive industry. However, that all began to change in the 1980s. "In 1989, Toyota broke into the US market with the Lexus LS 400, a design icon at the time, and shook up the automotive industry with the vehicle and this commercial. The ad was so innovative, Nissan and Dodge copied it. In this commercial from 1989, The LS 400 is featured here at an equivalent of 145 miles per hour with 100 glasses of champagne featured on top without shattering. Toyota/Lexus was and still is a disruptor with every model they create," said Melanie Borden, Managing Member at Melanie Borden, LLC . The mesmerizing Wine Glass commercial shot the Lexus LS into the stratosphere, becoming one of the most talked-about marketing campaigns of the year. Captivating the Audience Once Line at a Time Transitioning from big, bold headlines and visually stunning commercials cleverly designed to capture the attention of their target market, the next big disruptor in the automotive marketing industry took and more direct, singular approach. According to Dane Scott, President of Windstar Studios Inc ., the simplicity of words scrolling across a screen boosted sales for dealerships on a global scale. "In my forty years of creating Tier 3 and Tier 2 automotive commercials, one, in particular, stands out: The Scroll. Words simply scrolling up the screen." "The style gives it the appearance of breaking news, so you pay attention and almost have to read it. Dealers loved it, and it was effective, easy to produce, and affordable. I don't recall how many of these we made, but it was easily in the hundreds. From a personal perspective, the Super Bowl commercial that grabbed my attention the most was KIA's Robo Dog. Like many, I am teetering on the edge of going electric. Robo gave the commercial emotion and something to connect to. Plugging the dog into the EV to bring it back to life made the car a hero." Moving Into the New Age As the auto industry continues to evolve, disruptive marketing practices are becoming increasingly important and technologically advanced. As the auto industry has become more crowded and competitive, disruptive marketing practices have had to shift with technology booms, changing social- political beliefs, and a marketing landscape that has become entirely saturated. In the second part of this series, we will explore disruptive marketing in the auto industry throughout the past two decades, and learn how some companies have effectively broken through the noise to capture attention and find success.  

The theme of this series of articles is one of disruption within and affecting the automotive business. This article is intended to explore the intersection between evolving new vehicle shopping behavior, changes in video consumption, and new challenges local dealerships face as they move into and through the next stage of pandemic recovery. While dealerships have been enjoying the tailwinds of a ‘sellers’ market for the last 18 months largely due to pent up demand of the covid pandemic, recent political and economic trends and corresponding consumer sentiment threaten to soften demand across many sectors including automotive retail.  As dealerships look to increase their marketing to customers, how has the landscape changed post-pandemic?  With new car inventories remaining scarce and customers becoming increasingly comfortable transacting more of the shopping process on-line, there is a decreasing propensity for a customer to choose a particular store based solely on factors like location and inventory. Without the traditional drivers customers will choose their dealership using other criteria. While this could be as simple as name recognition or your stores’ location, factors such as trust, competency, ease of transaction and connection to the community become increasingly relevant. Most importantly, your point of difference needs to be communicated early in the shopping process, as opposed to when a customer arrives on your doorstep.  Nothing has the power to tell this message more strongly than video and simultaneous to the changes that have taken place in the automotive space, there have been equally dynamic changes occurring in the ways that dealers can deliver video. This brings us to our second disruption. Video consumption patterns and technologies changed dramatically during the pandemic. Beyond YouTube, facebook, or video on your website, streaming video (or OTT) is replacing the traditional engine of branding and driving demand once commanded by broadcast advertising and (before that) newspaper and print media.   The pandemic rapidly accelerated the growth of streaming services like Netflix, Hulu, Disney+ and a host of others.. A couple of quick stats; Nearly 30% of US consumers cut the cord in 2021.  Nearly all Americans aged 25-34 access TV content through the internet; 78% of people watch online videos every week, and 55% view online videos every day. As of 2022, an average person is predicted to spend 100 minutes per day watching online services. 72% of customers said they would rather learn about a product or service by way of video Viewers retain 95% of a message when they watch it in a video, compared to 10% when reading it in the text ( Insivia ) Streaming video advertising offers many unique advantages over traditional television and alternative video delivery methods. Unlike traditional television, streamed ads are not able to be easily skipped thru or scrolled past, with a view thru rate approaching 99%. This means they offer a level of engagement not seen since the days before the channel changer was invented. Contrast this to a short form product like you tube where 95% of people click skip the moment they can. Or facebook where users scroll through the content quickly. Streaming advertising allows you to not only target your ads to precise demographics and geography, but to exactly target your desired customers choosing from thousands of data points related to customer behavior.  To put it simply, you target the customer, not the channel. You can play service messages to consumers that already own your type of vehicle, or target in -market shoppers for your brand, a competing brand, or other criteria related to where the car shopper is in the decision funnel and the recent actions they have displayed on-line. New developments not only make it possible to target viewers to the household IP address but also to the actual device ID where they are viewing the content. This means you can target mom and dad in the living room, while skipping the kids in their bedrooms. There are new ways to track the effectiveness of the content and the subsequent actions that viewers take. For example you can track how many customers visited your website within five days of being exposed to an ad impression, and what actions or conversions occurred at that visit.  Streaming advertising (sometimes referred to by ad sellers as OTT which stands for content delivered ’On Top of (traditional) Television’ services) is sold in a variety of ways, by a multitude of vendors. Within the ‘streaming’ subset; ads can be delivered on Connected TVs (the big screen on your wall), or via tablets, laptops, desktop and cell phones. The segments can be further divided by such criteria as ‘full episode programs’ (traditional TV shows), short form clips, pre-roll, mid-roll and more. I recommend working with someone who has access to the full inventory of products and can impartially recommend the best solution for your needs and market. As an example, the products we offer work from 6,000+ data points and we test and modify campaigns regularly to produce the right balance of completed views and website clicks.  Conclusion: the pandemic has brought many changes in our lives and the way that customers are choosing to do business with their local dealership. The growth of streaming video by consumers coupled with the advance targeting, delivery tools, more precise tracking and attribution provides a powerful new tool for dealerships to reach and engage this new breed of customers.

Ups and downs on the road to more normal inventory levels How long have we been waiting for inventory levels to return to normal? At this point, the ongoing inventory crunch in both new and used cars is just part of the environment, but we know it’s not permanent: while we’re not seeing much concrete evidence of an easing of supply pressure, there are indications that it’s not too far off. That said, there are multiple factors that seem poised to  delay  a return to normal. In addition, “normal,” when we do get there, might not look the same as it used to. The days of a 60+ day supply being the standard might be behind us, as industry-wide changes like the rise of digital retail and build-to-order continue to evolve.  Here’s a look at some of the factors we’re seeing and what they will mean to dealers, with one small warning: they all change quickly, and the picture may have changed between writing and publication. What does the data say now? To answer a question like this, we first turn to the data. At CarGurus, we’re lucky to have a huge amount of real-time data on vehicle availability, pricing, and time to turn, which our Industry Analyst Kevin Roberts uses to publish the monthly  Vehicle Availability Index .  The VAI compares month-end inventory per dealer to a starting point of November 2019. The most recent index, for February 2020, showed new car availability barely down over January, but still down almost 70% YoY. Prices were just slightly up for the month and sit 25% higher than last February. The picture is better on the used side, with the index up 2% over January and up about 5% YoY. As with new vehicles, prices were barely up over January, but YoY used prices are up 39%. What was interesting on the used side was that we saw the first signs of declining prices throughout most of the month, which made sense given that used inventory was back to pre-pandemic levels. However, the decline didn’t hold as consumers continued to snap up vehicles across a wide range of prices and styles. What could lead to a continued rebound towards more normal inventory levels? Early in the year, there seemed to be more potential positive factors that would help get more vehicles back on dealer lots. Here’s some of what we’re watching that could help the rebound, in a rough order of most to least likely impact. By far the most impactful factor would be new vehicle production levels getting back to target. LMC Automotive’s forecast originally expected that in Q3, but a combination of circumstances has pushed it back to at least Q4. Keep in mind that pent-up demand will probably absorb the beginnings of increased production, so inventory won't instantly rebound as manufacturing ramps up.  The potential for more interest rate hikes in the US to counter inflation would reduce demand fairly quickly as loan rates go up, and lower demand would give dealers a chance to restock.  As businesses continue to develop return-to-office plans, commuters may start to get over fears of rideshare, carpooling, and public transport. That would also reduce demand, although it could take a long time to set in. Rental companies could also get back to more normal operations, focusing again on building their fleets with new cars and offloading highly in-demand late-model vehicles into the used car market. What could prolong the situation even further? Unfortunately, as we’ve gotten through Q1, it seems like those positives are starting to get outweighed by an accumulating pile of negative factors. Supply chain issues continue to be the biggest threat – and it’s not just about chips anymore. Industry analysts downgraded production forecasts in response to two big developments in Q1: Russia’s war on Ukraine disrupting supplies of both raw materials and automotive parts  A new round of COVID-based shutdowns in China shuttering critical factories Those two factors, combined with ongoing semiconductor shortages, have the potential to push out the return to normal inventory levels to the end of 2022 or longer. But they’re not the only threats: Ongoing economic improvement would be a good news/bad news situation for dealers: if a small bump in interest rates keeps inflation down and employment continues to expand, that’s great for the country as a whole – but it puts more pressure on inventory as consumers have more buying power and more need for vehicles.  Good old seasonality could also drive up demand. While tax season looked a little delayed this year, the typical refund/warm weather buying patterns are likely to bring more customers in looking for both new and used vehicles.  Other more general factors could improve consumer sentiment: if the Ukraine conflict comes to a reasonable resolution and COVID fears and restrictions remain low in the US, we could see more buyers out there competing for a limited inventory pool.  Gas prices could have an impact as well, but that’s more likely to shift demand to smaller or alternative powertrain vehicles than it is to reduce demand entirely. That could increase competition even further in the EV/hybrid market, but it’s also probably a short-lived impact.  Finally, and I can’t believe I have to say this, we’re also hoping no more container ships full of cars catch fire. It might not have had much real impact on the market, but the symbolism was just a bit too much.  So, what does it all mean? Over time, we know that consumer demand, OEM production, and dealer pricing will return to a more normal balance. It might not be the same as it was in 2019, but it won’t look like the craziness of the last two years. Overall, it seems like the return to normal is being delayed by the combination of new economic, supply chain, and political factors. We expect markets to head towards more typical levels late in the second half of 2022, but we’re going to keep an eye on those negative factors to see if that gets pushed out further. 

Automotive Retail is Consolidating It’s no secret that significant consolidation of automotive retail is underway. Every week, Automotive News reports additional acquisitions by the leading retail consolidators. Earlier this year, Automotive News reported that the consolidation trend has continued steadily over the past 10 years – even through the pandemic. At the end of 2020, the Top 150 Dealer Groups owned 21% of all dealership locations and represented 23% of industry sales volume. This is up from 13% of locations and 16% of volume ten years earlier.   The need for significant technology investments is one driver of consolidation. Smaller dealers are faced with large investments to enable digital retailing to meet customer expectations. Dealers are also facing new investments in electrification technology to accommodate the industry shift to EVs. And some dealers are choosing to sell rather than make the investments. For example, approximately 20% of Cadillac dealers are reported to be walking away from their franchises, rather than make required investments in selling and servicing Electric Vehicles.   Tesla’s Retail Approach Shows What is Possible Tesla’s retail network shows that technology can not only be a driver of consolidation, but also an enabler. Tesla has fewer than 200 Sales Galleries and fewer than 150 Service locations. Connected Car technology is one of the keys that makes it possible for Tesla to service its customers with so few facilities. On the sales side, Tesla enables comprehensive on-line shopping. In service, Tesla says that it can accurately diagnose 90% of all issues remotely and that it can repair 80% of problems without a visit to a service center. Connected Car technology makes this possible by allowing Tesla to remotely connect to its vehicles for diagnosis and for ongoing insights into real-world customer usage. Tesla can also determine the customer’s location if it needs to dispatch a remote repair and Tesla can often repair vehicles with an over-the-air software update. It is safe to say that Connected Car technology is the only way that Tesla could operate with so few physical locations. As this technology becomes more widely used by all OEM’s, there will be growing opportunities for other OEMs to consolidate sales and service facilities. Lessons from the Pandemic and the Chip Shortage Both the pandemic and the chip shortage have accelerated trends toward digital retailing and reduced inventories. As reported in Car and Driver , Ford has concluded that the pandemic accelerated customer interest in shopping and ordering vehicles on line. Many dealers successfully responded by offering at-home test drives and deliveries. A build-to-order mindset for consumers has been further accelerated by the chip shortage, which has made it difficult for dealers to hold inventory and for customers to shop from inventory on the dealer’s lot.   Connected Car Technology Will Enable Further Consolidation Connected Car technology will further enable the trends toward retail consolidation and digital retailing. As Tesla has demonstrated, a well-connected OEM and Dealer network can easily provide remote sales and service to customers without needing so much real estate. As customers become more comfortable with online ordering and remote service, the most successful dealers will be those who make the best use of technology to serve customer needs.   We will soon see dealers making extensive use of Connected Car tech in their sales and service operations. For example: In Sales, vehicles can be made available for any-time test drives and parked inaccessible locations. Vehicles can be electronically disabled to prevent theft and only enabled for prospects with a valid authorization code. Also in Sales, a limited test drive can be extended to a short- or longer-term rental, with data collected to make effective suggestions to the customer for a customized vehicle, accessories, and software. In-Service, ongoing monitoring of vehicles will create increasingly sophisticated predictive models. These will allow Dealers to contact customers long before a failure occurs and offer either a physical repair or a software update. Also in Service, Dealers can monitor vehicle diagnostics trends, and can proactively schedule vehicle maintenance to be done at a time that is most convenient for the customer and also the most efficient for the dealer. The bottom-line result will be continued consolidation and more efficient use of real estate to meet the needs of automotive shoppers and owners. 

Automotive manufacturers create programs for their dealers to improve operations, drive up sales, and increase customer loyalty. But how successful are these programs in actually driving results for the dealers? RevolutionParts conducted a survey asking hundreds of dealers how effective they thought their OEM programs were and what areas they felt needed the most improvement. As a whole, dealers who adopted their OEM programs generally liked them, which is great news for manufacturers. This means their dealers see value in adopting and running these programs. Currently, OEM programs permeate the entire dealership, but more so in the parts department than anywhere else. In fact, a whopping 84% of dealers use OEM programs in their parts department. The three most significant considerations dealers take into account when deciding whether to adopt an OEM program are:  The overall cost of the program Overall sales impact and life directly from the program The success of other dealerships using this program Although dealers were generally satisfied with their OEM programs, they also reported that they wanted these programs to provide more resources and incentives to help drive their sales more effectively. More than half of them also felt like the program was designed to be more beneficial for the manufacturer than for their dealership. Areas of Improvement for Manufacturers One of the biggest concerns among dealers was program communication. Up to 50% of dealers reported that manufacturers needed to improve communication around their programs to help and provide more employee training and support. Nearly 45% of dealers said that manufacturers needed to expand OEM programs to better reflect current and future business models.  When asked what manufacturers needed to work on, dealers said they wanted:   Easier to use programs (especially for online sales) Higher-quality training for employees Better customer service support Consistent inventory tracking Offer higher-value incentives for dealers to drive sales Improvements made to each of these areas will help dealers improve their eCommerce sales, help them engage with their customers more positively, increase customer retention, and build customer loyalty.  Dealers Want More eCommerce Support Today, most dealers understand that the way people do business is changing, as more people are going online to shop for cars, parts, and accessories, and to schedule service appointments. Dealers today are looking for eCommerce solutions to help them expand their business online and reach their overall goals, an area most dealers feel their programs are lacking.  While most dealers are willing to adopt their OEM programs to support their eCommerce goals, dealers felt that these programs could use some upgrades. This is a big opportunity for manufacturers to change along with their dealerships to offer better eCommerce solutions.  Get the Full OEM Program Satisfaction Survey Results The RevolutionParts OEM Program Satisfaction Survey gives insight into the needs of dealerships across multiple areas of OEM programs, overall OEM program satisfaction, and what OEMs can offer their dealers to help drive their business growth goals. View the full report here .