9 Key Strategies to Win Luxury Auto Buyers in North America
We recently conducted a research on luxury auto buyers in the US and came up with interesting insights. Our research indicates that there has been a positive increase in the purchase of large cars and luxury autos owing to drop in oil prices in the past year.
With the US economy recovering well, there has been an overall increase in purchase of CUVs and SUVs, and a drop in purchase of Hybrid or fuel efficient cars.
While a majority of the shoppers start the process of decision making about 2-3 months before making a purchase, surprisingly, approximately 14% car buyers actually report spending less than a week. Additionally, consumers usually prefer to buy these cars at the end of the year generally due to bonuses, better deals etc.
Therefore, the consumer purchase cycle and macroeconomic trends in the US indicate that the first and last months of the year is the optimum period to make use of marketing spends to gain traction. Marketers therefore, need to successfully identify, understand and effectively connect with buyers’ needs and desires, and develop marketing strategies that connect the right consumers with the right automotive brands.
Media iQ’s programmatic brand team suggests nine key strategies that automotive marketers need to consider-
Strategy 1: Run Event Sync as part of your Brand Campaign
With consumers spending a lot of time on researching and evaluating the kind of vehicle they would want to purchase, marketers need to understand what drives car-buyers, and create messaging that will capitalize on their intent to buy and push them closer to the decision making process.
With Media iQ’s Event Sync solution, we make sure relevant display ads are triggered in real time to the right audience at the right moment. So how do we do this?
We used our real-time feed of TV data to sync with the aired adverts. We then combine this with user-level targeting in order to reduce wastage and target current TV viewers, thereby reaching the audience in the right moment. At events we layer this data with our geo-fencing technology which allows us to target relevant consumers within the radius of activity. This increases engagement and drives performance for our advertisers and their campaigns.
Syncing with auto shows is one way of achieving this objective. Running a brand awareness campaign starting a week prior to and during the auto shows can go a long way in creating greater awareness and also lead to good performance.
Another way to do this is through syncing with product launches. According to Media iQ’s data, running a brand perception campaign two weeks before and after a product launch, cements brand perception and positively impacts brand awareness.
Strategy 2: TV Sync solution as part of Brand Campaign
Our campaign data between 2014 and 2015 has shown a positive co-relation between TV ads and digital search interest. And with TV activity seeing an increase in activity over weekends, with 9 pm till 12pm being the peak time for ads, running TV sync campaigns during these time would influence purchase behaviour.
Our TV Sync solution allows advertisers to support or disrupt TV advertising via simultaneous delivery of digital ads. This is done via our proprietary analytical engine-AiQ that ingests real-time feed of TV data and layers this with user-level ‘micro’ data in order to deliver a synced ad to TV viewers.
Strategy 3: Run Social Sync as part of Brand Campaign
There is a lot of discussion and opinion sharing on social media channels these days. These tweets and posts then become a repository of data that marketers can use to unlock insights to get the right message to the right audience.
So we suggest running social media campaigns as well social synced digital campaigns, especially around Auto Shows to gain maximum brand penetration. At Media iQ, we look at social data with the help of data providers like GNIP (owned by Twitter). With this we can look at volume around certain keywords and/or hashtags, as well as sentiment around these keywords/hashtags. In addition, the data feed includes geo data and klout of the user, weighting their influence higher than that of users with a lower klout score.
With social sync, advertisers can deliver impactful messages during significant ‘Social Moments’; gain cut-through during moments of influence, and even align their brands to social trends in real-time.
Strategy 4: Look at Niche Contextual Strategy- Performance Campaign
Our analysts have seen that online resources are the lead sources of information during the research phase in the decision-making journey. Auto shoppers use an average of 18.2 different sources of information in the decisioning process, many of which are online sources.
Therefore, we recommend targeting these kind of sites that are niche in nature to get your brand noticed.
Strategy 5: Use Broad Contextual Strategy- Performance Campaign
Consumers interested in cars, generally have similar interests in sports, travel and technology. We therefore recommend targeting sites with tech, sports and travel related content in addition to auto content, due to the sheer overlap of interests, thereby providing greater conversions.
Strategy 6: Capturing Search Intent – AiQ Solution
While searching for luxury cars online, users generally search in varied ways. While some may search using generic keywords like best sedan, sports cars etc., some may use specific keywords like BMW or convertibles, showing interest in that particular brand.
We have seen that 71% of users search for information using specific searches. We therefore, recommend targeting audiences with specific brand interests. Marketers could even target audiences interested in competitor brands.
So how do we capture purchase intent? Media iQ’s-AiQ parses urls to identify keywords within them; AiQ also ingests keywords found in the content of millions of pages to identify keywords, building up a repository of 8 billion keywords. These keywords are then analysed for their density, intent, semantics and category and then used for targeting accordingly. Our ‘Keyword Targeting’ strategy usually provides 10 times better results than a broad reach strategy and can be tailored for scale vs efficiency.
Strategy 7: Targeting branded forums: PMP deals & Programmatic buys
Marketers need to enable car buyers to narrow their consideration set and move further through the purchase funnel. One way to gain traction is through brand forums and triggering ads on private marketplaces. Brand forums and car forums have consistently proven to be the best domains for driving performance.
Therefore by targeting these private market places and displaying ads here, provides greater ROI.
Strategy 8: Reaching the right audience – User profiling and targeting
It is very important to understand the demographics, purchase intent and interests of luxury car buyers so that the right message reaches the right audience. If you know that consumers are driven by status, have a certain income level, then sales efforts centred on the luxury car market should be a priority focus. Similarly, with business travelers, vacation seeking consumers, a keen focus on their desires will ensure that your strategies are proactive and aligned with their needs.
Strategy 9: Having a Retargeting Strategy in place
It’s important to recognise that retargeting is about targeting users that are further down the purchase path – such as those who have already visited your landing page, or shopping basket. So don’t just retarget every user that has visited your website. A detailed data analysis is required for different users sessions. And it is necessary to differentiate and understand what sessions the user is on. So you would need to retarget a user to one page differently to how you would retarget another who visited a separate section of your website.
Our research indicates that users move between generic pages of the site fairly frequently within the day. The most optimum strategy for these users would be to triggers ads with a higher frequency and lower recency.
Even enabling dynamic creative messaging that shows the location of the dealer closest to the user’s postcode could make the message more personalized and hence result in greater conversions.
Impact on Auto Sales During Dallas Auto Show
To download the full Luxury Auto report, click on Luxury_Auto_US.