Last week, we had the privilege of attending the Facebook Automotive Summit in Austin, Texas. The theme of this conference was “Move People”.
The conference opened with a welcome by Bob Lanham and Trace Przybylowicz. Bob and Trace explained that people in this day and age care about values; there is no time for waste. People want on-demand and they want algorithms that update just as frequently to keep up with their needs.
One thing we can do as marketers is to start talking about your brand vision for the future TODAY.
Interestingly enough, 75% of people surveyed said they would pay more for personalization. This relates to the automotive vertical because no two purchase journeys are the same.
Even though these journeys are not the same, they all generally include at least two Facebook visits along the way.
Conversely, even though these consumers are pushing for personalization, some are not understanding the data it takes to get to that personalization they want. This is where the uproar about personal data sharing happens.
They shared that the average consumer spends 13 hours of research when car buying. The most important thing you can do is to be there when they research. The average person scrolls the newsfeed 300 ft/day and catchy video can stop that scroll.
Being there goes beyond Facebook and includes all digital facets such as paid search, citations, and search engine optimization. The average consumer compared to ten years ago is much more knowledgeable prior to coming into the dealership. Car dealers must change their approach to cater to this new generation of consumers. Dealers have to be knowledgeable, competitively priced, and honest to close the sale. Most consumers think a dealer makes around $5,000 per vehicle sold and will be surprised to learn the dealer actually only makes around $1,200.
The fourth session of the Facebook Automotive Summit was presented by Tom Libby from IHS Markit. This was the most meaningful session in my opinion because it shared so much current automotive market data that we can improve our marketing efforts with.
Overall, the automotive industry is currently in a really good place. Confidence for brands is up, credit availability and net worth are also up, and employment is at a record low. Ford currently holds the record for customer loyalty – at 63%. It’s no surprise why the Ford F-150 was the nation’s best-seller in 2017.
Other Automotive Takeaways
- 4/10 Registered Vehicles is an SUV – 42% overall
- RAV4 the only non-pickup to sell over 400K units annually
- CUV segment is huge – only segment where 50% of people come back to get another
- 50% of all EVs are registered in California – not a huge overall market
- The take rate of the vanity offers “$199 Corolla” is less than 1% because most people cannot afford the down payment required.
Facebook Automotive Advertising Challenges
In regards to Facebook automotive advertising, the struggles are the same for most dealer groups and agencies. Struggles include getting dynamic feeds from third-party companies to run dynamic ads. Facebook can do a better job working with more of these larger inventory feed hosts to reduce the friction of advertising from a Tier III dealer level.
Another challenge includes disclaimers and compliance – we are in a constant balance of catchy creative vs. what the manufacturer is requiring you to have. Facebook is exploring solutions, like disclaimer “drawers” that pop open to read the full terms and conditions.
Click Here Publishing Recognized for Facebook Creative
After lunch, Glenn Davis from the Los Angeles Facebook office presented successful creative strategies related to automotive. One of our new sales ads done for INFINITI of South Bay was in there! There were only ten creative examples, and we were excited to have recognition as an industry leader on social media.
We are already looking forward to next year’s Facebook Automotive Summit and we can’t wait for the new technology Facebook will bring in the coming months that will help make more successful social advertising products and campaigns.