Consumers have a huge variety of news sources at their disposal.  Online, we can analyze news websites in terms of their ability to attract different segments of new-vehicle buyers.  In this analysis, I’ve based the data to all segment buyers (not just those online) to give an accurate read on each site’s effectiveness for an entire segment.

The news sites with the highest reach among Compact CUV (e.g. Honda CR-V, Ford Escape) buyers are shown below.  Most index well below 100, indicating that these sites are actually less visited among segment buyers versus the Internet browser population as a whole.  In other words, four of these five sites are not efficient at reaching Compact CUV buyers.  Foxnews.com is an exception, with 6% total segment reach and a 109 index.

Moving onto the smaller Compact Multi-Purpose Vehicle (MPV) segment (e.g. Chevrolet HHR, Scion xB), we see many of the same top reaching sites – although both msnbc.msn.com (index of 93) and nytimes.com (index 117) index far higher.  Salon.com stands out with its combination of tremendous reach and index.

Moving onto the Large Conventional segment (e.g. Toyota Avalon) we see cnn.com rises to the top  by combining high reach and an above average index.

News properties can be rich sources of in-market new-vehicle shoppers and this kind of data can help advertisers determine which sites will be more effective for which segments.  Those that index high will be more efficient and should allow advertisers to better stretch limited dollars for maximum reach.

Interactive Marketing Leaders Discuss Their Challenges: The Buck Starts Here

Moderator
Gene Cameron, J.D. Power and Associates

Panelists
Michael Keranen, American Honda Motor Co.
Robin Pisz, Lexus
Charlie Taylor, Volkswagen Group of America
Eric Jillard, Mercedes-Benz, U.S.A.

• Robin: dealer advisory board has been a key to our digital success.  OEM comes to them with social media ideas to make real at the dealer level
• Robin: dealers should be more concerned with reputation management than social media
• Robin: integrating marketing and IT is crticial.  Infrastructure is lagging our vision for the future.
• Eric: interactive has a growing role, but we’re still not thinking digital first
• Eric: all marketing (traditional, digital) needs to be aligned.  OEM brand managers coordinate across all channels
• Michael: we as an industry don’t have a good standard to measure engagement
• Michael: get the basics right first and then experiment
• Charlie: we can’t devalue broadcast and offline.  It’s still important to build awareness.
• Charlie: need to make OEM data accessible to customers in a simple way
• What’s the next big thing?
  • Charlie: not social anymore.  Now it’s mobility and we all need to be getting ready
  • Robin: engagement
  • Michael: fragmentation, i.e. “battle for the living room.”  Consumer attention is split across so many mediums

Unleashing a Big Idea: Taking Pepsi’s digital marketing success to the automotive industry

Speaker
David Dreyer, Account Director, TBWA\CHIAT\DAY

• “Unlike you guys, I have one competitor and my product’s formula hasn’t changed in years. . . I get outspent 2.5- or 3-1 by my competitor.  I need to be more nimble.”
• Wanted to reach Boomers and Millenials
  • Brands need to be transparent and authentic in order to be credible
  • Doing Good is the new cultural currency.  We still need to make money, but our agents of change care of this
• Put $20M that would have gone to Superbowl ads into the Pepsi Refresh Project.  Pepsi was the most discussed brand during the Superbowl and they didn’t even advertise.
• This is a local marketing program.  One town in Ohio has won five awards by bonding together and pounding the vote.  Each submitter acts as the CMO of their own project
• 86% of millenials will buy from a company that does “good”
• 1% submitters / 9% voters / 90% general population.  Start with the first two groups, then move onto the last group
• Media strategy:   PAID / OWNED / CREATED / EARNED
  • Owned = cans, cups, vending machines, etc.
  • Ensure that PR / earned media is part of your plan

Key take aways

1. Connect it to the overall brand strategy, don’t make a it one-off
2. Don’t make it a side digital program, make it a digitally lead program – make sure every department has a stake in its success
3. Be flexible – work out a scenario plan, as you’ll never have all of the answers
4. Rethink media and ensure that PR/earned media is a major component of the plan
5. Give your local dealer network content that they can get behind

A few weeks ago I wrote about the growing use of social media in launching new vehicles and challenged that its benefits–mainly in cost and targeting–when measured against traditional vehicle launches could tip this burgeoning launch methodology into the predominant mechanism for launching a new vehicle.  With the recent launch of the 2011 Ford Explorer on Facebook one thing is certain –  we’ve had an excellent opportunity to take a look at how social launches have evolved into a rich and engaging experience for fans.  I’ve taken note of some of the most engaging and interesting moves Ford has made with this launch:

• Live chat with Chief Engineer, Jim Holland
• Mike Rowe (of Dirty Jobs fame) and Alan Mulally had a candid interview in Time Square that paints Mr. Mulally as one of the most accessible CEOs of recent times.  In fact, one woman posted the following on her attendance of the NY City debut:

“I was one of the five women that were introduced to Mr. Mulally by Mike Rowe at the unveiling of the new Explorer in NYC on Monday. This was my first experience meeting a CEO, and I have to comment on how down to earth and personable Alan (may I call you Alan? ) was. Even though only one of the five of us actually… owns a Ford vehicle, he graciously took time to share with us the details of the new Explorer, as well as giving his reasons as to why he declined to take the bailout money last year. And he made us feel that our opinions on both subjects were of importance to him.
Thank you, Alan, for spending time with us! It was an incredible day!”

• The nature of the Facebook reveals prompted people to check back in, mention it to their friends, and post pictures/stories about their Explorer’s durability and longevity.

201,398 miles on odometer
199,999 miles on odometer

In my opinion, Ford provided a downright neighborly experience throughout this launch.  They provided a space to engage consumers on a very personal level, but they did so with class.  What makes this social launch different from the ones we’ve seen in the past is the sheer volume of exposure.  Ford Motor Co. reported the following numbers to Automotive News (August 2, 2010) in response to the Facebook unveiling of the redesigned Explorer on Monday, July 26:

• “The 2011 Explorer site had more than 500,000 visits, compared with about 7,000 a day for the 2010 Explorer.
• The number of Facebook Explorer page fans grew to 54,000 from 30,000 two days before the launch.
• Users completed 48,600 price-and-build forms for the 2011 Explorer on the Ford Web Site, compared with about 700 on an average day for the 2010 Explorer.”

Ford has taken the traditional launch paradigm and turned it on its head.  Jim Farley Ford’s new approach in a speech at the 2010 Ad Age Digital Conference (excerpt runs 4:33).  Mr. Farley challenges the old vehicle launch marketing pattern where there is a huge inflection of targeting taking place at launch followed by a gradual petering out (as seen in Figure 1)

Instead, Mr. Farley favors emphasizing the importance of pre-launch programs (e.g. the Fiesta Movement) with new partners and content while maintaining engagement during post-launch.  It’s about engaging  the right people and focusing on the experience.

What is most interesting about this concept is that if you start serving the potential customer early and stick with them longer, consumer interest seems to steadily increase through and beyond post-launch activity.

I don’t think that Ford will be canceling traditional auto show launches anytime soon, but considering the palpable success of the 2011 Explorer Facebook Launch, I think we’ll see many more of these to come.

Social media has become more important than ever before.  You need not look far to see signs of this, from last year’s Fiesta Movement and the “Meet the Volkswagen’s” Facebook page to the 2010 Volkswagen GTI iPhone.  Automakers are in the game and here to stay.  But why social media?  Charlie Taylor, general manager of VWs digital marketing, was asked “Why Facebook?” in an interview for USA Today last year to which he responded, “More and more consumers are selling products for us … Social media and word of mouth is much less about brochure downloads and more about brand awareness.”

When VW launched its 2010 GTI solely on a free iPhone game, Tim Ellis, VP of marketing, said the following in an interview with ABC News, “… we tasked ourselves to rethink the way we launch vehicles in order to engage our consumers in a meaningful way … Launching the all-new 2010 GTI via the Real Racing GTI App allows us to connect with this savvy GTI consumer within his or her everyday life in a way that no 30-second spot ever could.”

Through social media, manufacturers are attempting to leverage “the law of the few.”  To quote Malcolm Gladwell’s Tipping Point “It’s not necessarily how many people you engage with, but the quality of engagement you have with a select few –Mavens, Connectors and Salesmen.”

Manufacturers’ budgets are constrained and their product teams are being forced to create more global products, putting pressure on distribution of marketing budgets across the fleet –begging for a new and more global solution.  What is more globally accessible than the Internet?  Could social media prove to become the predominant way to launch a new vehicle?  Certainly marketing costs could be greatly reduced using this approach, so then isn’t it more a question of reaching the right people at the right time?

The Ford Explorer used to be the king of SUVs.  At its peak, annual sales topped 440,000, but with the tire fiasco, higher oil prices, general market fragmentation, and recent recession, the Explorer has essentially become a niche vehicle.  In fact, only 50,000 were sold in 2009.

Rather than unveil the new Explorer in typical auto show fashion, Ford has decided to slowly reveal their latest All-New Explorer CUV on Facebook.  Interestingly enough, according to J.D. Power and Associates 2010 Prospects Current Behavior June release, 56% of new vehicle buyers can be found on Facebook in a given month.

Christopher Baccus, author of The Auto Marketing Blog has some interesting insight regarding Automotive Facebook Fan Page Strategies.  In the case of the Ford, they have decided to set up vehicle fan pages.  Ford has been gradually updating the Ford Explorer Fan Page with teaser photos instead of the typical gallery or even buff magazine shots.  Ford is also engaging fan questions on the page.  One fan asked whether a particular engine would be offered because he wanted to make sure it could tow easily.  The page manager had this to say, “Eric. More news to come soon on exact specifications on powertrains.  As you know, we are making sure that towing is assisted as much as possible for Explorer, not just in terms of absolute numbers but also how easy it is to tow and hitch up which is equally as important. Jay”

Between now and the Facebook unveiling, said to take place in July, Ford will show us bits and pieces, teasing its visitors and its 5,000+ Fans.  But as Mr. Baccus’s monthly report on Automotive Facebook Fans recently noted, there seems to be a shift away from the “become a fan” ad buys that were extremely popular last year.  It is uncertain however, whether Facebook has a new and more targeted method that is more difficult to measure or if manufacturers are moving toward accepting more organic fan growth.  If this is due to a shift to a more organic approach, the cost savings toward the campaign could be significant.  Also realize that the page will likely have many more visitors who don’t become fans, substantially increasing the reach of the Fan Page.

While Ford may have saved some money with this new approach, is it going to reach enough people and ultimately sell Explorers?  Certainly subsequent marketing will be TV and Print heavy, however in my opinion the formula seems to be set up for success:

• Facebook = 56% of New Vehicle Buyers
• Facebook and social media in general is made up of a great deal of Mavens and Connectors

Facebook certainly has two of the three pieces to create a tipping point.  Can Ford capture enough Mavens and Connectors through a Facebook unveiling to cancel future auto show unveilings?

Update: Chris Baccus recently wrote about the soft launch of Saab’s 9-5 via iTunes.

Editor’s note: the following post is based on material from our 2010 Annual Marketing and Media Review, which was held online on May 2010.  Please click here to download the full presentation.

Can social media research help marketers understand the true impact of a campaign?  Our Web Intelligence Division pondered that very question when looking at the impact of two recent marketing campaigns:

1. BMW’s “Joy” rebranding effort delivered primarily through traditional and grassroots media
2. Toyota’s “Sienna Family” brand perception effort delivered primarily through online media

These results are compiled via our Auto Intelligence MonitorSM, a revolutionary social media insights tool which, among other capabilities, displays key conversation drivers for a particular brand or model, combined with research analysis from our Consumer Insights team.

BMW’s “Joy” campaign, which launched February 2010, is a major departure from their well-known “Ultimate Driving Machine” message and seems designed to reach new audiences.

Initially, we hypothesized that there would be shifts in how people were talking about BMW.  We wondered if enthusiasts would question BMW’s marketing direction or if discussions about “performance” would decline.  However, we found only slight shifts in how people were talking about BMW before, during, and after the campaign launch.  During the month of launch, the brand experienced a small lift in marketing and communications discussion.  However, that lift was temporary, falling back to 3% of BMW-related conversations in the month following the launch.

What DID change was who was doing the talking.  Within two months after the campaign launch, we noticed conversations by women increase by 20 percent , which signaled a definite shift.  The campaign also seemed to pique the interest of a younger audience, finding the message, grassroots and charity efforts refreshing.

Some relevant quotes:

• This BMW Z8 was interesting to see, especially in red, which is apparently a rare color for it. I’m not the biggest fan of the design of this car but I rarely see them in person so I figured it was more interesting than the other cars in the showroom. –Gen Y Male
• I like BMW’s new ad campaign. Expressions of Joy. I did a take on the imagery used in the new commercials while doing some driving up in the Blue Ridge Mountains this past week. Enjoy! –Gen Y Female
  

If BMW’s goal was to target younger, female consumers, their strategy seems to be working.

Taking a different tack, the Toyota “Sienna Family” campaign (rolled out January 2010) has grown virally and garnered a lot of Internet buzz.  What’s interesting is that there was a lot of buzz on the campaign itself – people were talking about the marketing.  In this case, Toyota sees a product with an image problem—minivans aren’t that manly—and using social media, attempts to make a dent in that image.

The marketing discussion increased following the launch of multiple “Sienna Family” viral elements.  Overall, this online-only campaign drives conversation much more than BMW’s primarily traditional media launch.

The interesting thing here is that it turns out that these discussions are not only helping Toyota, but the Midsize Van segment in general.  Consumers are beginning to use the term “Swagger Wagon” as a way of “butching up”  their vehicle, and by extension their own image.

Campaign-related quotes:

• “I want a swagger wagon! Please feel free to buy, build or steal me one. Thx!” –Meghyn, Cincinnati, Mom, fiance, hiker, home-owner, foodie
• “So we’ve been looking at the Honda Odyssey and the Toyota Sienna. You GOTTA LOVE the “Swagger Wagon” commercials right now by Toyota! Yes, yes, I know they’ve been having problems, but don’t you think they’d be EXTRA careful about these new models coming out?” –Karen, 31, Kentucky
• “…we quickly scoured the internet (i.e., Amazon) for a magna doodle and procured not only a full sized one for the home, but a travel size one to keep in the swagger wagon.” –Father, Charlotte, NC

We don’t know if Toyota’s new marketing approach within the minivan segment will be the rising tide that raises all ships, but I can certainly tell you that many male consumers are talking about the minivan in a different way.  And that’s good not only for sales of the Sienna, but based on the above comment, good for Toyota’s brand image as well.

Recent data from Forester and eMarketer illustrates the shift in ad dollars from traditional to digital media. Forester predicts that interactive marketing expenditures will increase from $23B in 2008 to $55B in 2014, going from a 9% to 19% share of all marketing spending.

eMarketer corroborates the projected increase in spending across almost every category. Spending for social media, search, and mobile was most likely to increase, while display, market research, and web development were most likely to decrease.

It should not be surprising that advertising dollars continue to move to interactive at the expense of traditional media. After all, digital offers the promise of more efficient (although not necessarily less expensive) advertising whose effectiveness can be measured. And given current economic conditions, efficiency is especially critical.

As someone who has worked in the automotive research industry for several years and is currently studying graduate-level psychology, I have always held a strong curiosity as to what consumers are really thinking when they set out to shop for a new vehicle and what is really driving their shopping behavior. As the economy has taken a downward turn recently, shopping behavior has undoubtedly changed as well.

In the past year, we have seen drastic shifts in the automotive sector; last summer saw a shift in sales from larger SUVs to smaller, more fuel-efficient compact vehicles. As we approach the summer of 2009 though, a global recession has harshly impacted the automotive industry. Many manufacturers have been using new marketing tactics recently to entice consumers, offering to cover the monthly payments for those who lose their job. This still might not be enough to convince people to make such a hefty investment during a time of economic crisis. Dealers must continue to adapt their selling techniques to persuade consumers.

Perhaps someone is just tired or bored with their previous vehicle, and is looking to update their garage with something fresh and polished that makes them feel good about themselves. Price may or may not be a major factor, and it is most likely a younger demographic who isn’t as concerned about their savings. Dealers can take the “you won’t be happy without it” approach with these consumers. The trick is to appeal to the desire of people to be unique and point out the newest and most attractive vehicle features. While this may not be typical of most vehicle shoppers these days, there will still be people that are willing to pay a premium for the car of their dreams.

A second type of consumer could be someone whose vehicle has broken down time and time again, and they are looking for something dependable that they know will start every morning and doesn’t require endless money for continuous repairs. These consumers may want a comparable or even better vehicle, but with the recession deeply affecting expendable income are mainly concerned with getting the most value for the money spent and having a car that will last a long time. Dealers need to tout the reliability and quality of vehicles, rather than the “nice-to-have” features, all while offering the customer a decent price.

A third type of consumer could be someone looking to add a vehicle to their household out of necessity. These consumers may not be eager to purchase a new vehicle, so it’s important that dealers accentuate the price and the great deal the consumer is getting; that there isn’t a lower price for a comparable vehicle. It’s important to appeal to these extremely price-sensitive consumers because an additional car payment isn’t what people really want to have right now. They may come into the dealership hesitant, looking for only the best bargain. They don’t want to be shown anything other than the base model, with no special features or added extras. If a consumer like this starts feeling pressured to look outside their set price range, it could make them simply walk out of the dealership.

Of course, these are only a few examples of the plethora of consumers out in the automotive market. Dealers must continue to adapt to the ever-shifting consumer psyche. What was important to one person last year (e.g. vehicle image) may not be as important this year (e.g. price). It is important that dealers understand the individual needs of consumers, while taking a customized approach to the practice of selling vehicles in an unstable market.

The importance of the new Ford Fiesta – a global vehicle with high expectations in a struggling global economy – cannot be overstated. And when you read through the reams of product analysis that are already available on it there is no lack of evidence that it is a strong product. In fact, in a time where all automakers are unsure of the feasibility of meeting the extremely challenging new CAFE regulations, the Fiesta has potential to really bring down the average MPG of Ford’s fleet.

The challenge is then of course, to market this fantastic product to meet and hopefully beat expectations in an environment where nearly everyone seems to be stuffing their paychecks under their mattresses. What Ford and really every other manufacturer need is a ‘Tipping Point’ –a dramatic moment where the accumulation of small events becomes the drivers for radical change toward certain acceptance.

Ford has a new marketing program for the Fiesta and it’s called “Fiesta Movement. In this program 100 Millenials (those born from 1982-2001) will receive the keys to the new Fiesta prior to the actual vehicle launch – so long as they agree to rehash their experiences on social networking sites such as YouTube, Flickr and Facebook. Millenials are considered to be the next-gen consumer group, a group that by 2010 is estimated to be the largest class of consumers at nearly 70 million drivers. The intent of this “Movement” is to create a catalyst for that coveted radical change to acceptance, to cause a “Tipping Point” in the purchasing decisions of the American consumer. This is a refreshing approach, especially coming from one of the domestics; though I am not totally surprised. Jim Farley, Group VP of Marketing and Communications, is a well seasoned veteran when it comes to creating vibrant consumer excitement and acceptance. As Scion corporate manager and later VP of Scion, Mr. Farley took a new brand and drove radical change. He broke down demographic barriers, delivering on a promise of a younger buyer mix many thought Toyota had no chance at attracting.

I personally cannot wait to see what happens with this program, my guess is that Mr. Farley’s “movement” might become a template for leveraging social media. If successful in the least, you can bet on a windfall of copy cat programs to follow!

The L.A. Auto Show is now the next victim of the collective cost cutting chainsaw by the Detroit 3. GM has scrapped its news conference, its vehicle debuts and kept its product Czar Bob Lutz at home. Chrysler has canceled all vehicle debuts and left the onus on their already struggling dealers to foot the bill for their product stands and floorspace.

I understand that the executives from these once great companies need to plea for a bail out but in my opinion, the psychological operations (read: creating product excitement and building customer loyalty) needed to stay in business cannot be simply left to rust on the side of the road. Doing so would undermine the very “propping up” they are seeking from the Feds at this very moment. Think about it: GM finally gets exciting product line ups throughout its divisions, Ford finally gets back to the basics of what once made Ford-Lincoln-Mercury great, and Chrysler’s Jeep brand seems reinvigorated in a time when consumers have been shying away from SUVs.

To paraphrase President-elect Obama, they are using a hatchet on their marketing budget when they need a scalpel. Why not look at this as an opportunity to change the game? Take this archaic, financially taxing road show and revolutionize it by going virtual and building rock star followings.

In an age where the vast majority of new vehicle buyers can be found online, the entire life of vehicles could and perhaps should be broadcast in a virtual manner. After all, there are numerous highly trafficked sites built upon the “spy photo” concept – why not package and deliver the propaganda personally? Microsites are a nice start, but it can be taken much further. The shift of advertising dollars to the Internet will hopefully help fund this kind of investment.

What if the domestics traveled their concepts and next-gen first looks to the dealerships? Isn’t the idea to increase dealership foot traffic in the first place? By starting at the dealerships you have more attention, more time to repair and even enhance the consumer-dealer relationship – a something that in many cases is in need for repair. The dealerships that are currently a place of anxiety for consumers and dealers alike could be transformed into communities of retention. And your reach would expand to reach consumers living outside Detroit, Los Angeles, and New York.

The game is changing, so why not the rules, practices and habits? It’s time to innovate and step out of our habitual routines. The manufacturers that were once the pride of every American can still be just that, but it needs to happen from the inside out. If you do that, those other manufacturers at the auto show might soon be wondering “where did we go wrong?”

J.D. Power and Associates has named Acura and Mazda as the 2008 Automotive Online Marketers of the Year. The awards were presented to the respective organizations last week after being announced on October 8 at the J.D. Power Automotive Internet Marketing Roundtable in Las Vegas.

The Online Marketer of the Year award is based on competitive performance metrics drawn from J.D. Power and Associates studies on automotive Internet marketing, including the New Autoshopper.com and Manufacturer Web Site Evaluation studies.

The New Autoshopper.com Study is based on the self-reported shopping habits of 27,901 new-vehicle buyers, and offers insightful and extensive analysis of automotive buyer trends and online consumer behavior. The Manufacturer Web Site Evaluation Study measures shopper satisfaction with the usability of automotive manufacturer Web sites. It is based on a comprehensive survey of more than 11,000 new-vehicle shoppers who indicated they would be in the market for a new vehicle within the next 24 months.

Recipients of the Online Marketer of the Year award were selected based on their demonstrated effectiveness at bringing visitors to the brand’s Web site; converting those site visitors into dealership visitors; achieving superior market share (relative to total) among automotive shoppers who use the Internet in their shopping process; and consumer evaluations on the usefulness of the brand’s Web site while shopping.

“Although Acura and Mazda have each achieved this recognition for the first time, they have long had strong online presences,” said Gene Cameron, vice president of marketing and media solutions at J.D. Power and Associates. “These awards affirm their accomplishments in online marketing and meeting the needs of new-vehicle shoppers. In particular, Mazda has demonstrated strength in designing its Web site to effectively reach a technologically savvy target market demographic, while Acura has demonstrated skill at bringing appropriate traffic to its site—ultimately resulting in a large proportion of those site visitors actually purchasing Acura vehicles.