Today’s younger car shoppers millennials and Gen Z) don’t start their search on the showroom floor with a dealer salesperson. In fact, it’s estimated that 90% of today’s auto-buying consumers begin their journey on smartphones, tablets and computers, according to research from 9Clouds.
Most dealers align their media strategy to where shoppers consume media. This is nothing new. A high percentage of dealers even describe their strategy as “digital first.” However, it’s not uncommon to encounter stores that still spend an estimated 50-70% of their budget in traditional media, including traditional radio.
Reach today’s younger car shoppers
Due to its massive reach, streaming audio has become an increasingly popular advertising channel. Spotify, one of today’s most popular streaming audio services, has 422 million users, including 240 million users on the ad-enabled free subscription plan. This level of reach is a significant reason why dealers should be considering digital audio ads. Spotify, in particular, is on a continuous and aggressive growth path, with plans to reach one billion listeners by 20303.
The growth in streaming audio is, well, nearly unheard of. This is the perfect opportunity for dealers to have their messages heard and to further refine their digital advertising strategy to today’s audience for sales and service footprint growth.
Many of today’s younger car shoppers are listening to streaming audio an average of 2.5 hours per day across those same devices where the auto-buying journey begins. More importantly, digital audio today reaches more listeners than traditional broadcast radio; its unique format brings additional reach to other media channels like TV, video streaming, and social media. The captive nature of streaming audio is estimated to drive a 41% lift in auto ad recall.
What is streaming audio?
For those unfamiliar with the medium, think of it as radio on-demand or a prerecorded audio program or show. It’s hosted on the web and available for download on personal computers or mobile devices to be listened to on demand — similar to how a person watches a show on Netflix. This platform has grown significantly and today is considered one of the most popular ways to listen to music and podcasts.
The change in media mix will continue
The purchase power of millennials and Gen Z is guaranteed to expand greatly over the next 20 years. It’s essential to not get caught up in muscle memory when advertising to these different age groups. Subconsciously, we perceive them to be static – doing things the way we always have. For many dealers, they look to a digital strategy to satisfy the Millennial demand. Yet, muscle memory reverts them to advertising the way they always have to reach the other generations they’re most familiar selling to. For some dealers, streaming audio offers a bridge between the old and the new.
Why should auto dealers take notice?
According to the stats mentioned above, streaming audio is growing in popularity. Refocusing your digital advertising strategy to include streaming audio can be a great new way to reach potential car shoppers, even those in the consideration stage. In fact, listeners who hear auto ads on Spotify are 52% more likely to purchase the new vehicle being promoted.
Streaming audio allows dealers to communicate to an extremely captive audience. With lifestyles on-the-go, the power to have audio programming on demand allows dealers to deliver their advertising message anywhere and at any time, elevating visibility, and further establishing mindshare in a highly competitive space.
Many dealers looking to continue their migration to digital have found an easy transition to streaming audio. Those that are already committed to digital can take advantage of reach and frequency. Streaming audio can address misaligned advertising strategy allocations and align shopping experiences to customer expectations — especially considering its competitive pricing for the reach it provides. Streaming audio greatly reduces wasted spending, while reaching customers where they spend their time.
Is your dealership advertising across today’s popular streaming audio services? If not, it’s time to strongly consider this opportunity.
Jeff Allen has worked in the automotive industry for more than 20 years and has been at the forefront of transforming shopper data into information across all three automotive tiers. Before coming to PureCars, Allen was the director of analytics at 22Squared, working directly with Southeast Toyota and large retail brands to improve their bottom line. Today he serves as vice president of digital media for PureCars, working internally as well as externally with clients to remove blind spots to realize performance. For more information, visit www.purecars.com.
In two new commercials that are part of its "We Drive It Like It Is" campaign, Edmunds spoofs some of the "tropes" you might find in a car commercial (i.e. rugged dude hauling lumber in a pickup, couple off-roading in an SUV to a campsite) as a means to underscore some of the services it offers.
For instance, helping consumers find a car that meets their lifestyle, or appraise their current ride.
“The need for trusted consumer automotive guidance has never been greater as car shoppers struggle to navigate major market challenges such as record high prices, rising interest rates and limited inventory,” said Alison Steinlauf Anziska, Edmunds’ vice president of marketing, in a news release. “As a legacy brand bent on a mission to empower car shoppers, our tools have only grown more relevant in today's market. Edmunds’ opportunity is to reach wide-ranging consumer audiences across strategic channels to inform them of all the resources we have to offer.”
And if the ads have a “Saturday Night Live” feel to them, they were directed by Hannah Levy, whose background includes directing shorts for SNL.
“I was thrilled at a second opportunity to collaborate with Edmunds on this campaign,” said Levy. “Car commercial tropes are begging to be parodied. I sought to capture the exaggerated nuances of the genre and turn them on their head.”
Anziska, the Edmunds marketing VP, added: “Consumers have come to expect the sexy, glossy or even rugged portrayals of products in car commercials.Using the element of surprise, Edmunds is disrupting these expected tropes to lightheartedly remind viewers that we’re also here to help them through the less glamorous process of buying or selling a car. We were thrilled to work collaboratively with Hannah and have her in the director’s chair to help guide and communicate our brand message in a relatable, humorous and memorable way.”
For more, check out the below episode of the Auto Remarketing Podcast with Anziska, who discusses these new spots and shares how the company is utilizing newer media like connected TV to get its message across.
Chicago-based Xcite Automotive is collaborating with General Motors on multiple fronts.
The digital automotive vehicle photography provider announced on Thursday that it has been named a photography provider for CarBravo, GM’s new used-car online shopping platform.
Xcite Automotive also said it been added to GM’s Dealer Digital Solution (DDS) program.
The company highlighted Xcite Automotive’s extensive vehicle merchandising services and software solutions are now “GM in Market Retail (iMR)” turnkey approved.
As a turnkey-approved vendor, Xcite Automotive said it meets all of GM’s corporate brand requirements and is able to offer GM dealers the ability to pay for vehicle merchandising products and services using iMR funds.
All products are also match-fund eligible, according to Xcite Automotive, which include:
—Xcite Photo capture service
—Xcite 360 capture service
—Frontline inventory platform
—Window stickers
—Xcode vehicle texting
“Xcite’s vehicle merchandising products and services are designed to drive efficiency, ultimately helping dealers get vehicles frontline ready in the most efficient and high-quality manner,” Xcite Automotive chief executive officer Phil Penton said in the news release.
“GM dealers will also benefit from Xcite’s corporate scale, data insights, QA, and local management teams who support our field team,” Penton continued.
Xcite Automotive employs a team of more than 500 trained photographers, named Frontliners. The team is deployed across the United States, working on dealer lots to capture the images, videos and 360 spins in their ever-changing vehicle inventory.
Xcite also consults with dealers on merchandising best practices and provides software solutions to help with inventory management.
Further, Xcite assists dealers with the display of OEM vehicle build data through the use of option values that syndicate to their website, third-party marketplaces and display on window stickers.
Xcite Automotive has also developed unique window printing services that integrate QR codes and text messaging at scale. Xcite’s field team is also trained and highly experienced with using GM’s preferred 360 technology provider.
An eight-year journey with the company so far has led Tony Compton to becoming chief technology officer of PureCars, a leading provider of digital marketing technology and services for automotive dealers.
The company highlighted in a news release announcing the promotion that Compton has consistently progressed with PureCars, beginning with his start in 2014 as a software developer.
The company said on Tuesday that Compton will now lead the planning for all digital and technology operations. He will focus on harnessing transformative technologies to unlock growth and enable continued efficiency for PureCars and their valued customers and partners.
“Tony has been an integral member of the PureCars team for close to a decade and we’re very excited to reward his hard work, commitment, and dedication by appointing him our new chief technology officer,” PureCars chief executive officer Stephane Ferri said in the news release.
“Tony brings both a proven track record of technical accomplishment and extensive management experience to his new role. I’m confident In Tony’s abilities to lead PureCars’ technology teams as we scale our business and advance our solutions,” Ferri continued.
Compton has 12 years of experience envisioning and architecting advanced digital products. He has been a leader and key contributor in all phases of product development — requirements definition, product definition, system design, implementation and continuing engineering.
His expertise includes software design and development, systems engineering, project management and program management.
Prior to joining PureCars, Compton began his career in 2010 as a software developer with eVision Services before moving to HP Exstream in 2012 in a similar role.
Here’s an example of what happens after an acquisition takes place.
Green Line Automotive announced it has been selected by Driven Data as a preferred partner to take over its paid media partnerships as that firm focuses on first-party data audiences and analytics.
Driven Data was acquired by Polly in June and will be continuing to serve the automotive industry, providing first-party data audience and analytics solutions.
“As they evolve and scale, they have decided to end their direct-to-dealer marketing solutions such as paid search, social, and OTT,” the companies said in a news release.
Driven Data (now Polly) has partnered with Green Line Automotive to continue to provide its dealership clients with digital marketing solutions.
“We have carefully chosen Green Line to carry our torch in the industry because they believe entirely in the power of leveraging your data to bolster lifetime customer value and acquire more new customers for as little expense as possible,” said Ashley Kolb, senior director of product and technology operations at Polly.
Green Line Automotive’s mission is to deliver tier one automotive advertising expertise, technology, and service to tier three dealers.
The company’s focuses on giving every dealer the best in technology with a fully customizable approach, which can give stores an advantage over their competition.
Green Line’s digital strategy is focused on having paid search and paid social campaigns convert into highly qualified walk-ins, calls and leads for dealerships.
This week, S&P Global Mobility launched its certified Polk data partner program, recognizing preferred marketing partners that successfully leverage Polk Automotive Solutions products across a high volume of advertising campaigns for large auto dealer groups.
According to a news release, the first three data marketers to be named into the partner program include CF Search Marketing, Drive Auto and Octane Marketing.
S&P Global Mobility highlighted these three agencies have demonstrated great proficiency in activating data-driven audience strategies leveraging the Polk Automotive Solutions product suite.
The combination of their experience with exclusive training, only available to partners, deepens this connection, resulting in a more robust partnership with S&P Global Mobility.
Executives added the partnership program further allows first access to new audience segments, product updates and marketing channels, which will enable implementation into client campaigns more confidently and more quickly.
“S&P Global Mobility is excited to announce the certified Polk data partner program and thrilled to have CF Search Marketing, Drive Auto and Octane Marketing join as our first certified partners,” said Scott Hedges, head of automotive retail for Polk Automotive Solutions by S&P Global Mobility.
“Our goal with this program is to help our partners improve campaign performance and increase sales for their clients as a result,” Hedges went on to say.
A new study from Rapid Recon-certified partner iPacket identified the three most convincing documents utilize when used-vehicle buyers are evaluating their purchase decision.
The study results released on Tuesday pointed to authentic OEM MSRP data, new-vehicle brochures and reconditioning receipts
For the study, Rapid Recon and iPacket explained that click activity and time spent were measured on various modules or documents provided in participating dealers’ digital vehicle presentations on their websites.
Combined, according to a news release, authentic OEM MSRP data, the reconditioning receipts and the new-vehicle brochure accounted for 36.6% of all click activity (99,190 clicks) and 42.3% of total session duration minutes (448,398 minutes).
Rapid Recon founder and chief executive officer Dennis McGinn said the study’s results underscore the value provided in the sales process by reconditioning and proper vehicle documentation in the sales process, which may be surprising news to dealers.
“Buyers are looking for longer useful life from the used vehicles they buy. Information from vehicle reconditioning reports helps provide the information car shoppers crave,” said McGinn, who runs the dealership reconditioning and communications software company.
“Their interest and trust in how a dealership reconditions its used cars should command every dealer’s attention. Displaying proof of this recon-to-retail investment is a value-focused differentiator and proven by the data in this study,” he continued.
Seve Astorg, who is iPacket's founder and chief executive officer, said the study’s goal was to determine what content drives shopper engagement as they research used vehicles and what materials they look at that hold their attention most.
“The recon report lists the mechanical and cosmetic details the dealer invested in to make the used car safe, dependable, and appealing,” McGinn said. “This investment builds trust in the dealership and for the dealer value in the vehicle to hold margin.”
iPacket’s three-month study involved 500 iPacket dealers and 80,000-plus unique vehicle shoppers.
“The results concluded that shoppers recorded approximately half of their click activities and session duration on research data not traditionally found on dealer websites,” Astorg said.
Traditional dealer websites provide consumers photos of vehicles, a vehicle history report, and bullet data points specific to a vehicle, such as the model year, make, and miles.
iPacket solutions can improve dealers’ websites and one-to-one client communication. They do so by providing enhanced research material, such as the original OEM MSRP/build sheets, reconditioning receipts, new car brochures, warranty information, and more for every vehicle they offer for sale.
“Consumers want all the data, and when the data is not at their fingertips, they take it upon themselves to find the information via search engines,” the companies said. “By providing OEM verified data directly from the dealer’s website, consumers can review photos against the build sheets to understand the vehicle more specifically.
“When information also includes reconditioning receipts, consumers will have even greater confidence in knowing what was done to the vehicle they’re shopping for to prepare it correctly for sale,” the companies added.
Other documentation measured for this study included vehicle history reports, warranty information, images, vehicle videos, and dealer “about us” information.
Astorg said the study data suggests that dealers who use the iPacket-enhanced research material record 46.9% more consumer-click activity and shopper session duration than dealers who do not display enhanced research content.
“The data is astonishing, considering the time spent on the average iPacket display is more than 35 minutes by the consumer, further elaborating that they want the data and to be informed,” Astorg said.
Mergers and acquisitions are happening in automotive adjacent industries, too.
On Monday, carsales.com, one of the largest online marketplaces in Australia focusing on the automotive, motorcycle, and marine spaces, announced the intention to purchase the remaining 51% of Trader Interactive from the current investors, Eurazeo and Goldman Sachs Asset Management to bring its holding up to 100%.
The move to acquire Trader Interactive first started last year, when carsales purchased 49% of Trader Interactive in August.
The deal is expected to close during the third quarter, according to a news release.
Through its brands such as Cycle Trader, RV Trader, Commercial Truck Trader and Equipment Trader, Trader Interactive connects more than 13 million consumers monthly to more than 9,500 dealers, while providing customers with innovative solutions to improve their profitability and drive a more seamless experience with their buyers.
Executives explained the acquisition of Trader Interactive by carsales furthers Trader Interactive’s goal of transforming lifestyles and livelihoods through innovative digital solutions that seamlessly connect people to vehicles for work and play, and to pioneer digital solutions that empower our customers to reach consumers searching for their next vehicle or service by utilizing the international experiences of the carsales brand portfolio.
“I’ve worked with the carsales leadership team over the last 12 months and I have been extremely impressed. We can see how compatible we are from a culture and strategy perspective” Trader Interactive chief executive officer Lori Stacy said.
“The backing of carsales, along with their domain expertise from their worldwide marketplace portfolio, will enable us to accelerate innovation across all of our verticals, while refining and improving both the buying and selling experiences for our consumers and dealers alike,” Stacy continued.
“I wish to thank our sponsors, Eurazeo and Goldman Sachs Asset Management, for their support over the past few years,” Stacy went on to say. “They have been tremendous partners leveraging their consumer focus and technology experience which supported our most recent phase of growth. They have been great supporters of our strategy and we appreciate the value they have brought through their experience and aligned vision. It has been a pleasure to work with them.”
Cameron McIntyre is managing director and chief executive officer of carsales.
“The first year of ownership has been very successful and we have strong conviction in the quality of the Trader Interactive business, the management team and its growth opportunities,” McIntyre said.
“Culturally, there is strong alignment between the carsales and Trader Interactive teams and we are excited to be working more closely together to execute on our strategic objectives.” McIntyre continued.
“We are delighted to have partnered with Trader over the past five years and would like to especially thank the Trader management team, as well as our partners at Eurazeo, for their strong partnership and support for the company,” said Harsh Nanda, managing director and head of technology within private equity, and Joon Park, who is managing director in private equity within Goldman Sachs Asset Management.
“Since we invested in Trader, the company has achieved rapid innovation and growth, further strengthening its leadership position in each of the marketplace verticals it serves. We believe carsales will continue to be a strongly synergistic partner for Trader and we wish them continued success in their next phase of growth,” Nanda and Park went on to say.
Vivianne Akriche is managing director and Henri Domange is director at Eurazeo.
“We want to thank Lori and the team for their strong leadership and incredible partnership over the last five years,” Akriche and Domange said. “We have enjoyed the opportunity to support Trader Interactive, alongside our partners at Goldman Sachs Asset Management, as they have grown share and advanced the value they provide to their customers.
“We look forward to continuing to watch Trader Interactive and carsales successfully grow their businesses together globally,” they added.
Dealer Image Pro recently announced results from an industry survey it commissioned to better understand how dealers are using vehicle photography and video to best merchandise cars and trucks in today’s digital retailing landscape.
Dealer Image Pro presented an online survey to more than 3,000 automotive dealer professionals during June.
According to a news release, only 12% said they use a software or application to take and upload their own vehicle photos, with another 30% saying they have to train someone new to take photos every week.
The company discovered nearly 20% also said it takes them a day or two to get their photos and videos loaded onto their website.
Furthermore, 53% of those dealers surveyed use a photo vendor service showing that this older form of merchandising can be convenient, but certainly not optimal.
Dealer Image Pro went on to mention almost 26% of respondents said they currently spend $30,000 to 40,000 per month in digital advertising while another 24% say they spend more than $40,000 per month in ad spend while a whopping 75% say they bring their cars to market with photos only three days per week or less.
“These figures ultimately show automotive dealerships missing crucial time to bring their vehicles to market each week, as the advertising dollars spent on vehicle listings are a direct reflection of the time lost. This lost time posting new inventory is costing dealers thousands in additional revenue each month,” Dealer Image Pro said in a news release.
The average dealership spent more than $312,000 on online advertising in 2021, according to Statista.
“Automotive professionals are not maximizing the time they spend on bringing the vehicle to market versus the amount of advertising dollars spent,” Dealer Image Pro said.
The firm added that 31% of automotive dealer professionals surveyed said they see their vehicle detail pages (VDPs) up significantly this year, with 33%seeing their gross profit margin increase 10% to 15% above sticker price.
“We still see dealerships using a physical camera when taking vehicle photos and videos, which shows just how obsolete the process is for some in today’s digital world,” Dealer Image Pro founder and chief executive officer Peter Duffy said in the news release. “We used to be the photo vendor using cameras. We loved this experience. It’s how we cut our teeth in this industry.
“The data is clear though, the path of least resistance is taking your content in-house with software on a mobile device,” Duffy continued. “Cars should be brought to market the day they’re out of recon. Full stop. This trend was evident 2-3 years ago, but after the last two years it’s crystal clear. The trick now for dealers is to find the right photo software to streamline their big lot operations.
“A software or company that gets their photos edited photos and videos published daily. a company that keeps your photographers trained, and QCs the content. Basically, getting an end-to-end solution that helps all automotive dealerships list and sell their vehicles faster,” he went on to say.
Duffy recently appeared on the Auto Remarketing Podcast to discuss vehicle photos and more best practices. The episode can be found below.
Dealer Inspire (DI) recently finalized a new OEM partnership with Subaru of America.
The Cars.com company that provides advanced technology and digital advertising solutions to the automotive industry has been named a certified website provider in the Subaru Certified Retailer Program.
According to a news release, DI will have the opportunity to partner with Subaru’s more than 570 U.S.-based retailers to help them increase sales and efficiency through a connected website platform.
The company currently partners with retailers within the Subaru Certified Chat Program and can leverage existing relationships to build website market share.
DI customers gain additional benefits as part of the Cars.com Inc. family of brands, which includes Cars.com, Dealer Inspire, DealerRater, FUEL, CreditIQ and Accu-Trade. The company leverages integrated technologies across its brands to drive Cars.com’s 26 million monthly in-market car shoppers directly to dealers’ digital and physical storefronts.
As part of the Certified Digital Program, Subaru retailers who partner with Dealer Inspire gain access to:
—Advanced Website Platform: An eight-time AWA Pinnacle Platform Winner, DI’s website platform is flexible, fast, and built to convert. It can adapt to each individual shopper with personalization and geofencing technology, and features Lightning Inventory to instantly guide them to the right vehicle for their needs. Seamlessly integrated with the rest of DI’s products, the website platform is the customizable core of any dealer’s business.
—Digital Advertising, SEO and Creative Services: DI also offers a full suite of connected digital marketing services to drive new customers to the platform, including search engine marketing, SEO, email marketing, social advertising and creative services. By deploying the company’s fully connected strategy, dealers can guide customers through each touchpoint in the car shopping journey. While Digital Advertising is not Certified it is available to Subaru retailers as a turnkey service.
—End-To-End Retailing: Online Shopper is the digital retailing solution that allows shoppers to customize and compare payments across multiple vehicles to make real buying decisions with dealers’ inventory. From there, shoppers can complete the entire transaction online, from getting credit approved, to adding F&I products and aftermarket accessories, to scheduling pick-up or delivery and signing online.
—24/7 Customer Messaging: Conversations is the advanced messaging and “chat” solution built to connect today’s car shoppers with stores — wherever, whenever, and however they want to shop. Featuring live video and SMS texting capabilities to keep shoppers connected offline, Conversations™ is deeply integrated with the retailer’s website in unprecedented ways, replacing static lead forms by instantly answering questions and making connections.
—Vehicle Acquisition Technology: With the recent addition of Accu-Trade and DI’s Vehicle Builder tool dealers can adapt to today’s market challenges with the solutions needed to acquire more vehicles through easy trade-in and cash offer technology and offer pre-ordering capabilities for shoppers looking for something specific.
—Proprietary Reporting Platform: Every DI website also comes with PRIZM, an advanced reporting platform at no additional cost, giving dealers ROI summaries, metric deep dives, group-level reporting, and proactive alerts for website analytics, marketing and product performance, and even open support requests — all from one dashboard.
—Superior Customer Support: Dealer Inspire supports a “best-in-class” dealer-to-employee ratio to ensure service, achieving an average dealer satisfaction score of 9.5 out of 10. A dedicated team of performance managers partner with retailers to continually increase results through marketing strategy, execution, and transparent reporting.
“There is no doubt about it — the best consumer experience wins. At Dealer Inspire, we are passionate about enabling our dealer partners with a digital storefront and connected suite of digital advertising solutions that meet shoppers where they are and deliver flawless execution on the shopping experience today’s customers expect,” Dealer Inspire general manager Darren Haygood said in the news release.
“Our award-winning website platform coupled with innovative digital retailing and vehicle acquisition solutions helps maximize dealer ROI and is a catalyst for selling more vehicles, more efficiently. We are incredibly proud to be Certified by Subaru, and we’re excited about the opportunity to expand our relationship with local Subaru retailers across the country,” Haygood went on to say.
For more information about DI’s offerings for Subaru retailers, visit dealerinspire.com/Subaru.
