Despite ongoing shortages of precious metals and microchips needed to replenish inventory levels, many automakers continue to invest in marketing. But, in contrast to previous years where incentives, sales events, and financing offers punctuated TV spots and digital banners, this year has seen stronger emphasis on future model launches, lifestyle campaigns and multicultural efforts as brands seek to forge lasting bonds with consumers.

Long-term, this is the right approach. But it’s important to consider the marketing tactics used to achieve the lofty aspirations of increased brand affinity and loyalty. Broadcast TV and digital banners used to achieve the lead volume and website actions long favored by OEMs, but such a marketing mix may not move the needle much for today’s shoppers, who are increasingly frustrated with low inventory and rising prices. For auto brands to truly deliver on their brand promise, they need to create an emotional connection with shoppers in combination with helpful information, such as locally available inventory and digital retailing tools to guide consumers toward an informed purchase. CTV and digital video can work as an effective means for accomplishing these aims, but also requires that brands rethink their marketing vendor selection, creative units, and ultimately how to measure success.

The first step is vendor selection. Consumers see very little delineation between a brand and its marketing placements, as they are often regarded as one and the same. “Spreadsheet advertising” or focusing only on uber-efficient website actions in isolation without considering the bigger picture of consumer experience, can devolve into a race to the bottom as marketers seek out cost savings. But low-cost inventory may result in ad placements that reflect poorly upon your brand, and in an environment where shortages persist and brand loyalty can be fickle, any negative brand association can mean the difference between gaining a future customer or losing them to a competitor. In fact, Cox Automotive reported that 2 in 3 consumers say that experience is more important than price in the purchase decision, and in fact, they would pay more for a great experience or even switch brands because of experience. This makes vendor selection vitally important given this shift within the industry, and marketers should thoroughly vet each vendor to ensure they are good stewards of your precious brand equity.

Second, creative units are the vehicle to deliver your brand to your prospective customers, so they need to be at once emotionally compelling while also accounting for current industry dynamics. Media buyers deemed CTV 46% more effective than linear at delivering brand perception metrics in a recent IAB survey, with the bonus of incorporating digital targeting tactics such as household level targeting at scale, and dynamic capabilities such as local offers or inventory. Household targeting is especially effective within the automotive space when considering that buying a new vehicle is a complex and high-touch purchase, often requiring input from family and friends. Following CTV exposure, brands can now target that same household with desktop and mobile video experiences, offering even more buying context and helpful tools in an engaging and interactive format to solidify awareness and consideration to the entire household.

Measuring brand- or model-level awareness and consideration is another advantage to evolving your auto marketing tactics toward CTV and highly engaging desktop and mobile video. This digital-first approach allows for measurement tools such as creative effectiveness studies or sales matchback studies to be integrated, linking ad exposure to outcomes such as brand or model favorability or intent, and helping identify which ads drove vehicle sales further down the line after a consumer viewed it.  This two-pronged measurement approach not only helps validate the impact of your creative strategy and its ability to deliver positive experiences for your brand, but also validates that it’s delivering a positive return on investment from a dollars and cents perspective.

There is no question that the automotive landscape has changed dramatically over the past two years, perhaps never to return to its former inventory levels or incentive-based approach to marketing and sales. But the renewed focus on brand health, customer loyalty and a positive holistic marketing experience is sure to pay dividends, both today and long into the future. CTV and digital video are great marketing tools to forge lasting connections with auto shoppers, providing helpful, relevant messaging on their preferred channels as they navigate the new auto shopping experience.

 

Jim Johnson is vice president of account planning at VDX.tv.