The role of digital in the automotive industry

The internet has radically changed the way people are buying cars. No longer do consumers rely on the 30 sec spot (TV advertising) to drive their intentions / aspirations of their next purchase. Nor do they simply rely on old media sources to top-up their existing knowledge. Instead consumers are now even more demanding; always switched on, always searching for more information, always searching for new options. It seems the “always-on” culture of the internet has radically influenced the purchase process for such high involvement product categories.

Most understand the potential of the internet as a trusted research tool in aiding decision making process (DMP), but the real opportunity for marketers in harnessing this medium is in understanding how it has specifically altered people’s behaviour in their DMP.

Now, the only decision your customers have made when they start their average of 19 hrs worth of research (11 of which are done online) is the price they are prepared to pay. Every other variable (model, dealer etc) is ‘up for grabs’ and provides the canny marketer with great opportunities to influence them in favour of their brand. In total, nearly half of all purchasers change their mind on some aspect of their purchase, having gone online! (Source: The role of internet in car purchasing process: Microsoft: 2004)

Indeed, simply being online means people are more likely to have bought a car than non-internet users. (Source: The role of internet in car purchasing process: Microsoft: 2004)

Not only has it changed their decision making process, but it is also the single most trusted media source of information, above consumer reports, DM newspaper /TV ads. Indeed, online advertising is cited more frequently than TV advertising as a source used in the DMP. (Source: The role of internet in car purchasing process: Microsoft: 2004)

With the recent advent and impact of social media and the rising importance of online referrals (40% of consumer trust online referrals) and the fact that 25% of people will send a web link to their friends and that a further 25% will then visit that website; the importance of reaching and engaging these potential key influencers online provides marketers with even greater opportunities / challenges , particularly in delivering effective and relevant eCRM activity. (Source: Forrester: Social Computing report, 2007)