Marketing Innovation Drives the Auto Dealership Business
2021 was an interesting time for car dealerships, as used car prices reached an all-time high with buyers looking to stretch their dollars as far as possible during the financial uncertainty and stress caused by the pandemic. Despite inflation and supply chain woes persisting, 2022 is expected to be a more stable year with good growth prospects across the economy. Automotive marketers should have an easier time selling new cars as the economy continues to strengthen and many are looking to upgrade for more fuel efficient or electric vehicles. These are the five trends automotive marketers should look out for in 2022 to boost those dealership car sales.
Dealerships and Virtual Reality Experiences
Technology like artificial intelligence and virtual reality are establishing an increasingly important role in the auto industry. Dealerships can position themselves ahead of competition by offering potential buyers the experience of exploring their showroom or even exploring cars from the comfort of their home through virtual reality. In just a few years, Vroom has been able to leverage the power of virtual reality to reach $1.4 billion in revenue from car sales.
Short Form Video
Short form video has exploded in popularity over the last few years, with TikTok becoming the world’s most visited online site in 2021 over the likes of Google and Facebook. Creation of short form video is also much less expensive than standard video lengths, serving to boost the RIO of marketing activities. According to Hubspot, 51% of marketers already incorporating short form video into their strategy actually plan to raise spending in the area due to its excellent results.
3rd Party Cookie Alternatives
Marketers have utilized 3rd party data to efficiently target potential consumers with applicable advertisements but Google’s phase out of this type of data finally completes this year. Marketers need to find other data sources to reach potential customers. The first party data dealerships already have collected is a great starting point, but mostly limits market outreach to previous customers.
M1 Data’s Targeted US Automobile Owners solution provides marketers with exceptional data variables to understand and target highly convertible customers in a world without 3rd party cookies.
Eco Friendly Angle Becoming More Important With environmental issues coming to the forefront of modern social concern, more people are not only considering but insisting on making the switch to electric or more fuel-efficient vehicles. If electric vehicles incorporate a part of a dealerships inventory, marketers should be sure to highlight these vehicles in advertisements, including the benefits of making the switch. Tesla delivered a whopping 936,000 electric vehicles in 2021, and with many other countries and companies switching focus to enable more electric vehicles on the road, the electric vehicle is poised to take market share in a major way.
Chatbots and AI
Many dealerships have already embraced the use of chatbots for their websites. AI powered chatbots are a great way to have simple customer inquiries answered outside of business hours. AI powered chatbots can also serve to connect potential customers with the personnel needed to answer more complicated questions. Overall, the implementation of chatbots into the dealership website is almost essential as AI agent abilities continue to expand and enhance the customer experience.
At M1 Data and Analytics, we specialize in collecting and analyzing data to assist marketers in reaching a highly convertible audience.
Contact us today to determine how our services could enhance your business prospects!
