Advertising and Marketing Strategy of Auto Manufacturers in the Age of Social Distancing, Auto News, ET Auto

New Delhi: As the old adage goes, “the consumer is the medium,” OEMs and affiliate ad agencies might consider reorienting the entire brand-to-consumer communication process as digital engagements move up a notch. new era of social distancing.

Experts say the auto industry could see a contraction in ad spending by OEMs, especially in print and broadcast, as consumers go digital. Previously, automakers spent huge amounts of money on ostentatious TV commercials to gain popularity.

According to experts, the auto industry could experience a contraction in advertising spending by OEMs.

Of course, television advertising will still be relevant, but much less from the TVC big bang can be expected as video consumption skyrockets, and the demand for streaming content will be at an all time high, from so that automakers might be inclined to exploit this channel of communication. At the same time, the impact of printing will also be considerably diluted on the drop in distribution.

Automakers were already moving towards digital marketing and the increasing use of online media, but the current situation has dramatically accelerated the pace of changeJeffry Jacob, Partner, Management Consulting, KPMG India

Television tops the charts for automotive advertising as it captured 58% share in terms of ad inserts, followed by radio at 37% and printing at 5% during the period January-March 2019 , reveals the ad spend report released by AdEx India, a division of TAM Media Research, but the numbers could change over time to reflect the digital disruption. Speaking to ETAuto, Jeffry Jacob, Partner, Management Consulting, KPMG India emphasized, “In the COVID-19 scenario, OEMs and suppliers would seek to reduce all discretionary and non-critical spending as much as possible and consider alternative options. and more profitable. This has important implications for how advertising dollars will be spent in the future by OEMs and other companies on traditional media versus digital media. “

He added: “Automakers were already moving towards digital marketing and the increasing use of online media, but the current situation has dramatically accelerated the pace of change. Spending can be expected to shift largely in favor of digital media, as online content consumption has increased significantly over the past two months. “

Digital media is the dominant channel for Audi customers, but that said, traditional channels are still important to the brand given our customer base.Gaurav Sinha, Head of Marketing and Public Relations at Audi India

Market leader Maruti Suzuki already allocates 35% of its marketing budget to digital, according to Shashank Srivastava, Executive Director, Marketing and Sales at Maruti Suzuki India Limited. He adds that 84% of potential customers come with preliminary online research, so OEMs should plan their strategy for a seamless transformation, as online advertising is key to attracting new prospects to the dealership. Giving an overview of the luxury car field, Gaurav Sinha, Head of Marketing and Public Relations at Audi India explained, “The luxury car space works in a slightly more complex way. We expect purchasing behavior to shift to digital to a large extent; however, buyers in this category prefer to drive the car at least once before making their purchase. We expect digital sales to complement physical purchases to a small extent. “

Following the current trend, Audi has also rolled out its digital sales and aftermarket offerings with other automakers like BMW, Hyundai and others. The company’s website has integrated augmented reality, a 360 ° product viewer, and online reservations to put the shopping experience right at the fingertips of a potential customer.

Sinha added, “Digital media is the dominant channel for Audi customers as well as fans, especially in today’s environment where social media is the default communication channel for many. That said, traditional channels are still important to the brand given our customer base.

Meanwhile, for SAIC-owned MG Motor India, which entered the Indian automotive market last year, over 40% of bookings for Hector and 16% for ZS EV were received online. Gaurav Gupta, Commercial Director – MG Motor India sees this as an opportunity for the automaker to strengthen its Direct to Consumer Selling (D2C) model and boost immersive engagement that facilitates a virtual shopping experience.

Gupta told ETAuto: “In the current scenario, where health and safety is a primary concern, the digital mode of engagement has become the new normal that will continue after Covid-19 as there will be a significant change in how people will make their purchasing decisions, including experiential aspects, from far away places, such as their home or workplace.

As digital becomes central in advertising and marketing strategies, it becomes essential to cover all aspects of the car buying process. From the meeting and exploration stage where consumers discover new launches and features to the purchasing stage where the deal is concluded and finally the sharing stage which includes the creation of ambassadors of the brand, everything must be taken care of in depth.

According to industry experts, brands will take refuge in advertising agencies that have been long-term business partners, and not just executors of short-lived advertising campaigns, as they aim to provide clients with their services and proposals and to facilitate this transition to the online space.


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