Auto Industry Changes Create New TV Opportunities
By Lee Singletary
Effectv's Automotive Advisory Council member, Max Steckler recently sat down with Jim Fitzpatrick of CBT Automotive Network. The Chief Product Officer at AutoChoice has some advice for automotive marketers looking to make the most of their cable TV ad buys as well as some interesting perspectives on the state of the industry.
Changes in the auto industry
It’s an interesting time for the automotive industry, with new opportunities that will cause marketers to think differently about how to run their campaigns. The biggest changes, Max says, “are happening right now in terms of [auto consumers’] attitudes about how they get their transportation and how many cars they have in their garage; there’s also changes in the expectations of what the buying process is actually like, especially when it comes to the millennial generation.”
There’s an opportunity to embrace these types of changes and make the most of marketing spend by reassessing strategies to make campaigns more efficient. Already, the industry is getting to the point of maximum number of cars sold per year, which is causing dealers to be more strategic about their labor efficiency and lead management. On the dealer’s perspective, Max notes their sentiments sound something like “[I] want 100 leads at a 10 percent conversion rate,” not “I want 10 leads at an 80 percent conversion rate.”
Local TV + digital technologies
This relatively new convergence of TV media buying and solutions that take a note from the digital marketing playbook is creating a “new TV” for auto marketers to reach their ideal audiences.
Max says taking advantage of the new TV will yield strong results, with automotive markers streamlining their approach, which “helps to increase the results that are coming from local television.”
Putting viewership data to work
Local cable TV advertising success for dealers happens largely when campaigns accurately target the groups of people with whom they want to communicate. Targeting the groups of people most likely to make car purchases materializes when a dealer’s first-party data is married to deidentified viewership data.
As dealers get savvier at aggregating their data sets—custom segments, vehicle buyers vs. leases, non-re-signing drivers, etc.—the first-party data appended to aggregated viewership data will drive unrivaled results.
On this, Max adds, “[this] type of an approach can create some incredibly efficient marketing spend,” adding, “as you do this work, the types of companies that are doing this [like Effectv] have a gold standard in terms of treating data and putting it together that’s going to be safe, protect the dealer, and make sure [dealers] get the best results from [their] marketing campaigns.”
About the Effectv Automotive Advisory Council:
Founded in 2018, the mission of the Automotive Advisory Council is to represent automotive marketers’ interests in relation to Effectv's advanced advertising products and tools as well as broader industry trends and insights. The AAC is an advocacy group, comprised of tier 2-3 auto leaders from agencies, dealers and manufacturers. The AAC operates as an educational and organizing resource to assist marketers in reaching desired audiences in premium video environments, conducting research documenting the benefits of cable advertising, and championing the interests of member automotive marketers and the industry. Automotive Advisory Council