The auto industry appetite for mobile marketing sky rockets

It’s time for dealers get in the game.

Full-line automakers such as Toyota Motor Corp., General Motors Corp. and Ford Motor Co., possessing some of the largest marketing budgets in the world, are not new to emerging media. They often spend heavily in all media, including online, video and mobile. According to Advertising Age’s 100 Leading National Advertisers Spending Report 2007, the automotive sector led all categories in advertising spending, topping the charts at $19.80B last year. Automakers’ large budgets and continuous need for innovation in marketing give them both the means and the motivation to test and push new channels and tactics more aggressively than other verticals.

Automotive marketers are also not new to mobile marketing. Brands like Chevrolet, Ford, Jeep, Jaguar and Toyota are all investing in mobile-marketing strategies to create awareness, drive leads to dealers and/or enable “in-your-pocket” exploration and interaction with their products. SMS campaigns that include click2call, which enables consumers to call a dealer immediately, or click2locate, which asks consumers to enter their ZIP code to locate the closest dealer, are meeting with solid success for lead-gen purposes.

As smartphone penetration increases — smartphones make up nearly 6.5 percent of the U.S. market and 10 percent of the global market for mobile phones — and MMS usage becomes more widespread, the ability for consumers to use click2video to view advanced video experiences built for automotive advertising. Until then, auto marketers will continue to use mobile WAP sites to empower users to research and customize their cars and carry their preferences with them as they shop.

But what is new in mobile marketing is not the activity initiated by auto marketers; it is the growing use of mobile marketing by auto dealerships. Dealers are looking for more efficient and streamlined ways to communicate with prospects and improve the sales experience, and mobile holds promise, particularly for younger audiences.

Cars2go offers mobile couponing and bi-directional communication and transactional capabilities between dealers and customers, streamlining the car-buying process for consumers and dealers alike. The prospect Texts a keyword ( DC lexus) to a short code (50123) to recieve a text reply giving them more information, coupon as well as a link to the dealers gosite ( mobile ready website) giving them the access to search dealer inventory right that instant, with the option to click2call or email.

According to Nexteppe, “dealers can use mobile marketing as part of an integrated campaign by displaying new and pre-owned inventory on a WAP site and using SMS for inventory. They can also issue updates, maintenance reminders and inform customers about promotions and financing deals….the response has been overwhelming.” This solution was recently tested in a New York Toyota dealership.

• Service Reminders: consumer alerts via text message to remind them of upcoming service appointments, etc.
• On-the-lot marketing or SMS integration in print ads: customers visiting a lot after hours or those accessing print promotions can input a model code by SMS to automatically receive more information, including text description of vehicle, color, link to WAP brochure, etc. They can also request that information be sent to them via email, and choose to be contacted by a sales representative via phone.
• Customer satisfaction surveys: automatic surveying of the sales experience via mobile.

Although these systems are just rolling out, there is much to be excited about in mobile marketing these days as the auto industry embraces mobile not just for branding purposes, but also as a mechanism for overhauling the dealer-consumer experience via real-time, mobile communication.

Tags: automotive mobile marketing, mobile marketing for auto dealers