Auto Industry Speeds Up Online Spending

Sw_automotive1I worked for several years in the early 80’s in automotive marketing and still keep tabs on the industry.  It’s a fascinating one in which so many other industries are tied into it’s success (oil, glass, rubber, electronics etc.,).

It will be interesting to watch their increased marketing efforts online. After leading the US in advertising spending, the automotive sector has dropped into the number two spot behind retail. Ad spending in the
sector is going in reverse—except on the Internet.

According an eMarketer report, Automotive Marketing Online: Negotiating the Curves, even as new-vehicle sales decline, automotive
marketers will spend nearly $3 billion online this year, up 21.6%. And by 2012, automotive online ad spending will top $5.6 billion.

Sw_automotive3

Capgemini
shows that 80% of consumers now consult the Internet at least once during the
car-buying process. The firm report

ed the percentage was 71% in 2006 and 64% in
2004. Recommendations from family and friends are being replaced in
importance by online customer reviews. And it’s commonplace.

A joint comScore and the
Kelsey Group study showed
that 78% of Internet users who read an online review in the automotive category said it influenced their offline purchase decision.

Can you think of
ways to ad online reviews and/or testimonials to your Web site?

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Nissan Electric Car in 2010

Edison_sleeping
The New York Times reported that Nissan Racing will have an Electric Car on the market in 2010. Nissan said that they’re ramping up development because of high gas prices, environmental concerns, and to meet stricter fuel-economy standards.

Nissan?  Hello Detroit anybody there? You should be ashamed of yourselves!

Back in the late ’70s during the Carter administration with oil shortages, long gas lines and when gas was about 60 cents a gallon where was the innovation? Where was the political and business leadership?  Where were our modern day Edisons or Westinghouses and Kennedys? Where are they now?

How many priceless lives have been lost due to oil and how much of our blessed environment have we killed – it’s shameful and sinful. If you calculate the cost of wars, lives, defense etc., into the future – which American leaders could have easily done (a very easy business case), they could have simply incentivized the Big 3 to come up with an electric car and supportive system in 10 years – I’m sure of it.

I’d bet that Edison and Ford would have accomplished built an effective electric car over a long weekend while vacationing in Ft. Myers.

I blame corporate America too for the lack of ingenuity.

Innovation is lacking in so many businesses – fast fail risk taking is key to rising above your competition and leaving the world a better place.

If you’re looking for a little inspiration, check out Dean Kamen – love this guy!

Here’s a quick video of Kamen’s Miracle Water Distiller!

Note: Famous picture of Edison above sleeping in his Laboratory.

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Who’s Driving Customer Loyalty

Who’s Got The Most Loyal Customers?

In the automotive category:

1 Toyota

2 Mercedes/BMW (tie)

3 Honda

4 Nissan

5 Saab

6 Chevrolet

7 Jeep

8 Volkswagen

9 Hyundai

10 Chrysler/Volvo* (tie)

11 Ford

12 Kia

13 General Motors

* First time on list

Source: Brand Keys Customer Loyalty Engagement Index

P.S.: For U.S. cars, I wonder how much loyalty was actually "extortion" resulting from incentives.  Only Chevy cracked the Top 10.

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Chrysler to Cut Models

Logochrysler
Interesting to note that Chrysler is cutting back on models.

They’re considering halving their line and pruning their dealer network.

More brands would be wise to follow suit.

What do you offer that’s duplicating and/or draining your resources.  How about doing fewer things, but doing them "remarkably" well!

Analyze the word "remarkable." When you do something remarkable – people remark about it!

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