Out of Gas: How Automotive Digital Marketing Needs to Evolve in 2024

The automotive industry, long revered for its technological prowess on the road, seems to have hit a speed bump when it comes to digital marketing. While other industries have been accelerating in the fast lane, adopting cutting-edge strategies and immersive customer experiences, automakers are stuck in neutral, still trying to figure out how to make "SEO" and "AI" sound sexy. Spoiler alert: they're not getting anywhere with traditional tactics.

So, what’s going on? Why are automakers, who produce some of the most advanced vehicles on the planet, still treating digital marketing like it's stuck in the 2000s? And more importantly, what needs to change?

Past Trends and Stagnation: How Automotive Digital Marketing Has Fallen Behind

To be fair, the automotive industry hasn’t completely ignored digital trends. Over the past few years, we’ve seen some interesting initiatives—virtual showrooms, AI-powered chatbots, and even AR test drives. But when we look at the bigger picture, there’s a distinct lack of innovation in how these brands engage with their audience.

Take, for example, the fact that global digital ad spending by automakers is expected to hit $19.82 billion in 2024, according to eMarketer. That sounds impressive, right? But when you dive deeper, you realize that much of that money is being funneled into old-school tactics like paid search ads and display banners—tactics that have been around since the dawn of the internet. Where’s the innovation in that? Other industries, like retail and fintech, are out here building fully personalized, data-driven customer experiences, while automotive marketers are still figuring out how to get their click-through rates above 1%.

Stuck in Neutral: Why the Industry is Lagging

The problem is twofold: legacy thinking and a fear of disruption. Automakers are used to long production cycles and slow, methodical planning. That’s great for building cars, but digital marketing requires agility, speed, and, most importantly, a willingness to fail fast and learn. Unfortunately, too many brands are still clinging to the idea that traditional brand-building (TV spots, anyone?) is enough to keep them relevant.

Take a look at a brand like BMW, which has historically been a leader in digital innovation. Recently, however, their campaigns have started to feel... a little too safe. Their reliance on high-production-value TV ads and big-budget partnerships has overshadowed more innovative, digital-first strategies that could engage younger, digitally savvy consumers. Meanwhile, brands like Tesla are running laps around them, using direct-to-consumer models and a digital-first approach to build an almost cult-like following.

A Strategic Shift: What Automotive Makers Need to Change

So, what’s the solution? Automakers need to stop thinking like car companies and start thinking like tech companies. The days of product-first marketing are over. Today’s consumers expect personalized experiences that make them feel like more than just a lead in a CRM system.

Brands should be investing heavily in omnichannel marketing, ensuring that every touchpoint—from the first click on a digital ad to the moment they drive off the lot—is seamless, personalized, and delightful. Consider how Porsche has started integrating virtual reality (VR) into their marketing, allowing potential customers to virtually "test drive" cars without ever leaving their home. That's the kind of experience that today’s consumers crave.

According to Accenture, 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them. And yet, automakers have been slow to adopt personalization at scale. There’s a massive opportunity here for brands willing to take the leap.

Transformation of Automotive Marketing Teams: A New Way Forward

The transformation doesn’t just stop with strategy; it’s also about people. Automotive marketing teams need to be restructured to reflect a more data-driven, agile approach. Gone are the days when a "brand manager" could oversee everything. Today’s marketing teams need specialists in data analytics, customer experience (CX), and AI-driven marketing.

Take a brand like Ford, for instance. Ford recently launched FordPass, an app designed to connect customers with their vehicles and provide seamless services (from maintenance alerts to remote control of their car). This level of digital integration requires marketers who understand how to leverage data to create personalized, customer-first experiences. The marketing team isn’t just making cool ads anymore—they're crafting an ecosystem that continuously engages the customer.

Collaborating with the Right Agencies: Who Can Drive This Change?

To stay competitive, automakers should partner with agencies that understand digital transformation and can lead the charge in implementing data-first strategies. Brands need partners who can marry the art of storytelling with the science of data.

Consider Audi’s collaboration with the digital agency Razorfish. Together, they created a highly interactive campaign for the launch of the Audi e-Tron, which incorporated augmented reality, 360-degree video, and personalized content across digital channels. The campaign didn’t just focus on the car; it created an entire experience around sustainability, innovation, and the future of mobility. That's the kind of forward-thinking collaboration that more automakers need.

What Brands Need to Win in the Digital Age

To succeed in 2024, automotive brands need to realize that they're not just selling cars—they’re selling experiences. Consumers today want to feel connected to a brand’s values, vision, and, most importantly, their own needs.

One brand that has nailed this is Tesla. Tesla’s direct-to-consumer model, combined with its obsessive focus on customer data, has allowed it to build an unparalleled digital ecosystem. From ordering a car online to over-the-air software updates, Tesla has made the entire ownership experience a seamless, customer-centric journey. This is where the future of automotive marketing lies—creating a digital ecosystem that offers value long after the initial purchase.

Driving the Future Forward

In conclusion, the automotive industry’s digital marketing is indeed "out of gas," but that doesn’t mean it’s too late to refill the tank. By embracing customer-centric strategies, transforming their marketing teams, and partnering with innovative agencies, automakers have the opportunity to shift gears and take the lead in the digital race. The future belongs to those who evolve, innovate, and understand that today’s consumers aren’t just looking for a car—they're looking for an experience.

References:

• eMarketer, "Global Automotive Digital Ad Spending Forecast," 2024
• Accenture, "2023 Personalization Report: Customer Expectations and Trends," 2023