Between now and the end of the year, auto dealers will be pushing luxury brands. Research shows that December is a big month for sales of these vehicles. And, to help roll vehicles off the lot, dealers will turn to digital in a big way.
In a recent Automotive News article, Jim Henry noted that both BMW and Mercedes-Benz are heavily promoting year-end specials. The advertising is as much about moving vehicles as it is about discount loan and lease services. This strategy, according to Henry, is perceived as “less damaging to resale values and brand image than deals with cash incentives.”
To stay in touch with consumers, luxury auto dealers say they’re using more:
- Rich media 35%
- Social 82%
- Video 94%
- Mobile 82%
- Search 47%
Auto dealers have long relied on TV advertising. But, this year, 61% say they’ll shift some of that TV budget to online video. At least 95% of dealers believe that high-impact rich media can be as powerful as TV. This belief may explain why 39% of luxury dealers are looking onto online video. In addition, about 80% of luxury dealers say they’ll be paying higher CPMs to connect with their luxury customers.
This change is being made as 65% of dealers know luxury auto buyers are spending more time with digital these days, In most cases, dealers say this is a higher percentage than other types of buyers. Because the luxury customer is so valuable, dealers are quickly moving into digital.[Sources: Henry, Jim. Time to brace for the luxury rush. Autonews.com. 14 Nov. 2012. Web. 20 Nov. 2012; Luxury Auto Brand Outlook. Martini Media Infographic. 2012. Web. 20 Nov. 2012]