Wiping the Tiers Away
If you’re associated with automotive marketing, it’s likely that you have a keen familiarity with the three tiers of advertising: Tier 1 – national OEMs; Tier 2 – regional dealer associations, Tier 3 – local dealerships.
These tiers have shaped and guided the industry for decades as the mechanism that dictates where the media budgets reside, where a consumer exists in the proverbial funnel, and the timing and type of message that’s delivered.
But while automotive marketing has traditionally taken on a stringent, three-tier approach to messaging and spending, the same may not be true in the digital in-market space.
The message that was heard loud and clear at Jumpstart’s 2008 THINKTank summit is that the lines dividing the three tiers have blurred considerably. When more than 40 automotive marketers got together at the Palms Hotel in Las Vegas in late July, the integration and cohesiveness of the three tiers was a hot topic of discussion.
The idea of marrying ourselves to the theory that states that a consumer needs to be driven down a funnel by a specific sequence of marketing messages is a broken presumption, and this was confirmed by the marketers at the event. This approach may serve the needs of OEM structure and marketing budget allocation, but does not appropriately serve the consumer’s needs.
If the advertising messages on in-market auto sites are meant to be helpful to the consumer’s experience, we’ve failed on many fronts as marketers. Simply take a look at the ads on any third-party in-market site.
- Message alignment is inconsistent with shopping stage and activity taking place on the page
- Ad messages on long term placements are rarely refreshed
- When clicked, many of the ads direct consumers to a landing page that forces them to start the shopping process over again
The consumer doesn’t understand nor care about the three tiers of automotive marketing. What the consumer cares about depends on where in the shopping process they exist. This is detectable by understanding what pages and types of pages the consumer has visited, how frequently, how recently, and any other trends that help draw conclusions about their intent.
What the consumer needs:
- An easy, comprehensive path to understanding the features and benefits on the types of vehicles interested in purchasing
- An understanding of the pricing, incentives and opportunities that exist if ready to purchase now
- Where to test drive or purchase the vehicle
So it’s obvious the best way to reach in-market shoppers adequately is to destroy the silos that exist among the three tiers. Effectiveness in this space calls for more fluidity to capture the opportunity of the shopper in progress, not in a pre-determined bucket or budget; or during the last two weeks of the month.
“People don’t shop that way,” said Lynn Mroz, Sr. Vice President, Group Director of Digital Communications, Team Detroit - Ford Motor Company’s agency. “Two weeks on, two weeks off can’t be done effectively, it’s archaic.”
DeLu Jackson, National Manager of Digital and Direct Marketing for Subaru, said that his company has its own marketing theory behind three tiers: “Subaru’s three marketing tiers are heart-brain-wallet.” The consumer makes an emotional attachment to a vehicle; they comprehend the features, benefits and options; then they make a purchase decision. If anything, it’s a lot catchier than “Tier 1, Tier 2, Tier 3”.
When marketing via in-market media, it’s dangerous to presume that everyone’s at the bottom of the funnel; or to assume where they might be in the funnel based on your own campaign goals or initiatives. “If you assume everyone is at the bottom of the funnel, how will anyone find out about your products?” asked Mroz.
The key takeaways of the 2008 THINKTank summit from the discussions surrounding this topic:
- Align the message – whether tier 1, 2 or 3 – with the appropriate consumer based on where they exist in their shopping path
- Make sure that when the consumer clicks he’s taken to the most relevant place on the OEM, regional or dealer site
- People are in-market any day of the month, not just the last two weeks
It’s important to use the research, tools, and shopping trends that publishers can provide you to understand the behavior paths of shoppers. The ability to harness that information to make better marketing decisions is the key to success in the in-market digital realm.
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