Buyers are turning to social media influencers to determine the cars they want, rather than being swayed by traditional ads or dealership staff. By Joe Gagliese
Social media has completely changed the customer journey, determining how consumers discover, evaluate, and purchase goods and services. Businesses must pivot from traditional to social media-led marketing to thrive, or risk losing market share.
Nowhere is this more true than in the automotive industry. Car influencers dominate trending content across YouTube, Instagram, and TikTok with many exceeding a reach of over a million subscribers. That is an audience that is hard to ignore. Some of the biggest brands in the automotive sector haven’t broken the three million subscriber threshold. This is due in part to the fact that they aren’t fully utilising their channels. Instead of hosting unique and relevant content like leading influencers, they are using their social channels as mere repositories for their commercials.
The amount of viewership and level of engagement in the automotive space on YouTube alone is staggering. For instance, YouTube creator Marques Brownlee recently gave a scathing review of Fisker’s Ocean SUV which resulted in over 5.4 million views and forced the company to do swift damage control, which ultimately failed. These are proven channels offering deep influence and reach, yet automotive manufacturers have yet to take full advantage of the power of influencers and the direct connection to consumers that social media brings.
Exploring influencer absence in automotive marketing
Many of the largest automotive organisations still see traditional marketing channels, like television, as the primary means of reaching their target audiences. However, when examining the numbers, it is undeniable that the automotive industry continues to overestimate TV while underestimating the reach and influence of content creators. The global market value of influencer marketing reached US$2.1bn in 2023 (more than triple its value in 2019). Influencer marketing is generally a more cost-effective strategy than TV advertising, especially when leveraging the highly targeted and ultra-engaged reach of micro or nano-influencers. While traditional advertising can offer a wider reach, the targeted nature of influencer marketing can yield both higher ROI and more precise methods of measurement.
Businesses must pivot from traditional to social media-led marketing to thrive, or risk losing market share
Creators shape market segments, especially among Millennials and Gen Z, through authentic, personalised content. Their niche demographics and high-volume, lo-fi output build trust and ultimately influence purchase decisions.
TV commercials are a one-way message in a new world that prioritises connections. Influencer marketing channels offer strong engagement, thanks to highly targetable reach and the established trust of a creator’s following. Nevertheless, the automotive industry continues to spend considerable marketing dollars on efforts that simply don’t get enough eyes.
How to leverage influencer marketing
Automakers are accustomed to relying on athletes and celebrities to endorse and sponsor their vehicles. However, the appeal of creators who review and vlog their experiences with various vehicles provides like-minded individuals who share the same interests and passions for cars as their audience. Brands that use influencers can see six times the engagement rate for a fraction of the cost. Furthermore, content creators post daily, which is incredibly valuable for automotive manufacturers who spend thousands or millions of dollars to shoot, edit, and run one commercial with a traditional celebrity.
One key standout, automotive brands are also not beholden to a single influencer. They can work with many different creators and adjust these partnerships based on their evolving needs and goals. Lexus recently partnered with Beyonce’s Renaissance tour and escorted multiple influencers, like Yuri Lamasabella, to the concert in exchange for unique content, garnering millions of views.
Automotive manufacturers can extend beyond partnerships by engaging creators and influencers for vehicle reviews. While direct payments for reviews is prohibited, fostering relationships with creators ensures they are well-acquainted with the vehicles and features, enabling them to deliver thorough and accurate content to their audience.
Technology is critical to a social at scale
While it is undeniable that consumers are engaging more with influencer content an automaker may wonder how those views, clicks, comments, and likes translate into ROI and purchase conversion.
Modernised measurement solutions are emerging that go beyond traditional tracking, providing holistic measurement, brand lift studies, data modelling, social listening, message testing, and more. By integrating these business intelligence solutions into influencer marketing campaigns, automakers can draw a solid line between views on a YouTube video and tangible sales.
To maximise the impact of influencer marketing, automakers need a way to keep pace with these changes in real-time. For the massive players in the automotive space operating across many different verticals and in many different countries, pivoting on a dime to respond to and engage with every new social media trend is impossible without robust and data-powered technology solutions.
Moving quickly to get a leg up on competitors
Many automotive brands are reluctant to switch marketing efforts from traditional mediums to social-first strategies. In this evolving landscape, the “wait and see” approach will inevitably lead to companies playing catch up. The time is now for the automotive sector to recognise that the influencer and creator community is the heart of the online automotive conversation. Those who were first to embrace social transformation will have a substantial leg up on competitors.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.
Joe Gagliese is Chief Executive and Co-Founder at Viral Nation
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