Social Media's Role in the Auto Industry: Emerging Trends and Best Practices

Strategic Insights -

The auto industry is grappling with the growing importance of social media in reaching consumers and selling cars. While some executives, such as AutoNation CEO Michael Jackson, question the effectiveness of social media, others see it as an essential tool for connecting with customers. According to Subaru of America's Tom Doll, social media has become a way for customers to connect with the auto maker, rather than a means of broadcasting messages to a wider audience.

Key Takeaways:

  • Social media is a critical component of the auto industry's digital marketing strategy, but its effectiveness is still evolving.
  • Most social-media experts agree that social media sites such as Facebook are not ideal for listing dealer inventories or delivering high-pressure sales pitches.
  • Hyundai Motors America's sales chief Dave Zuchowski emphasizes the importance of integrating social media into all marketing efforts, rather than taking a shotgun approach.
  • Innovative cars, such as the Nissan Leaf electric vehicle, can draw significant interest on social media, helping to advance new-product buzz.
  • Dealerships should cultivate their social-network sites and make them interesting by posting life-style blogs, videos, and other content relevant to their local customers.
  • With social networking, the auto industry is shifting from a website built around information to one built around people, with 40% of Facebook users saying friends' recommendations are the most important factor in their next auto purchase.

Statistics:

  • 500 million users on Facebook, according to Doug Frisbie, automotive strategist for Facebook.
  • 40% of Facebook users say friends' recommendations are the most important factor in their next auto purchase.
  • 4 million people in Lithia Motors' data base, according to chairman Sid DeBoer.

Sources:

  • Wijeya Newspapers Ltd., "Social Media's Role in the Auto Industry: Emerging Trends and Best Practices", [no date available].

* (No publication date available; provided by Hindustan Times - HT Media Ltd.)