Exploring the Top Automotive Advertising Strategies Adopted by Car Manufacturers to Boost Their Revenues and Sales

10 Jun


Key takeaways

  • Introduction
  • Use of emerging technologies to design ad and marketing campaigns
  • Focusing on sustainability through automotive advertising

 Lockdowns and travel restrictions during COVID-19 slowed down the demand and supply of consumer goods, including cars. As a result, the automobile sector faced a major setback as the sales of passenger and commercial vehicles declined drastically. However, as the pandemic subsided and the economies opened, the growth rate of the sector increased. The advent of certain innovative technologies like advanced driver-assistance systems, the shift to electric mobility, and the integration of smart electronics played a key role in the rise of the automotive manufacturing sector. Apart from this, various strategies adopted by automobile manufacturers in the field of automotive advertising and marketing have also helped them revive their business in the post-pandemic period.

Staying competitive in the industry with smart strategies in automotive advertising

Automotive advertising includes designing advertisements and marketing campaigns that promote products and services related to different types of passenger and commercial vehicles. Automobile dealerships, automotive services, aftermarket products, etc., thus come under the ambit of automotive advertising and marketing. Almost all the major automobile manufacturers including Hyundai, Tesla, BMW, Mercedes, Nissan, Ford, Honda, etc., invest heavily in advertising campaigns so as to stay competitive in the industry and gain an advantage over their peers in the long run.

A major trend witnessed in the automotive advertising industry is the use of cutting-edge technologies by manufacturers for designing interactive advertisements to engage with customers. Many automotive manufacturers have started developing mobile applications and websites to enable customers to choose car models, colors, and accessories seamlessly without having to visit a showroom.

Furthermore, with the use of technologies such as virtual reality and augmented reality, customers take a look at the vehicle interiors, try new functionalities, and take a virtual test drive from the comfort of their homes.  The emergence of Artificial Intelligence has also improved the revenue share of this landscape as these companies have developed AI-powered chatbots. The chatbots help companies address doubts, complaints, and feedback from customers in real-time, which increases their trust in the company and enhances their brand loyalty.

Growing focus on sustainability reshaping the automotive advertising industry

In the past few years, automobile manufacturers are increasingly shifting toward environmentally sustainable solutions to reduce the carbon footprint of the sector. For this, automotive companies are designing components that can save fuel and bring down emissions. Also, the use of eco-friendly materials for manufacturing automotive accessories is highlighted through the marketing campaigns. Most importantly, electric car manufacturers have entered this industry and are giving tough competition to the already established players. They are conducting extensive research regarding consumer behaviors and buying patterns to enhance their footprint in the automobile sector.

For instance, Ford, a multinational car company, recently launched an ad campaign for its Mustang Mach-E, an electric car. Ford had commissioned a study in which it found the smell of petrol was a triggering factor that would restrain one out of every five people from buying an EV. To tackle this problem and widen its customer base, Ford launched a ‘Mach-Eau’ scent, which emulated the scent of petrol, for use in the Mustang Mach-E. The campaign highlighted this feature in its advertisements and social media marketing posts which helped the car model to bag various awards, including the Green Car of the Year Award from Green Car Journal.

Along with this, car manufacturing companies are using digital marketing solutions keeping in mind the growing popularity of video streaming services and OTT platforms. This model of automotive advertising has given handsome returns to the companies, especially in the North America region as the viewership of OTT platforms is pretty high in countries like the US and Canada. Furthermore, the electric vehicle sector is also quite formidable in this region which has helped the automotive marketing landscape flourish in North America.

To sum it up, the increasing reliance of car manufacturers on smart technologies like augmented reality and virtual reality to increase engagement with their customers is predicted to boost the revenue share of the industry. Furthermore, designing ad and marketing campaigns to promote environmental sustainability is anticipated to open new avenues of growth in the market in the coming period.

For tips and suggestions on how businesses can increase their revenue share in the industry, feel free to contact us.

Akhilesh Prabhugaonkar

Akhilesh Prabhugaonkar

Author's Bio- Akhilesh Prabhugaonkar holds a bachelor’s degree in Electronics Engineering from the reputed Vishwakarma Institute of Technology. He has a special interest in the fields of forensics, world history, international relations and foreign policy, sports, agriculture, astronomy, security, and oceanography. An ardent bibliophile and melophile, Akhilesh loves to write on topics of his interest and various other societal issues. This love for writing made him enter the professional world of content writing and pursue his career in this direction.


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