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2024 brings a blend of challenges and opportunities for automotive markers. The past year saw a dramatic increase in digital retailing leads, which soared by 38% yearly, even as overall website leads declined by 30%.
A growing number of vehicle shoppers opt for online platforms offering a more integrated and streamlined purchasing experience.
Explore the current 12 trends transforming the automotive industry in 2024.
92% of potential buyers now research vehicles online before buying. Post-COVID-19, new buyers prefer using digital platforms for car research, particularly younger individuals and Millennials.
Online shopping makes it easier to weigh their options and access comprehensive brand and model details from the comfort of their homes.
Buyers are arriving at dealerships more prepared and knowledgeable than ever before. They are armed with information on models, features, pricing, and even competitive comparisons, transforming the purchasing process and potentially streamlining negotiations and sales.
However, this trend doesn’t spell the end for traditional car dealerships, as 79% of consumers still prefer in-person shopping experiences.
Despite the buyer journey involving numerous touchpoints, the message to automotive marketers is clear: enhancing and diversifying an online presence is crucial.
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In 2024, the revenue in the Electric Vehicle market is projected to reach a staggering $623 billion worldwide.Â
Despite the challenges posed by COVID-19, subsequent supply chain disruptions, and the increased production cost due to rising raw material prices, the EV market is still expected to grow at a steady rate of 9.82% through 2028.
EV sales more than doubled in 2021 compared to 2020, capturing about 5% of the global passenger car market and eclipsing the sales of traditional internal combustion engine vehicles.Â
Sales of new electric vehicles in the US more than doubled in 2021, an increase of 108% compared to 2020, with the trend continuing well into 2028.
Automotive marketers need to adapt their marketing strategies to highlight EV innovation, sustainability, and economic benefits to capture consumer interest.
What is the most significant challenge facing the US EV market despite its rapid growth and substantial investment?
“The biggest hurdle for the US electric vehicle (EV) market is overcoming the dual challenges of pricing and the development of a robust charging infrastructure. While government initiatives and industry investments propel the market forward, making EVs affordable and ensuring accessible charging stations are critical for mainstream adoption.Â
Addressing these challenges head-on is essential for sustaining the market’s momentum and making electric vehicles viable for a broader range of consumers.”
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GM’s financial challenges, highlighted by a 54% decrease in Q4 operating income and a $1.7 billion loss in their EV sector, reflect a broader automotive trend: balancing EV ambitions with consumer readiness.
Hybrid vehicles are an appealing option for those hesitant about EVs’ higher prices and charging requirements but still want to reduce their carbon footprint. They offer an electric driving experience without the range anxiety associated with fully electric models.
Hybrid vehicle sales surged more than 50% in the U.S. Major automakers last year.Â
Consumers aren’t ready for a fully EV world, but there’s still demand. Considering consumer demand and concerns, automotive companies must develop a nuanced approach to transitioning to EVs.
How can automakers navigate the shift in consumer preferences for both hybrid and EVs?
“Listen to your frontline employees. If GM had taken the concerns of their frontline dealers more seriously, they might have realized that consumer hesitancy toward electric cars is a much bigger roadblock to their electric sales goal by 2035 and adjusted accordingly. There is still time, and GM believes they can turn their electric vehicle business around, but sacrificing a profit-making business line for one with significant quarterly losses is not a viable business strategy.”
In 2023, the US average new vehicle price hit $48,247. Despite a 13% increase in new car purchases last year, high borrowing costs and sticker prices mainly affected middle- and lower-income households, with sales increasingly limited to the top 20% of income earners.
This trend is anticipated to persist in 2024, projecting a modest growth of less than 2% in sales for the current year, a stark contrast to the pre-pandemic annual sales of 17 million autos.
With higher car prices discouraging middle- and lower-income households, automotive marketers should focus on value and total ownership cost to reach wider audiences.
The 2024 Consumer Electronics Show (CES) highlighted advanced vehicle technology.
Automotive giants like BMW, Mercedes-Benz, and Volkswagen, alongside tech and AI firms such as Google, Amazon, OpenAI, and Kodiak Robotics, are leading the charge in integrating technology into consumer vehicles. Gaming, streaming, augmented reality (AR), artificial intelligence (AI), and voice assistants all made an appearance.
BMW’s iDrive 9 system introduced AR and AI for interactive in-car experiences, reflecting a shift to intuitive user interfaces.
AI advancements extend beyond passenger comfort and convenience. For example, Intel is introducing new AI-powered chips for cars.
Automakers at CES emphasized AI, chatbots, and immersive technology in vehicle development, showing the industry’s direction toward creating more connected, intelligent, and user-centric driving experiences.
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AI is becoming increasingly important in programmatic advertising to drive optimal ad performance.
Predictive analytics can anticipate online shoppers’ buying intentions or predict demand for specific car models and features. Tools like Power BI are adept at performing such complex analyses.
AI tools can also predict click-through rates (CTR) and adjust ad ranks to boost views and improve outcomes. Platforms like Microsoft’s Xandr leverage AI to target winning bids and place ads cost-effectively.
KORTX’s Split Assist™ uses machine learning technology to precisely adjust based on how they perform and on where and how automotive ads are shown. This is especially important in the automotive industry, where catching a potential buyer’s interest at the right time can make a big difference.
AI tools, with their ability to predict online shopping behaviors and optimize ad performance, can enhance automotive marketing strategies and ensure cost-effective ad placements.
Consumers are researching more online and coming to dealers prepared to see a specific model. Buyers most often visit Third-Party sites (79%), followed by dealerships (59%), used vehicle retailers (34%), and automaker websites (33%).
Omnichannel marketing creates a cohesive car shopping experience, connecting digital platforms with physical dealerships. Consumers receive consistent support, information, and interaction throughout their purchasing journey.Â
Ford’s website offers multiple pathways for customers to engage with the brand, whether through online car searches, chatbot interactions, locating a nearby store, or building their vehicle.
Consumers use multiple touchpoints along the buyer journey. Marketers must embrace omnichannel marketing to ensure a consistent and engaging brand experience across all customer touchpoints, including video, social media, and more.
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What is a significant benefit of omnichannel retail?
“Omnichannel retail also enables businesses to gather and leverage comprehensive data from these interactions for better decision-making and personalized marketing. Ultimately, this approach leads to higher engagement and sales, as it resonates deeply with individual customer needs and shopping habits.”
With the growing concern over CO2 emissions, one-third of consumers prefer eco-friendly options.
Automotive brands are incorporating their sustainability journeys into their narratives, highlighting milestones and challenges to enhance brand identity and connect with eco-conscious consumers.
General Motors (GM) successfully showcases how it is adopting and promoting sustainable practices.
With the concern over increasing CO2 emissions, consumers increasingly prefer sustainable options. However, authenticity in sustainability efforts is key. Superficial claims without substantive action (greenwashing) can damage a brand’s reputation.
65% of visits to automotive ecommerce sites in 2022 originated from mobile devices. Consumers increasingly rely on mobile phones to compare prices, sift through reviews, and access vehicle information anywhere, anytime.
With US households averaging 10 devices, cross-device targeting broadens reach and guarantees seamless brand interaction across all user devices, from mobile phones to connected TVs (CTVs).
In an era where households juggle multiple devices, cross-device targeting, and mobile optimization is key for automotive brands to maintain consistent engagement and optimize their online presence.
Over 75% of auto shoppers say that online video (OLV) influenced their shopping habits or purchases, and 64% of shoppers who watch OLV say formats like 360° videos would convince them to buy a car without a test drive at a dealership.
Engaging narratives that connect emotionally can transform a simple vehicle showcase into a compelling story.
Buick’s “Imagine That” commercial introduces viewers to the new 2024 Buick Encore GX. The commercial envisions viewers loading a birthday cake into the car, integrating video and mobile device connectivity, and embarking on a memorable road trip with friends.
It not only demonstrates the car’s capabilities but also how it contributes to a safer, more enjoyable driving experience.
https://www.youtube.com/watch?v=kUDT2gtfwY4Â
Online video marketing significantly influences auto shoppers, with immersive formats like 360° videos boosting confidence in purchasing decisions without a test drive.
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As Third-Party cookies continually deprecate in 2024, Conversion APIs and other First-Party data solutions offer strong alternatives for automotive marketers, using data from servers rather than relying on user browsers.
KORTX specializes in advanced data management and audience intelligence technology, such as the Axon Audience Manager, which captures and organizes first-party data from site interactions for targeted campaign activations.Â
Additionally, KORTX Intelligence further enhances audience insights by gathering comprehensive information to create detailed profiles, all while adhering to regulations like the California Air Resources Board (CARB).Â
As Third-Party cookies become less prevalent, Conversion APIs and First-Party data solutions like KORTX’s Axon Audience Manager offer automotive marketers robust alternatives for gathering insights and targeting campaigns, even in a cookie-less future.
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Social media has become an indispensable tool in the automotive purchase journey, with 21% of car buyers stating it directly influenced their decisions and another 71% utilizing it for research.
YouTube leads as the most popular platform among potential buyers (41%), followed closely by Facebook (37%) and Instagram (21%).Â
TikTok is also a significant player, with the vast majority of users using the platform for automotive research and the discovery of new brands and products.
@navsgarage Have some fun why buy a boring blazer or sum #bronco #trucks #truck #ford #fyp
Also, post-purchase, social media continues to serve as a vital communication channel, especially among millennials and Gen Zers, who frequently contact brands for service inquiries.
Social media influences both research and purchasing decisions across platforms like YouTube, Facebook, Instagram, and TikTok and serves as a critical post-purchase communication channel for younger consumers.
What should automotive marketers keep in mind when using social media for advertising?Â
“Automotive marketers need to consider where their target audience spends the most time. If you’re marketing a car to a younger demographic, platforms like TikTok are invaluable due to their massive young user base.Â
The key is to match your campaign’s platform with your audience’s preferences, crafting content that resonates with them.”
Staying ahead means adapting to the shifting preferences of well-informed consumers. Using trends such as video content, social media advertising, cross-device targeting, and more can showcase the advanced features of modern vehicles.
Choosing the right marketing strategies is key, but maintaining authenticity, transparency, and relevance is vital for building trust and loyalty among modern consumers.
What are you waiting for? KORTX can transform your automotive marketing strategy with our expert solutions tailored to engage and convert today’s consumers.
Dani Rusas is an Account Strategist at KORTX. She spends her free time hanging out with her 2 border collies, cooking, and crafting.Â
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