Auto shoppers in the US are said to spend over 13+ hours researching content online before they make a purchase decision (Source: J.D. Power), and the role of car reviews and content is critical to their purchase decision.
In a distracted and cluttered world today, an automotive buyer consumes an average of 11 different pieces of content before they make the final purchase decision – and 40% of those auto buyers say that reputation and reviews are the most crucial factors in vehicle purchase.
Automotive Stat Pack
- 84% of people expect brands to create content (Havas Group).
- 95% of vehicle buyers use digital as a source of information. Since auto purchases are highly considered, the vast majority of vehicle shoppers use online resources to find answers to their questions (source: Google).
- 2x as many automotive consumers start their research online versus at a dealer. Today’s automotive consumers are informed and knowledgeable since they self-educate online before they ever make contact with a dealer (source: Google).
- CMOs took as much as $2.9 billion away from interruptive display advertising last year in favor of content (source: Forrester).
- The US is expected to reach $12.73 billion in automotive digital ad spend in 2019. This is a 13% projected increase in US automotive digital ad spend from 2018 (source: eMarketer).
- The average cost for an automotive lead is $205. This figure is on an upward trend, as auto industry ad spend continues to rise (source: Lion Tree Group).
The Role of Artificial Intelligence (AI) in Content Amplification
AI helps augment human capabilities and knowledge. When it comes to large volumes of data, AI can manage it more efficiently, better, faster and stronger than people. The auto industry is at the forefront of adoption in the advertising space. Below shows some stark contrasts with and without AI.
How Does the Auto Industry Perform Using AI with Content Amplification?
The data below represents millions of dollars in ad spend from the auto industry over the course of 18 months. These benchmarks are good to compare with other programmatic programs in the auto industry.
|Industry||Standard CTR||Median CTR||Mean CTR||Standard Engagement Rate||Median Engagement Rate|
|Mean Engagement Rate||Standard Avg. Engaged Time||Median Avg. Engaged Time||Mean Avg. Engaged Time|
Which Type of Auto Industry Headlines Drive the Most Content Engagement Post-Click?
The data below was gathered from the top 200 native and social ad unit headlines from 2018. Over 40 networks were included in this study. It juxtaposes the average engagement rate and the average engaged time (in seconds) by category. Post-click, an engagement is only counted if the user spends 15 or more seconds in the active window with the content.
The five categories defined below are a variation of BuzzSumo’s methodology for organizing articles. The below categories are for native and social ad unit headlines and not the actual title of an article. However, often they can be the same.
- Article – the catch-all category for native ad unit headlines that don’t fit into any other category
- Brand Mention – any category of headline that includes a brand mention, which supersedes the other categories
- How-To – any headline communicating the content will show how to do something
- What Post – any headline starting with the word what
- Why Post – any headline communicating the content will explain “why” to do something
|Avg. Engagement Rate by Category||Avg. Engaged Time by Category|
|Brand Mention:||71%||51 Seconds|
|What Post:||75%||60 Seconds|
|Why Post:||74%||66 Seconds|
The auto industry is now using AI to optimize in an engagement-based economy. It’s content engagement that advertisers want. With no correlation between clicks and engagement why do we still have click and impression-based pricing schemes? AI can eliminate CPMs and CPCs. It’s the use of AI, as described above, that can help eliminate waste in paid media and deliver the greatest efficiency for the auto industry.