Global auto sales are at an all-time high, driverless cars are on the horizon, and innovations in hybrid and electric vehicles mean a future for an industry embattled by fuel and emissions crises.
So the forecast may be sunny for the motoring sector, but do sales growth and technological innovation equal an upswing for auto events in this increasingly complex market?
Well, there is a definite air of optimism and excitement to the industry, according to agency Line Up’s Managing Director Rob Leach. After almost a decade working with clients including Volvo, Leach believes that auto companies have always had to work harder than most to differentiate themselves in a crowded market, whether through tough times or boom.
“The automotive market has been one of the most challenged, but good car companies have continued through the tougher times to communicate the launch of their vehicles – they have to,” he says. “The challenge is how to do it more efficiently, creatively, cut costs and up quality.”
With consumers ever-more savvy, the need to deliver events spanning dealer training, to press launches, incentives, and experiential activity can have a serious knock-on effect on sales figures.
KPMG’s global automotive survey 2014 highlights 73 per cent of carmakers see marketing and brand management as a top investment area. This push for greater brand engagement rings true for BI Worldwide’s Director of Events David Battley, who says “a lot of brands are trying to broaden their appeal”.
“There is a greater diversity in the industry than ever, whether type of vehicle or mode of engine, so the market is an increasingly complex one,” he adds.
The agency, which works with clients including the world’s largest carmaker Toyota, Lexus, and Subaru and Isuzu distributor the IM Group, has seen event activity return to pre-recession levels, and notes expansion in the incentives market, as companies seek to reward top sellers.
“Automotive accounts for 40 per cent of our turnover, and that pans out on a global perspective,” says Battley. “At the lowest point, around 2009-10, that dipped to around 20 per cent.”
Battley also notes that pitches have taken on a more global slant, with European and international agencies all invited to pitch.
“Brands are often operating across multi-national markets,” says Lodestar MD Phil Watton.
The key for events is accessibility, according to Adding Value Director of Strategy Chris Clarke, although this can depend on the brand, argues Battley, who says that a “definite quest to become more creative” means some automotive companies are willing to use untested, ‘new’ destinations, or book venues ahead of their opening, in a bid to stand out.
Training is a big driver of activity at Lodestar, which counts Fiat, Nissan, Jeep and Chrysler among its stable of auto clients. Watton explains: “Training is an area where clients are spending – they need to ensure all the money invested in marketing is communicated through dealerships. The dealer’s job is more about selling themselves and the brand, than the product. That is a huge challenge.”
One brand taking the bull by the horns is Peugeot, which recently ran a 13-day training programme to ensure familiarity with the new iCockpit technology in its 308 model. Mercedes has also recognised the significance of strong training, and plans to immerse 5,000 of its US dealers in a two-day programme this summer focusing on brand culture.
Live & digital
Meanwhile, combining live events with a sustained digital presence is key, and manufacturers including Ford have capitalised on the power of social media to extend brand messages beyond an event.
Ford’s Go Further campaign was launched to 2,000 dealers and 300 press in 2012 in Amsterdam with the aim of simplifying its global offering, and saw success through the delegate response which generated 1,500 Tweets, and 9,599 Facebook likes. The brand took its mantra a step further in December last year, with a second event launching its popular Mustang model to European markets (see case study, left).
The importance of event innovation is never far from the mind of Ford of Europe’s Autoshow and Events Manager Liz Pelling, who tells CMW that the “biggest change is the digital revolution”.
Pelling adds that Ford has also been ‘branching out’ into non-traditional auto events, attending shows such as Mobile World Congress, in Barcelona, and IFA, Europe’s biggest technology show.
“It is about thinking of different ways of reaching audiences,” she says. “We have to demonstrate ROI, like everyone.”
While ROI can ultimately be assessed in car sales, many agencies and clients are taking a more pragmatic, and timely, route to measurement.
Both TRO and Imagination agencies have been using RFID (radio frequency identification) technology to tackle the issue of ROI, and Imagination’s Senior Creative Strategist Katie Streten explains: “Digital technology makes events more measurable, more shareable, and ultimately creates more value for both users and clients.”
She adds that at the 2012 North American International Auto Show, the agency used RFID technology to create touch-points that recognised and addressed visitors by name, a first for the auto sector. SMART and Nissan have followed this trend to “track robust and objective metrics”.
TRO EMEA Chief Operating Officer Michael Wyrley-Birch agrees: “This is not only about creating content for amplification pre and post event, but it is also a great way to communicate the back story about a product.”
But what of the traditional national dealer conference? Are its days numbered?
“Not at all,” says Smyle Managing Director Rick Stainton, who believes the key is in adapting to the needs of the individual brand.
“We are finding the whole spectrum of events, and have noticed in some cases that budgets are slightly better,” he says. “The relationship is critical, however, as what is creative, appropriate and on-brand for one manufacturer, may be anathema for another.”
The ongoing need to communicate with dealers, who may be selling more than one brand, means conferences remain buoyant for the auto events sector.
And still they come
Delegate numbers show little sign of declining as manufacturers underline the value of communicating with their representatives on the ground. Skoda worked with Vok Dams agency on a 4,500-strong dealer event in Seville, while Land Rover and P&MM took 7,000 delegates to Marrakech to test drive the new Range Rover in 2013.
However, it can depend on the brand, says Adding Value’s Clarke. “Some marques prefer larger events making their budget and communication strategy go further, while others prefer to engage with the audience on an almost personal level.”
He adds that “2014/2015 is a busy period for new models, especially incorporating eco technology, therefore launch activity is definitely up”.
Indeed, Peugeot has recently appointed Adding Value to run its 1,000-delegate national business meeting and aftersales conference this summer, after the brand’s Dealer Events and Incentives Manager Louise Dowling highlighted the ‘inspiring and emotionally engaging’ creative approach of the agency.
Motivation is also set to be a priority for Peugeot, while conference and launch events are “even more important than ever”.
This is a trend that reverberates through the entire automotive industry, with 2014 launches planned for manufacturers including Nissan, Mazda, Porsche, BMW and Mercedes-Benz.
Not forgetting the promise of an ‘autonomous’ car from Volvo, with 100 of the driverless vehicles set to hit the streets of Gothenburg in Sweden by 2017.
So, while the traditional events continue apace, the automotive industry’s growth into new markets and technologies can only mean one thing: events are as thought-provoking and innovative as the cars themselves.
This was first published in issue 75 of CMW. Any comments? Email cmw@mashmedia.net
