The Visual and Intelligent Edge: Video and AI Will Drive the Future of Automotive Engagement

The automotive industry is increasingly shaped by dynamic digital trends, with video emerging as a critical medium for engaging consumers and Artificial Intelligence (AI) poised to revolutionize various aspects of the business. C-4 Analytics’ Quarterly Consumer Intent Survey (QCIS) reveals how video and AI are poised to redefine automotive marketing today and into the future.

Video’s Central Role in Automotive Marketing

Video has transitioned from a supplementary tool to a cornerstone of effective automotive marketing strategies. Consumers today are highly visual, and video offers a compelling way to showcase vehicles, convey brand messaging, and guide them through the purchase journey.

A comprehensive video strategy spans the entire marketing funnel, from initial brand awareness to driving consideration and ultimately, conversions. This involves utilizing video to introduce the brand and its values, highlight vehicle features and benefits, and provide targeted offers to those further down the buying path. This approach is key to success for modern dealers, as our QCIS offers fascinating insights into consumers’ video preferences and purchase drivers:

• Short and Engaging Content: In today’s fast-paced digital environment, brevity and engagement are key to effective automotive video advertising. Consumers prefer automotive ads that are 15 seconds or less and are compelling enough to capture their attention quickly.
• Influence on Purchase Decisions: An impressive 55% of consumers report being influenced to research or purchase a vehicle after seeing an ad on a streaming platform. This underscores the power of video in driving action.
• Dynamic Inventory Integration: Innovative video strategies incorporate dynamic inventory ads, which can automatically display specific vehicle inventory and pricing relevant to the viewer based on factors like location or behavior. This ensures that consumers see offers on vehicles that are likely to interest them.
• Consistent Cross-Platform Messaging: For maximum impact, video messaging should be consistent across all digital channels, including search, social media, and streaming platforms. This reinforces the brand message and increases frequency of exposure.
• Multi-Screen Engagement: Today’s consumers are often engaged with multiple screens simultaneously. In fact, 78% use phones while streaming, making dual-screen strategies essential for capturing engaged, multi-tasking audiences. Video campaigns should be optimized for various devices to reach consumers wherever they are.

AI’s Growing Influence in Automotive

While traditional search engines still hold a strong preference among consumers—51% prefer them for researching large purchases, per our QCIS—a new generation is increasingly adopting AI search engines. This signals a significant shift that dealerships need to be aware of and prepare for. Key factors for dealers to consider include: 

• AI for Creative Customization: AI tools are emerging that can assist with customizing marketing messages based on where a consumer is in the buying funnel. This allows for more personalized and effective communication.
• AI in Pricing and Communication: AI offers promising applications in areas such as pricing intelligence, consumer communication, and internal dealership education. AI can analyze vast amounts of data to optimize pricing strategies, personalize customer interactions, and enhance employee training.
• AI Search and SEO: As AI search engines like Perplexity and those integrated into platforms like Bing and Google gain traction, having a comprehensive SEO strategy becomes even more critical. Dealers and their SEO partners should focus on understanding how to appear in these new search environments and creating relevant content.
• AI for Efficiency and Customer Focus: AI has the potential to automate systems and marketing tasks, freeing up dealership staff to focus on what truly matters: providing excellent experiences and attending to customers.

Both video and AI represent powerful forces shaping the future of automotive engagement. Video provides the visual storytelling necessary to capture consumer attention and drive purchase consideration, while AI offers the intelligence and automation to personalize interactions, optimize operations, and prepare for the evolving search landscape. By strategically embracing these technologies, automotive dealerships can position themselves for success in the years to come.

Key Video and AI Data Points

• 15 Seconds: Consumers prefer automotive ads that are 15 seconds or less, emphasizing the need for concise, engaging video content.
  
• 78% Multi-Screen Usage: A significant portion of consumers uses phones while streaming, highlighting the importance of dual-screen marketing strategies.
  
• 51% Traditional Search Preference: While AI search is growing, traditional search remains dominant for significant consumer decisions like buying a car.
  
• 100% In-Market Audiences: Data-driven strategies have improved audience targeting precision, with 100% of potential customers now in-market.
• 29% Price Influence: Price and financing remain the most influential ad content for 29% of consumers, underscoring the importance of affordability in automotive advertising.