MORRISVILLE, N.C.--(BUSINESS WIRE)--Netsertive, a digital marketing intelligence company that brings brands and local businesses together to win local customers, today released “Kick Automotive Co-Op Into High Gear: Optimizing OEM Dollars for Video and Mobile Marketing” in partnership with marketing research firm Borrell Associates. The report explores the evolving role of digital media in co-op advertising and includes insights gathered from top automotive manufacturers and over 50 automotive dealers nationwide. A copy of the full report is available for download here.
“While the automotive industry is known as an early adopter of leading-edge digital marketing trends, our research found that many manufacturers and their local dealers aren’t fully utilizing today’s most impactful online media – mobile and digital video,” said Brendan Morrissey, CEO and co-founder, Netsertive. “Despite the fact that dealers depend on these channels to drive customers through their doors, the majority of manufacturers’ co-op programs don’t fully support them, representing a huge missed opportunity for automotive brands.”
“There’s a clear opportunity here for OEMs to learn from dealers, and vice-versa, to strengthen marketing plans,” said Gordon Borrell, CEO, Borrell Associates. “What surprised me – and I’m sure will surprise OEMs – is that more dealers now view TV commercials as less effective than digital video advertising or TV and digital combined. I think it’s also curious that 90 percent of Tier II dollars continue to be spent with traditional media, which is wildly out of step with where car buyers are looking.”
Key survey findings include:
- Automotive co-op advertising is thriving – accounting for more than 50 percent of dealer marketing budgets – but most aren’t satisfied with these programs. While automotive co-op advertising programs boast almost 100 percent utilization by dealers, 65 percent describe their relationship with manufacturers as “complex,” while 43 percent consider it “frustrating.” Too many rules and restrictions and too much paperwork are dealers’ chief gripes.
- Dealers are driving the automotive industry’s digital transformation. A full 90 percent of dealers buy online media via co-op programs, focusing primarily on paid search (77 percent), search and display/targeted display (54 percent) and search re-targeting (52 percent). Conversely, automotive manufacturers report that they still favor traditional media for promoting their brands – television, in particular – over digital channels.
- Mobile advertising is underutilized in automotive co-op programs. While two-thirds (74 percent) of dealers feel mobile advertising is important to their co-op marketing efforts and 57 percent place mobile media among their top three most effective marketing strategies, less than a third (29 percent) of manufacturers provide co-op support of mobile.
- Mobile adoption is high among dealers, but strategic understanding is needed. A full 65 percent of dealers currently utilize mobile marketing, mostly in the form of mobile-optimized websites and mobile search advertising (57 percent). Still, 68 percent of dealers consider their use and knowledge of mobile advertising to be competent or neutral, signaling a need for further education.
- Auto manufacturers are missing an opportunity in digital video. While 61 percent of dealers use video in online advertisements, only 34 percent of manufacturers support the use of digital video with co-op funds.
- Traditional broadcast spend is declining in favor of digital video. One-third of dealers (31 percent) expect to decrease their spend on traditional television advertising in favor of digital video, while only 15 percent expect to spend more on broadcast television next year.
- Manufacturers are missing a major Millennial targeting opportunity in local markets. While 52 percent of dealers report that sales to Millennials comprised up to 40 percent of 2015 sales, an increase over the previous year, only 20 percent of manufacturers currently offer co-op advertising aimed at targeting this group.
For more information regarding this report or Netsertive’s digital marketing intelligence solutions, please visit: http://www.netsertive.com/
About This Report
Borrell Associates administered a project focusing on cooperative advertising. There were two sectors of the project; one geared toward automotive groups and one geared toward non-automotive cooperative advertising. Both sectors contained two parts focusing on the “givers,” those that provide it, and “getters,” those that receive it. Three surveys (40-50 respondents each) were conducted and two sections of telephone interviews. The series began in May of 2015 through August 2015. Borrell partnered with various groups focused on cooperative advertising. Respondents entering their contact information at the end of the survey were entered in a drawing for a chance to win one of two Apple Watches.
About Netsertive
Netsertive’s digital marketing intelligence platform empowers brands and local businesses to work together to win local customers. The company’s two complementary solutions, MarketWise™ for Brands and StreetWise™ for Local Businesses, enable cooperative marketing and resource sharing between brands and their local business partners. Both are powered by Netsertive's proprietary learning engine, which combines the company's deep industry experience with the collective intelligence of its extensive network of automotive, IT technology, major appliance, furniture, consumer electronics, dental and eye care clients to deliver unprecedented campaign speed, performance and value. An award-winning marketing technology company and Google Premier SMB Partner, Netsertive drives local marketing success from campaign enablement through scaled, local execution. Additionally, Netsertive helps brands with their co-op marketing to ensure localized brand compliance, seamless campaign execution and reimbursement tracking for local partners.
Founded in 2009 and based in Research Triangle Park, North Carolina, the company has a history of rapid growth, a world-class team and the strength of venture capital funding from top firms RRE Ventures, Harbert Venture Partners and Greycroft Partners. Netsertive was named 2014 Software Company of the Year by North Carolina Technology Association and was named among Inc. Magazine’s 500 fastest-growing private companies two years in a row. Additional information about Netsertive is available at www.netsertive.com.
About Borrell Associates
As a data-driven company, Borrell Associates is the expert in local advertising. Borrell Associates is the leader in tracking and forecasting local ad spending across any market in the U.S., Canada or the U.K., down to the county or province level. Borrell helps clients gauge the levels of advertising and marketing expenditures in their markets by any type of business. Through detailed ad-spending data, fact-based consultation and training, Borrell Associates helps media companies increase their market share and matters adjust budgets. Additional information about Borrell is available at www.borrellassociates.com.
