The automotive industry is changing faster than a Tesla on Autopilot. Gone are the days of relying solely on flashy dealership commercials and print ads. Today, the roar of the crowd comes from a different engine – the roar of millions of TikTok users scrolling through a never-ending stream of videos. TikTok, the social media giant known for its short-form video content, is making waves in the automotive marketing world. Is it just another fad, or does this platform hold real potential for car manufacturers and dealerships? A new whitepaper from TikTok outlines the surprising benefits for automotive marketers, shedding light on how to effectively tap into this dynamic platform and connect with a new generation of car buyers.
TikTok’s Cultural Impact & The Shifting Automotive Buyer
Beyond Car Videos
While the app’s content may not seemingly have a direct link to auto buyers, there are various reasons why TikTok should be a consideration for car dealers, including connection to key auto buyer segments, and key influencers of the same. Basically, TikTok is a powerful cultural force, with a largely affluent userbase, and that combination can indeed be a strong driver for all kinds of purchase activity, including cars, which is why these latest insights could be of value for auto dealers.
Popcorn Thinking and the Non-Linear Buyer
As explained by TikTok: “The digital transformation has led to ‘popcorn thinking,’ which has indirectly shaped a non-linear journey. In this dynamic approach, potential customers navigate circular loops, freely entering or exiting any phase at their discretion. Moreover, customer journeys extend beyond the car purchase phase, reaching into post-purchase considerations such as car servicing and maintenance offers. A brand’s failure to fulfil its promises in this post-purchase phase can hurt brand equity seven times more than a positive encounter can benefit it, due to the impact of digital word-of-mouth.”
Brand Building and Post-Purchase Loyalty
This is where TikTok, with its huge cultural impact, can have a significant effect, helping to both build and break brands, based on their cultural fit. Brands can facilitate this by engaging with this audience, while maintaining customer care can also play a larger part in fueling this process.
TikTok’s Performance: Data-Driven Insights for Automotive Marketers
Marketing Mix Modeling Magic
The main crux of TikTok’s report, however, hinges on a series of Marketing Mix Modeling (MMM) studies, which cover three automotive brands (spanning luxury, premium, and mass market segments). The results of this research shows that:
- TikTok drove 9.4% of all inquiries driven by Digital media – Media drove 29% of total inquiries across the three brands, with digital channels contributing 22.6%, and TikTok alone accounting for 9.4% of those, despite its relatively low share of media spend.
- TikTok outperformed other digital channels in driving inquiries – TikTok proved very potent when it came to driving inquiries. Benchmarked to online video, TikTok delivered 90% higher ROI, and 12% higher ROI than other digital channels excluding paid search.
- Full-funnel TikTok campaigns drove more inquiries and boosted efficiency – Full-funnel TikTok campaigns drove 14% more inquiries . Allocating 25–40% of budget to upper funnel and running campaigns for 10+ weeks boosted efficiency by 62%.
The report effectively acts as a promotional vehicle for both TikTok as an auto advertising platform, and for Marketing Mix Modeling as an ad measurement approach, as it provides more insight into the actual impact of spend on sales outcomes. And as you can see, TikTok does contribute a significant amount of overall promotional value, based on the data provided, which again suggests that TikTok may well drive more auto purchase behavior than you might think.
Full-Funnel Strategies: Maximizing Automotive Marketing Results on TikTok
TikTok’s latest whitepaper, conducted in partnership with AI Futtaim Automotive and Annalect, has shed light on the effectiveness of long-term TikTok campaigns and budget allocation for maximizing automotive marketing results. The report highlights the importance of full-funnel strategies, which involve allocating a specific budget to upper-funnel activities and running campaigns for an extended period.
According to the report, allocating 25-40% of the budget to upper-funnel activities and running campaigns for 10+ weeks boosted efficiency by 62%. This suggests that a well-planned and executed full-funnel strategy can lead to better results and a higher return on investment (ROI) for automotive marketers on TikTok.
The report also emphasizes the importance of measuring the impact of spend on sales outcomes. By using Marketing Mix Modeling (MMM) studies, the report provides valuable insights into the actual impact of TikTok campaigns on automotive sales.
Benefits of Full-Funnel Strategies on TikTok
- Improved efficiency: Full-funnel TikTok campaigns drove 14% more inquiries and boosted efficiency by 62%.
- Higher ROI: TikTok delivered 90% higher ROI than online video and 12% higher ROI than other digital channels excluding paid search.
- Increased brand awareness: Full-funnel strategies help to build brand awareness and establish a strong presence on TikTok.
By adopting a full-funnel approach, automotive marketers can create a robust marketing strategy that drives engagement, conversions, and ultimately, sales on TikTok.
TikTok vs. Other Platforms: A Comparison of Performance
TikTok’s whitepaper also compares its performance to other digital advertising channels in driving automotive inquiries. The results suggest that TikTok outperformed other digital channels in driving inquiries, with a 90% higher ROI than online video and 12% higher ROI than other digital channels excluding paid search.
According to the report, TikTok drove 9.4% of all inquiries driven by digital media, despite its relatively low share of media spend. This suggests that TikTok is a highly effective channel for driving automotive inquiries and should be considered as part of a broader marketing strategy.
Comparison of TikTok’s Performance to Other Digital Channels
- TikTok delivered 90% higher ROI than online video.
- TikTok delivered 12% higher ROI than other digital channels excluding paid search.
- TikTok drove 9.4% of all inquiries driven by digital media.
The report highlights the importance of considering TikTok as part of a broader marketing strategy, alongside other digital channels, to drive maximum ROI and engagement.
Practical Applications and Future Trends in Automotive Advertising on TikTok
TikTok’s whitepaper provides valuable insights into the practical applications and future trends in automotive advertising on the platform. The report highlights the importance of leveraging influencer marketing, TikTok’s automotive toolkit, and the future of automotive advertising on TikTok.
TikTok’s Automotive Toolkit
TikTok has launched an updated automotive ad options earlier this year, along with a dedicated mini-site for auto sellers. The report highlights the importance of utilizing these tools to drive maximum ROI and engagement.
The report emphasizes the importance of understanding the user base and leveraging the right channels to reach the target audience. By using TikTok’s automotive toolkit, automotive marketers can create targeted campaigns that drive engagement and conversions.
Leveraging Influencer Marketing on TikTok
The report highlights the importance of leveraging influencer marketing on TikTok to drive maximum ROI and engagement. By partnering with influencers who have a strong following in the automotive sector, automotive marketers can create targeted campaigns that drive engagement and conversions.
The report emphasizes the importance of understanding the influencer’s reach, relevance, and resonance to ensure that the campaign is effective in driving maximum ROI and engagement.
The Future of Automotive Advertising on TikTok
The report provides valuable insights into the future trends and opportunities for automotive brands on TikTok. The report highlights the importance of staying ahead of the curve and embracing new technologies and platforms to drive maximum ROI and engagement.
The report emphasizes the importance of understanding the user base and leveraging the right channels to reach the target audience. By staying ahead of the curve, automotive marketers can create targeted campaigns that drive engagement and conversions on TikTok.
Conclusion
TikTok’s new whitepaper paints a compelling picture of the evolving automotive marketing landscape. The platform’s potential for reaching younger, digitally-native consumers is undeniable, and its emphasis on short-form, engaging video content aligns perfectly with current consumer preferences. The whitepaper highlights TikTok’s unique strengths, from its powerful algorithm and diverse content formats to its robust creator community and targeted advertising capabilities. By embracing these tools, automotive marketers can tap into a highly receptive audience and build meaningful connections that transcend traditional advertising paradigms.
The implications of TikTok’s rise in the automotive sector are far-reaching. As the platform continues to gain traction, we can expect to see a shift in how car brands communicate with consumers. Expect to see more innovative campaigns, a greater focus on authenticity and user-generated content, and a blurring of the lines between entertainment and marketing. This evolution presents both challenges and opportunities for automotive marketers.
Those who embrace the platform’s dynamism and adapt their strategies accordingly will be well-positioned to thrive in this exciting new era. The question is, are you ready to rewrite the rules of automotive marketing on TikTok?