How automakers can 'retarget' to secure online deals

The automotive industry has traditionally lagged behind other sectors in fully embracing the potential of e-commerce.

While 37 percent of British consumers frequently buy clothes and shoes online, only plan to purchase their next car through an online platform.

Additionally, 39 percent of buyers are unsure if they would purchase a vehicle online, highlighting the significant gap between online research and purchase behavior. This indicates a need for a strong retargeting strategy to bridge that gap.

Retargeting is crucial because, although most consumers aren't ready to buy cars online, they heavily rely on the internet for research. Our research shows that 92 percent of car buyers conduct research online, and digital leads have a 30 percent higher close rate.

By implementing targeted digital marketing efforts, automotive businesses can effectively guide buyers through the online research phase, building trust and pushing them closer to a final purchase decision.

Buying a vehicle is a significant investment, often involving more complex decision-making compared with everyday purchases. Buyers need reassurance about the car and the dealer before committing, making the stakes much higher than buying a clothing item.

Navigating the buying journey

The car-buying process involves multiple stages, with many potential customers undecided on a brand or model when they begin. Manufacturer websites often serve as their first point of contact, providing a valuable opportunity for automakers to retarget customers and influence their decisions.

To capitalize on this opportunity, automotive companies should deploy tailored campaigns based on users' online behavior, such as visiting specific vehicle pages, downloading brochures or requesting quotes.

Widely leveraged marketing

Utilizing contextual and behavioral data allows manufacturers to identify where a user is in the buying funnel in real time and serve content that aligns with their current needs. For example, users in the early browsing phase might be shown aspirational video content that sparks interest.

Although 61 percent of car buyers say they are willing to purchase online, and 18 percent would do so faster if there were an option, there is still a significant gap between willingness and action.

This highlights the importance of strategically delivering the right content at the right time, helping guide potential buyers from consideration to conversion.

Success in automotive advertising isn't just about completed sales; it's about understanding the role of micro-conversions, such as brochure downloads, quote requests and virtual showroom interactions. These actions provide insight into the buyer's journey and the effectiveness of each marketing touchpoint.

Data-driven targeting

Maximizing return on advertising spend is paramount, especially in a competitive market. Vehicle manufacturers must move beyond traditional demographic-based targeting and focus on behavior-driven strategies.

For example, if 65 percent of women are likely to purchase a particular model of small hatchback, we might assume that any visitor to that model's website is female and target that user with gender-centric marketing materials.

This approach would mean wasting our efforts 35 percent of the time and in today's data-driven landscape, this level of inefficiency is simply not good enough.

Deep learning-powered campaigns represent a substantial leap forward from machine learning, capable of making far more calculations to refine ad delivery, by implementing user data.

For example, for every 80 calculations made by a machine learning engine, deep learning will make 200,000. By setting key performance indicators (KPIs) and allowing an algorithm to manage the details, automakers can ensure that the right content reaches the right customers, letting the technology take the wheel.

The path forward

The lesson for automakers? Embracing digital strategies is no longer optional — it's a necessity.

By leveraging AI-powered retargeting and focusing on micro-conversions, brands can enhance their digital marketing efforts, drive better results, and turn more browsers into buyers.

The companies that prioritize these strategies will be best positioned to thrive in an increasingly digital marketplace.