Importance of Video for Auto Sales

By Tom Gallaher "The Videopreneur"

Buckle your seatbelts, marketers. One of the largest generations in American history is moving into their prime spending years, bringing with them a drastically different set of habits and expectations than those before them. The Millennial generation, as well as other generations in today’s economy, do not rely on the same traditional methods businesses have been using for decades to gather information on potential purchases. They are mobile, they want visuals, and they expect to be dazzled. It is no longer enough to offer up a pamphlet and presentation; video is a huge part of business and will only continue to be more important as consumers’ reliance on technology grows. Currently, having just one video on a landing page increases conversion rates by 80%. There is no question that video on a website or a mobile app boosts user engagement immensely and keeps people sharing the videos and converting more potential customers.

           As of now, 65% of global marketers plan to spend more on video advertisement because they know it is not only the future, but the present as well. The automotive industry is one of the strongest examples of the phenomenon of video marketing. 43% of car shoppers say that watching online videos gives them more information about cars they may not have thought about otherwise. 49% of car buyers went to a car dealership after viewing a video ad. Video is imperative for the auto industry because not only are consumers able to watch how the car moves and see the features the vehicle offers; they can imagine themselves driving it. The potential car purchase becomes a reality for a moment while watching the video, and it spurs them to act more powerfully than traditional marketing ever could. 

           At the most recent Digital Dealer Conference and Exposition, speakers from Google Inc., Facebook, and Twitter came together to discuss the increasing significance of video, mobile optimization, technology, etc. in automotive sales. Peter Leto, the Head of Auto Retail at Google, mentioned that by the year 2020, 75 million mobile devices will be connected both to the Internet and to each other. Thus, the potential for video and image sharing will have increased even more and it will be even more imperative for businesses to factor the use of technology in consumer habits and buying decisions. The traditional sales methods are not necessarily obsolete, but must be used in conjunction with more high-tech ventures such as high-quality videos that costumers can view anywhere and share with one another. Such a high volume of interconnected devices would surely increase sales for a company that knew how to utilize them.

           At the conference, Leto also showed a graph displaying consumer habits during the process of considering and researching a potential purchase. The trend displayed was that dealer websites are second only to manufacturer websites when it comes to resources in the buying process. This statistic shows just how instrumental a good website is in converting a potential buyer to a returning customer. Consumers want to know they are in good, professional hands and they want a connection with their auto dealers. They want as much information as possible, since automotive purchases are an extensive decision making purchase and require time, consideration and pragmatism. That is where the Internet comes in. Dealer websites are four times more likely to convert a customer from mere interest to a physical lead. For the chances of that happening to increase even more, the websites must be created with customer interests in mind and should contain video to capture consumer attention and offer information in a stimulating and interesting manner. Visual aids increase viewer attention significantly and enhance memory of whatever was viewed, meaning that a dealer website with video will stick out in a customer’s mind for many reasons and make that customer more likely to return.

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