Automotive social media marketing is expected to grow significantly in 2011 and beyond. By 2012, 88% of automotive marketers will use social media. Four in five car companies will use social media tools in 2011, and even more in 2012. Social media budgets are also expected to increase substantially, with more than 8 in 10 car companies planning increases in 2011. Measurement of social media efforts will move beyond superficial brand metrics to include actual sales conversions. Location-based services and mobile usage of social networks will also more than double between 2010 and 2015.

1. JANUARY 20, 2011
Automotive Social
Media Marketing
Outlook for 2011
Presented by:
Debra Aho Williamson Sponsored by:
Principal Analyst
@DebraWilliamson

2. Trend #1
By 2012, 88% of
Automotive
Marketers Will
Use Social Media

3. Four in five car companies will use social
media tools in 2011; even more in 2012
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4. Changing automotive consumer usage
patterns make social media a must
 Facebook is still growing. It’s a top site around the
world and the fourth largest in the US (comScore).
 Worldwide usage is rising. Six out of 10 frequent
internet users worldwide have a social network profile (UM).
 Brand interactions are increasing. Coupons,
deals and discounts are encouraging consumers to engage
with marketers.
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5. There’s still room for growth
36% 33% 15%

6. However,
not every
dealer or car
company has
adopted
social media
at the same
rate — and
some never
will

7. Trend #2
Social Media
Gets Its Share of
Automotive
Marketing Dollars

8. More than 8 in 10 car companies plan
social media spending increases in 2011
Twitter: @eMarketer @DebraWilliamson

9. Trend #3
Social Media Will
Be Integrated into
Automotive
Marketing Planning

10. The more
experienced
companies
get, the
more they
realize the
need to
integrate
social media

11. Marketing
and PR are
much further
along than
other
corporate
departments
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12. How Intel and GM manage social media
“Intel has been an early adopter in social “The brand teams have never budgeted their
media, but we haven’t funded it as well as own line items [for social media marketing].
many of us would like. Social media is not Now, marketing rightfully is becoming more
free. We don’t want to tap into our paid involved in the planning and budgeting, and
media budget. We want to separate those also the strategic side of it. The brands are
two while driving deeper integration between now baking social into their overall marketing
paid and social media.” budget.”
—eMarketer interview with Kathleen Malone, —eMarketer interview with Christopher
senior manager and social media strategist Barger, global director of social media
Twitter: @eMarketer @DebraWilliamson

13. Trend #4
Offline Ad Budgets
Will Be Affected

14. As marketers
funnel more
funds toward
social media,
spending on
traditional
forms of
advertising
is falling
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15. Social media will rival email marketing
for budget increases
Twitter: @eMarketer @DebraWilliamson

16. Pepto Shelves Traditional Media
• July 2010: Cut traditional media
spending to 10%-20% of budget
• Created Facebook page, Twitter
feed
• Dec. 2010: Posted YouTube videos
starring ‘Hangover’ actor Ken Jeong

17. What Pepto Achieved
• 200% increase in online buzz year-
over-year
• Sales volume up 7% in July,
August, November
• 83,000 Facebook “likes” (but only
284 Twitter followers)
“The best results we’ve seen in years.”—P&G

18. Trend #5
Facebook is
Running Away
With the Display
Ad Market (or is it?)

19. Facebook
now gets
nearly one-
quarter of all
display ad
impressions
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20. But social media will also jockey with
search for ad dollars
Twitter: @eMarketer @DebraWilliamson

21. So keep your eye on this: Is Facebook
taking search dollars or display dollars?

22. Trend #6
Automotive
Consumer Usage
of Social Media
Is Still Rising

23. Across all
generations,
more car
buyers than
ever are
using social
networks

24. And usage frequency is rising, too

25. Some demographic trends
 75% of teens use Facebook. By age 17, 86% do
(Ipsos Public Affairs).
 85% of online users ages 45-54 use some
form of social media, plus 79% of the 55+ group
(Harris Interactive).
 If you are Hispanic, black and/or female you
are more likely to use Twitter. But overall, only
8% of online Americans do (Pew).
Twitter: @eMarketer @DebraWilliamson

26. Trend #7
“Like” Is Only the
Beginning of the
Automotive Brand
Relationship

27. “Liking”
something is
easy — and
it’s become
very popular
Twitter: #eMwebinar

28. Some stats to
• Facebook serves over 2 billion “like” buttons every day
• Over 2 million websites have incorporated the functionality
• “Like” buttons that incorporate faces of friends are up to 10x
more likely to be clicked
Source: http://www.scribd.com/doc/45301351/Building-your-Social-Presence-Across-the-Web-Social-Plugins-and-APIs-Simon-Cross-Le-Web-Workshop-12-9-10

29. But is it too
easy to click
the “like”
button? And
does it
create a
sustained
customer
relationship
for dealers
and car
companies?

30. Strategies for taking automotive
consumers from “like” to love
 Quality may be more important than quantity.
Use your “likes” wisely; aim to drive more engagement, not
just collect fans.
 Ask why. Always strive to learn more: Why was some
content “liked” and some not? What does “like” mean to YOUR
consumers?
 Don’t assume that “like” lasts forever. It’s an
invitation to get closer, but it’s not an open door.
Twitter: @eMarketer @DebraWilliamson

31. Trend #8
Measurement Will
Move Beyond
Superficial OEM
Brand Metrics

33. Automotive Brand metrics are still the
most common things to measure

34. Although
budgets are
rising, the
ROI question
is still not
answered
Twitter: #eMwebinar

35. Yes, Virginia, social media CAN deliver
actual car buying customers
 There’s no excuse for not measuring.
47% of marketers aren’t even trying. What?!? (Econsultancy).
 36% of marketers have used social media to
convert a customer from first contact to sale.
Another 25% are getting close (R2integrated).
 Are we looking at measurement the wrong way?
A provocative viewpoint: Instead of tracking response to what you
do in social media, measure what consumers do and fit your
marketing into that.*
*Donna Hoffman & Marek Fodor, MIT Sloan Management Review, October 2010
Twitter: @eMarketer @DebraWilliamson

36. Trend #9
Location Is More
Than a Check-In

37. Mobile
social
network
usage will
more than
double
between
2010 and
2015

38. Location-
based
services
have surged
but aren’t
yet
mainstream

39. Checking in
motivated
by prospect
of value
exchange:
obtaining
useful
information
and finding
deals
Twitter: #eMwebinar

40. Marketer
spending
around
location is
starting to
ramp up

41. Trend #10
Coming up:
A preview of eMarketer’s
latest forecast for social
network ad spending in the
US and around the world.

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Engagement
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Conversion
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46. Trend #10
Social Networks
Will Grab 11% of
US Online Ad
Spending in 2011

47. US social network ad spending
expected to rise 55% this year
11% of total
US online
spending
Twitter: @eMarketer @DebraWilliamson

48. Worldwide ad spending on Facebook to
rise more than $2 billion this year
Facebook’s Power:
• Will represent 7.7% of US
online ad spending in 2011
• Will control 68% of
worldwide social network
ad spending in 2011
• Performance marketers
will make up as much as
60% of ad revenues
Twitter: #eMwebinar

49. Social Media Outlook for 2011
Questions & Answers
Registrants will receive an email tomorrow that includes a link to view the deck
and webinar recording.
For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group
and click on Discussions.
To learn about eMarketer Total Access please visit www.emarketer.com/products
or contact us: (800) 405-0844 ben@emarketer.com
Sponsored by:
Presented by:
Debra Aho Williamson
Principal Analyst, eMarketer, Inc.
Twitter Hashtag – #eMwebinar