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Revolutionizing Automotive Marketing: From TVC to UGC, D2C, and CEO Influence

May 21, 2024

World of Empty Text Long time no see a good marketing case in the automotive circle, I mean those traditional official marketing cases. Once upon a time, on the stage of automotive marketing, internationally renowned brands like BBA dominated with their carefully planned advertisements and marketing. With their strong funds and mature market strategies, they continuously launched impressive marketing masterpieces. However, recently this scene seems to have become scarce. The last memorable one for me was the “Xiaoman” advertisement that Audi collaborated with Andy Lau two years ago. In comparison, the recent automotive marketing scene has been taken over by a new force. Their marketing method is not the finely polished official perfect content, but a more down-to-earth, more human-like direct interaction. From Xiaomi’s “Big Boss” Lei Jun interacting with users through live broadcasts, to 360’s Zhou Hongyi selling his personal Maybach and causing a series of media attention, to the interaction between Li Xiang, Li Bin, and Lei Jun at the auto show, these new faces and new methods are redefining the boundaries of automotive marketing. They are breaking the framework of traditional automotive marketing and communicating with consumers in a more direct and interactive way. I suddenly realized, automotive marketing has changed. From closed meeting rooms to open live streaming rooms, from one-way advertising to two-way interactive communication, new marketing methods are pushing the industry towards a change in direction. 01 Goodbye TVC, Hello UGC The golden age of television advertising gave birth to TVC, the dominant force in automotive marketing that ruled for decades. Traditional automotive TVC ads often follow a common pattern: a happy family of three or four, a career elite driving a shiny new car, enjoying a beautiful beach holiday. This pattern has been criticized by many industry insiders, but with the support of television as a centralized medium, this traditional marketing method was once very effective. However, with the arrival of the social media era, the influence of TVC is gradually weakening. Recall Tesla, Ideal, NIO, or Xiaomi TV ads that left an impression may be hard to remember. These emerging car brands rely on UGC for marketing. Tesla never advertised, but fans created many ad contents. For example, the “love day” event generated high-quality fan-made ads. During my time at Tesla, fan-made content sustained our social media marketing. Similarly, Xiaomi SU7’s strong marketing didn’t come from the official channel. People remember the jokes about Li Bin, Ideal, He Xiaopeng, and Wei Jianjun, not SU7’s slogan. Even self-deprecation, like the “Are You OK” phrase, became a positive joke. Xiaomi’s influence from these jokes surpasses traditional TV commercials. In traditional car sales, user experience was limited to test drives at 4S stores. Now, new energy brand stores focus on user experience, often located in malls to shorten the distance between the brand and consumers. This strategy aims to increase brand interaction naturally and frequently. In these experience stores, consumers’ first contact point is no longer a direct product test drive, but a more comprehensive brand experience store design and atmosphere aimed at conveying a lifestyle, not just selling cars. Now going to the new energy experience store is to first look, experience the atmosphere and lifestyle of the store, be infected by this experience before test driving, sales, rather than immediately letting you test drive, sales. Currently, new energy vehicles are largely endowed with the dual attributes of durable goods and consumer goods. Users need to make purchase decisions through frequent contact and experience, and this decision-making process is often more rapid, so the new energy experience store’s way is easier for consumers to place orders compared to 4S stores. The rise of participatory marketing not only refers to user-generated content, but also refers to users participating in every aspect of brand marketing. A classic case is SpaceX sending Tesla into space, which itself is a huge news point that has attracted widespread attention and discussion. Consumers spontaneously participate in discussions from news releases to execution results, greatly expanding the brand’s influence. Xiaomi’s marketing strategy also reflects deep involvement. When Xiaomi announced its entry into the automotive industry, their public discussions and interactive strategies immediately sparked widespread public discussion. At the technology launch event, Lei Jun sparked public speculation about prices by leaving suspense, effectively maintaining the attention of the media and the public. In addition, Xiaomi actively responds to user feedback in the product development and improvement process. For example, regarding the suggestion for a physical button for the electric tailgate, Xiaomi not only listens carefully but also quickly adjusts the product. Experiential marketing allows users to gain emotional value beyond the physical attributes of the product, while participatory marketing allows users to become part of the product and brand building process. This marketing approach not only enhances user loyalty, but also brings more lasting vitality to the brand. 03 D2C, focus on private domain traffic Traditional car companies rely on automotive vertical websites to collect potential customer leads and complete sales and service through dealer networks. This B2C model faces obstacles in obtaining core user data and feedback. Due to dealer involvement, interaction between car companies and users is always one step away, limiting their potential in deepening user relationships and driving product innovation. In contrast, new energy car brands like Tesla, Xiaomi, and Nio adopt a D2C model, establishing direct contact with consumers, eliminating traditional dealer levels, reducing information distortion, and responding to market demands more quickly. During product development, the D2C model uses data-driven decision-making to ensure that every feature and design meets users’ actual needs. For example, Xiaomi’s car phone holder, once ridiculed by Yu Chengdong, received widespread praise from users. Users commonly commented, “I can do without it, you can’t.” This reflects Xiaomi’s precise grasp of user needs. In the marketing phase, brands drive marketing directly through UGC content and events, greatly reducing marketing costs by collecting leads through official websites. In traditional models, the cost of obtaining a lead is at least 100 yuan (10$), while the D2C model can reduce this cost to almost zero. Through D2C marketing, brands gradually build their own private domain traffic pool. Additionally, on social media, brands conduct omni-channel marketing, including WeChat, Douyin, and Xiaohongshu platforms, to gather data and conduct in-depth analysis with their own system data, making marketing activities more precise and efficient. Using Xiaomi’s car as an example, based on data from the Xiaomi Car Data Center, the proportion of female car owners is expected to reach 40-50%, BBA users account for 51.9%, and Apple users account for 29% of buyers. These data support Xiaomi’s next marketing strategy, helping the brand target users more accurately and design marketing activities to increase conversion rates.

Revolutionizing Automotive Marketing: From TVC to UGC, D2C, and CEO Influence

Intelligent ecosystem marketing, creating lifelong value for users. Traditional car sales often end when the car is delivered to the consumer. However, in the era of smart cars, each sale is just the beginning of a long-term connection between the brand and the user. Smart technology means continuous upgrades and ongoing service improvements. Tesla is a pioneer in this transformation. Through remote software updates, Tesla can add new features to sold vehicles, such as assisted driving. This continuous service and upgrades not only increase user satisfaction but also deepen brand loyalty. The ecosystem connection of smart cars means brands are committed to exploring and satisfying the lifelong value of users. It’s not just a one-time transaction, but a dynamic process of increasing services and meeting user needs. Many car companies claim they don’t make money selling cars, but by exploring long-term user value and providing value-added services, they can profit from lifelong user operations. NIO’s innovation in user operations strategy is particularly noteworthy, as the first brand to focus on user operations after Tesla. NIO has not only built its own user community but also introduced the “NIO Value” system within the community. This system aims to record each user’s contribution to the NIO community, reflecting their growth and value within the community. Through this approach, NIO successfully converts users into loyal brand advocates and long-term partners.

Revolutionizing Automotive Marketing: From TVC to UGC, D2C, and CEO Influence

NIO value reflects user activity and loyalty. Users can accumulate NIO value by participating in community activities, providing feedback, and recommending new users. This model effectively motivates user participation and contribution, while also bringing sustained user activity and brand loyalty to NIO. CEO stepping into the spotlight. In the traditional marketing era, executives of car companies often maintained a distant image. However, in the current internet age, this no longer meets market demands. Users expect more sincere and authentic interaction with brands, making the personal branding of car company CEOs a key factor in achieving this goal. Elon Musk may be a typical representative of personal branding in the automotive industry. Known for his Iron Man image, Musk’s every tweet on social media could become a global media focus, greatly boosting Tesla’s marketing effectiveness through his personal charm. In fact, Tesla can rely heavily on Musk as a top “free spokesperson” without investing in traditional marketing resources. In China, Li Xiang of NIO is another CEO who is very active on social media. His style on Weibo not only deepens public understanding of him personally, but also indirectly enhances the brand image of NIO. Li Xiang shapes a down-to-earth and professional corporate leader image by sharing NIO’s latest developments, industry observations, and direct responses to user feedback on Weibo. Meanwhile, Lei Jun is undoubtedly a standout in CEO marketing in China. Starting from the memorable “Are You OK” in 2015, Lei Jun has established a down-to-earth and sincere brand image. Through his approachable image and down-to-earth manner, consumers naturally trust what he says. Lei Jun’s marketing activities on Weibo are tireless, often interacting with ordinary users. Weibo comments may seem simple, but they actually reflect the CEO’s attitude of valuing users and being willing to have equal conversations with them. A charismatic CEO can be the best spokesperson for a brand, not only enhancing the brand image but also saving marketing costs for the company, forming a closer emotional bond between the brand and users. 06 More authentic and extensive KOL marketing. KOL marketing has always been an important part of brand communication strategies since its inception, but in today’s marketing field, its role has become more multidimensional and complex. As consumers’ ability to recognize advertising increases, they are more eager to see authentic and credible KOL marketing content, rather than one-way, overly embellished product hype. Consumers today are more inclined to trust those who can share real user stories and experiences, rather than standardized test scripts. This provides more convincing evidence of the product’s actual performance in daily life. Real feedback, stories, and scenarios can greatly enhance the effectiveness of KOL marketing because they represent real voices and provide more reliable references for potential car buyers. In addition, as mentioned earlier, with the positioning of new energy vehicles in the market increasingly approaching consumer goods, they have become symbols of personal taste and lifestyle. Therefore, car brands should seek cooperation with KOLs from different fields. KOLs from industries such as fashion, technology, and sports can bring new user groups to car brands through their unique lifestyles and personal charm. For example, a fashion blogger driving a new energy vehicle can convey a trendy lifestyle attitude, while a tech blogger can interpret the car’s innovative features from a technical perspective, attracting consumers interested in technology. Cross-disciplinary KOL marketing is becoming increasingly important. It is not just a means for brands to break through, but also a bridge to connect different consumer groups and build a brand new image. This marketing method can deepen the brand’s influence among diverse consumer groups, break the boundaries between traditional automotive brands and users, and create a broader market space. As the automotive industry continues to evolve, marketing strategies have undergone significant changes. Firstly, shifting from traditional TVC advertisements to authentic and vivid UGC, automotive marketing is increasingly emphasizing interaction with users and the authenticity of content. Secondly, in terms of user experience, automotive brands are transforming stores into experience centers and relocating them to densely populated city centers. User-centric experiential marketing strategies are gradually becoming mainstream. Thirdly, the D2C model is driving brands to communicate directly with consumers. The creation of private domain traffic allows brands to more accurately collect user data and feedback, improving conversion rates. Furthermore, with the advent of the era of smart cars, we are witnessing a shift from single sales to lifetime services, strengthening the exploration of the lifetime value of users through intelligent ecosystem marketing. CEOs, as the image spokespersons of brands, with their approachable and sincere image building, undoubtedly bring unparalleled charisma and trust to the brand. Lastly, more authentic and extensive KOL marketing injects new vitality into automotive brands from different fields, making breaking through marketing a new growth point. In the midst of all these changes, we witness the transformation of automotive marketing from one-way communication to two-way interaction, from single sales to comprehensive user management, and from closed systems to open ecosystems. The transformation of automotive marketing is not just a change in strategy and tactics, but also a redefinition of the relationship between brands and users. In this era, every user becomes a part of the brand story, and every interaction contributes to the co-creation of brand value.