Auto brands lead in adoption of interactive, mobile video ads, study finds

Dive Brief:

Auto marketers are embracing data-driven, interactive and mobile video campaigns at a faster rate than other verticals, with 50% using data-driven video, according to new Innovid research shared with Marketing Dive.
Of the data-driven video impressions for auto marketers, 72% come from canvas ads, which refer to complementary and extended branding that wraps around the video and delivers information without interfering with the viewing experience. Roughly one-quarter, or 23%, of data-driven auto impressions are from the expand format, which allows any video to be turned into a customizable microsite with galleries, how-to videos, product reviews and more.
Auto marketers are seeing a 14% growth in interactive video impressions as well. Seventy-one percent of impressions derive from overlay, a click-through graphic or animation on top of a standard video that drives viewers to brand content or websites. Auto marketers' interactive impressions on mobile have grown 78% year-over-year.

Dive Insight:

The auto industry has had to adjust its marketing course away from TV and toward digital in recent years amid a slowing market, and the Innovid research signals that those efforts have started to pay off, at least in terms of driving impressions. The need to embrace more digital- and mobile-first marketing comes as drivers are more engaged on those channels.

Consumers spend 60% of their auto-buying time researching vehicles online across a variety of platforms, Innovid found. They're also making fewer trips to local dealerships. However, an omnichannel approach, where digital efforts tie back to the physical retail experience, is important for driving, not just engagement with advertising, but also purchases.

While dealership visits dropped from five to two for customers along the purchase journey, per Innovid, more than 40% of consumers who watched a video about a car or truck visited a dealership. Auto brands also saw a 74% increase in purchase consideration when blending TV and social media strategies.

Consumers continue looking for relevant, personalized marketing, and a more square focus on data, along with interactive and immersive advertising,appears to be helping auto brands meet those needs. This approach could be key in attracting millennial and Gen Z consumers, who are showing less interest in vehicle ownership than older generations.

Volvo is one auto brand that has seen success leveraging newer channels like connected TV. The company was able to drive a 35% sales lift after partnering with Innovid and Group M's Modi Media on a connected TV campaign for its S90 model. The goal was to help consumers easily find nearby dealers and purchase cars.

The interactive video, which was served across Roku and Samsung devices, let viewers explore the interior and exterior of vehicles and receive location-based messages. Volvo's effort generated nearly 526,000 unique engagements, more than 1,200 unique requests for information from SMS and engaged more than 95,500 households.