Online video advertising is becoming an increasingly effective medium for car manufacturers to generate brand loyalty as well as drive car sales. And, the more location specific the video ad is, the quicker it works in engaging the viewer, particularly for the luxury high end car models. In their latest white paper, video advertising platform Videology, took a look at the impact of localised video advertising on auto sales and whether they could be just as effective as TV spots for car dealerships.

Because choosing a car can be as much of an emotional decision as it is a financial one, television advertising has always been fantastically effective into tapping into the aspirations and lifestyle choices of the consumer. It’s also been invaluable for building brand visibility and loyalty. Although many brands run national TV campaigns, local dealerships have also used the broadcast medium to highlight promotional and seasonal offers.

National Advertising Good For Brand Building, Local Advertising Better For Sales

For decades, car advertising was confined to the television but now that 80% of Americans have access to the internet, video advertising is becoming a strong, viable alternative for brands to reach out to potential buyers. 66% of those actively looking to buy a car have said that online video was now an important part of their research with 58% beginning their research via the manufacturer’s site.

Based on feedback from advertisers using the Videology platform, the new report found that local geotargeting was the best use of the video advertising budget. Data from 250 million auto campaign video impressions from the last 6 months, confirmed that when a broader demographic was targeted, the impact on overall sales was less effective, although there was a lift in brand visibility. However, 60% of advertisers saw a increase in car sales from location specific campaigns, rising to a staggering 200% when it came to the purchase of more luxury models.

Video Ad Exposure: It Matters Where You Place Your Ads

The study found that, on average, it took around 5 views of a broadly targeted video ad for the viewer to become engaged with the brand but this dropped to a lower frequency of around 2-4 views if the ad was part of a location specific campaign.

auto video ad exposure
Where the actual video ad was placed was also a deciding factor in sale generation. Ads placed on certain lifestyle sites worked well for top of the range manufacturers like Audi and Mercedes while other models fared better on a video aggregator sites.

site selection
Therefore, it makes sense for brands to at least test out geotargeted campaigns to ensure they are reaching the consumer who responds better to a more personalized approach.

How Car Brands Are Faring On YouTube?

Almost all of the big car manufacturers have a presence on YouTube but there are a surprising amount of differences in their approach and their success with viewers. Kia have the most video views but are not in the top 10 of car brands when it comes to number of subscribers. That falls to Audi who have the most at 380,600, followed by BMW and Chevrolet. Toyoto have uploaded the most videos and also do well based on the amount of views and engagement they attract.

car brands on youtube