How auto marketers can leverage deep learning to reach high value customers
Technology driving industry evolution
One theme that stood tall at this year’s MediaPost 2021 Automobility LA Conference was the growing electric vehicles (EV) market. If you live in California, this is nothing new. If you live in NY, probably nothing you haven’t seen, either.
Every known entity seems to be rolling out their own version of the “Prius” or “Tesla”. Ford, Chevy, VW, Kia, Hyundai, Toyota, Subaru all have an EV option for purchase today. 100 new EVs by 2024 is ground breaking, meaning consumers’ choice will be abundant.
So what does this mean for the automotive sector? For one, we are seeing a dramatic shift away from gas and oil. And as many OEMs have or likely will introduce an EV to their lineup, we can expect competitive price points in the market to entice consumers.
That being said, with so many options for which car to buy, where and how to buy it, the real challenge for marketers is ensuring that they are investing in effectively reaching consumers who are going to convert.
Deep learning in action for auto brands
How can brands ensure that they are reaching the right people in order to drive results and sales of their vehicles? Leveraging technology partners who offer deep learning algorithms help OEMs identify which consumers to target and how likely they are to convert. Deep learning algorithms account for thousands of data points when determining who to target, and train themselves with sufficient data volumes – thereby predicting which users to pursue, which to place less emphasis on, and which have similar patterns of consumer behavior. The outcome? More new customers found without heavy, time consuming manual optimization.
One luxury auto brand was able to leverage deep learning neural networks to improve standard retargeting practices and reach new customers, while looking to increase lead submissions for seasonal test drive sign-ups. Throughout the campaign, deep learning was used to score and rank customers based on their likelihood of signing-up, which resulted in a 56% decrease in customer acquisition costs, and a 4x increase in overall performance.
With marketing budgets being under increased scrutiny to prove ROI, auto marketers will need tools in their arsenal to ensure that they are investing in the right channels to reach the right audiences that are going to actually move the needle for their brand.