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                          Technology for All                                                                                                                                                                       Monday October 12, 2009 21:32:36

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SOCIAL NETWORKING

Is Social Media Driving Car Brands?

Luxury car makers are not using the full potential of social media in their communications campaigns, according to a new study announced today (Oct. 12) by independent New York-based consultancies MH Group Communications and Forum Strategies & Communications. 

The study, "Luxury Auto Brands and their Presence in Social Media," is an analysis of luxury auto brands and their presence within social networks.

The study covered activity level of communities around specific auto brands across Facebook, Twitter, YouTube, and Flickr. It says German automakers dominate the luxury auto business category, while Japanese and American brands are largely absent and unimpressive within social media. 

In the study's overall rating, the nine luxury auto brands considered ranked as follows in terms of their engagement in social networks: 

  1. BMW

  2. Porsche

  3. Audi

  4. Mercedes

  5. Cadillac

  6. Lexus

  7. Acura

  8. Infiniti

  9. Lincoln 

The study found that the task of breaking through in social media for luxury car brands is complicated by the fact that all the brands face an extraordinary amount of online clutter, as they try to attract a focused social media community.  

Unofficial Facebook pages, Twitter feeds, YouTube channels and Flickr communities created and managed by fans, vehicle dealers, and individuals who incorporate a vehicle name in their online identities siphon attention and offer conflicting brand messages. 

"In this environment, a successful campaign within one social media platform is not sufficient to advance and protect the brand online. Luxury auto companies need to harness the synergies of using multiple social media platforms in an integrated campaign to obtain the full benefits of the technology," said Mark Hass, CEO of MH Group Communications. 

The study revealed that social media conversations around luxury auto brands focused on four key topics, each of which offer specific challenges/opportunities: 

  • Admiration: The luxury auto sector enjoys a privileged admiration consumers express for most luxury brands. Being part of an "exclusive" club, these owners and fans err on the side of adoration when discussing their vehicles. Challenge: Where is the tipping point, when      the club no longer feels so exclusive because of the social media involvement of everyday consumers?

  • Sales and Deals: The auto industry's huge investments into e-commerce and the dealer-based, decentralized sales network make deal talk the dominant topic of social media conversation. Challenge: Brand management in this environment is a challenge, given that the community drives the conversation, rather than the brand, in contrast to pre-social media days, when sales messaging was focused around brand web sites.

  • Questions about Features, Service, Availability: Social media are a powerful tool for brands to monitor questions about their vehicles and address them directly and immediately. Opportunity: This should be viewed as an opportunity to extend a brand's customer service      commitment, rather than just treat social media as a marketing tool.

  • News and Vehicle Announcements: There is a virtuous cycle of amplification among these brands, auto bloggers, and social media networks, in which news is shared by the brands with influential bloggers, reposted or tweeted within social networks by readers of those blogs, and further echoed within smaller SM groups. Opportunity: Links to blog posts, rather than traditional media, are shared most often by consumers.

Goodwill persists for luxury auto brands in the social media conversation:

While most other business sectors have brands that have been damaged by negative social media commentary, most luxury goods brands, including autos, enjoy mostly positive social media relationships. In fact, 90% of the commentary and content created about these brands is positive, since luxury brand consumers perceive that they receive a high-level of service and value by being associated with the brand. 

"Given the positive online dialogue regarding luxury auto brands, the use of social media can no longer be regarded as an afterthought, but must be viewed as a foundational element that is part of any holistic communications strategy," said Jeffrey Sindone, president of Forum Media, Forum Strategies & Communications. 

For this study, the top-selling luxury auto brands and luxury brands owned by major global automakers, including Acura, Audi, BMW, Cadillac, Infiniti, Lincoln, Lexus, Mercedes, and Porsche were studied to assess their level of involvement and success in using social media. 

Researchers examined social media activity during August 2009 by the brands, as well as activity about the brands initiated by consumers, dealers, or others.

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