But social networking was clearly the overriding attraction
I have just returned from attending NADA 2011 in San Francisco, which was a better conference than those of the last two years. Surprisingly, a little of the wild, wild, west seems to have returned to the industry.
Even though new-vehicle sales are far from their highs of the last decade, unchecked optimism was rampant. OEMs, NADA and exhibitors were all talking about the brighter days ahead. Given the depth and breadth of the most recent collapse, not even Las Vegas odds-makers are giving odds that the auto industry will not recover.
Even so, there were few signs of cautious optimism. The overriding feeling was full speed ahead. I found myself wondering if anyone will remember the hard times and lessons learned from 2008 and 2009. My view is that memories seem to be very short and that, for many, some lessons were not learned.
Everybody on board
I agree that the best time to market and conquest is when times are bad. This is when new entrants normally get their big opportunity. So optimism on their part is clearly understood. Also, after laying out the high cost to exhibit, I can easily understand why exhibitors would be positive.
Dealers were also positive. Many admitted that 2010 was a good year but not from their core brand business. They have expanded their product offerings in used vehicles, accessories and F&I. They have also significantly reduced their cost structure and are very reluctant to reintroduce those costs.
The offerings on the floor were many with most of the large, dominant payers in attendance. In addition to the car washes, OEM exhibits and large-scale F&I and financial services suppliers, the floor was dominated by technology.
Social networking was the overriding attraction on the floor and in the conference rooms this year. It is clear that technology development is running at a much faster pace than dealers are able to keep up, thus making it a big challenge to keep current. Confusion has returned to the minds of many dealers.
It’s different now
I remember having the same feelings back in 1998 when the dot-coms were the rage. We all know what happened after that. Most of the exhibitors in 1998 were not in business at the turn of the century.
Even though I have some of the same impressions as back then, I believe this time is very different. For one thing, there is broad-based user support within the general population for social networking. FaceBook and twitter have seen to that.
Unlike 1998, social networking is not creating something uniquely automotive, then working hard to create consumer demand. Social networking is quite the opposite. Consumers have already embraced the platforms and social networking has now become mainstream. It’s the automotive industry and in particular dealers that once again find themselves in serious catch-up mode.
OEMs, dealers and suppliers are all running, franticaly trying to take first-mover advantage. Needless to say, there is much confusion among the dealer ranks.
Who’s doing it well?
At the International Automotive Roundtable, J.D. Power highlighted brands that are creating social networking buzz in the digital world. In the U.S.A, brands like Jeep, Mazda, MINI, smart, Subaru, BMW and Porsche are at the top of the class.
The brand buzz on social networking sites is robust. Whether that translates into vehicle sales was not correlated, but the buzz cannot do anything but help the brand and will ultimately translate into conquest sales.
I can see the benefit to the brand and thus the eagerness of OEMs to hit the social networking airwaves to either keep or create the buzz going. This in my mind is another form of effective advertising. With the vastness of the Internet and social networking sites in general, however, can a dealer realistically participate?
The potential suppliers on NADA convention floor all agree that there is a role for dealers. In fact, many go so far as to say that dealers who are not active in social networking will be the big losers.
So what is a dealer to do? Become active in social networking, that’s what.
Who is social networking?
According to a recent surveys, 53 percent of twitter users are female, a key demographic for auto dealers. According to the New York Times, only 11 percent of twitter’s users are under 17, making those of driving age the majority, again a critical demographic.
I suspect this is news to many of us and most of us believe that the majority of social networkers are teenagers. Obviously this is not the case.
