Over the past few months, we have shared sneak previews of sessions that will be held at 2024 Digital Dealer Conference & Expo (#DDCE2024)! But the introductions we have written have left attendees wanting more.
To that end, session leaders have offered an expanded explanation of what is in store at their session in Las Vegas. Automotive Marketing Gurus CEO Jonathan Thompson will host a session titled, Automotive Marketing 2024: WHO & WHAT is Important. Joining Thompson will be Riverside Automotive Group’s Mike Cass, Delvan Holdings’ Jennifer Myers, Auto Boutique Texas‘ Theresa Balk and Clement Automotive Group’s Evangeline Sutton.
Navigating the Future: Demand Capture vs. Demand Creation in Automotive Marketing 2024
Over the past decade, the automotive marketing landscape has been profoundly shaped by the rise of digital advertising, with a particular emphasis on demand capture strategies. Platforms like Google have become synonymous with this approach, allowing marketers to target consumers who are actively searching for specific products or services. While this focus on demand capture has yielded measurable results, it has also led many to neglect demand creation, a crucial but more challenging aspect of marketing that involves generating new interest and awareness.
The session aims to address this imbalance by exploring how to strike the right mix between demand capture and demand creation. By evaluating all channels of marketing—including third-party providers, digital platforms, and traditional media—this session will provide actionable insights on how to lead vendors and teams effectively and how to monitor the results that truly matter.
The Evolution of Demand Capture: A Look Back
Demand capture has become the cornerstone of many marketing strategies, especially in the automotive industry, where the ability to target potential buyers at the exact moment of interest is invaluable. Google Ads, with its precision targeting and immediate feedback loops, has made it easier than ever to connect with consumers who are ready to buy. The appeal is clear: demand capture strategies are highly measurable, offer quick returns on investment, and allow for continuous optimization based on performance data.
However, this focus on demand capture often results in a reactive approach to marketing. By targeting only those who are already in the market, businesses may miss out on opportunities to expand their reach and influence potential customers earlier in the buying journey. This is where demand creation comes into play.
The Challenge and Necessity of Demand Creation
Demand creation is the process of building awareness and generating interest in a product or service before there is an existing demand. Unlike demand capture, which relies on responding to current market needs, demand creation is about shaping future demand. It involves crafting compelling narratives, developing brand stories, and engaging audiences through various channels that may not yield immediate results but build long-term brand equity.
The challenge with demand creation lies in its complexity. It requires creativity, strategic foresight, and a willingness to invest in efforts that may not produce immediate, measurable outcomes. Traditional advertising, content marketing, social media engagement, and influencer partnerships are all tools in the demand creation arsenal, but they require a different mindset and set of skills compared to demand capture.
Actionable Tip: To effectively integrate demand creation into your marketing strategy, begin by identifying the unique selling propositions (USPs) of your brand or products that set them apart from the competition. Focus on storytelling and content that resonates emotionally with your target audience. Invest in brand-building activities that enhance your visibility and reputation, even if they don’t immediately translate into sales.
Striking the Right Balance: A Holistic Approach to Marketing
The key to successful marketing in 2024 and beyond lies in finding the right balance between demand capture and demand creation. Rather than viewing these strategies as mutually exclusive, they should be seen as complementary components of a comprehensive marketing strategy. Demand capture ensures you are capitalizing on existing market opportunities, while demand creation lays the groundwork for future growth.
Actionable Tip: Assess your current marketing spend and activities. If you notice a heavy reliance on demand capture tactics, consider reallocating some of your budget towards demand creation initiatives. This could involve enhancing your content marketing efforts, exploring new social media channels, or investing in brand partnerships that align with your long-term goals.
Leading Vendors and Teams: The Role of Strategic Leadership
Effective leadership is crucial when it comes to balancing demand capture and demand creation. Vendors, particularly those specializing in digital marketing, may be more inclined to focus on demand capture due to its clear and immediate metrics. However, as a marketing leader, it’s your responsibility to guide them toward a more balanced approach that includes demand creation.
Actionable Tip: When collaborating with vendors, clearly communicate the importance of both demand capture and demand creation in your marketing strategy. Encourage them to bring innovative ideas that not only target existing demand but also help build your brand and generate new interest. Internally, ensure your team understands the value of demand creation and is equipped with the skills and resources to execute it effectively.
Monitoring Success: Measuring What Matters
One of the biggest challenges in balancing demand capture and demand creation is measurement. While demand capture offers clear metrics like conversion rates and cost-per-click, demand creation impacts are often more long-term and less directly tied to sales. However, it’s essential to develop a set of metrics that reflect both immediate and future goals.
Actionable Tip: Establish key performance indicators (KPIs) that measure both demand capture and demand creation efforts. For demand capture, focus on metrics such as lead generation, conversion rates, and return on ad spend. For demand creation, consider tracking brand awareness, social media engagement, content reach, and customer sentiment. Additionally, tie these metrics back to business outcomes like market share growth, customer lifetime value, and brand loyalty.
Conclusion: Preparing for the Future of Automotive Marketing
As the automotive industry continues to evolve, so too must our marketing strategies. “Automotive Marketing 2024 – Who & What” emphasizes the importance of balancing demand capture and demand creation to ensure sustained growth and competitive advantage. By evaluating your current efforts, leading your vendors and teams effectively, and monitoring the right metrics, you can create a marketing strategy that not only captures existing demand but also generates new opportunities for your business.
In the coming years, the most successful automotive brands will be those that can seamlessly integrate both demand capture and demand creation into their marketing mix. By doing so, they will not only remain relevant in the short term but also position themselves for long-term success in an increasingly competitive market.
DDCE2024 Events
#DDCE2024 is a 2.5-day event, Oct. 8-10, 2024, at MGM Grand in Las Vegas that will bring together automotive dealers, OEMs, thought leaders, and solution providers to power business growth and connections. The 2024 Digital Dealer Conference & Expo is your chance to discover innovative solutions and gain cutting-edge strategies, actionable insights, and new ideas to implement for maximum impact.
Digital Dealer Conference & Expo will include:
- Enhanced networking: more meetups and fun ways to connect throughout the event
- A Speed Networking program, which offers dealerships and vendors a relaxed yet efficient way to explore a variety of innovative solutions
- An expo hall with 120+ cutting-edge auto retail solutions
- 75+ actionable sessions
- Masterminds and interactive labs
- And more!
Digital Dealer offers full conference and expo badge options, as well as an expo hall-only option for Dealerships/OEMs. Digital Dealer Conference & Expo attendee badge types include:
- Dealership (exclusively for dealers and employees of a dealership)
- OEM (exclusively for vehicle manufacturers)
- Allied (anyone that supports, services, or sells solutions to dealerships falls under this category)
Click here to register now.
