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Automotive brands Volvo, Kia accelerate mobile initiatives

Ford Motor Co.?s Volvo, Hyundai?s Kia Motors and automotive brands in general are increasingly leveraging the mobile channel despite the current economic climate.

In addition to running mobile advertising campaigns, automakers such as Volvo and Kia have mobile sites. Volvo recently expanded its mobile Web site to 20 markets, with recent launches for Germany, Britain and Singapore. Kia has been using 2D bar codes and ran SMS sweepstakes with both Microsoft?s Xbox and the Vans Warped Tour.

?Our strategy around our mobile presence is very much evolving right now,? said Sofia Heddson Fransén, interactive marketing manager at Volvo, Gothenburg, Sweden. ?We believe that the mobile platform will very soon be a significant part of our marketing efforts.

?We see how important these initiatives are, especially in some Asian markets that have extremely high mobile penetration,? she said.

?We will be using many of our current channels?both offline and online?to promote our mobile presence.?

Volvo launched its first mobile advertising campaign in April to promote the new 2010 XC60 Volvo Crossover vehicle.

The automaker jumped right into the mobile space as the exclusive sponsor of Edmunds Vehicle Spotlight section and even included Twitter feeds in its ad (see story). 

While Volvo continues to invest in mobile, its current initiatives are only the tip of the iceberg.

?We have a wide range of ideas [regarding] mobile advertising, but we're unfortunately hit with the harsh reality [of the current economic climate], and will not be able to complete all our intentions for this year,? Ms. Fransén said.

Volvo's mobile site
Consumers can access Volvo?s new international mobile site at http://volvocars.mobi or http://m.volvocars.com.

Volvo tapped Scandinavian mobile marketing agency Mobiento to power many of its mobile initiatives.

?The idea for Volvo all along has been to give the local offices full flexibility in terms of content management,? said Emil Salonen, spokesman for Mobiento, Stockholm, Sweden. ?This means that the mobile Web is fully integrated into Volvo?s content management system.?

Local offices edit texts and images on the mobile site from within the same system that they use to update the regular Web.

?This is obviously a big administrative and pedagogic advantage and shows that Volvo is really serious about the mobile channel as a future media channel both globally and locally,? Mr. Salonen said.

This mobile portal for Volvo is a first version that will evolve over time.

In the future, Volvo plans to roll out more and more localized content such as find-a-dealer, local offers and similar features.

?We also plan to incorporate more of the global and local campaigns that Volvo runs on the regular Web on the mobile site,? Mr. Salonen said. ?Better high-end handset support is also in the pipeline.

?There are great plans for the future, but we will roll out in phases in order to test ideas and technology thoroughly and to comply with budgets and other initiatives,? he said.

Kia Motors' mobile strategy
Kia Motors is South Korea's second largest automobile manufacturer with headquarters in Seoul, with approximately 40 percent owned by the Hyundai Kia Automotive Group. The American arm is Kia Motors America.

Mobile is a key element of Kia?s overall marketing strategy.

?Kia sees the importance and valuable opportunity in using mobile as a medium for interactive and impactful opportunities,? said David Schoonover, national manager of customer relationship management and affiliate marketing at Kia Motors America, Irvine, CA.

?Today?s mobile ad space is currently uncluttered, which allows Kia to have unique ownership opportunities and to take advantage of the development stages of the mobile ad space,? he said. 

Studies show that the number of people accessing news and information on their mobile device has more than doubled in a year, and that mobile is especially effective at reaching technology enthusiasts and young, savvy consumers, according to Kia.

Mobile phones are often the only medium that people carry with them up to 100 percent of the time.

In fact, more than 10 percent of Kia.com Web site traffic comes from smartphones.

?We are looking to use mobile as an enhancing layer to complement other media, resulting in a campaign that is richer as a whole than the sum of its parts,?  Mr. Schoonover said.

?We also realize that the mobile ad-space is still in its infancy, so we are testing and establishing benchmarks for future campaigns,? he said.

Consumers that go to http://www.kia.com on their Web-enabled handset are automatically redirected to a mobile-optimized version of the site.

Kia has not developed its own branded mobile applications. Instead the company has advertised within other applications.

?With more than 50,000 apps out there, it would be difficult for us to make one that has mass appeal and high reachability, so instead we choose to work with established partners, which has proven effective for us,? Mr. Schoonover said.   

?As far as SMS, we have used it on spot occasions, mostly for contests such as with Xbox and the Vans Warped Tour,? he said.

?Specifically, we do not have our own [SMS platform], but rather we leverage partner relationships instead.?

Kia has had a fixed presence across all song pages on imeem for Android as well as a Soul-branded Internet radio station.

Kia also had a presence across imeem.com through a brand profile at http://www.imeem.com/kiasoul and ads on individual media pages throughout the site. 

Besides imeem, Kia has also used quick-response 2D bar code technology at promotional events for lead generation, tested paid mobile search with Google and Yahoo, and is using mobile ad networks such as AdMob.

The mobile channel helps Kia reach its target demographic.

?Kia has an established customer base, but we are in the process of re-inventing ourselves to be more energetic and more compelling with products like the Soul, Forte and Forte Coupe,? Mr. Schoonover said. ?The youth market is very discerning.

?These consumers are active participants in the mobile world and we feel that these mobile channels help us reach our target audience through creative campaigns that complement their style and fast-paced way of life,? he said.

?We want to engage with them using experiences such as music that fits that lifestyle.?

Automotive sector key driver of mobile growth
Brands are tying mobile and other media in many ways, such as using keywords and short codes in advertising, including Twitter feeds in ads and using video created for television in expanding ads within mobile applications and on WAP landing pages.

?We are seeing automotive marketers targeting both first time car buyers and the super premium auto buyer with the mobile channel,? said Steven Rosenblatt, New York-based senior vice president of ad sales at Quattro Wireless.

?They are using mobile to help drive brand awareness and surround themselves in contextually relevant content such as sports and news, along with the endemic auto content such as Edmunds and Car&Driver,? he said.

?One key objective for many automotive marketers is driving local dealer traffic, leveraging mobile device location-awareness.?

Mobile is such a good fit for automakers because it has reach and, more importantly, the ability to take somebody from consideration to purchase quickly, according to Quattro Wireless.

A consumer who engages with an automotive brand on their phone can quickly learn about the product and do a search for the nearest dealer, all while they are on the road.

At the dealer, consumers can bring up specifications and reviews on their mobile device.

With advertising on the Internet or TV, you are reaching the consumer at work or at home?far away from the actual purchase?while with the mobile phone, you can drive dealer foot traffic while the consumer is on the go and provide another brand impression when they are actually in a dealership.

Porsche launched an iPhone app (see story) and has been vocal about the success the company has had using the mobile channel (see story).

U.S. automakers such as Ford have also lauded the results they have seen from mobile initiatives (see story).

?I believe that Porsche recognizes that the consumer buying their cars is a heavy mobile Web and app user, and thus mobile is a great channel to reach them,? Mr. Rosenblatt said. ?In general, I am seeing automotive as one of the key drivers of mobile growth.

?As a category, automotive marketers have been one of the earliest testers of the capabilities of the space?such as expanding ads?and are now scaling their programs,? he said. ?Ford is one of those companies that absolutely gets it.

?They have a great media agency in Mindshare that continues to really understand how to take various strategic approaches depending on the audience that a specific vehicle is trying to reach.?

Microsoft's take
Mobile Marketer's Dan Butcher interviewed Jeff Plaisted, Chicago-based national sales manager of mobile media at Microsoft, about his perspective on automotive brands' impact on the mobile ecosystem.

Here is what he said:

How are automotive brands using mobile as part of their multichannel marketing strategy?
At Microsoft we have the distinct advantage of being able to utilize a three-screen approach for our clients and customers.

Autos have always done an excellent job of connecting to the specific audience by leveraging each of the platforms strengths, whether it be gaming, online or mobile.

We see mobile as the thread the weaves together the entire multimedia campaign.

Especially for the autos, we find that because mobile is the device that is with you during a commute or on the weekend, when you are away from your PC, so that we can continue the messages that consumers experienced online and in-game while they are on the go.

Why is mobile such a good fit for automakers? What challenges does mobile address for them?
Mobile answers many of the  automakers' challenges. From a branding perspective, it is an excellent device on which to showcase a new auto launch.

As a Chicago commuter myself, I have spent many an evening this summer, headed home to see the family, worried if we are going to be able to pack all of our weekend gear in to our current vehicle.

What a perfect time to start a conversation with me and all the other working/commuting dads and moms about the features and highlights of the new Ford Flex--namely storage!

I, as a consumer, have the need to know more and I have what all advertisers are looking for in this cluttered media mix--time.

Creative branding on mobile can quickly blur the lines of advertising and content if the right message is delivered to the right consumer, that is what we strive to achieve at Microsoft, not just in mobile, but again, across all three screens.

Mobile is also one of the most agile and precise media when looking at the local angle.

There is nothing more important than getting foot traffic on to the lots.

I think that this local approach is still a huge opportunity for the Regional and Dealer Groups.

At the local level, I think that mobile has the opportunity to blend a CRM program with advertising campaigns, both on and offline, providing the dealers as well as the local community a value and service.

Can you cite an example or two of an automotive brand that is using mobile effectively?
I have been very impressed with Land Rover and Jaguar?s aggressive and smart use of all the mobile environment has to offer.

I find Ford?s strategy shift and dedication to the mobile space, during an economic downturn and reduced marketing budgets, very telling as it pertains to the power of mobile.

And even those outside the mobile world cannot miss the absolute buzz of most every major brand touting their  ?2010 Mobile Strategy.?