Automotive As The Economy’s Hope, Dealer CX Atrophy, Tiktok Analytics Grow Up

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Thursday is in full swing as we’re talking about why the Auto Industry might just be the economy’s bright spot in early 2023. We also talk about shaking off the deal-entitlement of 2022, as well as a new depth in analytics for Tiktok advertisers.

• The Automotive Industry might just be the bright spot for the economy in 2023 according to a Bloomberg analyst Connor Sen as he sights the potential effect the rebound will likely have on the country’s GDP through the next several quarters.
  • Auto volume deficit has affected the economy substantially as produced cars don’t count until they are complete (with chips) and are sold to dealers
  • Increase in new/used pricing single handedly accounted for 10% of the overall Consumer Price Index increase
  • Owners holding on to vehicles longer increases repair bills and subsequently insurance rates as well
  • The reverse is true as well. If output in Nov/Dec stays consistent w/ Oct, it will translate to a 10% quarterly jump which may account for 1-1.5% GDP growth alone
  • Also as production normalizes, it will encourage the easing of inflation, which in turn encourages the Fed to relax on interest rate hikes and so on…
  • “There’s still room to go, but the auto industry is the best reason to hope for an economic growth and inflation surprise over the next several months.”
• Jonathan Banks, vice president & general manager of vehicle valuations at J.D. Power issues a warning to Dealers to freshen up their customer engagement skills as the supply situation loosens up
  • “In the process, it is more than possible that essential customer engagement skills across the dealership environment have dulled — if not atrophied altogether — while new important competencies have failed to be nurtured.”
  • He suggests a return to strategy and demand analysis as the customer’s desire to engage digitally has become strikingly clear…as well as their options to do so
  • He cites similar occurrences after the 2008 ‘Great Recession’ as new behaviors and technology emerged which made the market more transparent and efficient as it served consumers, Dealers, and OEM
• Tiktok just released new Audience Insights in Tiktok Ads Manager where advertisers can now drill down into a good number of categories to glean insights such as:
  • Age, interests, usage behaviors, gender splits, interactions with influencers, hashtag interactions, and even device type
  • From the report: “Audience Insights can help you discover new audiences beyond those that you traditionally target. If any surprising or unexpected interest categories appear, you can try targeting these interest categories to see how they perform. For example, the data may show that the beauty advertiser’s audience is also interested in apparel and accessories, or in-app games. The advertiser may then consider targeting these interests to find new ways to scale.”

Hosts: Paul J Daly and Kyle Mountsier
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