By Tim Copacia,EVP, Strategic Development, J.D. Power – UnityWorks
Short-form video has skyrocketed since TikTok exploded into the U.S. market as an alternative form of entertainment. Now over 150 million U.S. consumers are on the platform, spending nearly a full-length movie’s-worth of time daily watching all types of consumer-generated video clips about everything you could possibly imagine. Although platforms like Facebook, Instagram, and YouTube have enjoyed tremendous growth and success in the past, TikTok has become a real competitive threat. For this reason, these other major media platforms have scrambled to find a way to counter TikTok with their own version of short-form native video experiences.
The founders of TikTok understand that consumers of all ages and backgrounds enjoy watching short clips of diverse content relevant to their unique interests, passions, and life stages – all from their mobile devices. And with so many content creators and individuals creating TikToks, that content is now finding its way onto the other platforms too.
Why Short-Form Video Is Different than Conventional Video Advertising
Short-form video advertising doesn’t feel like advertising. It is why TikTok says, “Don’t make ads, make TikToks.” That is the goal for those looking to use the platform successfully. The content must feel real, authentic, and even personal to the viewer. You will completely miss the mark if you approach short-form videos like your other digital video ads. With TikTok (or other short-form video platforms), the focus is capturing the viewer’s interest. That means no in-your-face offers or incentives within the ad. If viewers are interested in purchasing your product, you can share that information later in their shopping journey on your own website.
For many, this approach is entirely out of character. Most automotive dealers have, for years, wanted to pack multiple vehicles, offers, and events in every video message. However, short-form video ads require a new perspective and commitment. First, you must thoughtfully work to create interesting content about your featured models or dealership that will inspire further interest or action. That action may be a click on the “learn more” button that takes the viewer directly to your website. Or it could be a click within the app to learn more about the various trims and pricing available on your lot. Lastly, it may simply inspire someone to like, share, or discuss the product and features with friends and family. For short-form videos, the impact of downstream influence on other family and friends is the most powerful.
In summary, short-form video advertising is not about "selling" but finding, educating, and entertaining in a personal way to capture viewers' attention within a discovery mindset.
Where to Start
If I were a dealer, I would sit down with my marketing team and first get to know these short-form apps from a consumer perspective. If you don’t start there, it will be difficult for you to accept this new approach to video engagement. The best place to start is TikTok. After you observe how good advertising content is delivered inside the app, you will better understand how your store can effectively build a presence and connect with a new generation of buyers.
After you better understand the experience, you can start thinking about how your dealership can shoot and post organic content to the platform regularly. By the way, this is all FREE. The purpose is to build a following of consumers who find your content interesting. You can also learn what content resonates within the platform so your dealership can develop skills and a content strategy. As far as content that resonates, it may be as simple as new vehicle walkarounds, new arrivals off the truck, in-dealership services and amenities, local events, or anything interesting about your products, services, or dealership. Work with your marketing team or agency to build a content plan and start posting. Get creative, and don’t be afraid to show your personality – those who watch your videos will have fun if you’re having fun.
Some trailblazer dealerships have first-hand experience with the power of using TikTok to reach new prospects. For example, Lexus of Concord has consistently posted videos on TikTok and now has over 300,000 followers and 5 million likes to show for it. As the overall brand, Lexus USA has just 90,000 followers and 370,000 likes. That’s right: a single dealer has three times more followers than the entire brand. Another example is Lockhart Cadillac, a dealership creating and posting consistent free video content on TikTok. The Cadillac brand has just 19,000 followers and 196,000 likes. Again, this single dealer has seven times more followers than the brand itself.
Dealers committed to developing consistent and relevant organic content are selling cars from their efforts.
Yes, I understand this is a big commitment for your store. But for your dealership to get visibility in front of a new generation of auto buyers, you must create a presence on TikTok and the other short-form video platforms available. Effective short-form video creative impacts performance more than other platforms.
Custom Video Content Creation
Most dealers won’t pursue an organic video content strategy for short-form video platforms. Those who see the value but are uncertain on how to get started can begin by testing paid advertising. This is table stakes today. Like the other typical digital video platforms, ad units can be placed on these platforms but require “built-for-mobile” ad content appropriate for the experience.
TikTok has thousands of content creators you can hire to establish your dealership message. For many advertisers across categories, hiring a TikTok content creator to construct authentic messages about a particular car or your dealership is an option. These creators generally have their own following, which can help ensure your message gets heard from the start.
However, I would be a bit uncomfortable going this route. I believe the best and safest way is to create the content yourself or engage a professional video content and campaign provider to shoot content and then create a series of ad units placed in rotation each month on your selected platforms.
You should shoot this content in portrait format from an iPhone. Focus on capturing the coolest product features of the models on your lot or the unique experience shoppers can expect from your dealership. Once ads are complete and ready for serving, the overlays on top of your ad will subtly identify it as sponsored content and allow interested viewers to like, share, or click for further information.
We have found that running paid ads on TikTok has a lower CPM than Facebook, Google DV360, and YouTube.
Our Experience with Learning to Use TikTok
UnityWorks is a pioneer in digital video advertising, and like other industry digital marketing companies, short-form video content is much different from what we typically create. We began by conducting a deep dive into the TikTok platform and developed an understanding of the environment and the best practices for content development. From there, we decided to focus on model-based ads highlighting the most surprising or unique features to stop a viewer from rapidly scrolling through their “for you” page.
We then conducted our own video shoot and engaged talent (including a TikTok automotive influencer) to help tell the story. At times, the talent would just make expressions or hand gestures, and at other times, speak into the camera while conducting a rapid-fire vehicle walkaround.
We knew the features we needed to capture and set out first to create a robust library of “built-for-mobile” footage that we could later edit from. Unlike other digital video ads which use ad planner b-roll footage from the OEM, we believe it is best to shoot content exclusively for these platforms. It’s not about slick Tier 1 content but product clarity and authenticity. Our first shoot was for the Ram 1500. We captured all the key features that make this product desirable, including the Ram Box storage, multi-function tailgate, incredible interior storage, and the big-screen entertainment center. We also conducted a night shoot to capture the intrigue of interior and exterior lighting. In addition, we used various music tracks that aligned with current TikTok trending music. We also used the TikTok automated voice at times and different interesting graphic and visual cues to make the content fit into the TikTok world of entertainment.
After we created 10 ad units, we began to learn what was working best and adjusted along the way. We rotated three ad units per dealer per month and ultimately delivered many effective ad units that generated strong viewer engagement.
We also took our learnings and applied them to the new Grand Wagoneer. There, we created 15 diverse ad units from a single custom video shoot that captured the beauty and unique features of this new premium brand.
How Brands Can Leverage Short-Form Video Content for Their Dealers
Brands need to work with video content providers who can deliver the type of content I just shared for Ram and Wagoneer and make it available to all their dealers. The content is easily customizable via overlays for any dealership that sells these products. This approach allows brands to offer a scalable solution across TikTok or other short-form video platforms.
It also reduces the pressure and cost for the dealers to create their own organic or paid ad content. With video content ready to place in the market each month, dealers can stay in front of potential buyers.
Unfortunately, most brands and dealers have not effectively developed a consistent digital video strategy. The industry has been overwhelmed with paid search; sadly, video continues to be an afterthought. In addition, legacy companies are not investing in production and prefer templated OEM-produced creative that does not benefit the consumer or dealer in a meaningful way.
Therefore, I have limited confidence that brands and dealers will embrace this new short-form video opportunity. What’s amazing to me is that this is where the new generation of consumers spends most of their time. But for whatever reason, neither the brands nor the dealers are in the game. It is a greenfield opportunity for those brands and dealers who intend to grow their market share in the coming years. I also believe the EV story is ripe for these platforms.
Perhaps the only way brands will fully benefit from these new short-form video strategies is if the direction comes directly from the top. So, the brand CMO must champion this initiative and drive retail marketing teams to formulate plans for a scalable short-form video strategy across the dealer body.
Lead or Get Out of the Way
Overall, short-form video is the future of advertising, and automotive dealers must stay ahead of the curve.
Fundamentally, media is about buying the attention of a targeted audience at the right time. However, as consumer attention shifts towards short-form video, it is time to reevaluate channel investment towards discovery channels and full-funnel marketing – not the last click (return-on-ad-spend) game of the past decade. The future is here, and new vendors will emerge as leaders. The winners will come from the first movers, not the traditional partners.
Now is your chance.
Tim Copacia is the Executive Vice President of Strategic Development at J.D. Power UnityWorks. He is a former agency CEO and automotive pioneer in digital marketing, CRM, customer experience management, and data-driven video experiences. He has held executive-level roles at BBDO, Wunderman/Young & Rubicam, Campbell Ewald, and Ross Roy/InterOne Marketing Group. He has led multi-million-dollar omnichannel marketing programs across all marketing tiers for several major OEMs.