Industry Voices | Electric Vehicles: Serious Customers, Serious Business

As the automotive industry races toward a more sustainable future, electrification is rapidly reshaping the competitive consumer-endpoint landscape. The era of internal-combustion engines (ICE) as the dominant powertrain is gradually fading, and the shift toward electric vehicles (EVs) is not just a trend – but a seismic change driven by customer demand and a rapidly evolving market. According to Society of Motor Manufacturers and Traders data based on September 2024 new-car registrations in the U.K., the uptake of hybrid-electric vehicles increased 36.1%, while registrations of battery-electric vehicles rose 10.8%.

This transition is not without its complexities, especially when it comes to understanding how these shifts affect digital marketing and lead generation in a fiercely competitive marketplace. The rise of EVs has created new challenges for automotive marketers. With competition intensifying and consumer demand fluctuating, brands must find new ways to connect with their customers. Traditional advertising campaigns are no longer as effective in driving leads as they once were, particularly for younger, digitally savvy buyers.

A recent McKinsey study pointed out that EV buyers are more willing to switch brands, making it even more critical for marketers to engage them in the right way throughout their car-buying journey. The way consumers “shop” for cars has changed. To stay ahead, automotive brands need to adopt a more sophisticated, data-driven and customer-centric approach to marketing.

Recent data from our studies at Driftrock, an automotive marketing platform, paint a compelling picture of how vehicle electrification is reshaping automotive marketing and lead generation. In fact, Driftrock’s latest research shows automotive brands and dealerships that focus their marketing efforts on digital channels have seen a 210% year-on-year increase in EV leads, highlighting the importance of being a leader in the transition.

In addition to winning market share, companies that embrace this shift have a significant advantage when it comes to lead conversions as well. By leveraging first-party data and focusing on highly targeted, personalized campaigns, brands have managed to connect with potential buyers more authentically and effectively, driving higher lead conversion rates.

Driftrock’s latest analysis shows BEV lead conversion rates are 28% higher than those of ICE vehicles. Meanwhile, hybrid vehicles – particularly plug-in hybrids – are outperforming traditional models even more greatly, with a 35% higher conversion rate.

These figures underscore a clear industry trend: Consumers are not just browsing EVs; they’re committing to them.

Instead, the challenge is how automotive marketers move from the EV adopters and fleet sales to the mainstream mass-market retail buyer. Price and product will obviously play a big part in this, but marketing has the power to create and capture demand. Those who achieve this will benefit from this era of unprecedented disruption in the industry.   

By leveraging digital marketing, first-party data and customer-centric strategies, automotive brands can capitalize on the EV revolution to generate test drives and enquiries from high-quality leads.

Brands can capture existing EV demand by implementing highly targeted strategies across various platforms such as social media, search engines and automotive publishers. This helps them engage with in-market buyers at the most critical points in their decision-making process when their interest is at its peak, resulting in higher conversion rates and lower costs per lead.

Automotive brands also have an opportunity to create demand by collaborating with publishers and marketplaces to reach, educate and debunk EV myths. Car buyers utilize multiple channels to conduct research, including Google, YouTube, Meta and TikTok. Brands can reach the users throughout their journey and capture their details using native lead ad forms.

As brands shift their focus toward the mass market, nurturing potential buyers becomes critical. This is where CRM and email communication strategies come into play. Instead of just highlighting the benefits of EVs, brands must focus on copy and creatives that actively bust EV myths and address common objections. This approach is particularly effective with "Keep Me Informed" (KMI) leads, who may need continuous engagement and information to move forward in their journey.

Using advanced technology such as custom audiences, brands can retarget, exclude or build lookalike audience lists from their existing data. This tactic may help improve lead quality and conversion rates.

Building Authentic Relationships in the EV Evolution

At the heart of this digital transformation is the need for brands to build genuine and lasting relationships with customers. Automotive brands can develop authentic connections with consumers through effective CRM strategies and consistent communication, helping them navigate the uncertainties surrounding EV ownership.

Unlike traditional ICE vehicle purchases, the shift to electric vehicles demands a more educational and supportive approach. By guiding potential and on-the-fence buyers through a personalized communication journey, automotive brands can address common concerns and build trust and loyalty. This ongoing engagement ensures that when consumers are ready to switch to EVs, they will confidently choose your brand and vehicle as their trusted partner.