MSIN3006: Digital Marketing (2016) Individual Assignment
BMW – The Ultimate Marketing Machine A report on BMW’s social media marketing strategy
Table of Contents
1. Introduction: Why the Auto Industry and Why BMW - - - - - - - - - - - - 3 2. BMW’s Social Media Strategy: An Overview - - - - - - - - - - - - - - - - - - - 4 3. BMW’s Strategy: Strengths and Weaknesses - - - - - - - - - - - - - - - - - - - 8 4. Comparison with Competitors - - - - - - - - - - - - - - - - - - - - - - - - - - - - 13 5. Conclusions and Lessons Learnt - - - - - - - - - - - - - - - - - - - - - - - - - - - 16 6. References - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18
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Introduction: Why the Auto Industry and Why BMW Since its inception a few years back, the notion of social media marketing has become an increasingly indispensable, yet immensely powerful tool for modern businesses today. In fact, to comprehend this phenomenon, one needs to look no further than the automobile industry, where carmakers spend colossal amounts of money vying in the social media space, and consequently produce some of the most innovative campaigns on social media1. For a start, it is noted that almost 40% of car buyers utilize social media to inform their decisions on any particular automobile purchase; indeed, a whopping 84% of all car buyers are active users on Facebook. This is not to mention that clicks on car advertisements on Facebook had also increased from 16% to 39% over the 6 months leading up to April 20132.
100 80 60
BMW
40
Mercedes
20 0 Social Index Score
Figure 1, Social Index Score (Brand Responsiveness & Audience Content Engagement) 4 The reason why this report has chosen BMW Group as a case in point lies in the fact that BMW boasts one of the most successful social media campaigns in the industry, with an overwhelmingly strong social presence and engagement, coupled with a wide variety of platforms used across various geographic and national boundaries3. Few in the industry can match the level that BMW has taken its social media strategy up to. The remainder of this report will seek to explain not only the successes of the BMW “way”, but also its weaknesses given the competitive space, as well as the lessons we can glean from the prestigious German carmaker.
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BMW’s Social Media Strategy: An Overview As mentioned earlier in the Introduction, BMW deploys a wide array of social media platforms to achieve its social media marketing goals. Contrary to some other corporations, BMW chooses not to adopt a coherent approach across the different platforms, but rather utilizes each one to its most appropriate end, which makes perfect sense because every social media platform appeals to a different group of users under different circumstances. Here we will explore how BMW manages each platform in detail: n FACEBOOK F
F
20,000,000 15,000,000 BMW 10,000,000
Audi Porsche
5,000,000 0 Facebook Fans
Figure 2, Facebook Fans 5 As of February 2016, BMW’s main Facebook page has reached a sizeable 19 million fans, a number many competitors like Audi fall short of. For BMW, Facebook represents an information-cum-entertainment channel through which it engages fans with daily images and videos of its cars, with frequent links to car review sites or YouTube videos for the more technically curious crowd. A varied collection of Facebook apps developed by BMW also seeks to inform users on the technical and aesthetic features of its cars, notably one that helps potential buyers visualize different specifications and colors of any particular BMW model6. BMW seems to understand very well the concept of how social media users always appreciate seeing something with their eyes.
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Moreover, it is certainly not just one-way traffic for BMW’s Facebook endeavors. In 2012, during the launch of the new 3 Series model (which accelerated from 0 to 60 mph in just 5.9 seconds), BMW kick-started a DESIR3 Contest on Facebook in which users were asked to create 5.9-second adverts promoting the new model. The result was a phenomenal success, with over 2,000 clips submitted and the winner eventually driving home a brand new BMW 3 Series7. This is just one of the many examples of how BMW engages with its fans and customers through social media, encouraging the creation of user-generated content and entertainment-infused interaction with its users. And it is, of course, common knowledge in social media best practices that the inclusion of user-generated content and user interaction in social media marketing is always leaps and bounds more effective than if they were otherwise neglected. n TWITTER F
BMW uses Twitter primarily as a practical, informative, and educative channel. On Twitter, BMW is known to reply users’ queries, and also to educate fans on its cars through effective use of hash tags (#) and mentions (@) in its tweets8. Just like on Facebook, BMW frequently posts links to images and videos, which can prove very entertaining for its Twitter followers, since BMW is especially adept at producing visually appealing content. It is worthy to note, however, that BMW is generally more responsive to users’ comments and queries on Twitter than on Facebook, although an educated guess might be that it is precisely BMW’s intention or strategy to do so, since BMW is not the only brand that frequently “ignores” comments on its Facebook page. n MOBILE APPLICATIONS F
As with some of its rivals, BMW places substantial emphasis on its mobile applications, and views it as a way to further engage the user outside of the social networking space. One of BMW’s most successful apps is “Ultimate Drive” – users are provided with maps marking their favorite locations and routes, and subsequently allowed to leave suggestions and warnings for other drivers as well as to rate roads. What this does is that it effectively creates a very closely-knit community of BMW drivers, who are brought together based on a common passion or hobby (i.e. BMW, driving). One could argue that such communities are indeed highly effectual in promoting brand loyalty and a sense of belonging to BMW.
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n EMPLOYEE ADVOCACY F
While employee advocacy is not strictly a social media platform per se, it is definitely worthy of independent mention under BMW’s multi-faceted strategy. Employee advocacy is a marketing technique in which employees (especially salespersons) who are exceptionally passionate about the brand are encouraged to engage in brandrelated conversations on their very own social media accounts, by posting videos, images, or links that involve themselves and their company’s brand. These employees tend to take huge pride in their company and brand, and often are very knowledgeable about their company’s products, making them some of the “best brand ambassadors”,
according
to
Andrew
Cutler,
the
Executive
and
Internal
Communications Manager for BMW North America9. According to him, content promoting BMW that BMW employees themselves share on their social media accounts result in an average share rate that is 15 times higher than through corporate channels; in other words, employee advocacy is a rich source of organic traffic. BMW saleswoman Tahmina Hassanein is the epitome of her company’s employee advocacy program. Often directing potential clients to her Facebook page, Hassanein captures videos and photos in which she presents specific functions and features of BMW cars. Moreover, she occasionally advertises BMW accessories such as mugs and timepieces, despite not being paid commission for this. Just a few months into her new job, Hassanein had already gathered 500 pages on her Facebook fan page10. All this goes to show the enormous potential of employee advocacy and how BMW has harnessed this to its great advantage. n SUMMARY F
It goes without saying that the above list is far from exhaustive in describing BMW’s social media strategies. BMW also engages in search engine marketing and optimization, e-mail and mobile messaging through its extensive client database, maintaining an account on the increasingly popular photo-and-video-sharing app Instagram, operating a Google+ account and a YouTube channel “BMW TV”, as well as involving themselves with online car magazines and games. However, BMW’s operations on these platforms are very much standard and self-explanatory.
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It is worthy to note, however, that BMW has yet to officiate a Pinterest account, unlike Honda and Chevrolet, which have established presences on this platform. However, Honda and Chevrolet represent a vastly different market segment from BMW and therefore any comparison between them would be tenuous and possibly unwise.
Figure 3, BMW’s Social Media Reach by Continent and Language 11 All in all, BMW has done a very decent job at extending its social media reach across multiple platforms, and excelling at a specific few (namely Facebook, Twitter, YouTube, etc.). BMW has also mastered the art of localizing its social media content for different markets across the globe, which we all know is more than just about translating language. For one, BMW’s social media campaign now spans across almost every continent and is now operated in multiple languages11 (see chart above). This has resulted in BMW having, arguably, the strongest social media presence amongst all carmakers, the details of which we will discuss in Chapter 4: Comparison with Competitors.
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BMW’s Strategy: Strengths and Weaknesses Strengths At this stage, it seems clear that the strengths in BMW’s social media marketing strategy outweigh its weaknesses. However, no one strategy is perfect, and we certainly must address some of BMW’s oversights after exploring its merits. Let us first take a look at what other digital marketers can take away from BMW: n USER-GENERATED CONTENT F
It is common knowledge in the world of social media marketing that user-generated content, user engagement and user interaction are very important for a successful campaign. BMW takes this to a whole new level, encouraging not just the usergeneration of content, but also interaction amongst users themselves12 (recall the Ultimate Drive app). According to Sebastian Schwiening, a digital marketing manager with BMW, information on BMW is “more trustworthy” to customers “when people are talking BMW among each other and not from [them]”13. Apart from the DESIR3 Contest example mentioned earlier, another notable instance of BMW’s strategy at work is their “Snowchat” campaign, which drew inspiration from Snapchat. Simply put, users could write personalized messages on snow-covered BMW windscreens and send those images to friends as festive greetings instead of the plain, old, boring text messages14. This campaign was once again hugely successful, as BMW understood that pictures are a thousand times more valuable than text in digital marketing. And the result for BMW was delightful – a high level of free and organic user engagement and promotion of its brand in a very visual form. The list goes on. Be it BMW’s Biggest Fan competition that sought to identify BMW’s best and biggest fan15, the Golden BMW campaign during the 2012 London Olympics whereby fans who spotted the Golden BMW stood a chance to win free Olympics tickets16, or BMW’s encouragement of car owners to share their driving experiences on Facebook17, we see a persistently disciplined commitment from BMW to stick to engaging its fans and users in an entertaining, yet nonetheless relevant way. And the
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results these campaigns yielded were simply “magnifique”. The Forbes magazine definitely agrees. “Let customers have a say”, it writes18. n CREATIVITY F
Here, we refer to BMW’s ability to think out of the box and create one-off social media campaigns that are incredibly creative and effective, and yet do not really fit into any standard category. One notable case in point is BMW’s 4 Series launch. Using social media as a testing ground, BMW offered a free test drive of the new 4 Series over a particular weekend, even before the car had even reached dealers, in a campaign they called “UN4GETTABLE Weekend”. Influential BMW fans were chosen to participate, and eventually the campaign ended up having higher engagement levels than any other in BMW’s history. Through this, BMW was not just engaging with its fans, but also transforming the concept of marketing a brand new series of cars from a topdown dealer-to-client approach, to a bottom-up client-to-client approach, making use of the extensive individual reach that social media provides. n VISUAL APPEAL F
It may, on first thought, seem commonsensical that social media campaigns should use visually appealing images. However, it will surprise many how several established and well-known brands consistently fail to deliver this. BMW, on the other hand, aces this and passes with flying colors. A quick look at BMW’s main Facebook page will convince anyone of its consistent ability to portray its cars at aesthetically appealing angles, “tantalizing” colors, and with exotic backgrounds taken from the most outlandish parts of the world. And as they say, a picture speaks a thousand words, and BMW certainly respects that. Every BMW photo on social media “tells a story”, in the very way the Forbes Magazine describes19. n
PRACTICALITY
F
It is probably a very German (and healthy) habit to keep things practical. As much as we require social media campaigns to engage the “superficial” aesthetics and to delve into the “fluff” and creative arenas, a social media campaign cannot succeed if it is just that – fluff. (In the next Chapter, we will look at an example of Audi’s failed campaign
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due to irrelevant content.) In its Facebook and Twitter campaigns, BMW stringently keeps itself relevant to what it is, despite all the effort put into user engagement and creativity. Every BMW social media campaign relates back to the brand itself, the car, or the driving experience. Mazda’s North America Marketing Director agrees, “When we get into some of the more human aspects, there’s a little less interest. When we’re showcasing the product, the technology, photos of our engines – that’s when people get excited.”20 n BRAND AWARENESS F
Perhaps this is better categorized as an advantage rather than strength. The innate brand name of this 90-year old automobile giant is almost synonymous to performance, luxury, and style, and this has been a significant tailwind for BMW’s social media campaigns. It simply makes it that much easier to market your brand when people already know about it or feel positive about it21. Renee Richardson Gosline, an assistant professor of marketing at MIT’s Sloan School of Management explains how customers’ relationships with their BMWs sometimes even “rival those they form with their pets”22.
Weaknesses For all of BMW’s strengths, no analysis of their social marketing campaign, however, will be complete without examining areas in which BMW could improve upon: n RESPONSIVENESS TO USERS F
While BMW does an excellent job at engaging users and soliciting user-generated content from them, they seem to be considerably lackluster in their efforts at responding to users23. As mentioned in an earlier section, BMW does not reply to users’ comments and queries on Facebook. While there could be other unknown reasons for this, any company should respect the fact that Facebook remains by and large the most important social media platform that most netizens use (over Twitter, Instagram, etc.), and if there is insufficient interaction between BMW and its users on Facebook (here
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we distinguish interaction from engagement), it could potentially suffer a huge loss of valuable user feedback that could otherwise be a great boon to its customer experience. n SLOW TO ADAPT F
This point may raise a few eyebrows because our analysis of BMW’s strategy so far reveals its dexterity at navigating the world of social media marketing. However, it may not be known to many that BMW actually learned their lessons the hard way. In fact, up till 2014, BMW did not even use hash tags in their tweets, and a hugely popular advert featuring two BMWs kissing were initially rejected by the ultraconservative senior management team because it did not “fit in with BMW’s image”. One may even be baffled as to why, up till that point, BMW’s internal management only reported website and channel usage24 when it came to social media, and did not even fully appreciate the concept of “likes” or engagement. A separate campaign in May 2014 that sought to imitate a flash mob, too, did not sit in well with senior executives at its inception, although its “fun twist”25 eventually saw the campaign attract a massive social media following. Fortunately for BMW – and this is perhaps where we could possibly cast the spotlight back onto their strengths – talented Steven Althaus, dubbed as BMW’s global director of brand management who “convinced BMW to rethink social media”26 , had the foresight to reverse the damage before it became irreparable. For one, he managed to successfully persuade high-level decision makers to adopt the flash mob campaign, and to start experimenting with hash tags on Twitter, all of which contributed to BMW’s astounding marketing success today. n DETACHMENT WITH AUDIENCE F
Some critics have casted light upon how BMW is targeting the wrong audience and market for its social media campaigns27. Allegedly, BMW does not “understand its audience” and targets people who cannot even afford BMWs in the first place – testament to this are tweets along the lines of “I can’t afford it – the end” in response to BMW’s Twitter campaigns. On the other hand, however, it is public knowledge that part of BMW’s multi-faceted digital marketing strategy is to foster emotions of how BMWs are mysterious, pricey, and lavish cars that people aspire to own some day, even if they currently did not28. And it makes perfect sense – human beings have an
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innate desire for objects that are not easily attainable, and that is the crux of marketing philosophy in the luxury goods industry, which BMW is proudly part of. n CARELESSNESS F
As a final point, it is reported that BMW’s online campaigns are often fraught and bugged with non-working links29 and “ill-conceived” applications that are not userfriendly and have very limited functionality30. There is not much to elaborate on this, apart from the fact that this can be massively detrimental to user experience and consequently hinder the success of BMW’s digital marketing campaigns. As a gigantic multi-national manufacturer of luxury cars, a problem like this ought to be fixed as quickly as possible, especially since it seemingly requires very little effort to remedy.
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Comparison with Competitors So far we have covered what BMW does and why they have been generally successful when it comes to social media marketing. But before making final conclusions and judgments, it is imperative to look at how BMW fares compared to its rivals – both direct (e.g. Mercedes-Benz, Audi) and indirect (e.g. Toyota) ones. n AUDI F
Audi is the first car that comes to mind once we strike BMW off a list of cars. Unfortunately, when it comes to engaging users on social media, Audi does not quite seem to understand the ball game as well as its bigger brother does. In an attempt to engage users with “entertaining” content on social media, Audi seems to have made the blunder of posting irrelevant content. “CARS PLEASE”, commented a particular Audi fan on the Facebook page. This initially started off as a novel idea whereby Audi encouraged users to share their “real life triumphs over adversity” on social media, after which selected interesting stories would be presented by artists in a 6-hour live event. And the result was a string of confused Audi fans who were simply more accustomed to seeing cool photos of Audi cars, and not irrelevant images of artists31. In addition, Audi does not have quite the same following on social media as BMW does, in terms of the hard numbers. In fact, more than 33% of BMW’s impressions in 2013 were rich media placements, compared to less than 5% for Audi, and it is hardly good news for Audi that BMW’s mobile apps (such as the Motorsport Le Mans app in 2010) and TV podcasts have consistently given it an edge over Audi in terms of the richness of its social media content32. While Audi, too, develops apps for mobile users, we have not seen anything more astonishing than a driving simulation app, which has apparently left some users rather “dizzy” after usage. To hammer the point home, Audi does not even have an Instagram account in Russia like BMW does. Audi, however, does have a strong foothold in video strategy. The BMW rival focuses primarily on big sporting events, evident in its Green Police advert in the 2010 Super Bowl which attracted more than 2 million views on YouTube. Simply put, Audi outpaces BMW on network television, and not by any small stride.
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n MERCEDES-BENZ F
While Mercedes-Benz has a higher number of aggregate followers and content on social media, that could spell a good notion for BMW because despite that, BMW still receives more mentions on social media33. In other words, BMW is way more efficient in its social media campaigns and has the upper hand in audience content engagement, generating “more conversation from less content”. Then again, Benz and BMW, while traditional rivals, are fundamentally distinctly styled brands that appeal to a slightly different audience. We can see from the chart below that the most commonly mentioned terms for the two brands differ greatly on social media:
Figure 4, Comparison of Key Words Mentioned for BMW vs. Mercedes Benz 4 n PORSCHE F
Porsche operated a successful crowdsourcing campaign in 2013 to celebrate its 50th anniversary. Fans on Facebook were invited to vote on a range of different specifications for a 50th anniversary one-time model, including the color of the car. Needless to say, this campaign resulted in tremendous success for Porsche, which saw its Facebook likes increase almost exponentially after the campaign. Once again, we witness how engaging users with relevant content and in the decision-making process can have magical effects on publicity and brand name. n CITROEN F
In an unimaginable show of trust in its followers, Citroen actually invited its Facebook users to design the upcoming C1 Connexion model. Just like Porsche, involving the audience in the decision-making process yielded marvelous results – Citroen’s social
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engagement numbers exceeded expectations, as more than 24,000 submissions were tendered, and an additional 15,000 fans signing up for the ride. n TOYOTA F
One campaign by Toyota called for users to design and create an environment around a particular model – yet another effort by a carmaker to engage users in a relevant experience. n MINI F
Mini’s “NOT NORMAL” campaign, which prompted fans to upload photos and videos with the hash tag “#MININOTNORMAL”, allowed the brand to engage with 230,000 fans within a span of six weeks, with almost 30,000 of them being new fans. Mini’s followers on Twitter even tripled in number. The campaign achieved an unthinkable 11% conversion rate, where 1 out of 10 visitors to the campaign hub ended up becoming “qualified dealership leads”35. This is once again testament to the significance of user engagement in digital marketing.
Summary 5,000,000 4,000,000
BMW
3,000,000
Audi
2,000,000
Ford
1,000,000
Toyota
0 YouTube Channel Views
Figure 5, Comparison of YouTube Channel Views As we can see, it is not only true that BMW’s social media package stands out ostensibly from its competitors’ in terms of both quality and scope, but also that many of its competitors are emulating BMW’s strategy, or at least trying to. After all, BMW has been touted as “the most popular car brand on Instagram”34, and when we compare its YouTube channel views with its rivals’, everyone else pales in comparison (see chart above). It also has one of the highest social media marketing budgets amongst the carmakers, spending a bold 15% of its total marketing budget on digital marketing alone.
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Conclusion and Lessons Learnt There are infinitely many lessons we can take away from this BMW case study. Given the physical constraints of this report, we shall touch upon only the few most important learning points, and in relative brevity: n USER ENGAGEMENT F
As we have seen repeatedly time and again, engaging users in social media campaigns is the way to go for 21st century digital marketing. And successful marketers do not simply engage users with irrelevant content (recall Audi’s failed campaign), but instead inject relevance and perhaps some practicality (the informative strategy BMW adopts) into their campaigns. Better still, they involve fans in some form of decisionmaking, such as what BMW, Porsche and Citroen did with their new models. n USER INTERACTION F
It is not sufficient to merely engage users and fans. A successful brand has to converse with its followers, who are usually the best source of earnest and constructive feedback that can prove to be extremely valuable to a brand’s image. n USE MULTIPLE PLATFORMS F
One could argue that BMW’s marketing success plays tribute in large part to its commitment towards using a variety of social media platforms. Every platform attracts and appeals to a different segment of society, and we want to reach as many people as we can. Perhaps one very important message from BMW’s experience is to not overlook or underestimate the less conventional forms of social media marketing, such as employee advocacy, which has proven to be hugely successful for BMW. n STAY CREATIVE, STAY BEAUTIFUL, STAY ALERT F
In the world of social media marketing, one simply cannot emphasize further how important it is to be creative and innovative. While the aforementioned points certainly serve as a guideline for any digital marketer, no brand can survive in this competitive space without being innovative and constantly thinking out of the box to
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bring novelty to its social media space. Moreover, it is of utmost important to stay visually attractive and effective in all social media campaigns, because ultimately, pictures speak way more than words. Last but not least, brands should stay alert and constantly monitor what their competitors are doing; one simply cannot afford to lag behind trends in the dynamic and ever-changing landscape of digital marketing. n RUN A GOOD BUSINESS, SELL A WONDERFUL PRODUCT F
No amount of digital marketing will be successful if the brand or company does not ultimately deliver. The underlying and most fundamental reason why BMW’s social media campaigns have worked so well lies in the fact that at the end of the day, BMW delivers stylish, luxurious, and high performance cars that match up to everything they promote on social media. In the absence of substance, flamboyant use of social media market will only end up in an absolute fiasco.
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