By Andrew Zack, Senior Director of Product Development
Artificial Intelligence (AI) is revolutionizing industries worldwide, and the automotive sector is no exception. According to GrandView Research, AI applications are projected to surge from $80 billion in 2023 to $273 billion in 2024. Amidst this rapid growth, one thing is clear: while AI tools are becoming more accessible, the true differentiator lies in the quality and depth of the data driving them.
In today's market, most companies are focused on the flashy side of the latest evolution of AI, background replacement in creative, scalable ad copy creation, and the like. While these innovations are impressive and have their place, they are becoming increasingly commoditized—much like how social media platforms adopted stories and filters initially popularized by Snapchat.
At ZeroSum, we believe that true transformative power of AI lies in the data that powers it- As the luster of this first wave of AI creative generation fades the real value comes from a unique and robust data set to power it. Our Automotive Intelligence platform, MarketAI, powered by Cloud Theory, stands apart because it harnesses data from every franchise and independent dealer nationwide. We delve deep, down to the VIN level, with datapoints on all the attributes of each vehicle, how many days it's been on the lot, price changes, expected days to move, additions to competitor lots, and more.
The Intersection of Ad Tech and VIN Tech
Advertising platforms are unparalleled in delivering high-performance ad campaigns and precisely targeting audiences. They excel at finding the right person to serve an ad to, leveraging their vast user data and sophisticated algorithms. However, their definition of success—often measured in clicks, impressions, and engagement—differs from that of automotive operators, whose primary goal is to sell more cars effectively and efficiently.
This is where an automotive intelligence platform like MarketAI makes a significant difference by algorithmically optimizing the right inventory to promote based on comprehensive market and inventory insights. It understands the nuances of your inventory and market conditions, prioritizing which vehicles should be advertised and when. Pairing this intelligence with each ad platform’s ability to find and deliver units to their audience of active shoppers across any channel they’re found—be it search, social media, display networks, or OTT/CTV platforms—dealers can leverage the best of both worlds. Utilizing the superior ad delivery capabilities of these platforms while ensuring their marketing efforts are aligned with actual sales goals.
Every Unit Counts
Consider Ford as an example. In the last 30 Days you can see nearly 50% of sales have come from usual suspect models like the F-150, Explorer, Escape and Bronco Sport.
So of course, the bulk of marketing efforts should focus on supporting these high-volume, high impact models, but forgoing any focus across the rest of their lineup will be costly.
Consider the Expedition amidst its XL SUV competition:
While only representing 5% of total sales, it desperately needs support; with a days-to-move nearing double that of its segment despite its price competitiveness. Its growing and aging inventory will continue to take up space on the ground, leading to "lot rot", higher carrying costs, and decreased profitability for their dealers.
With the optimization decision making insights that MarketAI is driving each day, it algorithmically understands a myriad of market and shopping dynamics to optimize the engagement each model requires to drive efficiency in turn rates and minimize days to move. By understanding factors like market demand, competitor activity, and inventory levels, MarketAI helps OEMs, Zone Managers, Market Leads and Dealers allocate their marketing execution efficiently. This ensures that each model receives the engagement it needs to compete effectively in the market.
The Future of AI in Automotive Marketing
In today's hyper-competitive automotive market, efficient resource allocation is more critical than ever. AI will continue to play a pivotal role in enabling OEMs, dealers, and agencies to gain deeper insights into their inventory, local market dynamics, competitor strategies, and optimal advertising investments.
As AI technology rapidly evolves, industry leaders will adapt and thrive, while others lag behind. Yet one constant remains: the quality of data will determine who wins or loses. At ZeroSum, we're not just embracing the future—we're defining it.