In the auto sector, “data-driven marketing” has reached a new frontier. While the use of location data in marketing has clearly grown over the past few years, driving data is something different. Driving data insights go beyond location data, giving auto insurance marketers the ability to reach the customers they want based on how, where, and when people drive. Driving data can help brands connect with consumers based on how they move through the world.

Marketing trends for automotive industries 

Several trends underscore the need for auto marketers to step it up if they want to stand out, engage, and convert new customers:

• For auto insurers: A 2024 survey by Arity found that 64% of consumers say they are unlikely to switch auto insurance companies in the next year. This retention number is higher than last year but still emphasizes the need to retain this loyal customer base.
• For auto manufacturers and dealerships: The same survey shows that consumer intent to purchase or lease a new vehicle is on the rise compared to 2023, with 30% of respondents saying they are very likely or extremely likely to shop for a new vehicle within the next year. Keeping in mind the overall price volatility of consumer goods this year, those in the market for a new car may want to purchase sooner rather than later.
• For auto repair and aftermarket shops: Those who can’t afford a new vehicle due to fluctuations in the economy will have to rely on timely auto repairs to maintain their car safety. The average vehicle age in the U.S. increased to 12.6 years old, which may lead these older cars to require new parts and repairs.

Whether your goal is to target consumers actively shopping, inspire others to start considering a purchase, or provide an alternative solution, driving behavior data can play a key role. Read on to hear from Arity experts Jen Gold and Lisa Jillson on this next era of data-driven marketing.

Those marketers that are leaning into using new and unique datasets…are definitely gaining an edge over their competition.

How can auto marketers use driving behavior data? 

Q&A with Jen Gold 

Jen Gold runs Product Marketing for the Marketing Solutions team at Arity. She focuses on products that help marketers connect with their best customers using telematics data.

What are some innovative ways you expect to see auto marketers leveraging driving behavior data that haven’t been explored before?

JG: A few use cases I expect to see more of from auto marketers are:

• Risk-based targeting: Auto insurance marketers can leverage driving behavior data to reach aggregated audiences of drivers who have driving risk profiles that match their business objectives. By understanding driving risk up front, carriers can spend more to reach their ideal prospects with advertising, and less to reach prospects who don’t fit their ideal target profiles.
• Predictive maintenance and alerts: Auto repair shop marketers can use driving behavior data to predict when a vehicle may need maintenance and send proactive alerts or offers for services based on wear and tear.

And beyond the auto sector, this data can help retail marketers across industries like quick-service restaurants (QSRs), fuel and convenience, big box stores, and more display ads to consumers who frequently drive past their physical locations – with the goal of attracting them to their location.

Then, when it comes to measuring ROI, this data can help gauge the effectiveness of these campaigns by looking at the impact of ad campaigns on in-store traffic.

Marketers can create more relevant offers and optimize timing for campaigns.

How might driving behavior data enable marketers to create tailored customer experiences? 

Q&A with Lisa Jillson 

Lisa Jillson leads Marketing, Media, and Publishers for Arity. Lisa is very passionate about the intersection of innovation, technology, and marketing.

Have you seen a shift in how marketers are utilizing deeper insights about driving behavior, particularly as they look to engage consumers post-COVID? How do you see these insights evolving?  

LJ: There’s an opportunity for many marketers to evolve beyond using demographic and location data. Specifically, more comprehensive driving behavior data can help brands connect with aggregated, opted-in audiences based on how, when, and where consumers drive, giving marketers a more comprehensive understanding of their best customers so they can reach them meaningfully.

Different data types for marketers to consider include driving speed, time of day, route patterns, and even vehicle conditions. This data enables marketers to create tailored experiences that meet consumers’ needs and preferences in near real-time. Those marketers that are leaning into using new and unique datasets such as this are definitely gaining an edge over their competition.

When it comes to engaging audiences post-COVID, marketers can leverage these aggregated insights to understand how driving patterns have shifted – especially as commuting and other travel habits change. With these insights, marketers can create more relevant offers and optimize timing for campaigns.

Almost all industries are affected by AI. Which AI-driven strategies are you most excited about for auto marketers?  

LJ: There are a few that get me jazzed about the future:

• Predictive analytics: AI can help auto marketers better forecast customer behavior, enabling more targeted outreach and boosting conversion rates.
• Personalized experiences: AI can deliver tailored content and offers to consumers based on their preferences, actions, and can even take into consideration their driving routes.  For example, if you know I drive a route by a certain coffee store, why can’t you give me an offer to encourage loyalty?
• Automated content creation: AI can streamline content generation, allowing marketers to produce relevant and effective material quickly.