Luxury Car Brands Not Tapping Full Potential of Social Media

Study by MH Group Communications and Forum Strategies & Communications
examines social media presence of global luxury automobile companies; finds
German automakers dominate while Japanese and American brands are largely
absent

NEW YORK, Oct. 12 /PRNewswire/ -- Luxury car makers are not maximizing the
full potential of social media in their communications efforts, according to a
new study announced today by independent New York-based consultancies MH Group
Communications and Forum Strategies & Communications. The study, "Luxury Auto
Brands and their Presence in Social Media," is a comprehensive analysis of
luxury auto brands and their presence within social networks.

Using the MH Group Communications Community Index and Conversation Index
measurement methodologies to determine the size and activity level of
communities around specific auto brands across Facebook, Twitter, YouTube, and
Flickr, the study found that German automakers dominate the luxury auto
business category, while Japanese and American brands are largely absent and
unimpressive within social media.

In the study's overall rating, the nine luxury auto brands considered ranked
as follows in terms of their engagement in social networks:

1. BMW
2. Porsche
3. Audi
4. Mercedes
5. Cadillac
6. Lexus
7. Acura
8. Infiniti

9. Lincoln

Porsche had the highest community rating in the Community Index with a score
of 5,448, followed by BMW at 3,681 and Audi at 3,612. In the Conversation
Index measurement, BMW held a sizeable lead over competitors with a
conversation rating of 6,164 for the period studied.

However, the study also concluded that the industry has yet to tap the full
potential of social media by utilizing an integrated and holistic approach,
and are focusing their efforts on YouTube and Facebook rather than the full
spectrum of social media platforms where benefits could be gained.

Additionally, the study found that the task of breaking through in social
media for luxury car brands is complicated by the fact that all the brands
face an extraordinary amount of online clutter as they try to attract a
focused social media community. Unofficial Facebook pages, Twitter feeds,
YouTube channels and Flickr communities created and managed by fans, vehicle
dealers and individuals who incorporate a vehicle name in their online
identities siphon attention and offer conflicting brand messages.

"Communications flow as easily between different social media platforms as
within any specific platform," said Mark Hass, CEO of MH Group Communications.
"In this environment, a successful campaign within one social media platform
is not sufficient to advance and protect the brand online. Luxury auto
companies need to harness the synergies of using multiple social media
platforms in an integrated campaign to obtain the full benefits of the
technology."

Other Key Findings:
The study revealed that social media conversations around luxury auto brands
focused on four key topics, each of which offer specific
challenges/opportunities:

-- Admiration: The luxury auto sector enjoys a privileged admiration
consumers express for most luxury brands. Being part of an "exclusive"
club, these owners and fans err on the side of adoration when
discussing
their vehicles. Challenge: Where is the tipping point, when the club
no
longer feels so exclusive because of the social media involvement of
everyday consumers?
-- Sales and Deals: The auto industry's huge investments into e-commerce
and the dealer-based, decentralized sales network make deal talk the
dominant topic of social media conversation. Challenge: Brand
management
in this environment is a challenge, given that the community drives
the
conversation, rather than the brand, in contrast to pre-social media
days, when sales messaging was focused around brand web sites.
-- Questions about Features, Service, Availability: Social media are a
powerful tool for brands to monitor questions about their vehicles and
address them directly and immediately. Opportunity: This should be
viewed as an opportunity to extend a brand's customer service
commitment, rather than just treat social media as a marketing tool.

-- News and Vehicle Announcements: There is a virtuous cycle of
amplification among these brands, auto bloggers and social media
networks, in which news is shared by the brands with influential
bloggers, reposted or tweeted within social networks by readers of
those
blogs, and further echoed within smaller SM groups. Opportunity: Links
to blog posts, rather than traditional media, are shared most often by
consumers.

Goodwill persists for luxury auto brands in the social media conversation:
While most other business sectors have brands that have been damaged by
negative social media commentary, most luxury goods brands, including autos,
enjoy mostly positive social media relationships. In fact, 90% of the
commentary and content created about these brands is positive, since luxury
brand consumers perceive that they receive a high-level of service and value
by being associated with the brand.

"Given the positive online dialogue regarding luxury auto brands, the use of
social media can no longer be regarded as an afterthought, but must be viewed
as a foundational element that is part of any holistic communications
strategy," said Jeffrey Sindone, President of Forum Media, Forum Strategies &
Communications.

About the study
MH Group Communications and Forum Strategies & Communications partnered to
perform this study because of their shared extensive experience and interest
in the auto industry and social media. The top-selling luxury auto brands and
luxury brands owned by major global automakers, including Acura, Audi, BMW,
Cadillac, Infiniti, Lincoln, Lexus, Mercedes and Porsche were studied to
assess their level of involvement and success in using social media.
Researchers examined social media activity during August 2009 by the brands,
as well as activity about the brands initiated by consumers, dealers or
others. More information about the study is available at http://mhgroupcom.com
or http://www.forumstrategies.com.

About MH Group Communications
MH Group Communications specializes in integrating traditional C-Suite
corporate communications services with the opportunities provided by emerging
social networks and other digital tools. It offers creative and contemporary
programs that take advantage of the dynamic environment surrounding consumer
and stakeholder communications. For more information on MH Group
Communications please visit http://mhgroupcom.com.

About Forum Strategies & Communications
Forum Strategies & Communications aims to help clients better shape the social
and political landscape in which they operate through innovative, progressive
public affairs strategies, targeted and compelling communications and
integrated corporate affairs programs that get results. Its executive team has
a track record of success on controversial, high-profile issues, and brings
decades of combined experience in: Strategic issues and communications
counsel, reputation-critical campaigns, multifaceted communications programs,
issue advocacy, reputation and branding campaigns. For more information on
Forum Strategies & Communications please visit http://www.forumstrategies.com.

SOURCE MH Group Communications

Daniel P. Bingham of MH Group Communications, +1-408-621-5786,
Daniel.bingham@mhgroupcom.com; or Jeffrey Sindone of Forum Strategies &
Communications, +1-212-554-2157, sindone@forumstrategies.com