Auto Shows Are Quietly Driving ROI (But Dealers Aren’t Paying Attention) with Jennifer Morand

Paul J Daly: 0:00 Okay, I had a question for each of you. Unknown: 0:07 This is auto Collabs. You Paul J Daly: 0:09 have to answer the question. You walk into a car show, what's the first thing you go see Kyle, Kyle Mountsier: 0:15 the food stand. Paul J Daly: 0:16 No, you don't Michael, I'm Unknown: 0:21 finding the mini donuts. Okay? Kyle Mountsier: 0:29 I mean, we're not car guys. We're like car guys by default, you know, by by association, or, Paul J Daly: 0:35 Oh, we're gonna be well, we go to car shows. Come on, that's true. You know what I like to go see? I'm going to tell you what I like to go see. I like to go see the big like, the mountain displays where the jeeps drive over. Kyle Mountsier: 0:47 Oh yeah. Demo stuff, yeah, you want i That's where I would go, wherever I can do a demo. Paul J Daly: 0:52 You know exactly the demo stuff, the EV test tracks were really cool. They need, like, an EV test tech track, drag strip is what they need not to, like, drive it in a circle, which is really hard to navigate when you're in when you're inside a convention center, I can understand why they don't want, like, 6000 pound thing you could do professional Michael Cirillo: 1:10 driving. I mean, the look the last auto show I was at the Toronto International Auto Show, and it was there, confirmed once and for all, no contest that we all turn into our parents. Why? Because at every display, I turned into the Italian car shopper, like, Dad, you know, I'm like, open the door, close Paul J Daly: 1:30 it. Oh. And I caught feels nice. It's got a heavy it's got a heavy, heavy feel to it. Unknown: 1:34 Window frames. I'm like, and then I was like, What am I doing? They're gonna think I want to buy this thing. He was in a trench, right? Kyle Mountsier: 1:41 Farm guy, or the whatever Farmers Insurance Guy comes out, you know? Oh Paul J Daly: 1:45 yeah, the parent coach. Like, how to not be your friend. Unknown: 1:49 I'm like, Paul J Daly: 1:51 Oh, we're not commenting on how heavy the door is. Kyle Mountsier: 1:55 Well, today, we are hanging out with a new friend of ours, Jennifer Moran. She is responsible for aggregating a group of dealer associations and people that throw these auto shows and thinking about how to make the experience one that more people, more OEMs, more dealers, want to be a part of. And we're excited to kind of like, get into her brain, get in the mentality of what it takes to do that, to make sure that Michael and I just don't go to the food stand. So we hope you enjoy this conversation with Jennifer. Jennifer, Paul J Daly: 2:31 all right, so we love when there's a new friend on a podcast, because we don't know everything about you. We don't even know a ton about you. So why don't we just let you just give us the 30 to 62nd summary of what you do and why you're so passionate about it? Jennifer Morand: 2:49 No, absolutely. Well, thanks for letting me have the floor to do that. Well, I'm thrilled to be here. I'm the incoming chairwoman of the automotive experience Alliance, which is an association that is driving innovation in the industry. Auto shows are very powerful platform to introduce the latest products to consumers, and we always say, you know, they're actually paying to come to the show and to see the latest vehicles. So what a great opportunity for manufacturers to be present. We're very passionate about what we do. The AEA is founded on two basic core principles, transparency is number one, and also benchmark data. So we run surveys. They're the same questions set across 28 different markets, for example, so manufacturers can really evaluate the ROI from what they receive from auto shows. So we're heading into our second year. We just concluded our inaugural, our inaugural year, and first time at a conference out in Montreal a couple weeks ago. So we have momentum, and we're excited as we head into this next year. Kyle Mountsier: 3:46 What got you interested in this level of like experiential understanding for auto shows? Where has that like passion come from? Yeah, Jennifer Morand: 3:57 so you know auto shows, they truly serve as such a dynamic platform to introduce latest products to consumers. And I run a show in Chicago, the Chicago Auto Show, and really it's a like minded organization of show producers really coming together to drive innovation for the industry. And you know, we see it and live it, breathe it. Every day. We're on our show floors, we see the consumers there. They're touching, they're sitting, they're test driving, you know, and ride alongs as well. And they're experiencing these vehicles, and that truly translates to influence when they're considering purchasing vehicles. And what's happened in the past, you know, five or 10 years even, is manufacturer support is starting to dwindle. Has dwindled, really, from auto shows. They're investing in different platforms. Maybe they're looking to do car unveilings on YouTube, for example. Is different than at an auto show, but, but truly where the rubber meets the road is at the shows. Like I said, we breathe that. We see it every single day when we're producing our show. And it's just it's amazing to see that. You know when. The data is coming back to us, so it's not just what we believe and observe on the show floor, but when we're actually running these studies. We heard from 20,000 different consumers across the country, across all those 28 markets, and it's nice to be able to have that validation when the data is coming back in support of auto shows. You Paul J Daly: 5:18 know, a big part of our audience is auto dealers. So they're on the front lines every day. They they would love it if someone paid them to come look at the cars. That'd be amazing. But we really, you've crafted an experience right, where people are paying to come look at cars, have experience, learn a lot, and have some fun. What from a dealer involvement? You know, angle, have you seen that increase decrease? And what would you say to the dealers out there who maybe, like, don't want to dedicate resources to a car show because maybe they don't see value in it? I think that's, that's a big part of how we can kind of solve this customer experience challenge. Because we, I know I asked you a question now I'm going to talk but, um, yeah, we're, just such big proponents of delivering and bridging the gap between what the customers are thinking and where they're at in their life and interaction with the dealership, and showing the dealers in the dealership team as an advocate for them, as someone who they're real people. And we feel like car shows are an amazing way to do that, where you aggregate the people. So what back to the question is, what would you say, or what do you see, as far as dealer involvement in shows? Jennifer Morand: 6:26 Yeah, absolutely. Well, we both share a passion for the car business, but also for car dealers. I work for car dealers. I run an association of 400 new car dealers, and my counterparts at the AEA all run car dealer associations as well. So I think that is important to note. It is a group of individuals who work for car dealers. So the ultimate goal, right is to sell the vehicle. So, you know, we produce auto shows to be able to do that and to serve our dealers. But anecdotally, the dealers want the show to happen because they know it's going to drive customers to their showrooms. So of course, you know, we're all advocating for that, tier one support from the OEM level. However, there are local marketing associations that have stepped in, LMA step in also, in many cases, in some smaller markets, the dealers are the ones who are actually producing the event in terms of providing the vehicles and the shows, helping the signage, that type of thing. So, you know, across the AEA shows, we really do see a range of participation, from tier one, tier two to tier three, support. And you know, I have a great story. Mazda has been out of auto shows, and they're trying different experiential tactics to get their products in front of consumers, and in recent years, and so finally, our one of our largest dealers here in Chicago, the Naples and auto group, they said we have to be in the Chicago Auto Show. People that come to the show think that Mazda is going out of business. And I hear that from so many other markets. It's the same thing with, you know, other shows that are missing the luxury brands. You know, we've a lot of the German automakers have pulled out of auto shows and, you know, but let's say, Paul J Daly: 7:56 let's stay with Mazda just for a second, if we could, right before we go past that, because Mazda is a brand. Kyle worked at a Mazda store for a long time. We work with a lot of Mazda dealers, and Mazda is a brand that is on the biggest Upswing it's ever seen in its history. The product is amazing. They've crafted so intentional about their experience and their marketing and what the store experience is. It's really surprising that they're not involved in the shows. And you know, your friends at Mapleton, for them to say that consumers think it's going out of business, it couldn't be further from the Kyle Mountsier: 8:29 truth. That's wild. Jennifer Morand: 8:30 100% Yeah, it's just the perception that when a brand's missing from the Auto Show, people wonder what's happening to it. Is it not around anymore? We heard the same thing with Buick. You know, when Buick pulled out of some auto shows across the country. So, you know, it's, it's unfortunate, because those manufacturers kind of stand to lose it's especially when it comes to customer shopping, but, but, you know, the dealers know first hand that auto shows move the needle. Because, you know, in markets like mine and others across the country, there's an uptick once the show is happening, as well as after the show, that there's more consumers that are being driven to the dealerships, and the AEA is working on trying to figure out how to quantify that. It's not as easy as one would think, and we always say that's the holy grail in terms of the metrics and the ROI that we're trying to prove. So we're trying to dig into that. That'll be in our in our next year, in our Phase Two Kyle Mountsier: 9:23 well, and I, when I think about this, you know, what we've been tracking over the last three to four years, ever since kind of covid began waning, is there is an intentional focus for retail, for any any industry, In providing great experience in person, because people are craving that. They're craving those touch points, even though, like digital is blowing up. But people are headed back to malls. People are headed back to showrooms. People are headed back to retail because we they're understanding like that experience that touch feel is so visceral, it's so important to our like, huge. In reality. And so I think there's, there is something to that auto show, you know, and figuring out what's the experience that people want. Because, I mean, we had one of our video editors, was just at at, at a massive video conference, video and social conference, Vid Con. And, like, it's all Gen Z, right? And so it's not, it's not like these people don't go the place to shows to find more about the thing that they're most interested in. It's not like this is like an old, you know? Oh, auto shows are for older people that have been going Paul J Daly: 10:37 forever, right? Like, we're not, we're not trying to go cross cultural, right? And like or counter cultural. We're not trying to get them to do something that they don't already do, or enjoy doing or like doing. We might just have a branding issue, right? Like, I don't know what it is like, Jennifer Morand: 10:53 and that's exactly what the AEA is trying to overcome. Is that the branding issue that the auto shows are, you know, have been around forever, but that's there's probably a good reason for that, right? Because they do move the needle, and they are relevant, and people want that experience. And I can share too. You know, we're seeing across the board just more experiential type of activations taking place at auto shows. So the ride and drives are becoming huge and continuing to become huge, because we know when people get behind the wheel, they're more likely to purchase that vehicle. Education is big, especially with electrification. You know, we developed our own brand of we call it Chicago drives electric. And in Chicago, many shows are doing their own EV tracks. And so, you know, it's a way to educate the consumers, to get them behind the wheel and experience those vehicles. But also, you know, it's interesting. You said, kind of what was old is new again, and this new crop of the Gen z's, but we have to give him a reason to come. And so something that AEA is passionate about is trying to provide different experiences. So it's not just okay the show's in town, come on out, but maybe looking at different experiences within the auto show, for example, maybe it's a craft beer sampling event one evening, or whatever it may be, but to give people a reason to come to the show that might not already consider coming to the show, I know, you know, for example, we, we also do a run. We it's called miles per hour. That's how many miles you can run inside our Auto Show. And so we are able to tap into this fabulous that's awesome. So you have to find ways to to bring people together, and if they're they don't consider or self identify as car people. You know, they're not car enthusiasts. Maybe they're not in the market. Why would I go to the auto show? Well, if you can provide that unique experience for them and give them a reason to come, you know, we're confident once they do, they they'll come back. You Paul J Daly: 12:35 know, that's when people say they're not in the market. A lot of the time. That's just because they don't have a compelling reason to be in the market. That's right, right? And we once had a conversation with Ernie Garcia, the CEO of Carvana, and his whole thesis behind making the car buying experience, what it is saying, like, you realize, especially, I mean, we're talking about new cars here, but like, people trade in used cars and buy new cars. But he was saying, if we make it easier and more fun and more engaging to buy a car, we can actually speed up the timeline by which people buy a car. And I think a car show is a great like, someone comes in because there's a concert, or there's food, or there's a run, and we get them in all of a sudden, you know, like, which Kyle just traded in his Sienna to get a new Sienna right? Because it has a vacuum, because it has a vacuum, and that's something that you see when you're at a right you see someone demo in the vacuum, and you're like, you mean all those Cheerios could be gone, like without me, and all Kyle Mountsier: 13:31 of a sudden you're in the market again. Yeah, Paul J Daly: 13:33 so and so I like the idea of courting all of these kind of subcultures that the market has already told us are effective. People like to gather around sports. Gather around sports. They like to gather around food. They like to gather around entertainment. And even though they're not car people, like they're all driving cars, right, right? They are car people. Liza Kyle and I aren't even car people. Kyle Mountsier: 13:53 Everybody names their first car. Well, not everybody's their car person. Are you kidding me? Absolutely. Jennifer Morand: 13:59 And you mentioned those other touch points, like, what's your take on over landing? I mean, that's, I mean, over landing has been become such a huge culture, right? And so we built our own overlanding area. And another shows are doing the same thing to to be able to appeal to that, that subculture of folks. And we heard it, you know firsthand that they saw it on the news, or they saw it on social media, and they're like, Wow, we didn't realize that that that was at the show. So it's again, those fighting those different areas and those those pockets right of interest that drive people out to shows. What do Paul J Daly: 14:29 you think is holding back, um, more dealers from being heavier, more heavily involved in car shows? Like, now, no, granted, maybe there's not a big resistance to it, but from your perspective, like, what, what is the, the biggest, the biggest pushback that you hear why they don't send more people spend more money on being involved in the shows, because, even though there's, like, OEM money, like a lot of these dealers, have pretty substantial marketing budgets, right? That they could invest more in an activation, yeah, but more. Kyle Mountsier: 15:00 Or, like, the napleton group. I mean, they're, they're, they're a great example, right? Have probably, you know, a ton of the manufacturers that are already going to be there, right? They they could, like, almost take over the Paul J Daly: 15:10 show. They could, right? They could. They could hire an influencer. They could be doing activation to highlight their group. What do you think are the biggest, you know, perceptions or mindsets that are keeping dealers from investing more of their already existing marketing budget. So Jennifer Morand: 15:23 interesting. Yeah, I have a, I do have a perspective on that. I believe that, you know, there's this push and pull, this, this tug of war, if you will, between the retailers and their manufacturers. And, you know, the hope is that the manufacturers see the value in auto shows and that they're going to foot the bill. You know, it's, it's always that push and pull and this, this happens. It's not just auto shows. It's for everything, about the back and forth, about who's paying for what. So I think that in many markets, if, if we can hold on to the tier one support that's preferred, of course, you know, dealers would rather the manufacturers spend the money and really market their products. And you know, the retailer's job is to sell them the vehicles. But, you know, at that high level, you know, the hope is that the manufacturers would see enough value in auto shows and that they really move the needle to be able to invest in them and to send their their displays, their properties. And believe it or not, in some cases, manufacturers will not let the dealer participate, because of the perception that if, if, say, for example, your unfair advantage from Ford, right? You're say, You're a global auto show, you're identified, you get all of their bells and whistles, you get the test track. You get the beautiful displays, you know, the the different levels, you know, the finishes that they put in their exhibits. And then you have same as the dealer that sets up right next to them with like one car and like a backdrop, right? And so it's just, it's like, wait what you know, and when you're at, when the consumers at the show, you know, you're kind of looking okay, where do I spend my time? Where do I spend my focus? And you know, Ford looks bigger and more interesting, so I'm going to head there. And so in most cases, a lot of cases, rather, OEMs Do not let the dealers participate. They literally force them to sit out because of the perception that it would provide, would they that they wouldn't participate? Paul J Daly: 17:04 So one thing that I'm thinking about, as you say that are dealers not allowed to be involved at all, other than the the actual, you know, OEM display, because thinking like the napleton auto group could open like a barbecue stand as an activation, and use that as a connection point, person to person, even though they're not, they don't have any cars there, is that something they would be able to do? Or does the OEM say, like, you can't be involved in any way? Jennifer Morand: 17:27 You know, that's a great question. I don't think it's ever come up, but I will say that I maybe, because it's a different type of activation, it would be okay to sponsor something like that. But that said, I'm not sure that the dealer would see much value in not having the product. They're not getting the people into the vehicles. I think that, you know, if they're gonna invest in the auto show, it would really be to showcase their product. So it's a great question. I don't think it's come up in the past, but, you know, I do think that, you know, it is unfortunate, especially in some of the smaller markets where they don't have the tier one support that some markets do have, that the manufacturer would force the dealers out. You know, it just, it to me, it just seems, and I don't know how that, how that comes together, what that conversation looks like, I would, I'm kind of, I'm not involved directly within that, but I just, I just find that to be very interesting. You tell Paul J Daly: 18:12 them to come to us. We'll help them figure talking like tier one at its best, right? Like they do a lot of national advertising to bring awareness to the brand overall. But just by the nature of it, Tier one is reaching down into tier three world when it's literally holding an activation in your backyard, right? If there was ever a point where it was like, let's connect these dots, because like people buy from people they like. They might see a product they like, but they might meet someone they really like, who can be like, actually, I don't know that you need the Ford. You can get a lot more value from this Mazda. And if you build the trust right, like, you can take, like, tier three. Can take a product out of tier one's hands, if they were a four person, and now they're going to be a whatever, Chevy person. Or interesting, well, that's an interesting dynamic, yeah, because at least tier one, literally in your backyard. Kyle Mountsier: 19:02 Yeah? That's such an interesting like, total Yeah. And I think, you know, for larger shows like a Chicago or a DC, or an LA, or something like or that, or a Detroit, you know, it's a bit different than maybe some of the smaller shows, like, I think, of the Nashville show right there, where I'm from. It's, it's a bit smaller of a show that, you know, some manufacturers show up, like, decently sized but, but there's no one like, really blowing it out of the water, like with huge sets or anything like that. But it's, it's a real opportunity for, potentially, that pairing of the dealer and the OEM to drive a bit more market awareness on something like that, in a market that maybe isn't too nut for an auto show, because it's not, you know, carrying the weight of a major, major metro, Jennifer Morand: 19:48 yeah. And I believe too. And what was unfortunate is, back in the heyday when, when auto shows were, were, you know, huge, and everyone they had it had everyone's attention, really, was the media sites. So what manufacturers would do is they would produce these elaborate press debuts, and, you know, they'd say millions of dollars for not even an hour, 20 minutes, right? And and so that, to me, that's that, that's ludicrous. And some shows expected that. And you know, you mentioned Detroit, and me, Detroit had huge media preview. I think many people remember visiting that show. But unfortunately, what happened was the perception that auto shows are expensive, and manufacturers are trying to figure out where to spend their money, you know, for the biggest, you know, bang for their buck, and they're just looking at their budgets, and it was costing them so much money to do these press debuts at the Auto Show. So of course, it's a lot cheaper to do it on digital, and of course, covid and all that, and so that just, you know, exponentially, just set that, you know, set that on a totally different track. So I think, though, that you know, really, I hope manufacturers understand, is, like, you don't need to do that. You know, you you know, if you're going to be at the shows, you do have the ability to influence the people who are there to get into your product. And that's really the opportunity. It's, it's not really around, it's kind of two separate things. Of course, you know, we do pitch media all the shows do on the manufacturers and dealers behalf, and you know, you're going to get that media coverage. And then, of course, the digital combination as well. But you just kind of have to compartmentalize it a little bit differently. Kyle Mountsier: 21:18 Yep. Yeah. Really thinking activations. I love I love that thought thread. I think that activation and experience are not dead. So I love what you're doing and bringing together organizations to solve a common problem is really cool. Jennifer, it's been really fun talking to you. It's got our wheels turning. We're gonna have some conversations, and I'm sure us in the future as well, but, but kudos to what you're building, and thanks for joining us here on the show. Jennifer Morand: 21:41 Thank you so much. Really enjoyed it. Paul J Daly: 21:47 I just realized something, we forgot to ask about the mini donuts forgot. I think the most valuable takeaway, though, from this whole thing is the fact that there is a measurable difference in showroom traffic after an auto show is in town. And yeah, I didn't, I just wasn't thinking of the complexity between that whole conversation. We're like, well, auto the manufacturers typically want the dealers to stay away from the brand, but dealers need to be involved if you're gonna, like, say people like this is why you should buy it, and my Ford store over that Ford store, right? That's in their best interest. So there's a lot more complexity in this little ecosystem than I knew going into this conversation. Well, Kyle Mountsier: 22:30 it's, it's such a tier one play to be at an auto show, but the auto shows in a backyard. It's in a space. It's, it's not digital. It's not a, you know, a Super Bowl ad or anything like that. It's very tier three in nature, right? Because it's, it's that interpersonal connection that people are getting with a brand, and I think that dealers and OEMs would be good, would do good to figure out how to activate at that level. We actually, we have a good friend, aeroball, who a lot of you may know from nada. He was at a souticon with us this year, and he's like, Oh, no. People are asking deep, detailed questions that sometimes you know only. Like, if you've been educated on deep details of these vehicles, they would know. And I think that you know these auto shows, people are people are really focused on what these cars actually can bring, and it's kind of like a non intrusive environment for them to research and be educated. Unknown: 23:28 There's a there's another element here, and the best way I can explain it is the it the influence of feeling. So, you know, I don't know if you've ever experienced this. You go to a concert. You're there to see the headliner. There's a couple of opening acts you've never heard of. You're not really interested in it. And then they take the stage, and you're like, oh, wait, I kind of actually like, yeah, these people like this, yeah. And then you leave with their merch, and you leave with like, you know, Paul J Daly: 23:57 yeah. Then then they're on your playlist. They're on your playlist, your Spotify your app Unknown: 24:02 exactly, and that kind of happens at auto shows. I saw it for the first time when I was in Toronto. The level of attention that these OEMs, they're hiring architects to design spaces that make you feel a certain way, that highlight the vehicle in a certain way. And what that does is it opens up the consumers reception to learning about that vehicle, feeling, feeling the vehicle now in a light that they wouldn't feel it if they were just walking the lot and and I think that's so critical. You know, I'm talking a lot about how, you know, technology is advancing, and there's all these this talk about what's going to be replaced. I love that we're kind of keying in on some of the things that can't be replaced, which is human connection, human feeling, and its influence on buying cycles, and on where we live and how we live, and all those sorts of things. And I kind of pick up on that as I review this, this podcast episode. I. Well, the point is, Paul J Daly: 25:01 support your local auto show. Get out there. Be creative with your activations. And we need more people, eye to eye, face to face with the sales teams and the service teams and all the people, the wonderful people that are inside your stores. So on behalf of cloud Mountsier, Michael Cirillo and myself, get to an auto show. Eat the mini donuts and thanks for listening to auto Collabs. Unknown: 25:22 Sign up for our free and fun to read daily email for a free shot of relevant news and automotive retail media and pop culture. You can get it now@asotu.com that's asotu.com if you love this podcast, please leave us a review and share it with a friend. Thanks again for listening. We'll see you next time. Welcome to Annika labs. You.