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There is probably no bigger headache in the automotive industry at the moment than the digitalization of the car and its effects.
From new vehicle architectures for integrating the car into the internet, to direct links between the manufacturer’s marketing department and the driver in the vehicle, to autonomous driving, the way we design, buy and drive cars is changing. Completely new areas of knowledge are emerging here that we had no idea existed just a few years ago. And where specialist books have not even been written yet.
How do you approach such a field today? How do you become an expert?
To understand this better, I spoke to Tim Walter (LinkedIn). He works in Group Marketing at Volkswagen and is a Web 3.0 expert in the automotive industry.
From car advertising to digital transformation
Hello Tim. How did you get into the automotive industry? Was there an impulse?
Tim: Like many others, I am fascinated by cars. In the 80s and 90s, we were strongly influenced by cars, similar to today’s generation perhaps by the iPhone or a certain app. I also found car advertising exciting because that’s where the best stories were told. Big budgets went into it, you heard the best music there and they really made an effort to really set the scene.
I always wanted to do the coolest thing in the world. I’ve always loved photography and I started filming during my studies. My projects during my film studies were actually always car commercials.
What kind of cars did you film back then?
Tim: Various, from the Porsche Boxster S that I got from a local dealer to the Smart Roadster that I borrowed from a car rental company. I was studying in Australia at the time, so I was the outsider. My professors kept asking me if I really wanted to make commercials. They suggested I should make documentaries instead. But I wanted to make commercials because I found cars and advertising more exciting.
People used to watch a lot more television. Has advertising changed with YouTube and TikTok?
Tim: Yes, definitely. Nowadays, attention spans are shorter. In the past, 30-second ads gave us the chance to tell a story. Today, advertising looks different, but we have also found new technical ways to tell exciting stories and build a connection with the customer.
Web 3.0 and NFTs in the automotive industry
Today you are a recognized expert for NFT and Web3 in the automotive industry. What exactly is that, in the context of the automotive industry, and how did you come up with it?
Tim: Web 3.0 is the umbrella term for everything that comes after Web 2. The blockchain is a new technology, slumbering in the background and enabling some instances to be bypassed. When we talk about large media players or gatekeepers, the blockchain is sometimes an instance that bypasses them. We see this with cryptocurrencies. For example, blockchain can be used to enable direct financial transactions between people without a bank in between. Non-fungible tokens (NFTs) also come into play with this technology.
Ultimately, we aim to create digital property where the blockchain in the background, rather than a gatekeeper, confirms authenticity.
It is exciting that we can not only buy physical products, but also digital goods. And what is particularly interesting is that these digital goods can be limited. So you not only have a direct interaction with the brand, but also a feedback channel. But now I’m getting too technical again …
Is there a website or something where you would say that’s an illustrative example of what you’re explaining?
Tim: There are some good media sites on this, but I think you’re in good hands on YouTube. Especially for podcasts, because it helps if you want to get into the subject. You have to dig a little deeper into the concepts and that’s where the podcast format is very helpful. Anthony Day, who I follow on LinkedIn, talks very well about what brands can do with it.
It is surprising that car manufacturers, for whom you work, are dealing with precisely this topic. How can we imagine that? How is it being discussed? What are the main use cases?
Tim: Brands always have an interest in being relevant to customers and ideally want to interact with them directly. Social media has changed. We used to see our friends, and now we see quite a lot of brand advertising and other content. It has become more of a media platform. But people want to interact. They want communities. We also see that in real life: For example, Porsche or motorcyclists like to meet up at the weekend and drive to the Harz mountains together. They have a similar mindset, have a great time and know that they will meet people who are just like them. In the digital realm, we haven’t yet taken the step of creating a real community. It all works brilliantly in the physical world and we haven’t taken this step in the digital world yet. There are opportunities for brands, but also for other potential communities that should be explored with NFTs. Can marketing support this?
Sounds a bit like car advertising 4.0 in 2023 to me – a different form, right?
Tim: Yes, that’s part of the whole thing. It depends on the target group. For Web 3.0 applications, it is currently still a tiny, modern and progressive, but very affluent target group. If we are aiming at this target group, then that is the right approach. Technically, however, it is still difficult to implement, both for the user and for companies. There are many uncertainties that still need to be clarified. But it is exciting that something is happening here and we need to try it out and understand how the mechanisms work. So that we can scale it up and make it available to the masses.
Learning through experimentation: The path to becoming an expert
The car is becoming more and more software-based. You are a sought-after expert for Web 3.0, which is particularly relevant for premium brands. How did you familiarize yourself with this topic and what training courses are available?
Tim: It would be nice if there were formal training courses for this, Steffen. The topic affects all brands, and there are experts everywhere who have got to grips with it. The topic came like a wave and is also moving like a wave. There are always new developments that we have to look at closely. There is a lot of movement, you have to keep up with it. Where can you learn something? When I started, there were 0.0 books on the subject. You just look at the examples that are happening outside, such as with the Nike and Adidas brands. And that was the deciding factor for me when I said I was finally going to sign up for LinkedIn.
I had the feeling I was the last person who hadn’t been on LinkedIn before.
When was that, Tim?
Tim: I signed up about a year and four months ago.
And how many followers do you have on LinkedIn now?
Tim: About 25,000.
Wow, that’s quite a lot. Do you think that’s because of the topic or the community?
Tim: I think it’s a mixture of both. I originally wanted to exchange ideas with others who are in similar positions to me, who also work at a brand. It worked well and I started to look deeper into the topic. LinkedIn helped me a lot with that.
And once you’re in and following the right people, and making the right likes and comments, the feed changes. Today, I only need to open LinkedIn to keep up to date with everything that’s going on. And then one thing leads to another. Once you’ve been on a podcast, you’ll be invited to another one and then the followers will come.
So LinkedIn has made you an expert, so to speak. You don’t just speak at department level, it goes all the way up to board level.
Tim: Yes, in the beginning I read various blogs, but eventually I immersed myself in the topic. I bought NFTs, tried out different wallets – you have to experience it all to really understand it.
So, you bought NFTs yourself, took risks and didn’t just read about them.
Tim: Exactly, I think that’s essential in order to be able to talk about the topic. You quickly realize where there are problems. Security and user-friendliness, for example, are big issues.
And you exchange ideas with your network …
Tim: That’s right, I now have quite a large network of people who were involved early on. And of course you can talk to lots of people. A good place for beginners is Discord, a chat tool that comes from gaming. You’ll find lots of channels there where people can help you with questions about the topic.
Discord is a great tool for this. But I have to admit, it’s still pretty complicated. We see brands like Starbucks taking a different approach to make it easier to use a crypto wallet.
Sometimes we have the image that everything in Web 3.0 must be decentralized and run via the blockchain. But this is perhaps more of an ideal image or utopia. It could also be that we end up with a Web 2.5, where certain aspects of Web 3.0 are adapted, but not all of them. Because you can’t completely do without the big players. They won’t let you take the butter off their bread that easily either.
The main features of Web 3.0 are decentralization, more control over one’s own data and smart contracts. The challenge is that Web 3.0 is competing against big players, such as companies, who have commercial interests and can invest a lot of money. How do you see the trends of Web 3.0 in the automotive industry?
Tim: That’s a very complex question. It depends a lot on how easy it will be to work with cryptocurrencies in the future and how willing people are to own digital property. There is a lot going on and there are big players who are planning something big this year.
And there are developments such as AI that will accelerate the whole thing. The potential experiences with augmented or mixed reality from Apple are also very exciting. We simply can’t predict what will happen in a year’s time. A year ago, nobody knew about ChatGPT and today it was the main topic at OMR (Germany’s largest marketing trade fair with around 75,000 visitors).
And everyone is trying to figure out how to use these tools properly.
Tim: Exactly, and now “prompt engineers” are being hired everywhere. It’s a job that hasn’t been around that long, but it shows that a lot is happening. It’s important to stay on the ball and see where we can be active. We don’t have to follow every trend, but we should try out some of them and learn, because just waiting is usually not an option.
I think what we take away here is that there are always topics for which there are “0.0 books”. Social media, Discord servers and YouTube are valid sources today to learn something that also plays a role at the top of an industry. And the best way to validate what you’ve learned is to simply try it out.
Tim: You’ve just summarized it excellently. The sources I used are available to everyone. I think this is fundamentally different from the situation we had years ago with other topics. Back then, we might have had to delve deeper into a certain area to catch up with the supposed head start that others might have had. With many new topics, however, this head start does not exist. If you lock yourself away for a week today and try out all the tools, you are already well positioned.
If you really delve into a topic, you’ll probably be on the same level as 95% of the people who write about it. Try things out, many things are free or cost next to nothing. Think about whether it’s relevant to your area of application. Get creative! If you find something interesting, share it. Get your idea out there. What if this and that happened? Sharing with others is a great tool that we couldn’t use in the past.
Outlook for the future: Web 3.0, AI and new technologies
Just a reminder: When did you start working with Web 3.0?
Tim: November 2021.
Okay, so about a year and a half. Since then, you’ve become a recognized expert in your company and beyond, right?
Tim: I would never call myself an expert, but I am constantly learning. If you have people who are constantly learning themselves, then you can tell them a lot about it. And when my people take something away from me, I’m delighted.
Anyone can view your profile on LinkedIn and form an opinion. Whatever the term is, all the best for your future path. I can’t wait to see what new topics and trends you discover in the coming months.
Tim: I’m also curious.
Thank you very much, Tim, for an excellent interview.
Tim: Thank you very much, Steffen, it was a great conversation.
