PATH TO PURCHASE

The media that influences car buyers on the path to purchase

Automotive

Path to Purchase. Automotive.2. 3.

Studying consumers’ different needs throughout the buying journey enables advertisers to be more strategic in how they use media, specifically when and where to advertise and what information is desired.

Path to purchase research takes you from need recognition through to what happens at the purchase decision.

To understand how to engage new car buyers on their path to purchase, NewsMediaWorks has collaborated with Research Now to develop one of Australia’s largest path to purchase projects.

This study specifically examines the influence of a range of paid, earned and owned media at each phase of the journey. Methodology

Unlike traditional path to purchase methodologies, which retrospectively study consumer behaviour, we gathered information from buyers in real-time at different stages of the purchase journey. This approach allowed better recall from participants, providing us with a more accurate gauge of what influences the purchase decisions of new car buyers. The study was conducted online with 600 new car buyers in July 2016.

Just 20 per cent new car buyers have a favourite brand or model in mind at this stage of the purchase journey, meaning four in five are open to persuasion.

Results show that prospective car buyers have six core needs when researching their next car – Price (69%), Specifications (60%), Reviews (43%), Location (42%), Inspiration (36%) and Recommendations (32%). These needs don’t differ significantly across buyer segments, from budget to luxury buyers.

What information new car buyers want

Price

57%

Specifications

43%

Reviews

39%

Showroom location

38%

Inspiration

35%

Recommendations

Researching Options

69%

Car buyers engage with a range of paid, owned and earned media channels when researching their options.

Though the use of the web is core to research, News Media, in print and digital formats, is the most influential advertising platform during this phase, outperforming other paid media in fulfilling the core inspiration and information needs of buyers. Most influencial media during research phase

Social media

Radio

Online ads

Magazine

TV

Newspapers

News media

Outdoor

Brochure

Dealership site

Manufacturer site

Dealership visit

Comparison website

Organic Search

Word of mouth

Earned Owned Paid

78%

43%

36%

29%

57%

48% 16%

51%

33%

44%

22% 22%

8%

8%

3%

After collecting information, car buyers form a shortlist of potential models. The percentage of buyers with a favourite model in mind rises from 20 per cent 50 per cent by this stage of the journey.

One in two car buyers now have a favoured model in mind, with 45 per cent having a

shortlist of potential models.

5%

50% 45% I have a

shortlist of favourite car

brands

I still have no favourite

car brand

I have a favourite car brand

Buyers want information around model specifications and dealership location at this stage. They want further detail to justify their spend. Earned media such as word of mouth, recommendations and dealership visits play a crucial role in converting prospects to buyers.

Researching Options Forming the shortlist

69%

69%

Price

57%

67% Specifications

39%

48% Location

43% 42%

Reviews

38% 32%

Inspiration

35% 25%

Recommendations

The final stage in the purchase journey is the point at which the car buyer finally decides what model they want to buy.

Most influential media at purchase

Social media

Online ads inc paid search

Magazine

TV

Newspapers

News media

Outdoor

Brochure

Dealership site

Manufacturer site

Dealership visit

Comparison website

Word of mouth

Earned Owned Paid

42%

Organic Search 73%

32%

32%

60%

46% 16%

50%

26%

46%

25%

23%

10%

6%

Radio 2%

Understanding the complete journey consumers make when purchasing is vital for automotive advertisers.

Unlike traditional path to purchase methodologies, which retrospectively study consumer behaviour, we gathered information from buyers in real-time at different stages of the purchase journey. This approach allowed better recall from participants, providing us with a more accurate gauge of what influences buyers.”

“

Researching options Forming a shortlist Making the purchaseRecognising need

“I need to buy a new car” “I need information” “I’ve narrowed down my choices to a few options”

“I‘m about to purchase a new car”

Four out of five buyers are open to persuasion

• 54% of new car buyers say their purchase decision was influenced by news media content

• News media consistently outperforms other paid media on the new car buyer’s consumer journey.

• Buyers know they can access credible, trustworthy auto content via print and digital news media and their automotive sections.

• New car buyers turn to news media as a ‘one-stop shop’ for the 6 key pieces of information they require when buying a new car.

The value of news media

WEEKS1 2 3 4 5 6 7 8 9 10 11 12 13 14 2715 2816 2917 3018 3119 3220 3321 3422 3523 3624 3725 26It takes 37 weeks to buy a car On average, need recognition and researching options take place over a 3 month period. The second half of the path to purchase takes almost twice the amount of time as the first.

For more information on this study visit: www.newsmediaworks.com.au/audience-insights

PATH TO PURCHASE