los angeles automotive path to purchase study€¦ · y. 10 media implications source: los angeles...
TRANSCRIPT
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Los Angeles Automotive Path To Purchase Study
Rich TunkelSenior Vice PresidentNielsen AudioJune 2017
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Los Angeles Automotive Study:
Project Background
•Radio’s role in the path to automotive purchase in Los Angeles
•Survey conducted primarily online
•Re-interview of Scarborough consumer respondents
•2,237 auto buyers age 18+ in Los Angeles
•Field dates: February 27, 2017 to March 13, 2017
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State of the Automotive Industry
Several good years…
2017 is a challenge!
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Three Key Findings
1. Two Distinct Auto Buying Segments
2. Reach Drives Sales Results
3. L.A. Radio Reaches Millions of Auto
Buyers Each Week
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Decideds / Undecideds
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46%
14%
9%
6%
8%
10%
7%
Knew exact
make and model
I wanted
Knew
vehicle
make I
wanted
60% of L.A. Auto Buyers Know What They Want
40% Are Undecided
Source: Los Angeles Auto Path to Purchase 2016 Release 2
Q: Statement that best describes how you approached deciding on the vehicle you most recently purchased/leased
Knew body style,
not make/model
Didn’t know specific
vehicle, but had
certain class of
vehicle in mind
Didn’t know exact
make/model, but had
certain features in
mind
Didn’t know exact
make/model, but
had certain budget
in mind
Didn’t know what
vehicle I wanted when
started looking
60% Decided
Auto Buyers
40% Undecided
Auto Buyers
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These Two L.A. Auto Buying Groups Differ
Source: Los Angeles Auto Path to Purchase 2016 Release 2
Decided and Undecided Auto Buyers Age 18+
DECIDED AUTO BUYERS
• Generation X (age 37-51)
• Equal male / female
• Higher income
• Larger families
• Millennial (age 20-36)
• More female
• Building income
• More likely to be Hispanic
•UNDECIDED AUTO BUYERS
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Decideds, Undecideds and The Purchase Funnel
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Different Paths to Purchase in Los Angeles
Source: Los Angeles Auto Path to Purchase 2016 Release 2
Decided and Undecided Auto Buyers Age 18+
DECIDED AUTO BUYERS
• Shorter Decision (many less than 1 week)
• Sole Decision-maker (45% decide alone)
• Purchase New (60%) Used 40%
• Knowledgeable/Confident (51% score 9 or 10)
• Visit Fewer Dealerships (half only visit 1)
• “Want Vehicle” (31%)
• Longer decision (many up to 1 month)
• Joint Decision (27% decide alone)
• Purchase New (45%) Used (55%)
• Less Confident (32% score 9 or 10)
• Visit More Dealerships (most visit 2-3)
• “Need Vehicle” (81%)
•UNDECIDED AUTO BUYERS
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Media Implications
Source: Los Angeles Auto Path to Purchase 2016 Release 2
Decided and Undecided Auto Buyers Age 18+
DECIDED AUTO BUYERS
• 1 Week until purchase
• Urgent and Always On
• Shorter Window- Focus on Offer
• Direct them to your website
• 1 Month until purchase
• Always On as they decide
• Longer Window- Focus on Dealer Brand
• Direct them to your website
•UNDECIDED AUTO BUYERS
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24%
20% 19%
14% 14%
9%
5% 4%
18%16%
14%
16%
13%12%
10%9%
Dealership website Kelley Blue Book Manufacturerwebsite
Google / searchengine
Craigslist.org ConsumerReports CarFax.com AutoTrader.com
Most Valuable Websites to Auto Buyers
Decided Auto Buyers Undecided Auto Buyers
L.A. Dealer Website Is Most Valuable
Online Resource to Auto Customers
Dealer
Website
Kelly Blue
Book
Manufacturer
Website
Google /
Search Engine
Craigslist CarFaxConsumer
Reports
Auto Trader
Source: Los Angeles Auto Path to Purchase 2016 Release 2 : Decided and Undecided Auto Buyers Age 18+:
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DECIDED AUTO BUYERS UNDECIDED AUTO BUYERS
• Special offers/Incentives (73%)
• Locate the dealer (68%)
• Request a quote (63%)
• Find actual vehicle listings (60%)
• Find actual vehicle listings (81%)
• Research pricing (64%)
• Request a quote (53%)
• Compare models (50%)
Dealer Website: Help Decideds Buy
Help The Rest Make Up Their Minds
Top ways dealer website used to research/shop
Source: Los Angeles Auto Path to Purchase 2016 Release 2 : Decided and Undecided Auto Buyers Age 18+
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Dealer Websites Are Rarely Mentioned In
Los Angeles Ads
Source: Media Monitors review of Los Angeles radio ads from the top 7 automotive advertisers for Q1 2017
(English Language)
• Offer (price, promotion) - mentioned 5.8 times
• Dealer Name - mentioned 5.2 times
• Brand - mentioned 2.5 times
• Website - mentioned only 1.2 times
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Reach Drives Sales Results
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Source: Simulmedia.com Market Insights simulation: National Linear TV Campaign January 2017.
Even The Heaviest TV Campaigns Miss Customers
2,870 Ford TV Commercials
January 2017
Adults 25-54
77% reached
23% NOT reached
60% reached
40% NOT reached
Adults 18-34
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Optimal Ad Mix Study:
The Advertising Research Foundation: “How Advertising Works, Today” March 2016
5,000
Campaigns
1,000
Brands
100
Categories
45
Countries
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Optimal Ad Mix: 80% Of Ad Buy Should Be
In Traditional Media (TV & Radio)
The Advertising Research Foundation: “How Advertising Works, Today” March 2016
Traditional78%
Traditional71%
Digital22%
Digital29%
P18+ P18-34
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Sales Grow When Adding Media Platforms
Incremental ROI of additional media platforms
Advertising Research Foundation “How Advertising Works” : Analytic Partners, 2016; Analysis based on over 3,200 campaigns from 2010-2016; Platforms include TV, radio,
display, paid search, online video, PR, out-of-home, and cinema
+19% +23%+31% +35%
1 Platform 2 Platforms 3 Platforms 4 Platforms 5 Platforms
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Radio Delivers Millions of Auto Buyers in Los Angeles
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94% 91% 89%83%
76%
45%
Listen toAM/FM RadioPast 7 Days
Spent AnyTime on
Internet PastWeek
Access ToMobileInternet
Watched AnyBroadcast TV
Past Week
Watched AnyNon-Premium
Cable PastWeek
Read AnyNewspaperPast Week
Radio’s Weekly Reach of Automotive Buyers is
Greatest of All Major Media in L.A.
Vehicle
Buyers
Source: Nielsen L.A. Scarborough R1 2017 (Feb 2016-Jan 2017) Vehicle Buyers = Plan to buy New/Used/Leased Vehicle in next 12 months
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WEEKLY REACH (of Auto buyers 18+)
Radio Delivers 1.8 Million People Who Plan To
Buy a NEW Auto In Los Angeles
Source: Nielsen L.A. Scarborough R1 2017 (Feb 2016-Jan 2017) Vehicle Buyers = HHLDS who Plan to buy New/Used/Leased Vehicle in next 12 months
Planned New Vehicle Purchase or Lease – next 12 Mo.
1.8
Million
Reached
Weekly
$52 Billion
In Planned
Auto Purchases
(93%)
=
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WEEKLY REACH (of Auto buyers 18+)
Radio Delivers 1.5 Million People Who Plan To
Buy a USED Auto In Los Angeles
Source: Nielsen L.A. Scarborough R1 2017 (Feb 2016-Jan 2017) Vehicle Buyers = HHLDS who Plan to buy New/Used/Leased Vehicle in next 12 months
Planned Used Purchase – next 12 Mo.
1.5
Million
Reached
Weekly
$20 Billion
In Planned
Auto Purchases
(95%)
=
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LOS ANGELES
AUTO
BUYERS RADIO DIGITAL TV PRINT
AVERAGE AGE 43 45 39 55 53
NUMBER OF VEHICLES OWNED 2.0 1.9 1.8 1.7 1.8
FAMILY (1+ Child) 43% 51% 35% 28% 30%
WORK FULL OR PART-TIME 69% 73% 72% 36% 52%
USE SOCIAL MEDIA 80% 78% 93% 63% 67%
L.A. Auto Buyers: A Lot Like L.A. Radio Listeners
Source: Los Angeles Path to Purchase 2016 Release 2. Adults 18+ for Auto buyers
Los Angeles Scarborough Release 1 2017 for Media Quintiles
HEAVIEST USERS FOR EACH MEDIA AMONG PERSONS 18+
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85%
70%74%67%
L.A. Radio L.A. TV
Important in deciding which brand/vehicle to purchase
Decided Undecided
L.A. Radio Automotive Ads
Drive Vehicle Purchasing
Source: Los Angeles Auto Path to Purchase 2016 Release 2 : Decided and Undecided Auto Buyers Age 18+ c
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Galpin Ford Sells Vehicles to the Entire L.A. DMA
Galpin Ford
Dealer Sales by Zip1 - 1617 - 4748 - 7879 - 119123 - 247
DMA
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The Average L.A. Adult Travels
154 Miles In A Vehicle Weekly
Encino
South San Diego Bay
Source for Average Adults: Los Angeles Scarborough Release 1 2017 Adults 18+
94% of auto buyers are listening to
audio entertainment in the car!
Audio in Car
Source for Auto Buyers: Los Angeles Auto Path to Purchase 2016 Release 2
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93%
7%
RadioStreaming Audio
SHARE OF TIME SPENT WITH AUDIO (GROSS MINUTES)
AM/FM Has A 93% Share Of Audio Time Spent
Source: Nielsen Comparable Metrics Report Q4 2016 / Adults = P18+
Note: Streaming Audio accounts for listening via PC, Smartphone, and Tablet to content providers such as Pandora, Spotify, etc
Broadcast Radio Captures
9 in 10 minutes with in-car audiovs. less than 1 in 10 for streaming audio
ADULTS
18+88%
12%
Persons
18-34
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Using Radio with Digital and TV
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16%
44%
54%
31%
19%
50%43%
36%
Morning(5am to 10am)
Midday (11am to 4pm)
Early evening(5pm to 8pm)
Late evening(9pm or later)
Decided Auto Buyers Undecided Auto Buyers
Time of day for online
research/shopping for vehicle
L.A. Online Auto Research Occurs
11AM – 8PM; Radio’s Prime Time
Source: Los Angeles Path to Purchase 2016 Release 2. Adults 18+
Nielsen Los Angeles Metro PPM April 2017 PUMM for 18-54 Mon-Friday 6a-Mid
Hourly Radio Listening for Adults 18-54
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L.A. Radio & TV Achieve Similar Recall…
Despite Different Investment Levels
$70.6 M
$362.7 M
13%
Ad Recall
17%
Ad Recall
Source: Los Angeles Auto Path to Purchase 2016 Release 2
Nielsen Ad Intel 1/1/16-12/31/16 : dealer associations/dealer ad spend
Radio
TV
Auto Ad Recall
among auto buyers
2016 Auto
Ad Spend
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Source: Los Angeles Auto Path to Purchase 2016 Release 2
Nielsen Ad Intel 1/1/16-12/31/16 : dealer associations/dealer ad spend
L.A. Radio’s “Cost Per Awareness”
Is 4x As Efficient As Television
Radio
Television
Cost of recall
$21 Million cost per
awareness point
$5.4 Million cost per
awareness pointRadio
TV
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A Radio-Only Schedule in L.A. Delivers 1.5x More
Auto Buyers Than a TV-Only Schedule
62%
39%
100% Radio 100% TV
How to read: $335,000 spent only on AM/FM radio delivers 62% of adults 25-54 in the Los Angeles DMA vs. 39%
if spent only on TV
Source: Nielsen Commspoint Research US 2016, Adults 25-54, 1 week net reach. Budget determined using Nielsen AdViews CPP Data, Q1 2017. Assuming a $650 CPP for Los Angeles Radio and a $3,350 CPP for Los Angeles Television. Data reflects Automotive – Passenger Vehicles category.
Reach of Adults 25-54 Auto Buyers, Los Angeles DMA
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Radio Improves The Reach of L.A. TV Campaigns
Adults 25-54, Los Angeles DMA
39%
52%58% 61% 63% 64% 65% 65%
0% AM/FM radio/ 100% TV
10% AM/FMradio / 90% TV
20% AM/FMradio / 80% TV
30% AM/FMradio / 70% TV
40% AM/FMradio / 60% TV
50% AM/FMradio / 50% TV
60% AM/FMradio / 40% TV
70% AM/FMradio / 30% TV
Source: Nielsen Commspoint Research US 2016, Adults 25-54, 1 week net reach by GRP level. Budget determined using Nielsen AdViews CPP Data, Q1
2017. Assuming a $650 CPP for Los Angeles Radio and a $3,350 CPP for Los Angeles Television. Data reflects Automotive – Passenger Vehicles category.
Sweet Spot
+50%
How to read: $335,000 ad spend, with a mix of 20% AM/FM radio and 80% TV reaches 58% of
adults 25-54 in the Los Angeles DMA every week.
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Source: Nielsen Commspoint Research US 2016, Adults 25-54, 1 week net reach by GRP level. Budget determined using Nielsen AdViews CPP Data, Q1 2017. Assuming a $650 CPP for Los Angeles Radio and a $3,350 CPP for Los Angeles Television. Data reflects Automotive – Passenger Vehicles category.
20% Radio = 42% More Purchases
And Greater Brand Impact in L.A.
Awareness +48%
Consideration +39%
Purchase +42%
Advocacy +47%
Brand health metrics increase when allocating 20% of TV budget to radio
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
5 Key Takeaways
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A.U.D.I.O.
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Always-on media strategy
A.U.D.I.O.
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Utilize More Than One Media
A.U.D.I.O.
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Drive Vehicle Sales With Radio
A.U.D.I.O.
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Individualize The Message
A.U.D.I.O.
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Optimize Reach With 80%
Broadcast Media
A.U.D.I.O.
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Always On
Utilize Multiple
Drive With Radio
Individualize Message
Optimize with Broadcast
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For more information
Other data available or future studies:
Carol Edwards 410-913-1037 [email protected]
Nielsen’s automotive data solutions:
Carl Enroth 646-654-4749 [email protected]
About this presentation:
Rich Tunkel 646-362-0246 [email protected]
About the SCBA:
Thom Callahan 323-930-5597 [email protected]
Liz Fancher 626-627-9223 [email protected]
45Cop
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t ©
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