understanding the automotive path to purchase · 2017-03-18 · this follow-up survey on the...

Newspaper Media Drive Automotive Sales 2016 Understanding the Automotive Path to Purchase

Newspaper Media Drive Automotive Sales 2016

What media influence vehicle purchases in Canada?

Vehicle advertisers want to know the facts about the market in Canada. This study was created after consulting with industry experts and dealers to find out their needs.

More than 2,400 online interviews were conducted in early 2016 and the results once again prove the power of newspaper advertising.

This report focuses specifically on new vehicle purchasers*, a market worth more than $2.5 billion in Canada1.

1 DesRosiers Automotive Consultants *also referred to as New Car Buyers in this report


This follow-up survey on the automotive path to purchase confirms the effectiveness of newspaper media and explores the similarities and differences between two key demographic groups: Boomers and Millennials.

– Seven out of ten New Car Buyers* read automotive ads in printed newspapers compared to 16% who read auto ads on social media.

– Newspapers continue to be the most influential media at all stages of the two-month vehicle purchase cycle.

– Newspapers should be used to drive traffic to automotive websites and to provide offline reach.

– New Car Buyers are cross-platform newspaper readers.

Source: Totum Research, February 2016; *in the past 2 years

Online Panel (yconic) 2,408 Canadians surveyed

467 buyers of new vehicles in past 2 years*

Study Timing January/February 2016

National Scope 78% English / 22% French

Margin of Error ±2.0% at the 95% confidence level

Study Management Totum Research

Nationally Representative Sample Men 50%, Women 50%

18-34: 29%, 35-54: 37%, 55-64: 16%, 65+: 18% West 31%, Ontario 39%, Quebec 23%, Atlantic 7%

Study Design

* New Car Buyers in the past 2 years

Newspaper Media Drive Automotive Sales Generational Divide

Source: Totum Research, February 2016; * New Car Buyers in the past 2 years

Together these two demographics represent almost two thirds (63%) of new vehicle buyers.

+ =

Boomers have traditionally been the demographic group with the greatest economic impact.

Millennials now make up the same size (in numbers) as the Boomers.

Newspaper Media Drive Automotive Sales Generational Divide

Millennials (age 18-34) Grew up online – digital natives

Second largest group of new vehicle buyers

Average age 27

Average household income $70,918

Boomers (age 45-64) Money to spend and higher

disposable incomes

Continuing to drive and are buying new vehicles

Average age 54

Average household income $84,085

Source: Totum Research, February 2016

Automotive Purchase Cycle New Car Buyer*

Boomer Millennial


Readership of Automotive Ads

New Car Buyers are Reading Auto Ads in Printed Newspapers New Car Buyers* notice automotive ads in printed newspapers more than digital newspapers. Millennials • Two thirds (65%) of Millennials are reading the automotive ads

in their printed newspapers. • 37% of Millennials read auto ads in digital newspapers.

Boomers • Almost three quarters (72%) of Boomers are reading the

automotive ads in their printed newspapers. • Four in ten Boomers read auto ads in digital newspapers.


New Car Buyers are Reading Auto Ads in Printed Newspapers

70

40 31

65 37 35

72

40 32

% Readership

New Car Buyers* Millennials Boomers

Source: Totum Research, February 2016; *in the past 2 years ** Non-Auto Websites excluding newspaper, TV, radio, magazine, auto media sales and vehicle manufacturer, model and retailer sites

**

Social Media Usage


Media Influence in the Automotive Path to Purchase

Automotive Path to Purchase

Consumers navigating the automotive purchase process in today’s world are presented with an increasing number of options and media influences.

Stage 1 Considering vehicle purchase/lease Stage 2 Researching options Stage 3 Ready to make purchase decision

What Media Influence Vehicle Purchases in Canada? Eleven different media were measured for influence at

various stages of the automotive path to purchase.

1. Printed Newspaper 2. Newspaper Website (including newspaper-owned auto sites like Driving.ca,

GlobeDrive.com, Wheels.ca, autonet.ca, auto.lapresse.ca etc.) 3. TV Station 4. TV Station/Network Website 5. Radio Station 6. Radio Station Website 7. Auto Sales Media (publications/websites like Autotrader, Kijiji etc.) 8. Magazine 9. Magazine Website 10.Social Media (Facebook, Twitter etc.) 11.Non-Auto/Other Websites (not auto manufacturers or dealers)

Media Influence in the Automotive Path to Purchase 60% of New Car Buyers* are influenced by newspapers in their auto path to purchase. Media are one of the key drivers of influence during the auto path to purchase.

Potential consumers move in and out of the various stages as they navigate their vehicle purchase.

Almost half (47%) of all New Car Buyers* report being influenced by some form of media throughout the process. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

Media Influence Stage 1 – Considering vehicle purchase/lease

New Car Buyers* Boomers Millennials Newspapers (print + digital)

37%

Newspapers (print + digital)

47%

Newspapers (print + dig.ital)

39% TV (stations + digital)

35%

TV (stations + digital)

35%

Auto Sales Media (eg. Autotrader, Kijiji)

35% Magazines (print + digital)

25%

Non-Auto Websites** 24%

Magazines (print + digital)

31%

In the early stage of the purchase process, many potential New Car Buyers start with a specific brand in mind. Newspapers top the list of media that influence both Boomers and Millennials at this stage.

Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

Media Influence Stage 2 – Researching options


37%


45%


38% Non-Auto Websites** 27%



27%


25%


20%


24%

In stage 2, potential New Car Buyers are doing research into different manufacturers, brands and models. Less than a quarter of shoppers buy the first vehicle they research. Again, Newspapers top the list of media that influence both Boomers and Millennials at this stage.



34%


38%


32% Non-Auto Websites** 27%



29%


26%


29%

Magazines (print + digital)

27%

In the final stage potential New Car Buyers are ready to make their purchase. Decisions about financing and dealers need to be made at this stage. Newspapers top the list of media that influence both Boomers and Millennials, followed by Non- Auto Websites**, TV and Magazines.

Media Influence Stage 3 – Ready to make purchase decision


Purchase Decision Making

Purchase Decision Making In the final stage, when it is time to make the purchase decision, Newspapers (print and digital) are used by both Millennials and Boomers, with slight differences.

Boomers – more likely to use Newspapers for: - General Information - Comparing prices - Deciding make of vehicle

Millennials – more likely to use Newspapers for: - Photo galleries - Deciding where to buy/lease from - Making final purchase decision


Automotive Purchase Decision Making Newspapers are good for …

73

52 64 59

78

57

General Auto Information Specific Auto Information

% New Car Buyers* Millennials Boomers


50 43

59

43 52 58

47 36

65

Authoritative Reviews of New Cars Car Photo Galleries Deciding Make of Vehicle




53 41 43

57 46

53 64

35 32

Comparing Prices Making Final Purchase Decision Deciding Where to Buy/Lease




Factors Influencing Final Purchase Decision

62

39

39

37

36

35

14

66

39

40

37

37

33

18

60

39

41

38

39

41

13

Price

Fuel Economy

Deals/Offers

Size

Options

Dealership

Colour

New Car Buyers* Millennials %


Price is a key attribute in the final purchase decision. Millennials are more likely to be influenced by price than Boomers.

There was no difference between Millennials and Boomers for Size or Fuel Economy attributes.

Although not a major influence, Colour influenced Millennials 28% more than Boomers.

Factors Influencing Final Purchase Decision


Driving Traffic to Automotive Websites

Who never visits these websites? At what stage do visits occur?

Which media trigger visits?

Driving Traffic to Automotive Websites


1. Manufacturer Sites 2. Brand/Model Sites 3. Dealer Sites

Driving Traffic to Automotive Manufacturer Websites

Auto manufacturers spend considerable resources building websites for potential customers. In today’s digital world, the manufacturer site is an essential sales tool.

BUT some New Car Buyers will never visit those websites.

28% of recent New Car Buyers*

20% of Millennials 32% of Boomers


When do New Car Buyers* visit Manufacturer websites?

Stage 1 Stage 2 Stage 3 New Car Buyers* 74% 45% 38% Millennials 82% 49% 36% Boomers 84% 53% 46%

Auto manufacturers need to engage with New Car Buyers early in the process, when they are visiting their websites.



Newspapers are the #1 trigger for sending traffic to manufacturer websites.


Newspapers 26 30 30 TV 19 23 19

Radio 12 21 8 Magazines 17 22 17

Auto Sales Media^ 10 16 8 Non-Auto Sites** 15 17 10

Social Media 14 16 11



%

Driving Traffic to Automotive Brand/Model Websites

30% of New Car Buyers* never visit Automotive Brand and Model websites. Almost a quarter of Millennials, who are digital natives, don’t visit these websites. Boomers are 17% more likely to avoid these websites – 35% of them have never gone to Brand/Model websites.

✗

✗

✗


When do New Car Buyers* visit Brand/Model websites?


New Car Buyers are best engaged by brands early in the process – in Stage 1 for Boomers and in

Stage 2 for Millennials.



Newspapers are the #1 trigger for sending traffic to Brand/Model websites.


Newspapers 25 31 27 TV 15 24 12






%

Driving Traffic to Automotive Dealer Websites

Newspapers are an essential component of the automotive path to purchase for Dealers.

A third (32%) of New Car Buyers* never visit a Dealer website.

Boomers need to be engaged online AND offline – 40% of them will never visit a Dealer website.

Despite a preference for “all things digital”, a quarter (24%) of Millennials do not visit Dealer websites.

✗

✗

✗


When do New Car Buyers* visit Dealer websites?


Driving Traffic to Automotive Dealer Websites

Dealers need to be engaging with New Car Buyers throughout the entire path to purchase. Millennials needs to be engaged early with additional focus in the final stage. Boomers are less likely overall to visit dealer websites, but the final stage is critical.



Newspapers 17 22 16 TV 13 23 7





Newspapers are the #1 trigger for driving Boomers to Dealer websites. Millennials are influenced by multiple media, including TV, Newspapers and Magazines.


Cross-Platform Readership

New Car Buyers* are dedicated newspaper readers, across all platforms.

Phone and print are the top reading platforms for New Car Buyers.

Newspaper access is multi-platform. A third of New Car Buyers (32%) read on ALL FOUR platforms.

New Car Buyers are Cross-Platform Newspaper Readers

Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

Nine of ten (89%) New Car Buyers* read a newspaper on any platform each week.

61

57

62

54

61 15 10 3 89

Newspapers Reach Nine of Ten New Car Buyers Desktop/Laptop readership adds 15% more reach to print readership. Add the phone platform to reach an additional 10% of New Car Buyers and tablet to reach another 3%.

%

Any Platform


59 61 53

57 55 62

45

54

Adults 18+ New Car Buyers*

Print Desktop/Laptop Phone Tablet

Newspapers Reach New Car Buyers on All Platforms

New Car Buyers* read newspapers on multiple platforms. New Car Buyers index highest for tablet readership.

%

89% Any Platform 87% Any Platform


Early morning At breakfast Between breakfastand lunch

During lunch Between lunch anddinner

After dinner

• Print – reading peaks at breakfast and strong after dinner • Desktop/Laptop – morning and evening peaks • Phone – primary platform through the day • Tablet – peaks at breakfast and strong again after dinner

Newspapers Reach New Car Buyers Throughout the Day



Seven out of ten New Car Buyers* read auto ads in printed newspapers compared to 16% who read auto ads on social media.

Newspapers continue to be the most influential media at all stages of the two-month purchase cycle.

Newspapers should be used to drive traffic to automotive websites and to provide offline reach.

New Car Buyers are cross-platform newspaper readers.


Appendix

Sampling – Markets Measured Greater Vancouver Regional District (GVRD) Greater Toronto Area (GTA) Greater Montreal Calgary Region Hamilton Quebec City Area Greater Edmonton St. Catharines Gatineau Winnipeg Capital Region Niagara Saguenay Regina SK Kitchener Sherbrooke Saskatoon SK Cambridge Trois-Rivières Victoria BC Waterloo Rest of Quebec Kelowna BC London Abbotsford-Mission BC Ottawa Rest of Western Canada Kingston Peterborough Halifax Regional Municipality (HRM) Oshawa St. John's NL Brantford Moncton NB Guelph St John NB Windsor Rest of Atlantic Barrie

Greater Sudbury Thunder Bay Rest of Ontario

Questionnaire Wording Which of the following media would you say influenced the [stage of your car buying process]? Please check all that apply.

Printed Newspaper Newspaper Website (including newspaper-owned auto sites like Driving.ca, GlobeDrive.com, Wheels.ca, autonet.ca, auto.lapresse.ca etc.) TV Station TV Station/Network Website Radio Station Radio station Website Auto Sales Media (Publications/websites like Autotrader, Kijiji etc.)

Magazine Magazine Website Social Media (Facebook, Twitter etc.)

Non Auto/Other Websites (not auto manufacturers or dealers) None of the above

Questionnaire Wording

Websites Auto

Manufacturer Site Auto Brand

or Model Site Auto

Dealer Site Printed Newspaper □ □ □ Newspaper Website (including newspaper-owned auto sites like Driving.ca, GlobeDrive.com, Wheels.ca,Autonet.ca, auto.lapresse.ca etc.)

□ □ □

TV Station □ □ □ TV Station/Network Website □ □ □ Radio station □ □ □ Radio station website □ □ □ Magazine □ □ □ Magazine Website □ □ □ Publications or websites like Autotrader, Kijiji etc. □ □ □ Social Media e.g. Facebook, Twitter etc. □ □ □ Other websites - not auto manufacturers or dealers □ □ □ Never visit site □ □ □

Which of the following media trigger you to visit each of the listed websites? Please check all that apply for each website.

Newspaper Media Drive Automotive Sales 2016 Understanding the Automotive Path to Purchase

understanding the automotive path to purchase · 2017-03-18 · this follow-up survey on the...

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