us auto industry review ian beavis, evp global auto
TRANSCRIPT
US AUTO INDUSTRY REVIEW
Ian Beavis, EVP Global Auto
FROM CARPOCALYPSE TO THE NEW NORMAL
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PLENTY OF GOOD NEWS FOR THE AUTO INDUSTRY2013 has experienced record breaking growth for the US Auto Industry
2013
SAAR is 16.1
million, up 6 million
sales since 2009
Incentives average
$2,500 per car down from over
$4,000 since 2008.
New vehicle price
average $31,252, up over $3,000
since 2009
17,700 new car
dealerships down from 20,000 in
2008
Leasing is 27.6%, the
highest percentage since 2006
Prepared for: TVB Source: Automotive News
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UPWARD TRENDS FOR THE INDUSTRY• Credit is easier to get, the average loan amount is $26,526
• Captive Finance companies’ portfolios are over 70% Prime
• The average age of the US fleet is 11.4 years, the highest since WW2
• Franchised dealers are increasing their share of the vehicle maintenance pie
• Certified Pre-Owned sales are close to 2 million units and continue to grow rapidly
Prepared for: TVB Source: Automotive News
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A RECORD-BREAKING MONTH
Chrysler and Fiat sales experienced the 41st consecutive months of sales gain
Cadillac had the best sales month since 1989
Ford F-Series sales YTD was the most since 2006
GM’s had their best month since 2008
VW topped 40,000 sales , only the 3rd time in 40 years
AUGUST 2013…
WAS THE HIGHEST SALES VOLUME FOR THE AUTO INDUSTRY IN 75 MONTHS
Prepared for: TVB Source: Automotive News
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THERE IS A LOT OF MONEY IN THE INDUSTRY
Auto plants are running at maximum capacity
OEMs are making record, or near record profit in the US
All OEMs have robust product cycleplans, with improved technology and quality
Sales per dealership are higher than ever
Most dealers are enjoying the highest profit in 10 years
Prepared for: TVB Source: Automotive News
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ASSESSING THE FUTUREThough the hope is for continued growth, there is much to be done for this upward trend to continue
Make an impact Uncommon emotion
CAR MARKET NOT EXPECTED TO GROW SIGNIFICANTLY IN THE NEXT 5 YEARS
• Factors Affecting Growth• New and expensive manufacturing, materials and technology will
increase vehicle cost and put further pressure on affordability
• Pricing transparency will put pressure on profitability
• What The Industry Needs To Do• Invest heavily to achieve new CAFE regulations
• Seek additional sources of revenue, particularly OEMs and dealers
Prepared for: TVB Source: Automotive News
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A NEW FOCUS ON EFFICIENCY AND EFFECTIVENESSMarketing tactics are in the crosshairs
OEMs need to SQUEEZE out any WASTE in procurement, product development, manufacturing and distribution
Dealers and OEMs must CONNECT with a smaller pool of REAL CUSTOMERS
Areas that PROVE they REACH auto prospects will grow dramatically
TELEVISION ( video in all its forms ) is ESSENTIAL
PRECISION MARKETING = LONG TERM SUCCESS of a new model
Prepared for: TVB Source: Automotive News
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REACHING YOUR KEY AUDIENCE, CAR BUYERS
Cut through the clutter and breakthrough the long purchase cycle
Improve creative across platforms
Place advertising where buyers are watching
Prepared for: TVB Source: Automotive News
The importance of precision marketing
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Weekday Morn-ing
Weekday Day-time
Early Fringe Primetime Access
Primetime Late Fringe02468
101214161820
5.4 5.8
8.6
13.515.1
6.04.7 4.4
7.1
11.6
14.8
5.2
Persons 18+ Car Buyers 18+
WHEN DO CAR BUYERS WATCH TV?
Source: AdViews, August 2012- July 2013 , Persons 18+.
Average Rating by Daypart and Viewer Type August 2012-July 2013
With similar viewing habits to average consumers, primetime is the top daypart to catch car buyers’ attention
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Weekday Morning
Weekday Daytime
Early Fringe Primetime Access
Primetime Late Fringe/ Overnight-5%
0%
5%
10%
15%
20%
25%
30%
14%
8%
20%
15%
22%20%
% of GRPs by Daypart for Top Auto BrandsSource: AdViews, August 2012- July 2013 , Spot TV. Persons 18+. Average taken from Chevy, Chrysler, Ford, Honda, Hyundai, Nissan and Toyota.
% of Gross Ratings Points by Car Manufacturer August 2012- July 2013
WHEN ARE AUTO BRANDS ADVERTISING?On average, most auto brands focus their advertising on early fringe, primetime, and late fringe/overnight
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Weekend Day-time (Sports)
Early Fringe (National
News)
Primetime Access
Primetime Late Fringe/Late Night (No
news)-5%
0%
5%
10%
15%
20%
25%
30%
15% 16%18%
23% 23%
Ad BreakthroughSource: Brand Effect TV National Results for All Auto Ads Sep 2012 – Aug 2013 A18+. Ad Breakthrough = recalled the ad and the brand.
% of Audience that recalled the creative and brand for all Auto ads during September 2012- August 2013
WHEN DO CONSUMERS RECALL AUTO ADS?Primetime and late fringe dayparts provide the best opportunities to catch consumers’ attention
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THE NEW NORMALOPPORTUNITIES ABOUND
1 Television, in all its forms, will remain a significant part of the auto mix
2 We all must help OEMs improve their connection to a relatively small group of consumers
3 OEMs need actionable information
4 If we use all the best tools at our disposal, this will be a win, win for TV and the auto industry
