Newspaper Media Drive Automotive Sales Understanding the Automotive Path to Purchase

Transcription

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

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

3 Newspaper Media Drive Automotive Sales 2016 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

4 Study Design Study Timing January/February 2016 Online Panel (yconic) National Scope 78% English / 22% French Study Management Totum Research Margin of Error ±2.0% at the 95% confidence level 2,408 Canadians surveyed 467 buyers of new vehicles in past 2 years* 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% * New Car Buyers in the past 2 years

5 Newspaper Media Drive Automotive Sales Generational Divide Boomers have traditionally been the demographic group with the greatest economic impact. + Millennials now make up the same size (in numbers) as the Boomers. = Together these two demographics represent almost two thirds (63%) of new vehicle buyers. Source: Totum Research, February 2016; * New Car Buyers in the past 2 years

6 Newspaper Media Drive Automotive Sales Generational Divide Boomers Money to spend and higher disposable incomes Continuing to drive and are buying new vehicles Average age 54 Average household income $84,085 Millennials Grew up online digital natives Second largest group of new vehicle buyers Average age 27 Average household income $70,918 Source: Totum Research, February 2016

7 Automotive Purchase Cycle New Car Buyer* Boomer Millennial Source: Totum Research, February 2016; *in the past 2 years

8 Readership of Automotive Ads

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

10 New Car Buyers are Reading Auto Ads in Printed Newspapers New Car Buyers* Millennials Boomers % Readership ** Source: Totum Research, February 2016; *in the past 2 years ** Websites excluding newspaper, TV, radio, magazine, auto media sales and vehicle manufacturer, model and retailer sites

11 Social Media Usage Source: Totum Research, February 2016; *in the past 2 years

12 Media Influence in the Automotive Path to Purchase

13 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

14 Media Influence Media is communication that reaches large numbers of people, such as television, newspapers, magazines, radio and the internet. + = Influence is the power to change or affect someone/something or to cause changes without directly forcing them to happen. Media Influence Mass media effects on individual or audience thought, attitudes and behaviour.

15 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.Other Websites (not auto manufacturers or dealers)

16 Media Influence in the Automotive Path to Purchase Media is a key driver 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. 60% of New Car Buyers* are influenced by newspapers in their auto path to purchase. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

17 Media Influence Stage 1 Considering vehicle purchase/lease 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. New Car Buyers* Boomers Millennials Newspapers (print + digital) 37% TV (stations + digital) 35% Magazines (print + digital) 25% Newspapers (print + digital) 47% TV (stations + digital) 35% Other Websites** 24% Newspapers (print + dig.ital) 39% Auto Sales Media (eg. Autotrader, Kijiji) 35% Magazines (print + digital) 31% Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

18 Media Influence Stage 2 Researching options 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. New Car Buyers* Boomers Millennials Newspapers (print + digital) 37% Other Websites** 27% TV (stations + digital) 25% Newspapers (print + digital) 45% Other Websites** 26% Auto Sales Media (eg. Autotrader, Kijiji) 20% Newspapers (print + digital) 38% TV (stations + digital) 27% Auto Sales Media (eg. Autotrader, Kijiji) 24% Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

19 Media Influence Stage 3 Ready to make purchase decision 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. New Car Buyers* Boomers Millennials Newspapers (print + digital) 34% Other Websites** 27% TV (stations + digital) 26% Newspapers (print + digital) 38% Other Websites** 30% TV (stations + digital) 29% Newspapers (print + digital) 32% TV (stations + digital) 29% Magazines (print + digital) 27% Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

20 Purchase Decision Making

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

22 Automotive Purchase Decision Making Newspapers are good for New Car Buyers* Millennials Boomers % General Auto Information Specific Auto Information Source: Totum Research, February 2016; *in the past 2 years

23 Automotive Purchase Decision Making Newspapers are good for New Car Buyers* Millennials Boomers % Authoritative Reviews of New Cars Car Photo Galleries Deciding Make of Vehicle Source: Totum Research, February 2016; *in the past 2 years

24 Automotive Purchase Decision Making Newspapers are good for New Car Buyers* Millennials Boomers % Comparing Prices Making Final Purchase Decision Deciding Where to Buy/Lease Source: Totum Research, February 2016; *in the past 2 years

25 Factors Influencing Final Purchase Decision New Car Buyers* Millennials Boomers % Price Fuel Economy Deals/Offers Size Options Dealership Colour Source: Totum Research, February 2016; *in the past 2 years

26 Factors Influencing Final Purchase Decision 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. Source: Totum Research, February 2016; *in the past 2 years

27 Driving Traffic to Automotive Websites

28 Driving Traffic to Automotive Websites 1. Manufacturer Sites 2. Brand/Model Sites 3. Dealer Sites Who never visits these websites? At what stage do visits occur? Which media trigger visits? Source: Totum Research, February 2016; *in the past 2 years

29 Automotive Manufacturer (OEM) Websites

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

31 Driving Traffic to Automotive Manufacturer Websites 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. Source: Totum Research, February 2016; *in the past 2 years

32 Driving Traffic to Automotive Manufacturer Websites % New Car Buyers* Millennials Boomers Newspapers TV Radio Magazines Auto Sales Media^ Other Websites** Social Media Newspapers are the #1 trigger for sending traffic to manufacturer websites. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

33 Automotive Brand or Model Websites

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

35 Driving Traffic to Automotive Brand/Model Websites When do New Car Buyers* visit Brand/Model websites? Stage 1 Stage 2 Stage 3 New Car Buyers* 49% 51% 32% Millennials 52% 65% 33% Boomers 58% 48% 38% New Car Buyers are best engaged by brands early in the process in Stage 1 for Boomers and in Stage 2 for Millennials. Source: Totum Research, February 2016; *in the past 2 years

36 Driving Traffic to Automotive Brand/Model Websites % New Car Buyers* Millennials Boomers Newspapers TV Radio Magazines Auto Sales Media^ Other Websites** Social Media Newspapers are the #1 trigger for sending traffic to Brand/Model websites. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

37 Automotive Dealer Websites

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

39 Driving Traffic to Automotive Dealer Websites When do New Car Buyers* visit Dealer websites? Stage 1 Stage 2 Stage 3 New Car Buyers* 23% 20% 34% Millennials 31% 31% 40% Boomers 18% 16% 25% 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. Source: Totum Research, February 2016; *in the past 2 years

40 Driving Traffic to Automotive Dealer Websites New Car Buyers* Millennials Boomers Newspapers TV Radio Magazines Auto Sales Media^ Other Websites** Social Media Newspapers are the #1 trigger for driving Boomers to Dealer websites. Millennials are influenced by multiple media, including TV, Newspapers and Magazines. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

41 Cross-Platform Newspaper Readership

42 New Car Buyers are Cross-Platform Newspaper Readers Nine of ten (89%) New Car Buyers* read a newspaper on any platform each week. 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. Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

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

44 Newspapers Reach New Car Buyers on All Platforms New Car Buyers* read newspapers on multiple platforms. New Car Buyers index highest for tablet readership % 87% Any Platform 89% Any Platform Adults 18+ New Car Buyers* Print Desktop/Laptop Phone Tablet Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

45 Newspapers Reach New Car Buyers Throughout the Day 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 Early morning At breakfast Between breakfast and lunch During lunch Between lunch and dinner After dinner Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

46 Newspaper Media Drive Automotive Sales 2016 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. Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

47 Appendix

48 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 Saint John NB Windsor Rest of Atlantic Barrie Greater Sudbury Thunder Bay Rest of Ontario

49 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.) Other Websites (not auto manufacturers or dealers) [None of the above not shown, but coded if no selection chosen]

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

51 Media Influence Data Table New Car Buyers* Boomers Millennials Media Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Printed Newspaper and/or Newspaper Website (Net) 37% 37% 34% 47% 45% 38% 39% 38% 32% TV Station and/or TV station website (Net) 35% 25% 29% 35% 18% 29% 28% 27% 29% Radio station and/or radio station website (Net) 16% 12% 4% 12% 3% 4% 18% 21% 20% Magazine and/or Magazine Website (Net) 25% 21% 18% 22% 17% 18% 31% 20% 27% Publications or websites like Autotrader, Kijiji etc. 24% 19% 19% 17% 20% 19% 35% 24% 21% Social Media e.g. Facebook, Twitter etc. 15% 13% 5% 5% 6% 5% 21% 15% 19% Other websites - not auto manufacturers or dealers 23% 27% 30% 24% 26% 30% 17% 19% 18% None of the above 46% 48% 56% 53% 57% 67% 41% 37% 43% first choice second choice third choice Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years Media influence based only on those answering question

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