RADIO ON THE ROAD CONNECTING WITH AUTO BUYERS AND OWNERS JUNE, 2016

Transcription

1 + + RADIO ON THE ROAD CONNECTING WITH AUTO BUYERS AND OWNERS JUNE, 2016 Copyright 2016 The Nielsen Company 1

2 NEW USED + HIT THE ROAD WITH COMMERCIAL RADIO 2,430,000 Australians aged 14+ say they intend on purchasing a car in the next year; that s almost one-in-five Australians. Of this buyer group, over half (54%) say they will buy a brand new car, while the remaining 46% plan on buying a used car. Commercial radio plays an important role in reaching these potential car buyers, talking to around 1.8 million (75%) of them every week. However, it s more than that. For most of us, buying a motor vehicle, whether new or old, is one of life s big decisions. Consumers can spend a long time researching, test-driving and budgeting before making a final decision. As a frequency medium, commercial radio provides the perfect opportunity to communicate with consumers over the path-to-purchase journey. This overview of the automotive consumer has been constructed with commercial radio listeners in mind and is designed to show their preferences, perceptions and intentions. The data is based on consumers across the five major capital cities in Australia. Unless otherwise specified, audience and population are people aged 14 years and older and auto intenders are those who intend to purchase a motor vehicle in the next 12 months. 54% 46% AUSTRALIANS AGED 14+ OF BUYER GROUP, OVER HALF (54%) SAY THEY WILL BUY A BRAND NEW CAR, WHILE THE REMAINING 46% PLAN ON BUYING A USED CAR. 2 RADIO ON THE ROAD

3 ALL PEOPLE 14+ COMMERCIAL RADIO LISTENERS 14+ INTEND TO BUY CAR NEXT 12 MONTHS 2,430,000 1,830,000 [NEW CAR] 54% 57% [USED CAR] 46% 43% 2.4 MILLION CAR BUYERS* 75% HAVE LISTENED TO COMMERCIAL RADIO IN THE PAST WEEK *AP Intend to buy a car in next 12 months One-quarter (25%) of commercial radio listeners who intend on buying a car in the next year, plan to spend $40,000 or more on the purchase. More than half will spend $10,000-$39,999. AMOUNT INTENDING TO SPEND ON MOTOR VEHICLE PURCHASE IN NEXT 12 MONTHS UNDER $10,000 56% $10,000-$39,999 20% 16% 9% $40,000-$59,999 $60,000+ % OF COMMERCIAL RADIO LISTENERS WHO INTEND TO BUY A CAR NEXT 12 MONTHS [Commercial radio listeners are 18% more likely than the metropolitan population to intend to spend $60,000+ on their next purchase] Copyright 2016 The Nielsen Company 3

4 FROM TO CAR CASUALS Using a base of car owners who have listened to commercial radio in the past week, we found four distinct segments in the population. AUTOMOTIVE SEGMENTS FROM A TO B AND SAFETY THE LOOKS COMMERCIAL RADIO LISTENERS 1,898, ,000 2,086,000 2,579,000 The A to B segment is all about reliability and fuel-efficient travel. They re less likely to be concerned about how their car looks and more focused on getting from point A to point B. What s under the bonnet doesn t really interest them, just as long as it runs efficiently. This group includes the oldest consumers of the four segments, with one-in-two people aged 55+. It also has the highest female skew, with seven-in-10 being female. They are empty nester couples who have paid their mortgage off (45%); and 26% identify as retired giving this group the highest proportion of retirees out of all four segments. While they have the lowest average household income of all the segments (due to the higher retiree %), they are one of the most investment rich, with 23% having investments to the value of $300k+. This group is not concerned about the cost of mortgages, childcare or education; however, they are very concerned about the cost of petrol (36%), electricity (48%), gas (33%) and water (35%). When it comes to purchasing a car, they do influence the purchase decision, but are also the most likely of any group to seek advice from family or friends, and the least likely to give advice in a reverse situation. They are not early adopters, preferring to wait and see before trying new things. 4 RADIO ON THE ROAD

5 Discerning Car Lovers are the group most likely to buy on gut feel and identify as car enthusiasts. Unlike the Getting from A to B group, they do care what s under the bonnet and are more likely to work on their car themselves. When buying a car there are many factors that come into play. The most important are; sex appeal, prestige, fun, performance, aggressiveness and good handling. This group has the highest proportion of males (60%), and also has the heaviest representation from the age band (47%). The majority live in Melbourne (37%) and Sydney (31%). They are more likely to be the main income earner, and they have the highest average personal and household income of all the segments. They work in both upper white and upper blue collar occupations (managers, professionals, trades, labourers) and 21% are selfemployed, giving them the highest percentage of business owners out of the four auto segments. They are married with four or more people in the household. This group is the most likely to read motoring publications and visit motoring websites like Wheels and Carsales.com.au. They are very concerned about the cost of mortgages (33%), childcare (29%), education (34%), groceries (30%) and general insurance (33%). Discerning Car Lovers are the least likely of any group to seek advice from friends and family when purchasing a car, and the most likely to give it to others. They are definitely early adopters, preferring to dive right in and be the first to try things as soon as they re available. The Capacity and Safety segment is primarily concerned with comfort and practicality. Consumers in this group will buy a car based on the capacity to comfortably fit passengers and cargo and how easy it is to get in and out of. Protection for themselves and their family will be a key purchase influencer, if it s big, quiet and comfortable even better! They spend lots of time researching before buying and ensure their car is serviced regularly and under warranty. This group is more likely to be aged 40+ with an average household income of $101K per annum versus the population average of $93K. Copyright 2016 The Nielsen Company 5

6 They work in a range of occupations including managers/ administrators, professionals, labourers and home duties, with onein-three in the upper white collar occupation group. The lion s share of this segment fall into the young families life stage (37%), meaning they have children in the home are aged They also live in larger households of four people or more (45%) and are more likely to be paying off their mortgage. Consumers in this group are likely to be concerned about the cost of petrol (42%), electricity (56%), gas (41%), health (43%), general insurance (38%) and groceries (30%). This group has the most influence over purchase decisions and definitely seeks advice from family and friends in the process. They are in the middle of the road when it comes to trying new things automotive, with a conservative lean. As the name suggests, looks are important to this group. They like to drive and own cars that show off their status. The sex appeal of the car is significant, with performance, prestige and handling also rating highly. Overall, looks and style are more important than reliability. While this segment is similar in many ways to Discerning Car Lovers, they aren t quite as extreme they love fast cars, just not quite as much. This group is slightly older, moving into the band of years. They are more likely to work in upper white collar (31%) or lower blue collar (15%) occupations (managers, professionals, sales people, labourers), and overall one-in-two say they work in private industry (27% more likely than the broader population). The majority are married or partnered and in the young families life stage, with four or more people in the household. However, there is still a large proportion of couples (27%). This segment tends to be neutral across all cost of living areas, except mortgages, with 23% of the group being somewhat concerned about the cost. This group seeks advice from family and friends when purchasing, but they are not as prolific as Car Lovers when returning the favour. They re very balanced in their approach to trying new things with a slight lean to adopting early, compared to other groups. 6 RADIO ON THE ROAD

7 GENDER % OF GROUP MALE FEMALE AGE % OF GROUP MAIN INCOME EARNER % OF GROUP YES NO AVERAGE INCOME PERSONAL INCOME $44,192 $63,518 $52,157 $53,481 HOUSEHOLD INCOME $84,913 $106,094 $101,008 $98,498 Copyright 2016 The Nielsen Company 7

8 OCCUPATION SUMMARY % OF GROUP UPPER WHITE LOWER WHITE UPPER BLUE LOWER BLUE NOT WORKING TYPE OF EMPLOYMENT % OF GROUP PRIVATE ENTERPRISE GOVERNMENT/ GOV. AUTHORITY SELF-EMPLOYED NOT IN PAID EMPLOYMENT LIFE CYCLE % OF GROUP YOUNG FAMILIES OLDER FAMILIES SINGLES COUPLES OTHER RADIO ON THE ROAD

9 HOUSEHOLD SIZE % OF GROUP ONE TWO THREE FOUR OR FIVE CHILDREN IN THE HOME % OF GROUP YES NO HOME OWNERSHIP % OF GROUP OWNED BEING BOUGHT RENT OTHER Copyright 2016 The Nielsen Company 9

10 TUNING IN TO DRIVERS When communicating with the auto segments on radio, what is the best approach? The A to B group prefer ads that give the price and information. Discerning Car Lovers are quite easy to talk to with a high proportion of agreeance across all metrics and overall a high level of engagement with radio. Personality and celebrity-based advertising is appealing. Capacity and Safety like information and price-driven ads. They listen frequently to radio on the way to work. All About the looks engage the least with radio, but as a group, ads with price and information are still important. AGREE OR STRONGLY AGREE WITH THE FOLLOWING STATEMENTS I talk about what I hear on radio 37% 62% 43% 29% I would consider buying products associated with celebrities I m reassured when I use product an expert recommends I always listen to radio on the way to work 4% 46% 7% 9% 17% 52% 25% 16% 53% 62% 63% 38% I trust ads with a radio personality 7% 49% 11% 10% I trust my favourite radio station to inform me I like radio ads which have the same feel as the station I m listening to I like to hear radio content which educates and informs me I prefer ads that give me information 17% 53% 29% 18% 18% 50% 25% 17% 39% 56% 45% 24% 66% 63% 73% 40% I prefer ads that give me price 70% 62% 75% 43% I prefer ads which entertain rather than inform 29% 56% 32% 22% 10 RADIO ON THE ROAD

11 TALKING TO DRIVERS ABOUT CARS The Getting from A to B segment has little interest in auto advertising, while Discerning Car Lovers like to keep up-to-date. Capacity and Safety and All About the Looks segments have an even spread of those who look out for auto ads and those who don t. AGREE OR STRONGLY AGREE WITH THE FOLLOWING STATEMENTS I look out to keep up-to-date with auto advertising I don't look out for auto ads but find some enjoyable I notice car ads but not interested in them I don't remember seeing any car advertisements 4% 42% 16% 13% 18% 32% 34% 30% 45% 13% 32% 30% 33% 13% 18% 27% Copyright 2016 The Nielsen Company 11

12 FINDING CAR OWNERS ON COMMERCIAL RADIO The peak times to connect with drivers on radio are breakfast, morning and afternoon. WEEKLY RADIO LISTENING 70% 60% 50% 40% 30% 20% 10% 0% Breakfast (5.30am-9am) Morning (9am-1pm) Afternoon (1pm-5pm) Drive (5pm-8pm) Evening (8pm-11pm) TOTAL POPULATION 12 RADIO ON THE ROAD

13 CAR OWNERSHIP NUMBER OF CARS OWNED With the highest proportion of either couple or young family households, the Capacity and Safety segment also boasts the largest number of cars (per household). NUMBER OF CARS OWNED 77% 74% 60% 73% 21% 23% 35% 23% OR MORE 2% 3% 5% 4% OWNERSHIP Discerning Car Lovers are considerably more likely to lease/finance the car they drive most, while those in the A to B group are the most likely to own theirs. OWNERSHIP (OF CAR DRIVEN MOST) Leased/financed privately 7% 27% 15% 17% Leased/financed by employer 1% 4% 3% 3% Owned outright 91% 69% 82% 80% Copyright 2016 The Nielsen Company 13

14 AGE OF CURRENT CAR Strong correlations exist across the groups when matching car importance with age; the more important the car is to the owner, the younger its age. Discerning Car Lovers are driving younger vehicles, than those in the A to B segment. AGE (OF CAR DRIVEN MOST) Under one year 8% 15% 8% 9% One to three years 19% 29% 24% 21% Four to five years 17% 22% 18% 18% Six to 10 years 26% 19% 28% 27% More than 10 years 30% 16% 22% 25% 14 RADIO ON THE ROAD

15 SIZE OF CAR DRIVEN MOST The most driven car size/s for Getting from A to B is small passenger; Discerning Car Lovers is medium passenger vehicle; Capacity and Safety is medium and large passenger; and All About the Looks is small and medium passenger. The size of the car driven is also closely linked to consumer profile and lifestyle. Those in the A to B segment tend to be single and female small passenger vehicles are the predominant choice. Discerning Car Lovers skew toward more male and those on a higher income this group edges to medium passenger. In the Capacity and Safety group, it s larger passenger again and up into 4WD. When it comes to the All About the Looks segment, it is spread more evenly across small, medium and large passenger vehicles. SIZE (OF CAR DRIVEN MOST) Light passenger 14% 9% 5% 8% Small passenger 34% 16% 16% 23% Medium passenger 22% 29% 20% 25% Large passenger 13% 15% 19% 17% Compact 4WD 7% 8% 15% 8% Medium 4WD 4% 7% 12% 6% Large 4WD 0% 5% 5% 3% Van 1% 1% 2% 1% Ute 1% 4% 4% 3% Copyright 2016 The Nielsen Company 15

16 INSURANCE When it comes to protecting their investment, the more conservative groups of the four lead the way. While the Car Lovers and All About the Looks groups are less likely to have insurance, this is most likely due to their younger average age. Have insurance 91% 74% 91% 76% Don t have insurance 9% 26% 9% 24% Switched provider in past six months 7% 12% 8% 8% Purchased insurance policy online 32% 31% 35% 31% Purchased insurance policy over the phone Intend to continue with existing company Intend to shop around for another company 32% 23% 33% 25% 23% 28% 25% 22% 10% 21% 11% 10% 16 RADIO ON THE ROAD

17 WHAT S NEXT FOR CAR OWNERS? WHEN INTENDING TO BUY? Discerning Car Lovers are by far the most aspirational when it comes to buying their next car, with two-in-five saying they will definitely or probably buy in the next 12 months. DEFINITELY WILL BUY OR PROBABLY WILL BUY Next 12 months 10% 43% 17% 21% NEXT CAR NEW OR USED The majority of those who intend on buying a car say it will be new. The All About the Looks segment has an even proportion of those who say they will buy new or used. NEXT CAR - NEW/USED/NONE New 46% 64% 50% 44% Used 40% 28% 42% 44% Will not buy 14% 8% 9% 12% Copyright 2016 The Nielsen Company 17

18 CAR SIZE CONSIDER BUYING Those in the A to B group are more likely than other groups to consider small passenger cars. TYPE Sedan 46% 45% 37% 40% Hatchback 44% 24% 25% 28% Wagon 11% 11% 16% 10% Sports car/coupe 2% 7% 5% 10% CAR SIZE CONSIDER BUYING Light passenger 15% 7% 4% 8% Small passenger 40% 18% 19% 23% Medium passenger 29% 36% 28% 31% Large passenger 8% 21% 18% 16% Compact 4WD 13% 14% 19% 13% Medium 4WD 6% 14% 20% 10% Large 4WD 1% 10% 10% 6% Van 1% 1% 1% 1% Ute 1% 4% 5% 5% 18 RADIO ON THE ROAD

19 + NEXT CAR SPEND Under $10,000 12% 7% 7% 13% $10,000 - $29,999 56% 35% 44% 43% $30,000 - $49,999 16% 29% 30% 21% $50,000 - $69,999 2% 14% 7% 7% $70,000 - $89,999 0% 4% 1% 2% $90,000+ 0% 2% 2% 2% NEXT CAR SPEND Copyright 2016 The Nielsen Company 19

20 WHAT FEATURES ARE IMPORTANT WHEN BUYING? Safety and value are important features for all groups when buying a car. However, style and performance are more important to the Car Lovers and All About the Looks groups, with those in the A to B group rating value for money highly. FEATURE IMPORTANCE PERFORMANCE VALUE FOR MONEY SAFETY STYLE/DESIGN 13% 41% 42% 4% 21% 24% 41% 14% 17% 32% 45% 6% 21% 36% 29% 15% 20 RADIO ON THE ROAD

21 THE PURCHASE DECISION PROCESS Influence the purchase decision 60% 44% 69% 47% Give advice or make recommendations to family/friends when buying a car 15% 53% 36% 35% Seek advice or make recommendations from family/ friends when buying a car 65% 44% 64% 46% Almost always first to try 3% 27% 6% 15% Usually try things quite soon after they are available 4% 22% 10% 12% Prefer to wait and see before trying 51% 35% 54% 45% Usually the last to try new things 43% 15% 29% 28% Copyright 2016 The Nielsen Company 21

22 SOURCE: NIELSEN CONSUMER & MEDIA VIEW Consumer and Media View is based on information collected from a national sample of people aged 14+ (n=19,005). The survey methodology is a combination of an online self-complete questionnaire and fused media currency ratings for TV (OzTAM), Radio (GFK) and Online (Nielsen). Data is weighted using estimates from the Australian Bureau of Statistics to produce statistically reliable estimates for the entire population. 22 RADIO ON THE ROAD

23 ABOUT THIS REPORT This report draws findings primarily from the Nielsen Consumer and Media View survey Australia. Unless otherwise specified, the report uses data from Consumer and Media View Survey (Mar15- Feb16) including GFK Radio Survey (17-Jan-16 to 27-Feb-16). Both Consumer and Media View and GFK surveys cover the five major metropolitan markets of Sydney, Melbourne, Brisbane, Adelaide and Perth. Commercial radio listeners are defined as listeners to any of the following stations between Mon-Sun 530am-12mn (Cume): 2CH, 2GB, 2UE, WSFM, 2DAY, NOVA96.9, 2MMM, smoothfm95.3, KIIS1065; SKY Sports, SEN 1116, 3AW, NOVA100, MAGIC1278, FOXFM hit 1019, GOLD, 3MMM, MIX 101.1, smoothfm91.5, 4BC, MAGIC-882, 97.3FM, 4KQ, hit105.3, Nova 106.9, 4MMM, 5AA, Cruise 1323, MIX 102.3, 5MMM, hit107, NOVA 91.9, 6IX, 94.5FM, 6PR, 96FM, hit92.9, NOVA93.7 ABOUT NIELSEN Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen s Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content video, audio and text is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world s population. For more information, visit Copyright 2016 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 16/10025 Copyright 2016 The Nielsen Company 23

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