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 Canada 1 . 1 DesRosiers Automotive Consultants *also referred to as New Car Buyers in this report
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
Study Design Study Timing January/February 2016 Online Panel 2,408 Canadians surveyed (yconic) 467 buyers of new vehicles in past 2 years* National Scope 78% English / 22% French Nationally Representative Sample Men 50%, Women 50% Study Management 18-34: 29%, 35-54: 37%, 55-64: 16%, 65+: 18% Totum Research West 31%, Ontario 39%, Quebec 23%, Atlantic 7% Margin of Error ±2.0% at the 95% confidence level * New Car Buyers in the past 2 years
Newspaper Media Drive Automotive Sales Generational Divide Boomers have traditionally Millennials now make + been the demographic up the same size (in group with the greatest numbers) as the economic impact. 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
Newspaper Media Drive Automotive Sales Generational Divide Millennials Boomers Grew up online – digital Money to spend and higher natives disposable incomes Second largest group of new Continuing to drive and are vehicle buyers buying new vehicles Average age 27 Average age 54 Average household income Average household income $70,918 $84,085 Source: Totum Research, February 2016
Automotive Purchase Cycle New Car Buyer* Boomer Millennial Source: Totum Research, February 2016; *in the past 2 years
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. Source: Totum Research, February 2016; *in the past 2 years
New Car Buyers are Reading Auto Ads in Printed Newspapers New Car Buyers* Millennials Boomers % Readership 72 70 65 40 40 37 35 32 31 ** 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
Social Media Usage Source: Totum Research, February 2016; *in the past 2 years
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. Considering vehicle purchase/lease Stage 1 Stage 2 Researching options Stage 3 Ready to make purchase decision
Media Influence Media Influence is communication that is the power to change or + reaches large numbers of affect someone/something or people, such as television, to cause changes without newspapers, magazines, directly forcing them to radio and the internet. happen. = Media Influence Mass media effects on individual or audience thought, attitudes and behaviour.
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)
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.
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 Newspapers Newspapers (print + digital) (print + digital) (print + dig.ital) 37% 47% 39% TV TV Auto Sales Media (stations + digital) (stations + digital) (eg. Autotrader, Kijiji) 35% 35% 35% Magazines Other Magazines (print + digital) (print + digital) Websites** 25% 31% 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.
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 Newspapers Newspapers (print + digital) (print + digital) (print + digital) 37% 45% 38% Other Other TV (stations + digital) Websites** Websites** 27% 27% 26% TV Auto Sales Media Auto Sales Media (stations + digital) (eg. Autotrader, Kijiji) (eg. Autotrader, Kijiji) 25% 20% 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.
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 Newspapers Newspapers (print + digital) (print + digital) (print + digital) 34% 38% 32% Other Other TV (stations + digital) Websites** Websites** 29% 27% 30% TV TV Magazines (stations + digital) (stations + digital) (print + digital) 26% 29% 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.
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 Source: Totum Research, February 2016; *in the past 2 years
Automotive Purchase Decision Making Newspapers are good for … % New Car Buyers* Millennials Boomers 78 73 64 59 57 52 General Auto Information Specific Auto Information Source: Totum Research, February 2016; *in the past 2 years
Automotive Purchase Decision Making Newspapers are good for … % New Car Buyers* Millennials Boomers 65 59 58 52 50 47 43 43 36 Authoritative Reviews of New Cars Car Photo Galleries Deciding Make of Vehicle Source: Totum Research, February 2016; *in the past 2 years
Automotive Purchase Decision Making Newspapers are good for … % New Car Buyers* Millennials Boomers 64 57 53 53 46 43 41 35 32 Comparing Prices Making Final Purchase Decision Deciding Where to Buy/Lease Source: Totum Research, February 2016; *in the past 2 years
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