Newspaper Media Drive Automotive Sales 2016 Understanding the - - PowerPoint PPT Presentation

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

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

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.

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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 Grew up online – digital natives Second largest group of new vehicle buyers Average age 27 Average household income $70,918 Boomers 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

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

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 ** 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

• ptions and media influences.

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

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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.

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

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% Other 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

New Car Buyers* Boomers Millennials Newspapers

(print + digital)

37% Newspapers

(print + digital)

45% Newspapers

(print + digital)

38% Other Websites** 27% Other Websites** 26% TV

(stations + digital)

27% TV

(stations + digital)

25% Auto Sales Media

(eg. Autotrader, Kijiji)

20% Auto Sales Media

(eg. Autotrader, Kijiji)

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.

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

New Car Buyers* Boomers Millennials Newspapers

(print + digital)

34% Newspapers

(print + digital)

38% Newspapers

(print + digital)

32% Other Websites** 27% Other Websites** 30% TV

(stations + digital)

29% TV

(stations + digital)

26% TV

(stations + digital)

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

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 …

73 52 64 59 78 57

General Auto Information Specific Auto Information

%

New Car Buyers* Millennials Boomers

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

50 43 59 43 52 58 47 36 65

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

%

New Car Buyers* Millennials Boomers

Automotive Purchase Decision Making

Newspapers are good for …

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

53 41 43 57 46 53 64 35 32

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

%

New Car Buyers* Millennials Boomers

Automotive Purchase Decision Making

Newspapers are good for …

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

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 Boomers %

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

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

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

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

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

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

Automotive Manufacturer (OEM) Websites

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

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.

Driving Traffic to Automotive Manufacturer Websites

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

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

New Car Buyers* Millennials Boomers

Newspapers 26 30 30 TV 19 23 19 Radio 12 21 8 Magazines 17 22 17 Auto Sales Media^ 10 16 8 Other Websites** 15 17 10 Social Media 14 16 11

Driving Traffic to Automotive 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.

%

Automotive Brand or Model Websites

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

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.

Driving Traffic to Automotive Brand/Model Websites

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

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

New Car Buyers* Millennials Boomers

Newspapers 25 31 27 TV 15 24 12 Radio 13 25 5 Magazines 15 24 9 Auto Sales Media^ 10 18 8 Other Websites** 14 21 3 Social Media 13 20 8

Driving Traffic to Automotive 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.

%

Automotive Dealer Websites

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%

• f 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

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%

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.

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

New Car Buyers* Millennials Boomers

Newspapers 17 22 16 TV 13 23 7 Radio 11 18 4 Magazines 11 20 9 Auto Sales Media^ 9 15 8 Other Websites** 8 14 4 Social Media 13 16 11

Driving Traffic to Automotive Dealer Websites

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.

Cross-Platform Newspaper 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

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

59 61 53 57 55 62 45 54

Adults 18+ New Car Buyers*

Print Desktop/Laptop Phone Tablet

Newspapers Reach New Car Buyers

• n All Platforms

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

% 89% Any Platform 87% Any Platform

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

Early morning At breakfast Between breakfast and lunch During lunch Between lunch and dinner 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

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

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

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

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.

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

Newspaper Media Drive Automotive Sales 2016

Understanding the Automotive Path to Purchase