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Millennial Buyers
Telling a Compelling
Brand Story Across Channels
2014 IHS Automotive Buyer Influence Study
Representative of
online and offline
car buyers.
To assure both internet
users and non-users
had an equal chance
of participating, the
study was conducted
by phone and online.
A total of 1,886
buyers participated. (269 Millennials)
To qualify participants
must have purchased a
light vehicle within the
past 12 months and be
the primary decision
maker in the vehicle
purchase.
Conducted from
December 2013 –
February 2014
2
Manufacturers’ greatest challenge with Millennials is getting them into New vehicles despite their financial circumstances.
The Marketing Dilemma
3
NEW (Retail) USED New & Used Units Registered • New Vehicle % of Registrations
Millennials vs. New Cars
Vehicle Registrations by Age Group 12 Months Ending March 2014
SOURCES: IHS/Polk vehicle registration data United States Census Bureau
4
20.2%
23.3%
27.6%
Millennials (18-34)
Gen X (35-44)
Boomers (44-64)
7.5 Million
12.3 Million
21.7 Million
Young Millennials Driven by Financial Need
Source: Millennial Research, 2013
Young Millennials (age 16-24)
Base: Random Sample (among those who do not own a vehicle) Millennials: 149
5
Do you currently own a vehicle?
What are the main reasons you don’t currently own a vehicle? (multi-response)
Which of the following best describes your plans for purchasing a vehicle?
Which of the following is your primary means of transportation?
83%
It’s a result of circumstance
cannot afford to own a vehicle right now
Millennials are more open to brand influence early in the shopping process.
The Marketing Opportunity
6
Opportunity to Increase Awareness
Less than ½ of Millennials had a previous experience with the make they purchased. (excludes first-time vehicle buyers)
7
42%
51% GenX
61% Baby Boomers
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: Millennial Buyers (n=345); Gen X Buyers (n=320); Baby Boomer Buyers (n=779)
Millennials Value Brands
Source; 2013 Forrester Research Inc.
8
66% of Millennials will stick with a brand if they find one they like.
67% GenX
64% Baby Boomers
7-out-of-10 Millennial buyers start shopping without an exact vehicle in mind.
Base: Millennial Buyers; n = 343 (Web Survey Only)
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
9
Knew Exact
Knew Make
Knew
Something
Knew Nothing
2014
You knew the exact vehicle that you wanted 30%
You knew the body style of the vehicle that you
wanted, but not the make or model 32%
You didn't know the specific vehicle you wanted,
but you had a certain class of vehicle in mind 12%
You didn't know what you wanted, but the vehicle
had to have certain features 10%
You knew the vehicle make that you wanted 11%
You didn't know what vehicle you wanted when
you started looking 5%
70%
The number of channels, devices, and media available is only going to grow, so marketers need to prioritize by gathering data
about what is most relevant to their target consumer.
Prioritizing Investments
10
No matter what generation you’re trying to reach, everyone finds the Internet helpful.
11
VERY HELPFUL
76%
1% TELEVISION
3% NEWSPAPER
INTERNET
74%
66%
20%
13%
1%
12%
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: Millennial Buyers (Internet = 338; TV = 183; Newspaper = 132)
Base: Gen X Buyers (Internet = 338; TV = 183; Newspaper = 132)
Base: Boomers Buyers (Internet = 338; TV = 183; Newspaper = 132)
GEN X
BOOMERS
MILLENNIALS
MILLENNIALS
MILLENNIALS
GEN X
BOOMERS
GEN X
BOOMERS
12
The Internet is the most effective source at leading buyers to purchase.
MILLENNIALS BABY BOOMERS GEN X
INTERNET 65% 64% 46%
Referral from
friend/family
Drove by/Walked-in
Prior experience
with this dealership
12%
11%
5%
11%
12%
4%
16%
10%
11%
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: Online Millennial Buyers (n=269); Online Gen X Buyers (n=286); Online Baby Boomer Buyers (n=659)
13
purchased the model they had in mind prior to the initial dealership visit.
MILLENNIALS
GEN X
BABY
BOOMERS
69%
66%
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: Millennial Buyers (n=345); Gen X Buyers (n=320); Baby Boomer Buyers (n=779)
Millennials become frustrated when salespeople push other
cars that they do not want.
14
Please rate your level of agreement with the following statements related to your recent dealership experience: “I prefer to
interact with the dealership as little as possible”
Please rate how much you agree or disagree with: “Dealers tried to sell me a vehicle I did not want” & “Dealers tried to sell
me a service I did not want”
AutoTrader.com 2012 Dealership Experience Study
1 Purchased within the past 3 months/visited dealerships (Millennials: 755; Gen X: 374; Boomers: 370)
2 Purchased a new vehicle within the past year (Millennials: 83; 35+: 424)
of Millennials said dealers try to sell them
a vehicle they did not want.
(25% 35+ years old)2
As more Internet savvy Millennials enter the shopping process, marketers need to carry over the story they started offline into
their campaigns in the online environment.
Offline to Online
15
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: Online Millennial Buyers (2011 = 174, 2014 = 269); Online Gen X Buyers (2011 = 286, 2014 = 286); Online Boomers Buyers (2011 = 1043, 2014 = 659))
16
Millennials’ Use of Internet is Increasing
87
95 91
89
79 79
70%
80%
90%
100%
2011 2014
Millennials
Gen X
Boomers
Reach of Internet increases, while usage of offline sources drops.
Sources Used To Shop 17
2% 4% 5% 7% 8% 12%
31%
95%
3% 9% 7%
12% 13% 19%
43%
87%
Direct MailOutdoor adsRadioNewspaper inprint
MagazineTelevisionReferral fromfriend/family
Internet
2014 2011
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: Millennial Buyers 2011 = 199, 2014 =269
Time Spent Online
Online buyers are allocating more research time to the Internet.
18
2014 2011
GEN X
BOOMERS
79%
72%
GEN X
BOOMERS
80%
73% Source: 2014 IHS Automotive Buyer
Influence Study, in partnership with
AutoTrader.com
Base: Online Millennial Buyers (2011
=396, 2014 = 338)
MILLENNIALS
77%
MILLENNIALS
82%
Each device has its own requirements, and if a marketer gets it wrong, it’s worse than doing nothing.
Multiple Devices
19
22% 24%
91%
42% 42%
87%
50%
32%
78%
Devices Used to Shop — Millennials 20
Significantly higher / lower than 2013
MULTI-DEVICE USAGE IN 2014
MILLENNIALS GEN X BABY BOOMERS
50% 29%
MILLENNIALS
GEN X BOOMERS
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Base: Online Millennial Buyers (n = 269); Online Gen X Buyers (n = 286); Online Boomers Buyers (n = 659)
Multi-Device Projections
Source: AutoTrader Marketing Analytics
21
32%
44%
80%
2014 2015F 2016F 2017F 2018F 2019F 2020F
Projected Multi-Device Usage (Internet Car Shoppers, Total Shoppers)
Millennials
Total
Each interaction with these media should offer a valuable part of the overall story. Each campaign should be an injection of adrenaline into an otherwise continuous storytelling process.
Role of Websites
22
Millennials Use More Websites to Shop
23
10.1 Average websites
used while shopping for
their vehicle
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Online Millennial Buyers (n=269)
MILLENNIALS
8.8 ALL BUYERS
53%
36%
52%
43% 42%
26%
81%
57%
20142011
Online Sources Used to Shop (Internet Car Shoppers, Millennials)
Third-Party Site
OEM Site
Dealer Site Search Site
Third-party sites have seen the largest incremental growth in the past three years
24
+24%
+17%
+9%
+16%
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
2011: Online Millennial Buyers (n= 396); 2014: Online Millennial Buyers (n=269)
Online Sources Used to Shop
Third-Party Sites are the most used online source
25
2014 Online Website Usage (Internet Car Buyers)
Millennial
Buyers
Gen X
Buyers
Baby Boomer
Buyers
Third-Party Sites 81% 85% 77%
Search Sites 53% 49% 59%
Dealer Sites 52% 59% 43%
OEM Sites 42% 41% 43%
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Online Millennial Buyers (n=269); Online Gen X Buyers (n=286); Online Baby Boomer Buyers (n=659)
The largest % of time online is allocated to Third-Party Websites.
26
GEN X BOOMERS
Other
7%
Third-Party
51%
OEM
10%
Dealer
15%
Search
17%
MILLENNIALS
52% 47% Third-Party
9% 13% OEM
18% 20% Dealer
11% 13% Search
10% 7% Other
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Online Millennial Buyers (n=269); Online Gen X Buyers (n=286); Online Baby Boomer Buyers (n=659)
Most Useful Online Source 27
MILLENNIALS BABY BOOMERS GEN X
Third-party Sites 57% 56% 45%
OEM Sites
Dealer Sites
Other
None/Can’t Say
Search
10%
16%
12%
5%
9%
16%
15%
3%
1%
13%
22%
12%
6%
2%
Source: 2014 IHS Automotive Buyer Influence Study, in partnership with AutoTrader.com
Online Millennial Buyers (n=269); Online Gen X Buyers (n=286); Online Baby Boomer Buyers (n=659) - Web Survey Only
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Presenter Name
Contact Information
Telling a Compelling
Brand Story Across Channels