Los Angeles Automotive Path To Purchase Study€¦ · y. 10 Media Implications Source: Los Angeles...

Los Angeles Automotive Path To Purchase Study

Rich TunkelSenior Vice PresidentNielsen AudioJune 2017

Los Angeles Automotive Study:

Project Background

•Radio’s role in the path to automotive purchase in Los Angeles

•Survey conducted primarily online

•Re-interview of Scarborough consumer respondents

•2,237 auto buyers age 18+ in Los Angeles

•Field dates: February 27, 2017 to March 13, 2017

State of the Automotive Industry

Several good years…

2017 is a challenge!

Three Key Findings

1. Two Distinct Auto Buying Segments

2. Reach Drives Sales Results

3. L.A. Radio Reaches Millions of Auto

Buyers Each Week

Decideds / Undecideds

Knew exact

make and model

I wanted

vehicle

make I

wanted

60% of L.A. Auto Buyers Know What They Want

40% Are Undecided

Source: Los Angeles Auto Path to Purchase 2016 Release 2

Q: Statement that best describes how you approached deciding on the vehicle you most recently purchased/leased

Knew body style,

not make/model

Didn’t know specific

vehicle, but had

certain class of

vehicle in mind

Didn’t know exact

make/model, but had

certain features in

Didn’t know exact

make/model, but

had certain budget

in mind

Didn’t know what

vehicle I wanted when

started looking

60% Decided

Auto Buyers

40% Undecided

Auto Buyers

These Two L.A. Auto Buying Groups Differ

Decided and Undecided Auto Buyers Age 18+

DECIDED AUTO BUYERS

• Generation X (age 37-51)

• Equal male / female

• Higher income

• Larger families

• Millennial (age 20-36)

• More female

• Building income

• More likely to be Hispanic

•UNDECIDED AUTO BUYERS

Decideds, Undecideds and The Purchase Funnel

Different Paths to Purchase in Los Angeles

DECIDED AUTO BUYERS

• Shorter Decision (many less than 1 week)

• Sole Decision-maker (45% decide alone)

• Purchase New (60%) Used 40%

• Knowledgeable/Confident (51% score 9 or 10)

• Visit Fewer Dealerships (half only visit 1)

• “Want Vehicle” (31%)

• Longer decision (many up to 1 month)

• Joint Decision (27% decide alone)

• Purchase New (45%) Used (55%)

• Less Confident (32% score 9 or 10)

• Visit More Dealerships (most visit 2-3)

• “Need Vehicle” (81%)

Media Implications

DECIDED AUTO BUYERS

• 1 Week until purchase

• Urgent and Always On

• Shorter Window- Focus on Offer

• Direct them to your website

• 1 Month until purchase

• Always On as they decide

• Longer Window- Focus on Dealer Brand

• Direct them to your website

20% 19%

14% 14%

18%16%

13%12%

Dealership website Kelley Blue Book Manufacturerwebsite

Google / searchengine

Craigslist.org ConsumerReports CarFax.com AutoTrader.com

Most Valuable Websites to Auto Buyers

Decided Auto Buyers Undecided Auto Buyers

L.A. Dealer Website Is Most Valuable

Online Resource to Auto Customers

Dealer

Website

Kelly Blue

Manufacturer

Website

Google /

Search Engine

Craigslist CarFaxConsumer

Reports

Auto Trader

Source: Los Angeles Auto Path to Purchase 2016 Release 2 : Decided and Undecided Auto Buyers Age 18+:

DECIDED AUTO BUYERS UNDECIDED AUTO BUYERS

• Special offers/Incentives (73%)

• Locate the dealer (68%)

• Request a quote (63%)

• Find actual vehicle listings (60%)

• Find actual vehicle listings (81%)

• Research pricing (64%)

• Request a quote (53%)

• Compare models (50%)

Dealer Website: Help Decideds Buy

Help The Rest Make Up Their Minds

Top ways dealer website used to research/shop

Source: Los Angeles Auto Path to Purchase 2016 Release 2 : Decided and Undecided Auto Buyers Age 18+

Dealer Websites Are Rarely Mentioned In

Los Angeles Ads

Source: Media Monitors review of Los Angeles radio ads from the top 7 automotive advertisers for Q1 2017

(English Language)

• Offer (price, promotion) - mentioned 5.8 times

• Dealer Name - mentioned 5.2 times

• Brand - mentioned 2.5 times

• Website - mentioned only 1.2 times

Reach Drives Sales Results

Source: Simulmedia.com Market Insights simulation: National Linear TV Campaign January 2017.

Even The Heaviest TV Campaigns Miss Customers

2,870 Ford TV Commercials

January 2017

Adults 25-54

77% reached

23% NOT reached

60% reached

40% NOT reached

Adults 18-34

Optimal Ad Mix Study:

The Advertising Research Foundation: “How Advertising Works, Today” March 2016

Campaigns

Brands

Categories

Countries

Optimal Ad Mix: 80% Of Ad Buy Should Be

In Traditional Media (TV & Radio)

The Advertising Research Foundation: “How Advertising Works, Today” March 2016

Traditional78%

Traditional71%

Digital22%

Digital29%

P18+ P18-34

Sales Grow When Adding Media Platforms

Incremental ROI of additional media platforms

Advertising Research Foundation “How Advertising Works” : Analytic Partners, 2016; Analysis based on over 3,200 campaigns from 2010-2016; Platforms include TV, radio,

display, paid search, online video, PR, out-of-home, and cinema

+19% +23%+31% +35%

1 Platform 2 Platforms 3 Platforms 4 Platforms 5 Platforms

Radio Delivers Millions of Auto Buyers in Los Angeles

94% 91% 89%83%

Listen toAM/FM RadioPast 7 Days

Spent AnyTime on

Internet PastWeek

Access ToMobileInternet

Watched AnyBroadcast TV

Past Week

Watched AnyNon-Premium

Cable PastWeek

Read AnyNewspaperPast Week

Radio’s Weekly Reach of Automotive Buyers is

Greatest of All Major Media in L.A.

Vehicle

Buyers

Source: Nielsen L.A. Scarborough R1 2017 (Feb 2016-Jan 2017) Vehicle Buyers = Plan to buy New/Used/Leased Vehicle in next 12 months

WEEKLY REACH (of Auto buyers 18+)

Radio Delivers 1.8 Million People Who Plan To

Buy a NEW Auto In Los Angeles

Source: Nielsen L.A. Scarborough R1 2017 (Feb 2016-Jan 2017) Vehicle Buyers = HHLDS who Plan to buy New/Used/Leased Vehicle in next 12 months

Planned New Vehicle Purchase or Lease – next 12 Mo.

Million

Reached

Weekly

$52 Billion

In Planned

Auto Purchases

WEEKLY REACH (of Auto buyers 18+)

Radio Delivers 1.5 Million People Who Plan To

Buy a USED Auto In Los Angeles

Source: Nielsen L.A. Scarborough R1 2017 (Feb 2016-Jan 2017) Vehicle Buyers = HHLDS who Plan to buy New/Used/Leased Vehicle in next 12 months

Planned Used Purchase – next 12 Mo.

Million

Reached

Weekly

$20 Billion

In Planned

Auto Purchases

LOS ANGELES

BUYERS RADIO DIGITAL TV PRINT

AVERAGE AGE 43 45 39 55 53

NUMBER OF VEHICLES OWNED 2.0 1.9 1.8 1.7 1.8

FAMILY (1+ Child) 43% 51% 35% 28% 30%

WORK FULL OR PART-TIME 69% 73% 72% 36% 52%

USE SOCIAL MEDIA 80% 78% 93% 63% 67%

L.A. Auto Buyers: A Lot Like L.A. Radio Listeners

Source: Los Angeles Path to Purchase 2016 Release 2. Adults 18+ for Auto buyers

Los Angeles Scarborough Release 1 2017 for Media Quintiles

HEAVIEST USERS FOR EACH MEDIA AMONG PERSONS 18+

70%74%67%

L.A. Radio L.A. TV

Important in deciding which brand/vehicle to purchase

Decided Undecided

L.A. Radio Automotive Ads

Drive Vehicle Purchasing

Source: Los Angeles Auto Path to Purchase 2016 Release 2 : Decided and Undecided Auto Buyers Age 18+ c

Galpin Ford Sells Vehicles to the Entire L.A. DMA

Galpin Ford

Dealer Sales by Zip1 - 1617 - 4748 - 7879 - 119123 - 247

The Average L.A. Adult Travels

154 Miles In A Vehicle Weekly

Encino

South San Diego Bay

Source for Average Adults: Los Angeles Scarborough Release 1 2017 Adults 18+

94% of auto buyers are listening to

audio entertainment in the car!

Audio in Car

Source for Auto Buyers: Los Angeles Auto Path to Purchase 2016 Release 2

RadioStreaming Audio

SHARE OF TIME SPENT WITH AUDIO (GROSS MINUTES)

AM/FM Has A 93% Share Of Audio Time Spent

Source: Nielsen Comparable Metrics Report Q4 2016 / Adults = P18+

Note: Streaming Audio accounts for listening via PC, Smartphone, and Tablet to content providers such as Pandora, Spotify, etc

Broadcast Radio Captures

9 in 10 minutes with in-car audiovs. less than 1 in 10 for streaming audio

ADULTS

18+88%

Persons

Using Radio with Digital and TV

50%43%

Morning(5am to 10am)

Midday (11am to 4pm)

Early evening(5pm to 8pm)

Late evening(9pm or later)

Decided Auto Buyers Undecided Auto Buyers

Time of day for online

research/shopping for vehicle

L.A. Online Auto Research Occurs

11AM – 8PM; Radio’s Prime Time

Source: Los Angeles Path to Purchase 2016 Release 2. Adults 18+

Nielsen Los Angeles Metro PPM April 2017 PUMM for 18-54 Mon-Friday 6a-Mid

Hourly Radio Listening for Adults 18-54

L.A. Radio & TV Achieve Similar Recall…

Despite Different Investment Levels

$70.6 M

$362.7 M

Ad Recall

Nielsen Ad Intel 1/1/16-12/31/16 : dealer associations/dealer ad spend

Auto Ad Recall

among auto buyers

2016 Auto

Ad Spend

Nielsen Ad Intel 1/1/16-12/31/16 : dealer associations/dealer ad spend

L.A. Radio’s “Cost Per Awareness”

Is 4x As Efficient As Television

Television

Cost of recall

$21 Million cost per

awareness point

$5.4 Million cost per

awareness pointRadio

A Radio-Only Schedule in L.A. Delivers 1.5x More

Auto Buyers Than a TV-Only Schedule

100% Radio 100% TV

How to read: $335,000 spent only on AM/FM radio delivers 62% of adults 25-54 in the Los Angeles DMA vs. 39%

if spent only on TV

Source: Nielsen Commspoint Research US 2016, Adults 25-54, 1 week net reach. Budget determined using Nielsen AdViews CPP Data, Q1 2017. Assuming a $650 CPP for Los Angeles Radio and a $3,350 CPP for Los Angeles Television. Data reflects Automotive – Passenger Vehicles category.

Reach of Adults 25-54 Auto Buyers, Los Angeles DMA

Radio Improves The Reach of L.A. TV Campaigns

Adults 25-54, Los Angeles DMA

52%58% 61% 63% 64% 65% 65%

0% AM/FM radio/ 100% TV

10% AM/FMradio / 90% TV

Source: Nielsen Commspoint Research US 2016, Adults 25-54, 1 week net reach by GRP level. Budget determined using Nielsen AdViews CPP Data, Q1

2017. Assuming a $650 CPP for Los Angeles Radio and a $3,350 CPP for Los Angeles Television. Data reflects Automotive – Passenger Vehicles category.

Sweet Spot

How to read: $335,000 ad spend, with a mix of 20% AM/FM radio and 80% TV reaches 58% of

adults 25-54 in the Los Angeles DMA every week.

Source: Nielsen Commspoint Research US 2016, Adults 25-54, 1 week net reach by GRP level. Budget determined using Nielsen AdViews CPP Data, Q1 2017. Assuming a $650 CPP for Los Angeles Radio and a $3,350 CPP for Los Angeles Television. Data reflects Automotive – Passenger Vehicles category.

20% Radio = 42% More Purchases

And Greater Brand Impact in L.A.

Awareness +48%

Consideration +39%

Purchase +42%

Advocacy +47%

Brand health metrics increase when allocating 20% of TV budget to radio

5 Key Takeaways

A.U.D.I.O.

Always-on media strategy

A.U.D.I.O.

Utilize More Than One Media

A.U.D.I.O.

Drive Vehicle Sales With Radio

A.U.D.I.O.

Individualize The Message

A.U.D.I.O.

Optimize Reach With 80%

Broadcast Media

A.U.D.I.O.

Always On

Utilize Multiple

Drive With Radio

Individualize Message

Optimize with Broadcast

For more information

Other data available or future studies:

Carol Edwards 410-913-1037 Carol.edwards@nielsen.com

Nielsen’s automotive data solutions:

Carl Enroth 646-654-4749 Carl.enroth@nielsen.com

About this presentation:

Rich Tunkel 646-362-0246 Rich.tunkel@nielsen.com

About the SCBA:

Thom Callahan 323-930-5597 tcallahan@scba.com

Liz Fancher 626-627-9223 Lizfancher@scba.com

Los Angeles Automotive Path To Purchase Study€¦ · y. 10 Media Implications Source: Los Angeles...

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