Telling a Compelling Brand Story Across Channels · Telling a Compelling Brand Story Across Channels . 2014 IHS Automotive Buyer Influence Study Representative of ... to own a vehicle

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)


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%


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%


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%


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


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


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


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


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%


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%


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


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%


Online Millennial Buyers (n=269); Online Gen X Buyers (n=286); Online Baby Boomer Buyers (n=659) - Web Survey Only

-

Presenter Name

Contact Information

Telling a Compelling

Brand Story Across Channels

Documents

Telling a Compelling Brand Story Across Channels · Telling a Compelling Brand Story Across Channels . 2014 IHS Automotive Buyer Influence Study Representative of ... to own a vehicle