Auto Dealers: Focus Less On The Competition And More On Auto Intenders Who Cannot Name One Car Retailer
Nielsen’s massive Scarborough consumer purchase surveys reveal consumer buying habits across America. What is the leading auto dealer at which consumers would shop? It’s called, “Don’t know/none”!
Consumers are asked to “select auto dealerships where you or other household members might shop if you were planning to buy or lease a new or used vehicle. (Include in-store and online shopping.)”
36% of Americans cannot name an auto dealer; 21% of auto intenders are unable to indicate the name of an auto retailer
The Scarborough product booklet lists dozens of local auto dealers, national chains, and online retailers. Over one-third of Americans and one out of five auto intenders do not check off any retailers. That’s a lot of “don’t know/none”!
Auto dealers need ads that teach people who they are and build their brands.
The long and the short of it: Retailers have to convert existing demand with sales events but they also need to use brand building to create future demand
Auto dealers excel with their focus on in-market buyers with all manner of ad tech and mar tech. But successful retailers understand a fundamental truth. You have to be known long before you’re needed.
Dr. Grace Kite, founder of marketing effectiveness measurement firm Magic Numbers, says advertisers have two jobs:
- Build awareness and familiarity with the large number of prospects who are not ready to buy right now. It is estimated that 95% are not in the market. Whether it’s a home repair, an automotive purchase, health care need, or furniture, most people are not in the market.
- Convert to consumers those who are in the market now. Only 5% are in the market at any one time.
“Be known before they are needed”: 81% of prior year purchasers were aware of the dealer prior to their purchase
A MARU/Matchbox study of Dallas automotive buyers found the vast majority were already aware of the dealership they purchased from.
AM/FM radio elevates the auto intender media plan
In the example market Indianapolis, an investment on TV reaches 41% of auto intenders. When 20% of the TV media plan is shifted to AM/FM radio, auto intender reach soars from 41% to 57%, a +40% reach lift with the same investment.
Adding AM/FM radio to the media plan also dramatically increases reach among light cable (+54%) and light broadcast (+48%) TV viewers.
Key takeaways:
- Auto dealers must devote more marketing efforts to growing their brands: Over a third of Americans cannot name one auto dealer. One out of five auto intenders are unable to indicate an auto retailer.
- To create future demand, media plans must target broadly with ads that create positive memories via humor, a lump-in-the-throat emotion, or surprise: There is no such thing as waste when creating future demand.
- AM/FM radio elevates the auto intender media plan: Via it’s significant reach, the addition of AM/FM radio to the media plan generates an impressive lift in reach for the same overall investment. AM/FM radio’s superpower lies in its ability to generate significant incremental reach among light cable and broadcast TV viewers.