AutoTrend: Automobile Buyers' Hunting Ground

Despite the present tough times for the auto industry, automobiles are still selling, albeit a bit less. As consumers continue to search for cars, with an increased focus on fuel economy than power, auto marketers would need to keep a tab on the sources of information car buyers seek so that the buyers remain accessible to them.

A recent J.D. Power report highlights the hotspots car buyers frequent in search for information for making a purchase and more. Following are some of the insights from the study.

An Exodus to Online Television

• “A majority of new-vehicle buyers—68 percent—report going online to find information on television shows”

• “The reach of online television show content among new-vehicle buyers has increased by 22 percent since 2007.”

• “Television show content is among the top three types of online information consumed by new-vehicle buyers, along with travel-related information (including maps, driving directions and weather reports) and news (including finance and business-related content).”

• “Television network sites are issuing online broadcasts of archived television shows, which exposes viewers to pre- and post-roll advertising placements.”

Migration based on Car Buyer Segment

Premium Brand Vehicles

• “Buyers of premium-brand vehicles tend to seek online television show content with the greatest frequency, and are 8 percent more likely to look up information about television shows online, compared with the average new-vehicle buyer.”

• Furthermore, “Premium-brand vehicle buyers tend to be frequent users of digital video recorders (DVR), and of the 49 percent of buyers who have DVRs, the vast majority of them—97 percent—tend to skip commercials when they watch recorded TV programming.” Advertisers don't need to sulk at this because, the buyers' “propensity to view television content online provides an ideal alternative way to expose advertising messages to this audience.”

Other Vehicle Segments

• 79 percent of midsize premium utility vehicle buyers view this type of online content.

• 76 percent of compact premium crossover utility vehicles (CUV) buyers view this type of online content.

• 75 percent of midsize premium CUV buyers typically view this type of online content.

• And “The biggest increase in consumption of online TV content is among buyers of midsize premium conventional vehicles, a rise of 41 percent since 2007.”

Visits Based on Age

• Generation Y new-vehicle buyers (those born between the years of 1977 and 2002) have always viewed online television content. “While 81 percent of Generation Y buyers visit Web sites regarding television shows...”

• But now other generations too access the content as much as them. “80 percent of Generation X buyers and 73 percent of Baby Boomer buyers are also seeking this content, demonstrating that this medium is an effective way to reach new -vehicle buyers in various generational demographic groups.”

Why is the Trend Important?

• Experts estimate that less than 15 million new vehicles will be sold in 2008, which makes it a about a million less than 2007, when 16.1 million were sold.

• Tracking the trends is important, “As new-vehicle sales shrink, understanding which advertising mediums will provide the best balance of audience reach and composition is absolutely critical.”

• Also because as an increasing number of new-vehicle buyers seek information regarding television shows on the Web, advertisers would benefit by zeroing in on these sources.

Moreover, the study also found, "that new-vehicle buyers most frequently visit the following Web sites when searching for television content: CNN.com (with 30% reach among new-vehicle buyers); MSNBC (24%); ESPN (23%); and FOXNews.com (21%). Among television network Web sites, ABC is visited most frequently by online users (with 16% reach among new-vehicle buyers), followed closely by CBS and NBC (each with 13%)."

Aside from online television networks study, the Internet as a whole should be an important resource for automotive marketers. The following figure presents the 10 most popular automotive websites. I came across this one at marketing charts, they've got many more interesting marketing graphics.