Key attributes driving car purchases

Key attributes driving car purchases

With new car sales at a record high, LANCE CLATWORTHY takes a look at 4 different model types, exploring the attributes that potential buyers are seeking and where advertisers can find the biggest efficiencies.

Record new car sales

The Australian Bureau of Statistics has just reported record sales of new vehicles for the year to July 2017 – Australians are buying more new cars than they have ever bought before.

Prospects want brand, price, safety and warranty

The latest emma data reveals that there are 928,000 Australians intending to buy a new car in the next 12 months – news media is read by 91% of them. That’s 843,000 readers who are prospects for advertisers in this market.

These prospects largely agree on what is most important when buying a new car with 78 per cent saying that it’s a well-known brand. We find similar levels of importance for price (77%), safety (77%) and a long warranty (74%). These Top 4 characteristics are not only applicable to all prospective new car buyers, but are applicable whether they are intending to buy a Hatchback, a Sedan or an SUV/4WD. Indeed, we find the same of the 20,000 Hybrid/Electric car prospects – they rate the same things as important but are generally more demanding and less price conscious than new car prospects.

DRIVEN IN THEIR DROVES_CHART 1

Intending to spend an average of $41,400

Sports Utility Vehicles (SUV) and Four Wheel drives account for nearly a third of intended car purchases – with an average expected spend of $42,600 this segment is the most popular with readers and indeed all those over 18.

DRIVEN IN THEIR DROVES_CHART 2

Efficiencies for advertisers

Using news media, Automotive advertisers can achieve mass reach to 91 per cent of prospective new car buyers. However, for each type of car model we can identify skews in the demographics of prospects together with aspects of news media which will deliver a bigger bang for the advertising buck. For news media readers, the table below illustrates the key skews and media efficiencies of model prospects (eg Sedan) compared to all new car prospects.

DRIVEN IN THEIR DROVES_CHART 3

163,000 Hatchback prospects

Adding a little more detail, let’s now graphically represent how Hatchback prospects differ from all new car prospects, generally.

We have seen that Hatchback prospects are 19 per cent more likely to be female and we now see that of the 163,000 Hatchback prospects, 71,000 of them are women.

And while advertising in Community newspapers will have a higher hit rate on Hatchback prospects, Digital news media also has extra appeal for the advertiser – prospects are 22 per cent more likely to have paid for access to newspapers’ websites/apps. They are more engaged readers who are accordingly more likely to read the advert.*1

DRIVEN IN THEIR DROVES_CHART 4

157,000 Sedan prospects

Metro newspapers are read by 122,000 Sedan prospects with advertisers benefiting from an increased likelihood that their target is reading these papers.

National papers are read by 40,000 of these prospects, however there’s a very strong efficiency as any Sedan ad is 35 per cent more likely to hit one of these readers when compared with new car prospects in general.

We also see the advertiser benefiting from an increased incidence of highly engaged readers – heavy newspaper readers and readers who pay a subscription to have a paper delivered.*5

DRIVEN IN THEIR DROVES_CHART 5

247,000 SUV/4WD prospects

Advertisers can use news media to reach 247,000 readers intending to buy an SUV/4WD, of whom 78,000 read Community newspapers. These prospects are significantly more likely to be readers of Community newspapers than is the case for prospect new car buyers in general. Advertisers can also expect to benefit from higher levels of engagement implied by the fact that these prospects have a higher than average incidence of reader who buy a newspaper themselves.*5

DRIVEN IN THEIR DROVES_CHART 6

Motoring section

There’s another way for advertisers to efficiently reach potential customers – the Motoring section of the newspaper is read by 3.9 million Australians. Of them, 249,000 are intending to buy a new car in the next 12 months. Compared to the average newspaper reader, prospects are 29 per cent more likely to be reading the Motoring section.

Roadside assistance

There are 11.4m news media readers who have roadside assistance plans – 649,000 of them are new car prospects.

  • 77 per cent of new car prospects have roadside assistance
  • 35 per cent of their plans are with NRMA
  • 57 per cent of the plans are beyond basic cover

Driven in their droves

In choosing a new car, news media readers will particularly be looking at brand, safety, price and warranty. Advertisers have the opportunity to communicate the brand and these benefits t0 843,000 readers who intend to buy a car in the next 12 months.  News media delivers scale, reaching 91 per cent of all prospect new car buyers, but we can also see areas where advertisers enjoy extra efficiencies depending on what model car they are selling : Hatchback advertisers see efficiencies in Community newspapers and Digital news media ; Sedan advertisers see efficiencies in National and Metro newspapers ; SUV/4WD advertisers see efficiencies in Community newspapers and Regional newspapers if they are selling a 7 seater model.

Source : emma™ 12 months to June 2017. Readership based on last four weeks. Survey conducted by Ipsos MediaCT, people 14+ ; Nielsen DRM June 2017, People 14+ only.

*2 Prospects are news media readers who intend to buy a new car in the next 12 months. Unless otherwise stated (below), “More likely” is indexed news media readers intending to buy the given car type in the next 12 months v All news media readers intending to buy any new car in the next 12 months = 100 ix.

*3 Paying for digital news media : “More likely” is indexed paying digital news media readers intending to buy the given car type in the next 12 months v All digital news media readers intending to buy any new car in the next 12 months = 100 ix.

*4 Heavy readers read any newspapers at least 30 minutes a day OR read at least 7 issues of any newspaper a week.

*5 Heavy readers, Newspaper delivered (Subs) and Newspaper bought it myself : “More likely” is indexed newspaper readers intending to buy the given car type in the next 12 months v All newspaper readers intending to buy any new car in the next 12 months = 100 ix.

Australian Bureau of Statistics http://www.abs.gov.au/ausstats/abs@.nsf/mf/9314.0 (Annual sales to July 2017 are at their highest point)

http://www.caradvice.com.au/572448/july-2017-vfacts-new-vehicle-sales/