Automotive FCT Executive Summary: What s Driving Your Listeners?
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1 Automotive FCT Executive Summary: What s Driving Your Listeners?
2 2 Introduction In September 2014, Commercial Radio Australia and Presslaff Interactive Revenue partnered to provide CRA member stations with a series of Finding Consumer Trend Reports (FCT Reports), national online surveys of local radio listeners lifestyle interests and buying intentions. The first FCT survey focusing on Automotive, one of radio s most important advertising category, was conducted from 9 September to 29 September, Response to the Automotive report came from the radio listeners of 15 broadcast networks and 68 individual radio stations, and was driven by on-air, online and promotion. The survey drew over 3,500 responses from across the country and provided a rich snapshot of information on a number of automotive buying intentions. Key highlights from the survey follow. Use these results to: 1) Open the door with key accounts: This report is a powerful opener to advertising conversations in the automotive world. It puts you in the position of trusted advisor versus salesperson. Offer to share results that are critical to clients business interests: the buying intentions of your listeners, and their opinions on dealerships, models and advertising. 2) Shape Effective Marketing Campaigns: Clients are looking for advertising that works. Use these insights to create smart, effective radio commercials and campaigns. 3) Show Off the Power of Radio: Automotive clients will be interested in how effective radio is as an advertising medium to the car-buyers in this group. All advertisers should be interested in how important radio is to these respondents in general.
3 3 Top Findings: One In Two Looking to Purchase or Lease in the Next Year Buyers are out there! When asked about purchase/lease intentions, just over half (51%) of respondents said they are looking to purchase or lease a vehicle in the next year. Forty-three percent of respondents have a vehicles that are 8 years or older.
4 4 #1 Vehicle Type: SUVs SUVs are the number one vehicle choice for those considering purchasing or leasing, across both genders and all age groups, except year olds, who prefer sedans, the second choice overall; Hatchbacks come in third.
5 5 Top Brands: Toyota and Holden When asked which brands respondents would consider purchasing or leasing, every single demo selected Toyota and Holden as their top two brands out of the 34 choices they were given.
6 6 Important Features Important Gender Differences Men and women are both motivated by price and fuel consumption, the top two most important features in any new vehicle they may buy or lease. Interesting differences were observed between gender responses to help advertisers better target their messages: Women were more sensitive to price, by 9 points and to fuel consumption by 11 points. There was a whopping 19 point difference when it comes to safety. Safety is 19 points higher as a consideration for women than for men. Note that performance was 11 points higher for men than women.
7 7 Honesty-Rebates-Friendliness While price was the most important feature respondents looked for in a car/vehicle, a reputation for honesty was the most important feature they looked for in a dealership. This was followed by price/rebates/incentives and then the reputation for friendliness, with each of these characteristics being more important to women than men. Use this information to help form the copy and campaigns of your local dealerships.
8 8 AM/FM Radio The #1 Must-Have: AM/FM radio was the overwhelming selection for 71% when asked which features are must-haves in any new vehicle they may buy or lease. Smartphone/iPod Connections came in second, with 61%, followed by CD players at 58%. Bluetooth and GPS Navigation Systems round out the top 5 choices.
9 9 Radio Ads Most Influential 41% of respondents made Radio the top advertising medium when deciding to visit a specific dealership, followed by TV/Cable at 36% and automotive websites at 33%, Newspaper and online advertising at 28% and 26%, respectively.
10 10 Distance Doesn t Matter 38% of respondents said that distance didn t matter when it came to finding the right car to buy/lease. An additional 37% indicated that they would drive 40 km or more. Consider these results as you target local dealerships; the right message and the right deal could bring buyers in from quite a distance.
11 11 Car Repair: Local Repair Shops and Dealerships Local repair shops get the majority of car service business. The dealership where a vehicle was purchased receives only half as much of that repair or service business. This provides opportunity for each sector to grab business from the other: Local repair shops/mechanic could gain another 1/3 from dealerships. Dealerships are losing a great deal of business to the local mechanics.
12 12 Car Insurance: Price When choosing auto insurance, 41% of respondents overwhelmingly indicated price as the primary factor. Other lesser considerations include coverage offerings (27%), reputation (14%), and service (10%).
13 13 Radio: It s a LOVE Thing! Finally and perhaps most importantly, when asked what they were most likely to be doing when driving, listening to the radio was the overwhelming choice of 87% of the respondents. Listening to ipod/mp3 devices and talking to others in the car tied for second, followed closely by listening to a CD/DVD.
14 14 Key Takeaways: In summary: Just over half of these respondents are looking to purchase or lease a vehicle in the next year. Over 40% have cars that are 8 years or older. These cars will most likely need to be replaced or repaired. Of over 30 car brands, Toyota and Holden are consistently the top two choices. The most important characteristics when purchasing a car include price, fuel consumption, safety, and comfort. Although they are valued differently for women than men. 87% listen to radio in the car 50 points higher than the next-most popular in-car activity. AM/FM is the most important dashboard feature, followed by smartphone connections Radio is the most influential advertising vehicle when deciding to visit a particular dealership, followed by TV, automotive websites, and print. The importance of websites to men points to the idea of integrated campaigns, using radio to drive listeners to dealership sites. The top three drivers to get people to a particular dealership include a reputation for honesty, price/rebates/incentives, and a reputation for friendliness. 38% indicated that distance doesn t matter when traveling to find a vehicle. About the same would travel 40km or more. For more information contact CRA on
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