Page 16 - On The Move - Volume 16, Issue 3

By Peter Welch,
NADA President & CEO

WHILE AUTO SHOWS MEASURABLY IGNITE CONSUMER EXCITEMENT FOR

A BRAND, PERHAPS THEIR GREATEST IMPACT IS ON VEHICLE PURCHASE

CONSIDERATION AND BRAND LOYALTY—THE TWO METRICS THAT JUST
SO HAPPEN TO MATTER MORE THAN ANY OTHER IN TODAY’S ULTRA-

COMPETITIVE MARKET.

here is no doubt that the way we market new vehicles has changed centage of new-vehicle sales to consum-
ers under the age of 35 was 19.3 percent.
Tradically during the past few years. OEMs and franchised new- In 2007, it was 16.6 percent. And guess
car dealers have more ways to spend their marketing budgets than who’s coming to many auto shows at a
higher rate than any other demographic?
ever before, and pinpoint e-commerce tools and digital targeting have That’s right; millennials.
enhanced these marketing advances. But one star continues to shine: auto
And they buy. Dr. Richard Waterman, a
shows. professor at the University of Pennsylva-
nia’s Wharton School who has been ex-
amining auto show impact on consumers
In 2005, the average customer visited a dealership 6.1 times prior for 20 years, finds that auto show attend-
to purchasing a new vehicle. Today that number has dropped to ees are consistently twice as likely to make a new- vehicle purchase
2.4 visits. So where do consumers go to actually touch and feel in the year following their show visit than the general population.
new vehicle product? Given their physical presence, auto shows
are a unique, experiential channel where consumers, armed with According to Foresight Research, auto show attendees cited show
information gathered online, can evaluate vehicles first-hand attendance as more influential on their purchase decision than
across all segments and brands. digital advertising, direct marketing or event sponsorship. What’s
more, among new-vehicle buyers who attended an auto show
And while auto shows measurably ignite consumer excitement for prior to making a purchase, 56 percent indicated their purchase
a brand, perhaps their greatest impact is on vehicle purchase con- was influenced by the show they attended, with 21 percent of
sideration and brand loyalty—the two metrics that just so happen buyers attending an auto show purchasing a brand they were not
to matter more than any other in today’s ultra-competitive market. already considering before the show. And of those who reported
Auto shows do this by concurrently introducing new potential cus- they would be in the market to buy a new vehicle within a year of
tomers into a brand’s pipeline while reaffirming the brand’s unique attending one recent auto show, 90 percent said their auto show
value proposition for current customers in a meaningful way. visit had influenced what vehicle they would ultimately purchase.

For example, we know that many millennials delayed their first The numbers simply don’t lie. When it comes to generating mean-
new- vehicle purchase until later in life than previous generations. ingful consumer experiences that enhance purchase consideration
As a result, their introduction to OEM brands was delayed. But mil- and brand loyalty—and that lead to sales—local-focused content
lennials today are buying new cars at a higher rate than they did a and events are king. Local and regional auto show organizers and
decade ago. According to a recent Strategic Vision report, the per- involved dealer groups know what will move the needle, and an
14 www.maada.com