Traditional mass media has been rendered nearly obsolete among first-time vehicle buyers in the United States, according to a study by the Polk Centre for Automotive Studies.
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Out of considered mass media outlets, 35% of first-time vehicle buyers consider the internet to be their most important informational tool, compared to 8.2% for television, 4.4% for magazines, 3.6% for newspapers and 1.1% for radio.
“First-time buyers’ dependence on web-based media validates the need for an aggressive interactive strategy to court them on the manufacturer and retail level,” said Polk’s managing director Lonnie Miller.
“The internet’s relevance in the 18-30 year age group has reached critical mass and is completely reconfiguring how car companies need to reach out to first-time buyers.”
Miller predicted emerging technologies such as radio podcasts and video-on-demand will create new marketing opportunities as increased bandwidth creates a convergence of mobile (cell) phones, PDAs, internet and broadcast tools.
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By GlobalData“Harnessing mobile media technology will be the automotive industry’s most important marketing challenge – and opportunity – in the next decade,” Miller claimed. “Generation Y is tuning out traditional advertising, and watching what they want, when they want. Creating breakthrough content and developing relationships with customers through emerging media technologies will separate the winners from the losers in the next five years.”
The study also found first-time buyers are independent in their decision- making and rarely are compelled to visit the dealership where their parents last purchased a vehicle. Sixty-five% of respondents said they made the purchase without any influence from family and friends and just 7% felt buying from the same dealership as their parents was of high importance to them.
“Manufacturers should not count on automatic loyalty among first-time buyers, even if their parents are current customers. Not only is it an uphill battle to get their attention, but traditional endorsements from family members don’t appear to play a large factor, especially from a retailer view,” added Miller.
The study found that that nearly two-thirds of respondents had the final say when it came time to buying their first new or used vehicle. Similarly, 48% got the model of car or truck they set out to buy – this would help change the perception that parents always help dictate a first-time buyer’s vehicle choice.
The study also found that the number one reason (26%) first-time buyers enter the market is because a previously driven vehicle, not bought by them, was no longer in working condition. Another 19% said “it was time” to buy simply because they became of driving age.
