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NEW VEHICLE

BUYER DEMOGRAPHICS
TOP 10 NEW MODELS DID YOU KNOW...
REGISTERED IN 2014
68,976 people bought new cars last year?

88,314 are projected to buy new vehicles


CHEVROLET
16%
this year- that’s 7,360 per month!1
OTHER
24%
What makes are popular with central
Indiana residents? (see graph)2
HONDA
SUBARU 14%
3%
StarMedia offers integrated marketing
HYUNDAI
3%
solutions designed to reach this type the
JEEP new car buying audience. Our automotive
FORD
4% 13% team is dedicated to growing your
KIA business by delivering your message to an
4% TOYOTA
GMC 9% engaged and proven audience. By using
5% local data and insights we are able to
NISSAN create customized, integrated marketing
5%
solutions to take action now.
AUDIENCE/CATEGORY INSIGHTS
Essentially a good snapshot of what the target audience looks like.
Demo Profile of those who have bought/used product/service in Indianapolis:
• Avg household income: $72,675
• Avg value of home: $227,470
• Avg age: 47
• Age groups:
18-24: 8.1% | 25-34: 20.7% | 35-44: 16.0% | 45-54: 15.6% | 55-64: 30.3% | 65+: 9.3%
• 78% are employed1

Target Customers:
People ages 55 to 64 have the highest probability of buying a new vehicle compared
with other age groups.3

Generation Y is also poised to be a lucrative market, as over three-quarters plan to


purchase or lease a vehicle within the next five years. Fifty-percent of Gen Y see
themselves driving an alternative engine vehicle in five years.4

Generation Y spends more than ten hours researching before purchasing a vehicle, and the
following have the most influence over their purchase decision:4
• Car reviews on independent websites: 70%
• Family and friends: 66%
• Manufacturer websites: 53%
• News articles/Media reviews: 45%
• Salesperson at the dealership: 40%
• Social networking websites: 32%

TARGET CUSTOMERS BY MILE RADIUS:

Most customers are drawn from a 20 mile


radius. The majority (62%) of households
that own new vehicles purchased them at
dealerships located within 20 miles of their
homes. Thirty-six bought them within 10
miles of their homes.5

Note that a survey found that car buyers are


willing to drive longer distances to get to
dealers with positive online reviews: 74% of
respondent would drive 20-60 miles to visit
a dealership with good reviews.6

GEOGRAPHY: METRO MAP OF NEW CAR BUYERS2


PSYCHOGRAPHIC PROFILE
• Plans to spend $30,873 on a new vehicle (next 12 months)
• Model year of last vehicle purchased: 2014: 0%; 2013: 13%; 2012: 12%; 2011: 1%;
2010 and older: 74% (lots of pent up demand!)
• Price/value is most important when buying a vehicle
• Highly engaged, tech savvy audience
• 71% own a smart phone
• 53% own a tablet (iPad, etc.)

MEDIA USE
Mobile phones are also an important shopping tool for Millennials. Fifty percent report
using a smartphone to shop for their next vehicle in 2014, compared to 34% of Millennials
who said the same in 2013.7

A survey found that 46% of vehicle buyers are interested in receiving text messages
from dealers, and information that would be of interest includes:
• Vehicle availability • Possible discounts
• Prices • Status of their negotiations
Additionally, 46% would like to receive text messages from the dealer after a vehicle
purchase. Buyers would be interested to hear about recall notices, service updates, and
general maintenance information via text.8

Note that automotive shoppers are 71% more likely to be influenced by digital advertising
across multiple retail categories than the average consumer.

Auto buyers are also more likely to:9


• Own smartphones (75% vs. 54%), as well as tablets (42% vs. 33%)
• Be heavier digital video streamers, both online (69% vs. 56%) and on
mobile devices (52% vs. 35%)
• Regularly watch digital video commercials before streaming video
programming (66% vs. 53%)
• Regularly research all kinds of products online before buying (58% vs. 42%)

Facebook also has an effect on dealer choice. A 2014 survey of consumers who
purchased a vehicle in the last six months revealed that 91% of them used social media
and review sites in their dealer-selection process.6

How do new car buyers use the local digital space?


• 8 out of 10 utilize social networking
• Spend an hour and fifty-one minutes on average per day on social networking sites
• 83% used FB in the past 30 days
• Cell phone features currently use: 77% data and 87% texting
• 83% used search (Yahoo, Google, etc.)
• Top 5 apps: 74% maps/weather; 63% banking; 55% watched videos; 54% local
news; 52% find a business or phone number
• Central Indiana new vehicle buyers are 2x more likely to use online/mobile for
automobile info
• 70% of new vehicle buyers are weekly Star readers (print & digital)
OTHER CATEGORY/AUDIENCE INSIGHTS
• Through 2019, annual spending by dealers and manufacturers on digital video
advertising is expected to increase from $2 billion to more than $9 billion.10
• Auto shoppers are now spending approximately 80% of the shopping process online.11
• Dealers should be sure to regularly maintain their website, as a survey of vehicle
owners found that 42% of respondents say dealer websites influence their decision
to buy a vehicle. Additionally, 46% say manufacturer websites are influential.
• Low gas prices are driving demand for SUVs, pickup trucks and crossovers. Sales of
small luxury crossover vehicles and SUVs are predicted to grow 18.6% in 2015.12
• Auto dealerships have the opportunity to use text messages as a marketing tool to
boost awareness and loyalty, as 46% of vehicle buyers are interested in receiving text
messages from dealers.8
Sixty-eight percent of respondents say they use online resources to find auto dealerships.13

TOP FACTORS WHEN CONSIDERING


PRODUCT/SERVICE
Solutions Recommendations
As the leading local media company, we deliver many advertising options, but go beyond
product offerings to:
• Consult with you on strategy
• Provide creative advice and development

By integrating media choice with marketing services, we can help you optimize your
media mix for the best ways to build your business.

Recommendations for a brand campaign


(Get known, Stay top of mind):
• Indy Star print • Mobile
• Indystar.com • Social
• Cars.com

Recommendations for a lead generation campaign


(drive traffic, capture email/phone):
• Datalogix • Buyers Edge
• Targeted Email • Ad Network Retargeting
• Targeted Inserts • Yahoo! Automotive

1. Indianapolis, IN R2 (Aug’13-July’14) Scarborough Data


2. Dec’13-Nov’14 RL Polk Data: New vehicle registrations, Indianapolis Metro.
3. Shaya, Isabella. “Study: Older drivers more likely to buy new vehicles.” Automotive News. Crain Communications, Inc., 30 May 2013. Web. 19 Jun. 2013.
4. “Deloitte 2014 Global Automotive Consumer Study.” Deloitte.com, n.d. Web. 27 Feb. 2014.
5. “Two Thirds of Americans Own Domestic Vehicles.” Research Alert. EPM Communications, Inc., 20 Apr. 2012. Print. 2 May 2012.
6. “Facebook Playing Bigger Role in Dealer Selection, Study Shows.” Auto Dealer Monthly. Bobit Business Media, 21 Oct. 2014. Web. 19 Jan. 2015.
7. 2014 Automotive Buyer Influence Study Demonstrates How Millennials Are Accelerating Change In Car Shopping. AutoTrader.com. 14 Aug. 2014. Web. 21 Aug. 2014.
8. Morpace Omnibus Report- Auto Dealer. morpace.com. Nov. 2014. Web. 1 Dec. 2014.
9. Consumers Planning To Make An Automotive Purchase Are Heavily Influenced By Digital Advertising, According to IAB & Prosper Insights. Interactive Advertising
Bureau. 13 Jan. 2014. Web. 14 Apr. 2014.]
10. Gerdeman, Dina. “Car Makers Kick Digital Marketing Into High Gear.” CMO.com, 7 Jan. 2014. Web. 14 Apr. 2014.
11. Greenberg, Karl. “AutoTrader Says Industry Must Connect the Digital Dots.” MarketingDaily. MediaPost Communications, 16 Apr. 2014. Web. 1 May 2014.
12. ”KBB Predicts 16.9 Million U.S. Sales in 2015.” Auto Dealer Monthly. Bobit Business Media, 9 Jan. 2015. Web. 19 Jan. 2015.
13. Finlay, Steve. “Car Shoppers May Use Fewer Resources Than Thought.” WardsAuto.com, 9 Sept. 2014. Web. 3 Oct. 2014.

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