Pub. 7 2018-2019 Issue 4

16 San Diego Dealer T here is no doubt that the way we market new vehicles has changed rad- ically during the past few years. OEMs and franchised new-car dealers have more ways to spend their marketing budgets than ever before, and pinpoint e-commerce tools and digital targeting have enhanced these marketing advances. But one star continues to shine: auto shows. In 2005, the average customer visited a dealer- ship 6.1 times prior to purchasing a new vehicle. Today that number has dropped to 2.4 visits. So where do consumers go to actually touch and feel new vehicle product? Given their physical presence, auto shows are a unique, experiential channel where consumers, armed with infor- mation gathered online, can evaluate vehicles first-hand across all segments and brands. And 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. Auto shows do this by concurrently introducing new potential customers into a brand’s pipeline while reaffirming the brand’s unique value proposition for current customers in a meaningful way. For example, we know that many millennials delayed their first new vehicle purchase until later in life than previous generations. As a result, their introduction to OEM brands was delayed. But millennials today are buying new cars at a higher rate than they did a decade ago. According to a recent Strategic Vision report, the percentage of new-vehicle sales to consumers under the age of 35 was 19.3 percent. In 2007, it was 16.6 percent. And guess who’s coming to many auto shows at a higher rate than any other demographic? That’s right; millennials. And they buy. Dr. RichardWaterman, a professor attheUniversityofPennsylvania’sWhartonSchool who has been examining auto show impact on consumers for 20 years, finds that auto show attendees are consistently twice as likely tomake anew- vehiclepurchase in theyear following their show visit than the general population. According to Foresight Research, auto show attendees cited show attendance as more influential on their purchase decision than digital advertising, direct marketing or event sponsorship. What’s more, among new-vehicle buyers who attended an auto show prior to making a purchase, 56 percent indicated their purchase was influenced by the show they attended, with 21 percent of buyers attending an auto show purchasing a brand they were not already considering before the show. And of those who reported they would be in the market to buy a new vehicle within a year of attending one recent auto show, 90 percent said their auto show visit had influenced what vehicle they would ultimately purchase. The numbers simply don’t lie. When it comes to generating meaningful consumer experiences that enhance purchase consideration and brand loyalty — and that lead to sales — local-focused content and events are king. Local and regional auto show organizers and involved dealer groups know what will move the needle, and ABANDON AUTO SHOWS AT YOUR OWN PERIL 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. By Peter Welch, NADA President and CEO