Market Overview

Valassis Data Provides Auto Dealers, Service Providers With Owner's Manual for Effective Advertising

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Promotions Influence Shoppers to Switch Auto Brands/Providers

Valassis,
a leader in activating consumers through intelligent media delivery,
today released new research providing insights into the decision-making
process of today's automotive shopper in order to better fuel dealers'
and automotive service providers' advertising efforts.

Dealerships and service providers have a ripe opportunity to influence
this audience. Nearly one-in-five consumers expects to be in-market for
a vehicle in the next six months (Prosper Insights & Analytics, Monthly
Consumer Survey, June 2018) and nearly 70 percent of consumers paid for
some type of auto service or repair in the past year (Scarborough
Research 2018).

Stemming from a survey of nearly 1,800 respondents, Valassis found that
56 percent of shoppers can be swayed by advertised promotions to switch
brands when purchasing or leasing a car and 46 percent can be persuaded
to change for service or repairs. These percentages are even higher
among millennial parents (67 percent and 60 percent, respectively).
Dealers and service providers cannot put their marketing efforts on
cruise control at any point during this path to purchase.

Valassis notes that whether buying a car or looking for service,
consumers conduct research. Twenty percent of shoppers spend more than
six months researching and planning before buying or leasing a car and
54 percent spend more than three months. Over 58 percent conduct some
type of research for service. This long consideration window and high
research activity, coupled with the sway advertised promotions have on
decisions, present an interesting challenge to engage shoppers early and
often – right up until the point of making a selection.

"While consumers have several options when it comes to making automotive
purchase decisions, dealerships and service providers can encourage
brand loyalty through strategic, well-timed promotions and
location-based advertising," said Curtis Tingle, Chief Marketing
Officer, Valassis
. "Brands that engage through cross-channel
campaigns and personalized marketing efforts are more likely to beat out
the competition, activate consumers and begin to build loyalty."

Automotive dealers and service providers should keep the following data
points in mind when developing their advertising campaigns:

  • Relevant dealer offers and promotions, as well as consistent
    communication, are the keys to starting consumers' engines.
    • 75 percent of shoppers feel more loyal to a dealer when they offer
      personalized discounts. This number rises to 81 percent among
      parents and millennials.
    • 72 percent of parents and 70 percent of millennials are more
      likely to bring in their cars for service if they receive periodic
      reminders (vs. 56 percent of all consumers).
    • 73 percent of millennial parents (vs. 50 percent of all consumers)
      are prompted to visit a dealer's website after receiving a print
      advertisement from them.
      • Once consumers have landed on a dealer's website, finely-tuned chatbot
        enablement
        can easily assist these individuals without
        being too pushy or invasive.
      • RetailMeNot found that 40
        percent of companies
        are planning to incorporate chatbots
        in 2018 to positively drive sales and the automotive market is
        no exception.
    • Location plays a substantial role for automotive advertising
      success.
      • Over 50 percent of consumers are willing to drive a half-hour
        or less from home or work to purchase or lease a car and
        approximately a quarter are willing to travel an hour or more
        to do so.
      • For maintenance and repairs, nearly 80 percent of consumers
        are only willing to drive 30 minutes or less both from home or
        work.
    • When it comes to repairs, consumers do their research.
      • 67 percent conduct some type of research when looking for
        automotive service providers (compared to 58 percent when
        looking for dealer services).
        • 29 percent look for discounts for dealer service, while 39
          percent seek these deals from automotive service providers.
        • 28 percent consult online reviews for both dealer services
          and automotive service providers before selecting a
          provider.

For more information and to view the full findings, read Valassis' "Fueling
the Dynamic Automotive Shopper"
e-book
.

About the Study

The Valassis Awareness-to-Activation Study is an ongoing study fielded
in conjunction with The NPD Group, Inc., a global market research
company. The sample was derived via an online survey, and all
participants were at least 18 years of age and living in the contiguous
United States. Approximately 10,000 respondents are surveyed annually.
The specific data included in this report is from the research wave
fielded April 17, 2018 – May 29, 2018 to nearly 1,800 respondents and is
balanced by age and gender to U.S. Census demographic profiles.

About Valassis

Valassis helps
thousands of local and national brands tap the potential of
industry-leading data through intelligent media delivery –
understanding, engaging and inspiring millions of consumers to action
with smarter cross-channel campaigns. We've been a part of consumers'
lives for decades, introducing new ways to deliver offers and messages
that activate them — whether via mail, digital, in-store or the
newspaper. NCH Marketing Services, Inc. and Clipper Magazine are
Valassis subsidiaries, and RetailMeNot Everyday™ is its consumer brand.
Its signature Have You Seen Me?® program delivers hope to
missing children and their familiesValassis and RetailMeNot are
wholly owned subsidiaries of Harland
Clarke Holdings
.

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