Pub. 5 Issue 1

28 W hile auto shows mea- surably ignite con- sume r exc itement 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. There is no doubt that the way we market new vehicles has changed radi- cally 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 dealership 6.1 times prior to purchas- ing 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 physi- cal presence, auto shows are a unique, experiential channel where consumers, armed with information 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 pipe- line while reaffirming the brand’s unique Abandon Auto Shows at Your Own Peril BY PETER WELCH, NADA PRESIDENT AND CEO value proposition for current customers in a meaningful way. For example, we know that many mil- lennials delayed their first new-vehicle purchase until later in life than previous generations. As a result, their introduc- tion 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 re- port, 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 demo- graphic? That’s right; millennials. And they buy. Dr. RichardWaterman, a professor at the University of Pennsyl- vania’s Wharton School who has been examining auto show impact on consum- ers for 20 years, finds that auto show at- tendees are consistently twice as likely to make a new-vehicle purchase in the year following their show visit than the general population. According to Foresight Research, auto show attendees cited show atten- dance as more influential on their pur- chase decision than digital advertising, direct marketing or event sponsorship. What’s more, among new-vehicle buy- ers who attended an auto show prior to making a purchase, 56 percent indicated their purchase was inf luenced by the show they attended, with 21 percent of buyers attending an auto show purchasing a brand they were not already consider- ing before the show. And of those who reported they would be in the market to buy a new vehicle within a year of attend- ing 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 con- sumer 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 an OEMhas the opportunity to com- municate with current and potential con- sumers in their own backyards, often with local brand representatives who speak to consumers in terms with which they are comfortable and who will heighten their relationship with the brand.