Does TV Advertising Still Have a Role in Car Sales?

[MollyCurry]

Hello Everybody. This article was in my feed today. I'd like to know what you think.

Study shows that TV Advertising remains as a huge sales motivator for car buyers, even in today's Digital Age.

http://www.forbes.com/sites/dalebus...uyers-even-in-digital-era-study/#58d8f9901b84

Especially the following statements:

"TV is going to light up their online instruments and fill dealer showrooms with traffic"
"TV carried the most influence of all media throughout their decision process"

What do you think?
Does TV still deserve a portion of your marketing budget?

 

[Jeff Kershner]

@Molly Curry - no doubt the Manufacturers hit the TV Broadcasting waves HARD this past holiday.

From the article..."There was $161 million spent on Black Friday on automotive advertising on TV alone," Cunningham noted. "And the reason is that the industry knows right now is the period when they have to move those vehicles, an inordinate volume of units. And when you need to mobilize customers en masse, in a tight timeframe between now and the end of the year, they understand that TV is going to light up their online instruments and fill dealer showrooms with traffic."

... some more from the article ...

"It turned out that millennials were twice as likely to become aware of their local car dealership via TV (56 percent) than the next leading means, online search (26 percent), while 25- t0 54-year-olds were also more likely to turn to TV (53 percent) than search (30 percent). And when it came to deciding to take a test drive, 40 percent of millennials and adults aged 25 to 54 cited TV as their primary motivator."

It also turns out that the study was performed by VAB – Video Advertising Bureau.

With that being said, I don't necessarily question the effectiveness of TV advertising for the Manufactures. They have the budget and resources to saturate a channel with impressions and frequency most other industries can't even begin to imagine.

One study will show television having the most influence on the auto shopper, even millennials. Another study will surface with the opposite data, or close to it.

Too often it's how the question is formatted, and let's look at this question...

When You Are Starting To Think About Buying A Vehicle, Where Are You Most Likely To First Learn About Different Vehicle Brands?



According to most of this study, Dealerships should be spending the majority half of their marketing budget on TV. The more and more I read this study the more I believe it's an early April fools.

 

[ed.brooks]

@Molly Curry - no doubt the Manufacturers hit the TV Broadcasting waves HARD this past holiday.

From the article..."There was $161 million spent on Black Friday on automotive advertising on TV alone," Cunningham noted. "And the reason is that the industry knows right now is the period when they have to move those vehicles, an inordinate volume of units. And when you need to mobilize customers en masse, in a tight timeframe between now and the end of the year, they understand that TV is going to light up their online instruments and fill dealer showrooms with traffic."

... some more from the article ...

"It turned out that millennials were twice as likely to become aware of their local car dealership via TV (56 percent) than the next leading means, online search (26 percent), while 25- t0 54-year-olds were also more likely to turn to TV (53 percent) than search (30 percent). And when it came to deciding to take a test drive, 40 percent of millennials and adults aged 25 to 54 cited TV as their primary motivator."

It also turns out that the study was performed by VAB – Video Advertising Bureau.

With that being said, I don't necessarily question the effectiveness of TV advertising for the Manufactures. They have the budget and resources to saturate a channel with impressions and frequency most other industries can't even begin to imagine.

One study will show television having the most influence on the auto shopper, even millennials. Another study will surface with the opposite data, or close to it.

Too often it's how the question is formatted, and let's look at this question...

When You Are Starting To Think About Buying A Vehicle, Where Are You Most Likely To First Learn About Different Vehicle Brands?

View attachment 3162

According to most of this study, Dealerships should be spending the majority half of their marketing budget on TV. The more and more I read this study the more I believe it's an early April fools.

Awareness does not equal purchase intent. This is why most consumers are using multiple sources of information.

 

[Steve Stauning]

I know I'll get blasted by the digital marketing snobs, but local TV and local newspapers are still driving business for dealers in smaller markets.

BTW, if you don't think TV advertising drives business as well as digital, why do we see so many digital companies still spending millions on television? TrueCar, Autotrader and Mobile Strike come to mind immediately.

I think we all know that Dave Smith Motors in Kellogg, ID is the largest, single-point internet dealer in America, but did you know that their local business is still largely driven by offline ads on billboards, on television and in the newspaper? I know, I live in North Idaho and constantly see these.

 

[Alex Snyder]

I know I'll get blasted by the digital marketing snobs, but local TV and local newspapers are still driving business for dealers in smaller markets.

and would say it isn't just in smaller markets. There is a whole older generation or two or three (mostly affluent) who still subscribes to the newspaper. And those same generations do not DVR programs. We might call them "old school." I call them Mom, Dad, Grandma, and Grandpa. However, in the case of my parents, they bridge both traditional and digital mediums.

Jag, Rover, Buick, Toyota, Honda, Audi, BMW, Mercedes dealers.... got any customers born earlier than 1960?

 

[ChrisR]

I know I'll get blasted by the digital marketing snobs, but local TV and local newspapers are still driving business for dealers in smaller markets.

BTW, if you don't think TV advertising drives business as well as digital, why do we see so many digital companies still spending millions on television? TrueCar, Autotrader and Mobile Strike come to mind immediately.

I think we all know that Dave Smith Motors in Kellogg, ID is the largest, single-point internet dealer in America, but did you know that their local business is still largely driven by offline ads on billboards, on television and in the newspaper? I know, I live in North Idaho and constantly see these.

Definitely! The CDA Press drives a lot of sales, which was a bit of a shock for me, being a recently relocated digital snob. Definitely didn't use newspapers back in my old market.

Then again, this market is very unique, which proves why a one-size-fits-all approach cannot be in anybody's mindsets. Yet, vendors still call, offering the same plan as they offer for other markets.

 

[Alex Snyder]

Yet, vendors still call, offering the same plan as they offer for other markets.

Vendors are idiots

 

[Jeff Kershner]

I know I'll get blasted by the digital marketing snobs, but local TV and local newspapers are still driving business for dealers in smaller markets.

BTW, if you don't think TV advertising drives business as well as digital, why do we see so many digital companies still spending millions on television? TrueCar, Autotrader and Mobile Strike come to mind immediately.

I think we all know that Dave Smith Motors in Kellogg, ID is the largest, single-point internet dealer in America, but did you know that their local business is still largely driven by offline ads on billboards, on television and in the newspaper? I know, I live in North Idaho and constantly see these.

I know I'll get blasted by the digital marketing snobs, but local TV and local newspapers are still driving business for dealers in smaller markets.

BTW, if you don't think TV advertising drives business as well as digital, why do we see so many digital companies still spending millions on television? TrueCar, Autotrader and Mobile Strike come to mind immediately.

I think we all know that Dave Smith Motors in Kellogg, ID is the largest, single-point internet dealer in America, but did you know that their local business is still largely driven by offline ads on billboards, on television and in the newspaper? I know, I live in North Idaho and constantly see these.

@Stauning I can't imagine anyone in this community blasting you for defending TV. For as much as marketing has evolved, the use of "traditional" channels to help drive online traffic still holds strong for most brick and mortar retail.

 

[MollyCurry]

Great discussion. Thanks for the insights, everybody!

 

[ChrisR]

Vendors are idiots

I've been on both sides of the business, and I can confirm this.