Car buyers bypass television adverts

Simon Canning

CAR makers may be wasting millions of dollars plunging the bulk of their advertising budgets into television, with a new survey claiming magazines, newspapers and the internet are more valued by car buyers for the information they deliver.

The survey by AC Nielsen for Time Inc tracked key influences on car buyers for the six months in the lead-up to a car purchase, charting which messages were most influential at each stage of the process up to the week of purchase.

With car makers spending an estimated $615 million a year on advertising -- 51 per cent of that on TV -- observers say the implications for the car industry are huge.

The study tracked a multitude of information sources used by consumers as they whittled down the list of cars on their shopping lists, ranging from advice from family and friends, to the influence of brochures, magazine articles and reviews, advertising on TV, newspaper classifieds and visiting motor shows.

Throughout the consideration process, websites remained one of the most relied-upon sources of information, with 68 per cent of survey respondents saying they used website research six months before the purchase of a new car and 65 per cent saying they were still relying on websites one week before purchase.

Over the entire six-month period, advice from relatives and friends was the second biggest influence, followed by the buyer's experience of the brand. In order, other key factors were brochures from dealerships, newspaper classifieds, non-specific car websites, advice from mechanics, advice from work colleagues, magazine advertising and magazine articles.

Television advertising was ranked 16th, with 32 per cent of people saying it was an important influence, behind newspaper advertising in general news sections and newspaper articles.

According to the survey of more than 2500 people, all of whom went on to purchase cars, television was viewed as conveying a strong image of the vehicle and built a desire for customers to seek more information, but failed to deliver details they desired such as price, features and options.

Newspaper classifieds were hailed for their ability to deliver pricing and finance information, while magazine ads ranked highly in portraying an image of the car and giving an overall good impression.

The internet, which has rapidly emerged as the major information source for consumers throughout the purchase process, was seen as an excellent medium for delivering detailed information and pictures.

However, car buyers said manufacturers' websites were poor at conveying the image of the car.

Steve Allen of media analyst Fusion Strategy says that while consumer interest in the internet as a means of choosing a car has surged in the past couple of years, many manufacturers have failed to keep pace with the needs of customers.

"Right now the share (of ad spending) that TV carries is by far the largest, at 51 per cent," Mr Allen says.

"The second biggest is metropolitan press and the third biggest is magazines. But the internet is going to become undoubtedly important. Many manufacturers rushed to the internet 10 years ago and got burned and because of that and the expense of developing sites, most have been a bit cautious."

The survey also found that even a week before buying a car, many consumers were still tossing up between two or three brands.

The "Auto Path to Purchase" study is the largest of its type in the South Pacific region and is based on a similar study now in its 10th year in the US.

source: www.theaustralian.news.com.au