Understanding Consumers from a Traditional, Digital, and Mobile Perspective

Jeremy Detgen

Defining how consumers engage with media is one way to measure the effectiveness of digital, according to Mike Spadafore, director of Analytics and Solution Development for Acxiom Corp., a technology and marketing services company based in Little Rock, AR. Spadafore described consumer engagement in terms of viewer usage habits and media consumption during his presentation at the recent J.D. Power Automotive Marketing Roundtable (AMR) in Las Vegas.

Using data from Acxiom and partner BIGinsight, a consumer information portal, Spadafore said his group has assessed media usage with scores from Passive to Active and Tethered to Mobile. For example, he said that watching television at home is passive and very tethered. In comparison, when a consumer is looking at vehicle information at the dealership, media usage is active and mobile. Continue reading ›

What do U.S. Dealers Need to do to Understand Their Customers?

Editor’s Note: Deirdre Borrego, vice president and general manager of J.D. Power’s global automotive operations and Power Information Network® (PIN), presented her thoughts on how dealerships can navigate the future in an article, “U.S. Dealers: Preparing for the Future,” that was published in the October issue of AutoRetailNet, an online magazine.

Excerpts on approaching Gen Y consumers are featured in the first of two posts.

Keep Your Eye on Generation Y

Deirdre Borrego

Generation Y isn’t simply a buzzword. Gen Y consumers (born between 1977 and 1994, and who are generally the children of Baby Boomers born 1946-1964) are currently estimated to number 80 million. That is a huge retail automotive growth opportunity, surpassing both their parents’ generation and Generation X (whose members were born between 1965-1976 and number only 55 million).

Generation Y, also known as Millennials, are already starting to create a massive change in the way retail business is conducted. These consumers are the first generation to be exposed to electronic communications technology from a young age—including wireless phones at home; 500-channel cable and satellite television; cell phones; the Internet; email; social media; websites; and, most recently, smartphones—and they are completely comfortable with the hardware and technologies. Continue reading ›

Ad Spending Increases, but Where Is the Money Going?

Jeremy Detgen

Ad spending increased 4.8% in 2011 from 2010, according to a measure of the 100 Leading National Advertisers’ (LNA) by Advertising Age. While this is a slower growth rate than in 2010 (8.8% growth), it is still indicative of a slow economic recovery, which at its worst saw a 10.2% decline in ad sales in 2009 (click on article in Ad Age). Continued growth, even if it is slower growth, is still a great sign of increasing ad investments. However, what is more profound than a slowing growth rate is the shift from measured ad spending to unmeasured ad spending.

Measured ad spending (including display ads on social media sites) decreased 2%, while unmeasured spending (paid search, online video, and mobile ads) increased 11.8%. This large increase speaks to the faith that companies have in non-traditional media. While still relatively new, non-traditional advertising is becoming less and less of a risk, and is becoming viewed more as an opportunity. For example, as online video becomes more commonplace, it makes more sense to use this medium to reach vast markets of consumers. Likewise, what once was unknown about how and when mobile ads would be viewed is beginning to lose its mystery as mobile users’ behaviors are better understood and return is more easily measured. Continue reading ›

Mobile Marketing: The Next-Generation Platform and Game Changer

The current state of mobile marketing was addressed in three separate panel discussions (Automotive Mobile Strategies, Game Mechanics, and User Behavior; Mobile Campaign Strategies; and Taking Mobile from Experiment to Experience) during the recent J.D. Power and Associates 2011 Automotive Internet Roundtable in Las Vegas, NV.

Amit Aggarwal

Participants on all three panels stressed the need to have a strategic focus and “smart fundamentals,” using mobile as a component within broader campaigns. In developing the strategy, marketers need to understand what kind of consumer they are trying to reach, what the consumer wants to do, and which tools marketers will need to put in front of consumers. Mobile currently has very high bounce rates because marketers are not creating enough compelling mobile destinations, most of the panelists acknowledged.

John Deschner, senior vice president of Deutsch, also recommended having an invention/experimentation budget (e.g. 5%) that can be used to test ideas. His suggestion: “Try to learn cheap and fast, but commit to it—you just need one of them to blow up.” Continue reading ›

Dialogue through Media Engagement Changes Brand Perception for Toyota

Sujata Sontakke

Digital advertising can be used to engage consumers in conversation and change their perceptions about brands, according to two speakers from a major advertising agency and national US newspaper. Samantha Johnson, communications director, for Saatchi & Saatchi and Chris Wilcox, vice president of Media Group West, for USA TODAY presented a few details about their multi-faceted ad program for Toyota to the 1,250 participants at J.D. Power’s recent 2011 Automotive Internet Roundtable.

A few highlights about the interactive campaign:

• Toyota wanted to boost its brand health, increase brand favorability and purchase intent after a series of recalls and negative press several years ago. Continue reading ›