Millennials Consume Content and Shop Differently

 Millennials consume content and shop in different ways from other generations and these Gen Y consumers are having a profound influence on the shopping behaviors of Gen X and Boomer buyers. Today’s post offers a few more excerpts about these younger consumers from panelists and presenters at the October J.D. Power Automotive Marketing Roundtable (AMR) in Las Vegas, NV.

What Does the Car Mean to Millennials?

“About 25% of millennials said they would buy a car sight unseen. They’d go online, find it, buy it and have it delivered. This is going to become a lot more important as we go along.”—Clayton Stanfield, senior manager, Dealer Outreach, eBay Motors

“For most of us, the car was the thing we wanted. The reality with millennials is that it’s probably a device they want first and foremost. A car is kind of a secondary consideration. Maybe it’s due to economics. Maybe it’s just due to how powerfully products have been marketed to them—like Xboxes and PlayStations. . . for auto manufacturers, a way to accrue loyalty and affinity to their brands is to get deeply immersed in offering the consumer some free content.”—Randy Shaffer, director, Xbox West Sales, Microsoft Continue reading ›

Experts Discuss how Millennials Consume Content, Shop Differently

AMR 2013 audienceReaching millennial consumers is a key focus for marketers in the auto industry, and was a key topic during presentations and panel discussions at the October J.D. Power Automotive Marketing Roundtable in Las Vegas, NV. A few highlights from a few sessions with panelists and presenters that addressed millennial consumers are presented.

“Let’s talk about millennials. . . They won’t get cable. They don’t have any money. They’re entitled. They want to do their own thing. They’re a completely digital first generation.”—Mike Shields, digital editor of AdWeek

How Different are their Media Consumption Habits?

“My team at Microsoft—80% of them are millennials—it’s an on-demand environment. They want to consume a lot of content at the same time. They can do it better than any other group. Some 83% are using a second screen and multi-tasking. . .You have to make sure you have something there to complement what they are consuming on TV.”—Randy Shaffer, director, Xbox West Sales, Microsoft

“We see ‘fanboys’ consuming media voraciously across all platforms. They go to five movies a month. They’re watching two more hours of television—on demand—than their own peer set. They’re consuming a ton of web video. In the case of gamers, they are willing to pay for content. They’ve been paying for $60 games for a very long time. . . You need to figure out how to present it to them. They will steal it first if they have to. But, if it’s good, they are willing to pay for it—that’s proven in gaming, premium video and web video content as well.”—Jay Sampson, executive vice president, sales and operations, Machinima Continue reading ›

J.D. Power Roundtable Speaker Defines “Connected Auto Consumers”

Arianne Walker

Arianne Walker

Today’s digital lifestyle has a growing impact on the auto industry. Understanding how consumers who are in the market for a vehicle are “using digital information and how they are connected,” was a key focus in speeches and discussions at the recent J.D. Power Automotive Marketing Roundtable at the Bellagio Hotel in Las Vegas, NV.

Arianne Walker, senior director of media and marketing solutions at J.D. Power, introduced the October conference with highlights of trends in automotive Internet usage based on J.D. Power research. She also spoke about the rise in digital media consumption and identified how different devices—smartphones and tablets—are being used to gather information mostly at home, but also on the go—smartphones are also used for auto shopping on the dealer lot. Walker also discussed trends in content with social media and video and how traditional companies are reformulating automotive content in new ways. Continue reading ›

Consumer Demographics and Preferences are Changing Radically

JohnHumphrey good shot03

John Humphrey

Significant changes in population and other demographics in the United States will affect the automotive industry in the years to come, according to John Humphrey, senior vice president of global automotive at J.D. Power and Associates, in remarks to participants at the recent J.D. Power 2013 International Automotive Roundtable in Orlando, FL, that was co-sponsored with NADA. Humphrey summarized a few of the major changes:

Between 2012 and 2020, the U.S. population will grow nearly 10%—from 313 million to 341 million. Most of this growth will occur in already large markets, with much movement from rural to urban areas. Currently, the most populous U.S. states are California, Texas, New York and Florida, and most of these will experience the most growth in the next decade. This growth trend will have a significant impact on what products OEMs offer in specific markets—in terms of utility, fuel economy, weather conditions—and the retailing strategies needed to attract and retain customers in these markets. Continue reading ›

Gathering Together to Talk about Present and Future Auto Shoppers

Arianne Walker

Consumers are relying more and more on digital devices, such as smartphones and tablets, to help them in their vehicle shopping process. Also, new-vehicle shoppers are going online nearly as soon as they decide to buy a vehicle, according to the latest research presented by J.D. Power experts on Wed., Oct. 24, at the 2012 Automotive Marketing Roundtable (AMR) in Las Vegas, NV. The three-day event (Oct. 23-25) at the Bellagio Hotel is being attended by a record 1,400 participants.

To attract shoppers, the auto industry—automakers, marketers, advertisers, website and search engine providers, and dealers—needs to have a much better understanding of the ways that shoppers—especially younger generation buyers—are using the Internet. During an opening Automotive Marketing Overview, J.D. Power’s Arianne Walker, senior director, Media and Marketing Solutions, spoke about trends from J.D. Power new-vehicle buyer and consumer behavior research. A few key points:

Digital Research has Biggest Impact on Millennials

• A majority of new-vehicle shoppers (80%) are Automotive Internet Users (AIUs), meaning that they go online as part of their shopping process

• Millennials, those born between 1977 and 1994, will be in the market buying vehicles in large numbers by 2020, based on their life stages.

• These Millennial shoppers are more than twice as likely as other generation shoppers to use social media and blogs for shopping.

• Digital research has a greater impact (46% of shoppers indicate it  has a large impact) on make/model purchased in comparison to the price paid (39%)

• For Millennials, digital information has an even greater impact across the board in determining their selection of make/model; viewing pricing; selecting a dealer and choosing a lender.

• These younger generation buyers use more kinds of content, particularly photo galleries, interactive 360 views, and payment estimators

• New-vehicle shoppers who read dealer reviews are 6 times more likely to click through to the dealership website (source: cars.com) Continue reading ›