5월 13, 2024

Teads Shifting Gears Global Report Reveals The New Auto Buying Landscape

A global analysis of auto purchasing behaviors, key insights into motivators, purchasing timelines, vehicle preferences, brand perceptions, and advertising. 

 

NEW YORK – May 13, 2024: Teads, the global media platform, today announced the findings of its latest global report, “Shifting Gears: Understanding the New Dynamics of Auto Buying Worldwide.” Based on research conducted across 17 markets, these latest findings shed light on the key motivations, considerations, and emerging trends for auto buyers around the world.

 

Read the exclusive coverage in MediaPost.

Here’s what the data reveals:

Brand Loyalty Wanes, Openness Soars:

Consumer loyalty is taking a backseat, with a staggering 82% of respondents globally, open to switching brands. While this presents a critical opportunity for automakers to capture attention and build trust in a shorter timeframe, it also means that traditional marketing strategies may need a refresh to stand out in this new, competitive environment. While brand loyalty in the US is around 70%, countries such as the UAE, Malaysia, Brazil, and Italy experience even lower levels, with rates exceeding 87%.

Furthermore, the purchase cycle is accelerated, with nearly half of all car buyers dedicating only two weeks or less to researching different brands and models. This trend underscores the need for automakers and dealerships to adopt a consistent and proactive engagement strategy to capture consumer attention within a shrinking window of opportunity. As consumers navigate the car buying process, their consideration set narrows significantly, with over 50% settling on just two brands by the time they’re ready to arrange a test drive.

Faster Decisions Demand Proactive Outreach:

With a significant portion (42%) devoting two weeks or less to researching brands and models, consumer research timelines are shortening. To succeed in this environment, reaching consumers early and maintaining consistent engagement throughout their research journey is critical.

The Green Wave: EVs and Hybrids Surge in Popularity:

Sustainability is now a key buying factor, with 42% of consumers solely considering hybrid or electric. However, this trend varies regionally, with Mexico, Brazil, and the US still showing a stronger reliance on gas engines, Italy and Spain moving away from gas engines but primarily focusing on Hybrid options, and France & Singapore showing the fastest adoption of both EVs and Hybrids. This trend reflects a growing global focus on sustainability and environmental consciousness in the automotive industry.

Russell Wager, VP of Marketing at Kia America, comments on this shift: ‘Consumers are trying to understand what sustainability means for them and how much they should care. And I think that’s actually on the OEMs to educate them, and we’re taking that mission on as part of our global strategy. We have a combination of some new electric vehicles. We just revealed the K4, which is one of our newest gas-engine vehicles. We’re giving choices to customers.’ His insights underscore the evolving market dynamics and Kia’s strategic response to meet diverse consumer preferences.”

Jen Brace, Chief Futurist, Ford Regarding electric vehicles, it’s clear that consumer curiosity and interest are high. However, potential buyers are seeking reassurance from trusted sources—friends, family, and acquaintances who already own EVs. They rely on these personal connections to provide them with the confidence they need to make the transition. Additionally, there is a strong desire to alleviate concerns about charging, which remains a significant barrier to adoption.”

Digital Dominates the Car Buying Journey:

The journey to purchasing a vehicle is increasingly moving online, with digital interactions becoming more appealing to younger, tech-savvy buyers. Online resources are instrumental from the very beginning, with half of consumers starting their research by exploring different brands and models online. As price transparency emerges as the leading incentive for consumers purchasing vehicles online, the importance of clarity and simplicity in the digital car shopping experience becomes increasingly evident. This trend highlights a shift towards digital avenues for research and decision-making, with 43% of consumers now feeling online resources play a more important role compared to previous purchases. For example, negotiation and purchase, once strictly in-person activities, are now being embraced as part of the online experience. 

Trusted Sources and the Power of Online Ads

While online resources are crucial, car buyers still value trusted sources like manufacturer websites. However, the power of online ads cannot be underestimated. They inspire  81% of consumers to take action, particularly younger demographics and EV considerers. What encourages users even more to consider a brand is to see it advertised across multiple screens (56%), highlighting the effectiveness of omnichannel marketing campaigns that combine online and TV advertising for a broader reach.

The Always-On Branding Imperative

Given the shortened decision-making timeframe, maintaining an always-on presence is crucial for automotive marketers. Brands must continuously engage potential buyers prior to and throughout their research journey, influencing them as the relevant set of options shrinks. 

Marisstella Marinkovic, Vice President and Chief Marketing Officer, Nissan U.S notes that a flexible ability to reach consumers wherever they are is imperative. She says, “It’s really about understanding the behavior of customers. Some customers are online consuming different types of media, so we really have to be mindful of the different target audiences, how best to connect with the, and where they are.”

Henner Blömer VP of Global Client Partnerships, said: “In the face of seismic shifts within the auto marketing industry, proactivity is a winning strategy. By understanding the new dynamics of modern car buyers – driven by changing consumer behavior and a growing focus on sustainability – automakers and dealerships can optimize their strategies to cater to their evolving needs and preferences.”

To learn more about how auto consumers shop today, download our Shifting Gears study.

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