BUSINESS INTELLIGENCE - Zenith Media
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Contents Click to jump to a section: 1. Advertising Forecasts 2. Category Growth 3. Consumer Trends Introduction Welcome to the first edition of The development of more Zenith’s new Business Intelligence advanced and environmentally reports, each of which will focus friendly vehicles, combined with on a specific business category. new demand for private transport We will look at the main trends among consumers wary of crowds, in advertising in that category, is forecast to spur sustained and forecast their future, while growth in new vehicle sales from also examining the top-level 2021 onwards. business environment, and how consumer behaviour is shaping the Auto brands will need to develop development of the industry. new ways of communicating with consumers, whose expectations For this first edition we focus on for how to research, choose and the automotive industry. This has buy cars are shifting online, a suffered disproportionately from trend that the pandemic has the coronavirus pandemic, but accelerated. Digital advertising the prospects for growth are good is already the biggest channel once the recovery takes hold. for automotive brands, and its Consumers who need new cars importance will only grow over have postponed, not cancelled, the next few years. their plans to buy.
AUTOMOTIVE ADVERTISING FORECASTS Automotive advertising In most countries, will shrink 21% in 2020, automotive advertising will compared to 9% for the recover rapidly in 2021, with global ad market the worst-hit markets seeing the biggest recovery Auto brands spend more More than 70% of automotive on television than average: advertising in Australia and it’s still key for mass- Canada is digital, proving audience brand-building that the channel can take consumers through the whole customer journey 1
Automotive adspend will shrink 21% in 2020 Automotive advertising Faced with pressure on both expenditure is expected to shrink supply and demand, car brands by 21.0% in 2020 across 10 key cut their ad budgets sharply when markets according to Zenith’s the severity of the crisis became Automotive Advertising Forecasts. clear. The months of April and May That’s two-and-a-half times faster had the greatest decline in most than the decline of the ad market markets. Year-on-year declines have as a whole in these markets. since eased, and Zenith expects them to moderate progressively The markets included in this over the rest of the year. survey are Australia, Canada, Germany, India, Italy, Russia, However, automotive adspend is Spain, Switzerland, the UK and poised to outperform the market US, which collectively account for in both 2021 and 2022. Initially the 57% of all global adspend. large decline in 2020 will make the comparison easier in 2021, but The spread of the novel delayed purchase decisions, and coronavirus and its effect on persistent reluctance to use shared the global economy have left and public transport will lead to consumers uncertain about their the first growth in passenger car financial futures. As a result, sales since 2017. many have delayed discretionary purchases, especially big-ticket Year-on-year growth in items like cars: in a global adspend (%) - ten key markets consumer survey conducted by GlobalWebIndex at the beginning 10.5 11.4 of July, 80% of people said they 4.4 4.2 planned to delay big purchases. 2020 Car manufacturers have also suffered from disruption to their 2021 2022 supply chains, as lockdowns shut down manufacturing in different -8.7 countries at different times. -21.0 Automotive Total market Source: Zenith 2
Automotive adspend will remain behind its 2019 level in 2022 Despite the speed of recovery Automotive advertising is a highly in 2021 and 2022, automotive visible and substantial part of the advertising is forecast to be 2.8% advertising market, representing lower in 2022 than it was in 2019. 9% of all advertising in 2019. It will have recovered less lost ground than the market as whole, “Automotive which is forecast to be just 0.6% below its 2019 level in 2022. advertising will This suggests that automotive advertising will outperform the outperform the market beyond 2022. market beyond 2022” Total automotive adspend (US$bn) 32.8 31.9 28.7 25.9 2019 2020 2021 2022 Source: Zenith 3
Worst-hit markets to benefit from biggest recovery in 2021 Year-on-year growth in total adspend by market -18.8 Australia 2.6 5.8 -8.1 Canada 14.1 10.0 -17.3 Germany 2.6 1.2 -22.6 India 21.8 10.3 -25.5 Italy 15.7 14.0 -13.2 Russia 15.8 11.4 -31.4 Spain 22.6 4.0 -38.8 Switzerland 29.7 0.9 -32.1 United Kingdom 22.5 8.1 -21.9 US 11.6 17.3 2020 2021 2022 Source: Zenith 4
The timing of the advertising “Most markets will downturn caused by the coronavirus has been unlike any see rapid growth next other on record. Budgets were cut heavily and quickly, but money year in proportion started to return to most markets to the decline they after three or four months, leading to more moderate year- suffered in 2020” on-year declines. This intense shock to spending will flatten the year-on-year comparisons in 2021. Australia and Germany are forecast to experience weaker Most markets will see rapid growth recoveries in 2020 and 2021; next year, generally in proportion Australia’s ad market has suffered to the decline they suffered in decreased demand since 2017, 2020, even though spending will while new vehicle demand in still be substantially below 2019 Germany will be supressed by levels. Switzerland, for example, government restrictions and is forecast to enjoy the strongest incentives designed to promote growth at 30% after the steepest alternatives to car use. decline in 2020 of 39%. 5
Auto brands lag behind the market in digital Share of adspend by medium, 2019 (%) 49.1 42.2 31.6 27.0 10.9 7.3 8.3 6.4 3.0 5.1 0.7 0.5 3.3 4.6 Newspapers Magazines TV Radio Cinema OOH Digital Automotive Total market Source: Zenith Digital advertising is the most advertisers also spend more in important single channel for cinema, which is good at brand- auto brands, but is less than the building among young, relatively market as a whole. Automotive well-off audiences, and radio, a brands spent 42% of their budgets particularly relevant medium given in digital channels in 2019, while that a large proportion of radio the average brand spent 49% listening takes place in the car. digitally. Automotive brands are also less prominent in magazines Interestingly, automotive brands and out-of-home. spend substantially more on newspaper advertising than the Television is the second-biggest average brand. That’s primarily channel for auto advertisers, due to two markets, Germany which spend significantly more of and India, where newspapers their budgets in television than still have high reach among the average brand. Television is well-educated, wealthy readers. still a key platform for their mass- Auto brands make use of their audience brand-building, though ability to convey more detailed premium digital environments information such as brand values, are starting take over this specifications and accessories. role for some audiences. Auto 6
But digital advertising is the only channel forecast to grow Zenith predicts that digital will “Brands will focus be the only channel in which auto brands spend more in 2022 more on premium than in 2019. Brands will focus more on premium digital video digital video and to compensate for declining make better use of prime-time TV ratings, and make better use of their customer their customer data” data to target digital ads more effectively. Even before the pandemic, digital channels were Newspapers and magazines have becoming more important in been losing market share for years the path to purchase, and the as their readers migrated online, pandemic has only accelerated and are forecast to recover barely that trend. We expect this to any of the ad revenues they lost continue over the next few years. in 2020 by 2022. Out-of-home and cinema, by contrast, are forecast to recover strongly in 2021 and Total growth in automotive 2022 from even steeper losses in 2020, which were caused by social adspend 2019-2022 (%) distancing restrictions. Digital 9.0 Television and radio will remain important media for automotive TV -5.8 advertising, with relatively Radio -6.9 restrained decline between 2019 and 2022. OOH -10.1 Cinema -15.8 Newspapers -26.6 Magazines -27.9 Source: Zenith 7
Australia and Canada are pioneering digital-led auto marketing Australia and Canada are the most 75% in 2019 to 79% in 2022, and in advanced markets for automotive Canada from 72% to 75%. digital advertising, each devoting more than 70% of total spend In other markets the potential for to digital channels. These growth is even higher, especially markets demonstrate that digital in the markets that are currently advertising can take consumers lagging behind. Zenith forecasts through the whole customer the digital market share of auto journey, from awareness to advertising to rise in India from consideration to purchase. Even 15% in 2019 to 23% in 2022, in here there is potential for more Switzerland from 27% to 33% and growth – digital’s share of spend is in the US from 31% to 38%. forecast to rise in Australia from Digital share of automotive adspend (2019, %) 75.3 72.0 62.7 51.6 53.0 47.8 32.2 31.0 26.9 15.2 lia da y a ly ia n UK US nd an di ai Ita ss na ra la Sp In rm Ru er st Ca Ge Au itz Sw Source: Zenith 8
AUTOMOTIVE CATEGORY GROWTH Demand for new cars will China was the main start growing again in source of sales growth 2021, after three years in the past decade, of decline – including the but India will be more steep drop in 2020 important in the new one 12% Investors are rewarding High-performing brands can brands with advanced expect 12% annual growth drivetrain technology once the crisis is over, six times faster than the market as a whole 9
Global car sales growth to resume in 2021, with long- term growth of 2% a year The coronavirus crisis will lead to “Car sales are a steep drop in car sales in 2020 – Euromonitor is forecasting a forecast to fall 13% in 13% global decline. The European Automobile Manufacturers’ 2020 after consumers Association forecasts a 25% put discretionary decline in Europe. Sales fell sharply as countries entered purchases on hold in lockdown and consumers put most lockdown” discretionary purchases on hold. But consumers have generally followed by 5% growth in 2022, not given up the idea of buying when sales will return to 2019 new cars, just postponing it. levels. The global market is then Euromonitor forecasts a 10% expected to resume a slow but recovery in unit sales in 2021, steady growth of 2% a year. Global passenger car sales (million) 80.2 81.3 80.3 76.0 70.5 74.2 76.5 72.4 76.2 67.1 66.1 59.7 63.0 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Source: Euromonitor 10
China has been the main source of sales growth Annual growth in passenger car sales 2010-2019 (%) Australia -0.4 Canada 2.0 China 6.2 France 0.0 Germany 2.2 India 3.1 Italy -0.3 Russia -0.5 Spain 3.8 Switzerland 0.6 United Kingdom 1.4 USA 3.7 Source: Euromonitor China stood out as the fastest- “Car sales in China growing market by some distance, with an average growth rate have been boosted by of 6.2% a year. A combination of rising wealth, a reserve of rising wealth, first- consumers who have never time car buyers and a previously owned cars, and a burgeoning domestic car industry burgeoning domestic have all boosted car sales here. car industry” India, Spain and the US have been strong contributors, each with annual growth between 3% and 4%. Australia, France, Italy and Russia have all been negative. 11
All markets are facing steep declines in 2020 Year-on-year change in passenger car sales 2020 (%) -10.7 Australia -10.9 Canada -20.2 China -12.4 France -8.6 Germany -10.7 India -15.2 Italy -14.9 Russia -15.0 Spain -11.2 Switzerland -8.8 United Kingdom -12.3 USA Source: Euromonitor With the global car market “The pain will be forecast to shrink 13% in 2020 in reaction to the spread of the shared across all novel coronavirus, the pain will be shared across all major markets. major markets” China, where the virus emerged and has some of the toughest restrictions on movement to markets are facing 9%-12% prevent its spread, faces the declines. Clearly there is a great steepest decline of 20%. Italy, range of uncertainty here, but we Russia and Spain are facing 15% can be sure that all these markets declines this year, while other face a very tough year ahead. 12
India to lead long-term growth after recovery Average annual growth in passenger car sales 2021-2025 (%) Australia 2.9 Canada 1.4 China 4.5 France 1.0 Germany 0.5 India 5.9 Italy 0.9 Russia 1.8 Spain 1.0 Switzerland 1.0 United Kingdom 1.2 USA 1.9 Source: Euromonitor In the longer term prospects for All of the 12 markets we surveyed car sales are rosier. Lingering are forecast to grow in the concerns about the safety of long-term, and that’s after public transport and ride sharing the expected big jump in 2020 will create new demand for as markets recover from the personal vehicles, and some coronavirus shock. Asia Pacific will consumers will find they prefer enjoy the fastest growth, with 3%- holidaying in their own country 6% annual increases for Australia, and travelling by car to flying China and India. Canada, Russia abroad. and the US will grow by 1.4%- 1.9%, while the Western European markets will lag behind at 0.5%- 1.2%. 13
Toyota is the biggest-selling car brand, while Volkswagen added the most sales Top ten global car brands – sales in millions of units (and average annual growth rates) +2.8% 2010 +3.8% 2019 +4.4% +3.5% +3.0% -2.1% +1.9% -1.6% +4.4% +7.9% A a rd en a an i ki t z da le en ot nd KI zu Fo ss ag ro un y -B Ho Su Ni To w ev Hy es ks Ch ed l Vo rc Me Source: Euromonitor Toyota sold 7.1 million units “Mercedes-Benz globally, more than any other brand, up from 5.5 million in was the fastest- 2010. Over this time, its sales grew 3.8% a year on average. growing of the top Mercedes-Benz was the fastest- ten brands, enjoying growing of the top ten brands, enjoying an average of 7.9% a average growth of year, while Chevrolet and Ford 7.9% a year” suffered declines of 1.6% and 2.1% respectively. Volkswagen added the most unit sales in this period, rising from 4.4 million to 6.1 million sales a year. 14
Tesla is by far the fastest- growing global brand Looking at the fastest-growing brand in the world. It’s still global car brands, one stands out growing rapidly, though, despite far above all the others: Tesla, this increased scale, with 46% which grew by an average of growth in 2019. 110% a year from 2010 to 2019. That’s partly because sales were Jeep, Jaguar, Porsche and Land extremely low in its early years, Rover have all done well over the totalling just 423 vehicles in 2010. decade, beating the growth rate By 2019 sales rose to 335,000, of the market – 2.7% a year – by making it the 44th-largest car between 3.5 and 5.8 times. Average annual change in unit sales (%) Tesla 110.0 Jeep 15.7 Jaguar 13.0 Porsche 12.5 Land Rover 9.5 Opel -3.4 Citroën -4.9 Lancia -5.6 Chrysler -5.7 Fiat -5.9 Source: Euromonitor 15
Investors have mixed feelings about the manufacturers’ prospects The share prices of most car rising 141%. Toyota, Hyundai and manufacturers have fallen during Volkswagen shrank by 7%-9%, not 2020 as the markets have tried much more than the Dow Jones to price in the impact of the Index’s 5% decline, while General pandemic. That means assessing Motors and Ford fell by more both the immediate drop in sales, than 20%. This was a collective as consumers deferred large assessment not just of the impact purchases, and manufacturers’ of the coronavirus on immediate capacity to adapt to changing sales, but also of how prepared market conditions as sales start to manufacturers are to meet pick up. consumers’ demands for cleaner and more efficient vehicles. Those The variance in share price with a clear plan for transitioning performance has been very to advanced drivetrain technology wide. Honda’s rose by 2%, while will be best positioned for the Tesla’s more than doubled, recovery. Change in share price, 1 January – 1 July 2020 (%) Tesla 141.1 Honda 2.2 -5.0 Dow Jones Index -7.4 Toyota -7.9 Hyundai -8.8 Volkswagen -20.7 General Motors -23.0 Ford Source: Euromonitor 16
The best-performing brands can expect six times more growth than average Excluding Tesla the fastest- “We can expect the growing brands grew by 13% a year in 2010-2019, ten percentage best-performing points faster than the market as a whole, which grew by 3%. The brands to grow by fastest-shrinking brands declined 12% a year, compared by 5% a year, underperformed by 8 points. to 2% for the market as a whole” Euromonitor predicts growth in car sales to be slightly slower once the main coronavirus-related the best-performing brands to fluctuations are over, forecasting grow roughly 12% a year in the 2% annual growth between 2022 medium term, compared to 2% for and 2025. Taking this forecast the market as a whole, while the as a base and assuming similar worst-performing brands shrink by levels of performance, we expect 6% a year. Average annual growth in sales, 2022-2025 (%) 12.1 Worst-performing brands 2.1 Market average Best-performing brands -5.6 2022-2025 Source: Euromonitor, Zenith 17
AUTOMOTIVE CONSUMER TRENDS The pandemic will lead to Consumers are looking a resurged interest in to delay purchase, but personal car ownership not cancel Growing environmental Brand messaging should be concern will drive interest in tailored for new entrants, and electric vehicles for changing attitudes post- COVID-19 18
A return to private ownership at the expense of public transport and shared mobility Over the past three years, Before the pandemic, the passenger car sales decreased commute was the most common globally. There are a number of journey made by consumers. potential reasons for this – new According to the Euromonitor innovations and new players in Mobility survey, on average 74% the car-hailing, car-sharing and of consumers travelled to work micro-mobility (small, personal, or school either most days or lightweight devices with lower at least one-to-two days each speeds) categories, and changing week. Of those commuting, 34- attitudes toward mobility and to 63% typically use their personal the environment. As a result, even car, and 15-54% use public traditional automotive brands transportation. This percentage is have invested in alternatives to mostly dependent on population the ownership model in order to density, and public transportation compete. infrastructure in the individual countries. However, particularly However, the emergence of amongst the younger and urban COVID-19 may well change it all populations, ride-sharing / hailing again, with new rules around and micro-mobility also gained social distancing and restrictions traction as affordable and flexible on human movement. alternatives to driving. 19
During lockdown, a huge decrease in the number of trips and a “total cycling reduction in available services facilitated the adoption of sales in April walking and cycling as transport alternatives. In London, Transport were up by over for London operated 60% of tube services and close to 80% of bus 50% versus last services during the crisis. But in May, as lockdown eased, the year” requirement to social distance meant that they could only Association of Great Britain take 15% of the normal number announced that total cycling of passengers on the tube and sales in April were up by over 50% bus networks, even as services versus last year, and Santander increased. As a result, the Bicycle bike hires increased greatly. 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Feb-19 Apr-19 Mar-19 May-19 Jun-19 Jul-19 Aug-19 Nov-19 Sep-19 Oct-19 Dec-19 Jan-20 Feb-20 Apr-20 Mar-20 May-20 Jun-20 Source: Transport for London; Number of Bicycle Hires 20
Personal safety will continue to drive consumers’ desire to avoid “Personal safety public and shared transportation for the immediate future. Global will continue to Web Index data shows that people have an increased desire drive consumers’ for flexibility when it comes to working from home and using desire to avoid alternatives to public transport post-pandemic; as lockdown eases public and shared and people return to work, we will likely see a resurgence in transportation for private car ownership. the immediate future.” Levels of interest in post-pandemic behaviours (%) Australia 69.0 77.2 China 58.3 56.3 60.3 56.9 50.3 France 52.6 44.4 43.6 47.4 41.6 40.6 45.3 40.4 44.1 Germany 41.4 39.5 India Italy Spain UK USA Working from home Using alternatings to permanently public transport Source: Global Web Index 21
Those consumers that were planning to purchase a car before “a promising the pandemic will extend the timeframe for purchasing, but will increase in still buy. Global Web Index data shows that 41-60% of consumers searches for who delayed the purchase of a car will prioritise it post COVID-19. automotive This is validated by Google brands as Trends data that shows a promising increase in searches for restrictions have automotive brands as restrictions have eased. The length of this eased.” extended period will depend on the control of the virus in each market. 60% 58% 58% 46% 44% 42% 41% 41% 41% 32% 25% 20% 19% 18% 16% 16% 16% 16% Australia India Spain Italy UK China France USA Germany Delayed Priority Source: Global Web Index 22
Electric vehicles appeal to consumers’ sustainable attitudes, but they will require financial incentives to buy As the Global Web Index data more concerned about climate shows, the importance of change and the environment. The “companies behaving sustainably” pandemic has given consumers a and in “reducing my carbon brief view into life without cars footprint” have increased and emissions, and this positive because of Coronavirus. The experience will create increased biggest claimed increase in the pressure on governments and importance is seen in China automotive brands to switch to and India while the lowest is in electric or hybrid. Already in 2020 Germany. This aligns with the we can see an increased volume of Global Web Index analysis that conversation regarding “electric middle-income countries (as cars” on social media platforms - defined by The World Bank) are by both brands and consumers. Australia 86.9% 84.6% 79.4% 77.7% China 68.3% 63.9% 63.0% 61.5% France 54.8% 52.9% 52.2% 51.3% 48.5% 47.4% 47.1% 46.5% Germany 43.1% 42.7% India Italy Spain UK USA Companies behaving sustainably Reducing my carbon footprint Source: Global Web Index 23
300 250 200 150 100 50 0 01/01/2019 - 27/12/2019 14/01/2020 - 30/07/2020 Source: Publicis Media Social Tools (content search: “electric car”) The post-pandemic desire to avoid public transportion will likely “Brands have an motivate younger and first-time buyers into the market. These opportunity with consumers previously relied on alternative mobility methods, not their electric only for lower cost and flexibility, but for environmental reasons. models to Brands have an opportunity with their electric models to appear appear relevant relevant and responsible to these new and young buyers. and responsible to new buyers” 24
However, to truly become a viable alternative to petrol and diesel, “More than brands and/or governments will need to address two of the biggest pre-COVID-19, consumer barriers: finances and “range anxiety.” The cost of the prices and electric vehicles is still much higher than that of regular diesel payment options or petrol cars. In markets such as China, the government provides of electric incentives that ultimately lower the price for consumers. Whereas cars will need in Russia, there are no tax reductions, subsidies or support, to appeal to and consumer interest and sales are low. More than pre-COVID-19, financially the prices and payment options of electric cars will need to cautious appeal to the financially cautious consumers. consumers” The other main barrier is “range from home will become more anxiety,” which is the worry that important. Tools like Google Map’s the electric car battery will run charging point function, which out of power before arriving to its shows the location and availability destination or a charging point. of charging points in the US and Currently this worry is justified, UK, and Volvo’s Polestar 2 in-car as the number of charging stations tech that calculates in advance is inadequate or imbalanced if charging will be required and across most markets. But as sales where it can be done, will help to grow, the need for charging away ease consumer concern. 25
Brands need to develop exisiting digital solutions, be flexible and be seen as helping consumers in uncertain times According to Global Web Index This suggests that there will be data, 56% of people aged 16-24 new, younger entrants in to the are either occasional drivers or market. In the UK, the AA Driving don’t drive at all, compared to School saw lessons increase more only 30% of those aged 55-64. But than 500% after the government 61% of people who are extremely announced lessons could resume or very interested in using in early July. alternatives to public transport post-pandemic are under 35. How often drive a car on average 16.7 15.4 17.1 18.5 30.8 14.5 13 10.7 18.4 Regulars 23 19.6 18.2 25.2 Semi-regulars 23.9 Occasionals 21.6 Non-engagers 47.1 50.3 52.6 41 22.4 16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 Source: Global Web Index 26
Global norms Global automotive norms 2017-2019, 243 projects 2017-2019, 15 projects 25% 40% 72% 85% 27% 10% Awareness Consideration Purchase Source: Touchpoints ROI Tracker – Norms, 2017-2019 Touchpoints is Publicis Media’s For example, entirely remote proprietary contact measurement buying is likely to appeal to a set and planning tool that evaluates of consumers who use platforms and helps to optimise all forms such as Uber, Deliveroo, etc. of contact that brands have at rather than visiting a dealership. each point on the consumer According to Touchpoints data, journey. This data tells us that even pre-pandemic dealerships whilst brands in the automotive were less influential for younger category have high awareness, consumers. The influence metric consideration and purchase are - a score from 0-100 that gives much lower than we see across us the relative influence per all categories combined. Given exposure of each contact point on that new entrants will have category purchasing - for visiting limited knowledge or associations a dealership is 83.61 for under with different brands, this is an 25s compared to 94.99 for age opportunity to consider whether 55-64. Some brands, like Renault, the drivers of consumer choice have already accelerated remote in a post COVID-19 world have buying capabilities and launched changed as well. a new end-to-end online car retail platform. 27
Touchpoints influence for visiting a dealership 94.99 89.61 87.61 84.84 83.61 Under 25 25-34 35-44 45-54 55-64 Source: Touchpoints ROI Tracker - Automotive Norms, 2017-2019 Brands will also need to affected by COVID-19 in the communicate differently with US, Hyundai reinstated their consumers as a result of the Assurance Job Loss Protection pandemic. The Global Web Index program, a program to protect coronavirus study shows that 53- shoppers in the event that they 85% of consumers want brands lose their job as a result of the to run advertising showing their pandemic. response to coronavirus and helping customers. This would Consumers will also likely be include easing the customer looking at different features as journey, providing flexibility they reassess their needs. In in purchasing and options for China, some brands are marketing financial help. The same study their vehicle’s “anti-virus shows than 80% of people expect features.” For example, Geely some financial impact from the adapted its “Healthy Car Project” pandemic. Since a car is one of from appealing to consumers’ the largest purchases a consumer concern about air pollution to makes, incentives can help ease easing their worry over the spread hesitations; 64%+ of consumers of the virus. Meanwhile, Ford is want brands to offer flexible testing a software enhancement payment terms and 69%+ expect that can heat the inside of promotions, offers and loyalty a vehicle until viruses are perks. To help support customers deactivated. 28
Above all, recent changes in consumer behaviours and media “Recent changes consumption will drive all purchases online to a greater in consumer extent than pre-COVID-19, even of big-ticket items. Touchpoints behaviours will data shows that the automotive category already has greater drive more big- brand experience share from digital (+10%) and earned (+5%) ticket item touchpoints than the global category norms. purchases online” Global norms - Global automotive norms - 2017-2019 2017-2019 243 projects 15 Projects 47.6 46.2 36.1 Paid 31.9 21.9 Owned 16.4 Earned 69.6 59.6 40.4 Offline 30.4 Online 37.3 38.4 Spons/events 27.7 26.9 Mass media 19.5 16.5 Advice/reco 9.3 8.5 9.7 6.2 POS One-to-one Source: Touchpoints ROI Tracker – Norms, 2017-2019 29
Pre-COVID-19 digital channels were a key source of information “As purchase and research for consumers. But post pandemic, this will now moves online extend to the entire consumer journey, and the driving there will be experience itself. Brands should enhance their existing digital new start-ups solutions as a priority. ready to take In the US, Lexus recently used augmented reality (AR) to launch advantage” the 2021 IS model. This method not only allowed customers Just as pre-COVID-19, ride to see and walk around the sharing and micro mobility vehicle from their own home, were disrupting the category, but also showcased different as purchase moves online personalisation options. Other there will likely be new start- brands have also made use of ups or platforms ready to take virtual showrooms, AR “test advantage. Traditional brands will driving” and guided tours. need to adapt quickly. 30
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