Long automotive sales cycles highlights importance of brand advertising
Majority of 2,000+ U.S. survey respondents leaning toward gas powered large vehicles, such as SUVs and trucks, but there is growing consideration for alternatives
“The long automotive sales cycle makes brand advertising critical for marketers looking to maintain brand awareness, favorability and consideration throughout the purchase funnel,” said Dan Sicular, Head of Insight & Analytics at LoopMe. “LoopMe’s data showcases key differences in auto consumer marketing needs, requiring distinct tactics, messaging and timing to reach prospects. For instance, while the core pillars of price, reliability, and safety are paramount in most auto consumers’ minds, other factors like technology or performance may impact some purchase decisions.”
Key highlights from LoopMe’s research report include:
- Majority of Americans in the market for a new vehicle take a year or more to make a purchase, though sales cycle can be shorter with younger consumers: Of survey respondents who are currently planning to buy a car, 57% said they will do so at least one year from now, with the figure rising to 65% if they already own another vehicle. Older respondents in the 55-64 year-old range are 27% more likely than the general population to wait at least one year before buying a new vehicle; however, younger respondents were more likely to buy an auto within the next three months.
- Large, gas-powered vehicles are most popular with U.S. auto shoppers, especially older shoppers. More than 8 in 10 Americans (82%) said they plan to buy gas-powered vehicles for their next auto purchase. Of respondents who know what vehicle they plan to shop for, 56% said they will buy large vehicles such as SUVs and trucks.
- Those looking to buy electric vehicles have a significantly shorter sales cycle: Respondents who said they are likely to purchase an electric vehicle are over 67% more likely to consider purchasing a vehicle within three months vs gas-powered auto buyers. Older consumers (55-64 years old) indicated that they are 30% less likely to shop for an electric vehicle than the general population average.
- Price, reliability, safety, and new technology all factor into auto purchase considerations: Price (22%), reliability (18%) and safety (16%) are the top auto consideration factors; however, respondents who are likely to purchase a luxury vehicle indicated that they are over 2x more likely to consider new technology vs auto buyers overall. Also, general market auto buyers value greater fuel efficiency.
To download LoopMe’s full automotive trends report, please visit: https://loopme.com/insights/auto-research/
LoopMe is a technology company that uses artificial intelligence (AI) to improve brand advertising performance and outcomes. LoopMe was the first to apply AI to brand advertising and its Intelligent Marketplace, finding solutions to industry challenges that haven’t previously been solved. With consumer insights and AI at its core, LoopMe makes brand advertising better, outperforming industry benchmarks for leading global brands. Our vision is to change advertising for the better, by building technology that will redefine brand advertising. LoopMe was founded in 2012 and is headquartered in the UK, with global offices across New York, Boston, Atlanta, Chicago, Detroit, San Francisco, Los Angeles, Toronto, Singapore, Sydney, Tokyo, Dnipro, Krakow and Hong Kong. For more information, please visit www.loopme.com.