Teads Global Report Reveals New Auto Buying Landscape Prospective auto buyers' motivations, timelines, vehicle preferences, and more revealed in Teads' Global Report
NEW YORK, NY
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May 13, 2024 11:00 AM Eastern Daylight Time
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. 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.
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.
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:
Consumers are overwhelmingly turning to the internet for car research. A whopping 43% say online resources are now more important than ever, and half of all car buyers begin their research into different brands and models online. This digital showroom shift demands automakers prioritize a user-friendly and informative online presence.
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 explore these and other trends in the automotive buying journey, please download our report.
About Teads
Teads operates a leading, cloud-based, omnichannel platform that enables programmatic digital advertising across a global ecosystem of quality digital media. As an end-to-end solution, Teads’ modular platform allows partners to leverage buy-side, sell-side, creative, data and AI optimization technologies.
For advertisers and their agencies, Teads offers a single access point to buy the inventory of many of the world’s best publishers and content providers. Through exclusive global media partnerships, Teads enables advertisers and agencies to reach billions of unique monthly users in brand safe, responsible advertising environments while improving the effectiveness and efficiency of digital ad transactions.
Teads partners with the leading marketers, agencies and publishers through a team of 1,200+ people in 50 offices across more than 30 countries.
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Alexandra Morrison
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