Marketing Forecast from Ad-ology

Automakers are shifting toward targeting Baby Boomers, who have weathered the financial crisis better than millennials. According to a new study from J.D. Power and AARP, people age 50 and older now buy more than 6 of every 10 new vehicles sold — 62%. In contrast, buyers age 18 to 34 now are just 13% of the new-car market — down from 24% in 2001.

Ad-ology Research recently updated their Industry Marketing Insights report for Auto Specialty Electronics Shops. The following are the predicted Top 3 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

National and local media companies have long counted on the auto industry as a significant source of revenue. During the recession, auto advertisers curtailed their spending. In 2012, the industry is recovering but the media companies are reporting a noticeable shift in the advertising mix being used in this sector.

Despite an increase in new car sales, the post-recession trend of consumers keeping their cars longer continues. This is a trend that bodes well for the automotive aftermarket and repair industry. According to The NPD Group, among consumers purchasing automotive products or repair services 59% report their purchase was for a car eight years or older and 19% purchased for a car 15 years and older.

For consumers concerned about the price of gasoline and about the environment, a hybrid car would be seem to be perfect solution. Manufacturers have been doing their part to increase the types of models available. But consumers aren’t always so anxious to purchase hybrids.

Motorcycle dealers may be scratching their heads over the latest numbers released by the Motorcycle Industry Council. The general economy is improving and auto sales are up. But, the MIC is predicting a drop in motorcycle sales which means dealers should be increasing their advertising budgets.