Marketing Forecast from Ad-ology

Foresight Research recently introduced its proprietary “2010: Automotive Marketing Return On Investment” study. As part of that study, a detailed examination of the influence of the internet and social media on automotive purchase decisions was conducted and returned interesting results. In 2009, 86% of all new vehicle buyers used the internet in their new vehicle purchase process. Of this group, 90% used the internet to compare vehicles and pricing, while 83% checked it for incentives. For young buyers under the age of 35, nearly a quarter (24%) used social networking to share their decision.

Sales in the pickup truck market are about to get more competitive. Mahindra & Mahindra, an Indian-based company, has been waiting for over a year to introduce its compact diesel pickup in the U.S. The firm had originally planned to launch the truck, to be named either the TR20 or TR40, last summer. But the entire auto industry slowdown forced Mahindra t change its plans. Now the company plans to begin actively selling its trucks in the U.S. by December.

Car selling season is upon us and U.S. manufacturers hope to increase their market share. In particular, Ford is determined to make a success of its new subcompact car. Part of the company’s strategy has been to train dealers on how to sell smaller vehicles. The other part of the strategy is all about marketing.

In the past decade, automakers broadened their strategy to reach ethnic audiences. Manufacturers typically hired separate agencies to develop ad campaigns to promote their vehicles to African-Americans, Asians and Hispanics. But the recession changed all that. Last year, automakers cut marketing and the cuts extended to the ethnic demographics. While general automaker advertising dropped 13% overall in 2009, the budgets for Hispanic TV, magazine and radio shrank by 38% and spending in those same categories when targeting black consumers dropped 18%.

If consumers like the sound of something they hear in an ad, are they more likely to buy? Ads are a complex combination of human voice, music, images and words designed to interact with a listener’s acculturated experiences and influence aspirations. Some ads achieve their goals while others fall flat. Could the success rate of ads be linked to gender bias based on the voice used?

A key aspect of any auto manufacturer’s marketing mix is the auto show. These events have long served as showcases where manufacturers can tout their latest designs for reporters and consumers. But given the expense required to participate in an auto show, can a manufacturer expect a return on investment?