How can auto marketers attract Millennial dollars? Understanding this generation –
from how they consume media to factors that influence their purchases –
will help auto marketers and dealers boost sales and ROI.
Marketing as a whole is shifting towards a massive competition for Millennial dollars. According to CNBC, those born between the early 1980s and the early 2000s are estimated to have a combined global spending power of $2.45 trillion this year.
While many Millennials have reached the car-buying age, driving them to purchase isn’t easy. They’ve grown up against the backdrop of a recession, financial uncertainty and expensive student loans. As a result, they are slow in making big-ticket purchases.
For this generation, the willingness to part with their hard-earned dollars relies on self-provided knowledge and an understanding of the investments they’re making. Knowing that Millennials are not liberal spenders, it’s imperative to serve highly relevant advertisements geared to move the needle on sales.
Millennials are the cord-cutting, mobile-centric and digital-video viewing generation. According to the New York Times, traditional TV viewership among Millennials is dropping, with younger Millennials consuming a majority of their media via computers, tablets and smartphones.
Time 18 to 24 year olds spend on smartphone-based entertainment (i.e. music, videos and games) has doubled in the past year, averaging 40 hours a month. Research from eMarketer indicates 25 to 34 year olds will make up the largest segment of digital video viewers of an age group, making digital video an influential marketing channel.
Gone are the days of the auto industry when a majority of buyers flocked to dealerships seeking product information. Millennials exemplify the shift away from that tradition towards one where shoppers arrive at dealerships armed with a wealth of car information from web research, a lot of it from video.
More than other generations, Millennials are image conscious. Therefore, younger drivers tend to lean towards vehicles and brands that reflect their personalities or accomplishments.
Auto advertisements geared towards this group should be armed with data so they are more relevant to them as individuals – whether it be a horsepower message or an environmental message.
It’s important to avoid mentioning promotional sales information, although it was useful for older generations. Millennials are skeptical of advertisements, and respond negatively when pressured.
Understanding the next generation of car buyers requires a shift in sales tactics. Auto marketers can get the most bang from their buck when advertisements prioritize branding and focus on providing useful information. The sales will follow.
Ben Sarmiento is executive director-auto at video advertising company Eyeview.
