Report: DR TV, Not Online Driving New Car Buyers

Forget Ginsu knives and obnoxious announcers exhorting you to "call now! This is our final offer!"--as direct response has been evolving for the past five years, and is now embraced by Gen X and Y men as well as marketers like Mercedes and Kraft.

Gen X and Y--people born between 1965 and 1984--are especially amenable to direct response when considering the purchase of a new car, according to a study released this week by Vertis, a research firm that tracks DR advertising.

The study claims that the number one reason that many consumers buy a new car is simply because they want one. And for 36 percent of new car purchasers, their desire for a new automobile will lead them to make a purchase within the next 12 months.

About a quarter of single Generation Y men (those born after 1977) stated that they plan to purchase a new vehicle within the next 12 months--while in comparison, 16 percent of Generation Y women have plans to purchase a new vehicle within the same period.

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Also, in terms of income, the sexes are a bit closer on the issue of buying a new car. About 20 percent of men with a household income of $75,000-plus and some college education have plans to purchase a new automobile within the next year. Similarly, 15 percent of women with a household income of $50,000+ and some college education reported that they plan to purchase a new automobile within the next 12 months.

When it comes to which type of messaging appeals to prospective car buyers, Vertis found that 32 percent of Gen Xers (those born between 1965 and 1976) were motivated to visit a dealership based on price incentives--5 percent more than the average adult. That same group is 9 percent more likely than all adults to be motivated by a special financing offer, while Gen Yers are 6 percent more likely than other adults to be motivated by the same factor. That demo is also 5 percent more likely to be motivated by a special trade-in offer compared to other adults.

The study also found that 43 percent of new car buyers responded to direct mail by visiting a dealer in person, while 28 percent visited a sender's Web site and 14 percent called an 800 number.

"Direct response has proven to be an effective way to connect with adults because it offers information that can help educate consumers prior to a future auto purchase," said Janice Mayo, senior vice president, marketing at Vertis.

And television plays a key role in most DR executions, said Jean Mansfield, senior vice president, strategic planning director of Starcom MediaVest Group's DR unit, Halogen, which handles clients such as Kraft, Capital One, Sprint, and Kitchenaid.

"Most clients want an umbrella procedure--employing a variety of media to support a DR effort," Mansfield said. "We actually call the whole campaign 'brand response,' and often launch the TV spots about one to two weeks before the mailings go out."

When tying a TV portion of a DR campaign, Halogen tends to look for general dayparts as opposed to specific shows.

"We buy broad rotation, and that also tends to go more heavily towards cable as well in specific time periods, such as 8 to 11. Essentially, the 1 a.m. to 5 a.m. shift as the primary purview of DR TV advertising ended a long time ago."

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