Newspaper Media Drive Automotive Sales 2016 Understanding the Automotive Path to Purchase

Newspaper Media Drive Automotive Sales 2016 What media influence vehicle purchases in Canada? Vehicle advertisers want to know the facts about the market in Canada. This study was created after consulting with industry experts and dealers to find out their needs. More than 2,400 online interviews were conducted in early 2016 and the results once again prove the power of newspaper advertising. This report focuses specifically on new vehicle purchasers*, a market worth more than $2.5 billion in Canada 1. 1 DesRosiers Automotive Consultants *also referred to as New Car Buyers in this report

Newspaper Media Drive Automotive Sales 2016 This follow-up survey on the automotive path to purchase confirms the effectiveness of newspaper media and explores the similarities and differences between two key demographic groups: Boomers and Millennials. –Seven out of ten New Car Buyers* read automotive ads in printed newspapers compared to 16% who read auto ads on social media. –Newspapers continue to be the most influential media at all stages of the two-month vehicle purchase cycle. –Newspapers should be used to drive traffic to automotive websites and to provide offline reach. –New Car Buyers are cross-platform newspaper readers. Source: Totum Research, February 2016; *in the past 2 years

Online Panel (yconic) 2,408 Canadians surveyed 467 buyers of new vehicles in past 2 years* Study Timing January/February 2016 National Scope 78% English / 22% French Margin of Error ±2.0% at the 95% confidence level Study Management Totum Research Nationally Representative Sample Men 50%, Women 50% 18-34: 29%, 35-54: 37%, 55-64: 16%, 65+: 18% West 31%, Ontario 39%, Quebec 23%, Atlantic 7% Study Design * New Car Buyers in the past 2 years

Newspaper Media Drive Automotive Sales Generational Divide Source: Totum Research, February 2016; * New Car Buyers in the past 2 years Together these two demographics represent almost two thirds (63%) of new vehicle buyers. +=+= Boomers have traditionally been the demographic group with the greatest economic impact. Millennials now make up the same size (in numbers) as the Boomers.

Newspaper Media Drive Automotive Sales Generational Divide Millennials (age 18-34) Grew up online – digital natives Second largest group of new vehicle buyers Average age 27 Average household income $70,918 Boomers (age 45-64) Money to spend and higher disposable incomes Continuing to drive and are buying new vehicles Average age 54 Average household income $84,085 Source: Totum Research, February 2016

Automotive Purchase Cycle New Car Buyer* Boomer Millennial Source: Totum Research, February 2016; *in the past 2 years

Readership of Automotive Ads

New Car Buyers are Reading Auto Ads in Printed Newspapers New Car Buyers* notice automotive ads in printed newspapers more than digital newspapers. Millennials Two thirds (65%) of Millennials are reading the automotive ads in their printed newspapers. 37% of Millennials read auto ads in digital newspapers. Boomers Almost three quarters (72%) of Boomers are reading the automotive ads in their printed newspapers. Four in ten Boomers read auto ads in digital newspapers. Source: Totum Research, February 2016; *in the past 2 years

New Car Buyers are Reading Auto Ads in Printed Newspapers Source: Totum Research, February 2016; *in the past 2 years ** Non-Auto Websites excluding newspaper, TV, radio, magazine, auto media sales and vehicle manufacturer, model and retailer sites **

Social Media Usage Source: Totum Research, February 2016; *in the past 2 years

Media Influence in the Automotive Path to Purchase

Automotive Path to Purchase Consumers navigating the automotive purchase process in today’s world are presented with an increasing number of options and media influences. Stage 1Considering vehicle purchase/lease Stage 2Researching options Stage 3Ready to make purchase decision

What Media Influence Vehicle Purchases in Canada? Eleven different media were measured for influence at various stages of the automotive path to purchase. 1.Printed Newspaper 2.Newspaper Website (including newspaper-owned auto sites like Driving.ca, GlobeDrive.com, Wheels.ca, autonet.ca, auto.lapresse.ca etc.) 3.TV Station 4.TV Station/Network Website 5.Radio Station 6.Radio Station Website 7.Auto Sales Media (publications/websites like Autotrader, Kijiji etc.) 8.Magazine 9.Magazine Website 10.Social Media (Facebook, Twitter etc.) 11.Non-Auto/Other Websites (not auto manufacturers or dealers)

Media Influence in the Automotive Path to Purchase 60% of New Car Buyers* are influenced by newspapers in their auto path to purchase. Media are one of the key drivers of influence during the auto path to purchase. Potential consumers move in and out of the various stages as they navigate their vehicle purchase. Almost half (47%) of all New Car Buyers* report being influenced by some form of media throughout the process. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

Media Influence Stage 1 – Considering vehicle purchase/lease New Car Buyers*BoomersMillennials Newspapers (print + digital) 37% Newspapers (print + digital) 47% Newspapers (print + dig.ital) 39% TV (stations + digital) 35% TV (stations + digital) 35% Auto Sales Media (eg. Autotrader, Kijiji) 35% Magazines (print + digital) 25% Non-Auto Websites** 24% Magazines (print + digital) 31% In the early stage of the purchase process, many potential New Car Buyers start with a specific brand in mind. Newspapers top the list of media that influence both Boomers and Millennials at this stage. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

Media Influence Stage 2 – Researching options New Car Buyers*BoomersMillennials Newspapers (print + digital) 37% Newspapers (print + digital) 45% Newspapers (print + digital) 38% Non-Auto Websites** 27% Non-Auto Websites** 26% TV (stations + digital) 27% TV (stations + digital) 25% Auto Sales Media (eg. Autotrader, Kijiji) 20% Auto Sales Media (eg. Autotrader, Kijiji) 24% In stage 2, potential New Car Buyers are doing research into different manufacturers, brands and models. Less than a quarter of shoppers buy the first vehicle they research. Again, Newspapers top the list of media that influence both Boomers and Millennials at this stage. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

New Car Buyers*BoomersMillennials Newspapers (print + digital) 34% Newspapers (print + digital) 38% Newspapers (print + digital) 32% Non-Auto Websites** 27% Non-Auto Websites** 30% TV (stations + digital) 29% TV (stations + digital) 26% TV (stations + digital) 29% Magazines (print + digital) 27% In the final stage potential New Car Buyers are ready to make their purchase. Decisions about financing and dealers need to be made at this stage. Newspapers top the list of media that influence both Boomers and Millennials, followed by Non- Auto Websites**, TV and Magazines. Media Influence Stage 3 – Ready to make purchase decision Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

Purchase Decision Making

In the final stage, when it is time to make the purchase decision, Newspapers (print and digital) are used by both Millennials and Boomers, with slight differences. Boomers – more likely to use Newspapers for: -General Information -Comparing prices -Deciding make of vehicle Millennials – more likely to use Newspapers for: -Photo galleries -Deciding where to buy/lease from -Making final purchase decision Source: Totum Research, February 2016; *in the past 2 years

Automotive Purchase Decision Making Newspapers are good for … Source: Totum Research, February 2016; *in the past 2 years

Automotive Purchase Decision Making Newspapers are good for … Source: Totum Research, February 2016; *in the past 2 years

Automotive Purchase Decision Making Newspapers are good for … Source: Totum Research, February 2016; *in the past 2 years

Factors Influencing Final Purchase Decision % Source: Totum Research, February 2016; *in the past 2 years

Price is a key attribute in the final purchase decision. Millennials are more likely to be influenced by price than Boomers. There was no difference between Millennials and Boomers for Size or Fuel Economy attributes. Although not a major influence, Colour influenced Millennials 28% more than Boomers. Factors Influencing Final Purchase Decision Source: Totum Research, February 2016; *in the past 2 years

Driving Traffic to Automotive Websites

Who never visits these websites? At what stage do visits occur? Which media trigger visits? Driving Traffic to Automotive Websites Source: Totum Research, February 2016; *in the past 2 years 1.Manufacturer Sites 2.Brand/Model Sites 3.Dealer Sites

Driving Traffic to Automotive Manufacturer Websites Auto manufacturers spend considerable resources building websites for potential customers. In today’s digital world, the manufacturer site is an essential sales tool. BUT some New Car Buyers will never visit those websites. 28% of recent New Car Buyers* 20% of Millennials 32% of Boomers Source: Totum Research, February 2016; *in the past 2 years

When do New Car Buyers* visit Manufacturer websites? Stage 1Stage 2Stage 3 New Car Buyers*74%45%38% Millennials82%49%36% Boomers84%53%46% Auto manufacturers need to engage with New Car Buyers early in the process, when they are visiting their websites. Driving Traffic to Automotive Manufacturer Websites Source: Totum Research, February 2016; *in the past 2 years

Newspapers are the #1 trigger for sending traffic to manufacturer websites. New Car Buyers* MillennialsBoomers Newspapers2630 TV Radio12218 Magazines Auto Sales Media^10168 Non-Auto Sites** Social Media Driving Traffic to Automotive Manufacturer Websites Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc. %

Driving Traffic to Automotive Brand/Model Websites 30% of New Car Buyers* never visit Automotive Brand and Model websites. Almost a quarter of Millennials, who are digital natives, don’t visit these websites. Boomers are 17% more likely to avoid these websites – 35% of them have never gone to Brand/Model websites. ✗ ✗ ✗ Source: Totum Research, February 2016; *in the past 2 years

When do New Car Buyers* visit Brand/Model websites? Stage 1Stage 2Stage 3 New Car Buyers*49%51%32% Millennials52%65%33% Boomers58%48%38% New Car Buyers are best engaged by brands early in the process – in Stage 1 for Boomers and in Stage 2 for Millennials. Driving Traffic to Automotive Brand/Model Websites Source: Totum Research, February 2016; *in the past 2 years

Newspapers are the #1 trigger for sending traffic to Brand/Model websites. New Car Buyers* MillennialsBoomers Newspapers TV Radio13255 Magazines15249 Auto Sales Media^10188 Non-Auto Sites**14213 Social Media13208 Driving Traffic to Automotive Brand/Model Websites Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc. %

Driving Traffic to Automotive Dealer Websites Newspapers are an essential component of the automotive path to purchase for Dealers. A third (32%) of New Car Buyers* never visit a Dealer website. Boomers need to be engaged online AND offline – 40% of them will never visit a Dealer website. Despite a preference for “all things digital”, a quarter (24%) of Millennials do not visit Dealer websites. ✗ ✗ ✗ Source: Totum Research, February 2016; *in the past 2 years

When do New Car Buyers* visit Dealer websites? Stage 1Stage 2Stage 3 New Car Buyers*23%20%34% Millennials31% 40% Boomers18%16%25% Driving Traffic to Automotive Dealer Websites Dealers need to be engaging with New Car Buyers throughout the entire path to purchase. Millennials needs to be engaged early with additional focus in the final stage. Boomers are less likely overall to visit dealer websites, but the final stage is critical. Source: Totum Research, February 2016; *in the past 2 years

New Car Buyers* MillennialsBoomers Newspapers TV13237 Radio11184 Magazines11209 Auto Sales Media^9158 Non-Auto Sites**8144 Social Media Driving Traffic to Automotive Brand/Model Websites Newspapers are the #1 trigger for driving Boomers to Dealer websites. Millennials are influenced by multiple media, including TV, Newspapers and Magazines. Source: Totum Research, February 2016; *in the past 2 years **Websites excluding Newspaper, Media and Auto Manufacturer, Model and Retailer sites ^Autotrader, Kijiji etc.

Cross-Platform Readership

New Car Buyers* are dedicated newspaper readers, across all platforms. Phone and print are the top reading platforms for New Car Buyers. Newspaper access is multi-platform. A third of New Car Buyers (32%) read on ALL FOUR platforms. New Car Buyers are Cross- Platform Newspaper Readers Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years Nine of ten (89%) New Car Buyers* read a newspaper on any platform each week.

89 Newspapers Reach Nine of Ten New Car Buyers Desktop/Laptop readership adds 15% more reach to print readership. Add the phone platform to reach an additional 10% of New Car Buyers and tablet to reach another 3%. % Any Platform Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

Newspapers Reach New Car Buyers on All Platforms New Car Buyers* read newspapers on multiple platforms. New Car Buyers index highest for tablet readership. % 89% Any Platform 87% Any Platform Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

Print – reading peaks at breakfast and strong after dinner Desktop/Laptop – morning and evening peaks Phone – primary platform through the day Tablet – peaks at breakfast and strong again after dinner Newspapers Reach New Car Buyers Throughout the Day Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

Newspaper Media Drive Automotive Sales 2016 Seven out of ten New Car Buyers* read auto ads in printed newspapers compared to 16% who read auto ads on social media. Newspapers continue to be the most influential media at all stages of the two-month purchase cycle. Newspapers should be used to drive traffic to automotive websites and to provide offline reach. New Car Buyers are cross-platform newspaper readers. Totum Research; Canadians age 18+, weekly readership, February 2016 *in the past 2 years

Appendix

Sampling – Markets Measured Greater Vancouver Regional District (GVRD)Greater Toronto Area (GTA)Greater Montreal Calgary RegionHamiltonQuebec City Area Greater EdmontonSt. CatharinesGatineau Winnipeg Capital RegionNiagaraSaguenay Regina SKKitchenerSherbrooke Saskatoon SKCambridgeTrois-Rivières Victoria BCWaterlooRest of Quebec Kelowna BCLondon Abbotsford-Mission BCOttawa Rest of Western CanadaKingston Peterborough Halifax Regional Municipality (HRM)Oshawa St. John's NLBrantford Moncton NBGuelph St John NBWindsor Rest of AtlanticBarrie Greater Sudbury Thunder Bay Rest of Ontario

Questionnaire Wording Which of the following media would you say influenced the [stage of your car buying process]? Please check all that apply. Printed Newspaper Newspaper Website (including newspaper-owned auto sites like Driving.ca, GlobeDrive.com, Wheels.ca, autonet.ca, auto.lapresse.ca etc.) TV Station TV Station/Network Website Radio Station Radio station Website Auto Sales Media (Publications/websites like Autotrader, Kijiji etc.) Magazine Magazine Website Social Media (Facebook, Twitter etc.) Non Auto/Other Websites (not auto manufacturers or dealers) None of the above

Questionnaire Wording Websites Auto Manufacturer Site Auto Brand or Model Site Auto Dealer Site Printed Newspaper□□□ Newspaper Website (including newspaper-owned auto sites like Driving.ca, GlobeDrive.com, Wheels.ca,Autonet.ca, auto.lapresse.ca etc.) □□□ TV Station□□□ TV Station/Network Website□□□ Radio station□□□ Radio station website□□□ Magazine□□□ Magazine Website□□□ Publications or websites like Autotrader, Kijiji etc. □□□ Social Media e.g. Facebook, Twitter etc.□□□ Other websites - not auto manufacturers or dealers □□□ Never visit site □□□ Which of the following media trigger you to visit each of the listed websites? Please check all that apply for each website.

Newspaper Media Drive Automotive Sales 2016 Understanding the Automotive Path to Purchase