Briefing notes and sales support for news media sales teams Automotive market Briefing notes and sales support for news media sales teams

What’s in this deck? This deck is split into two sections: Section 1 An overview of the Australian automotive market The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the category. Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that fit most clients within a category. Section 2 contains research about how consumers buy cars, and the contribution news media makes in the decision process.

Section 1 Automotive market: an overview

Auto industry: strong growth Top 10 Manufacturers of 2015 Rank Brand Market Share Total Sales % Change in Sales from 2014 1 Toyota 17.8% 206,236 1.3% 2 Mazda 9.9% 114,024 13.2% 3 Holden 8.9% 102,951 -3.0% 4 Hyundai 8.8% 102,004 2.0% 5 Mitsubishi 6.2% 71,743 4.5% 6 Ford 6.1% 70,454 -11.6% 7 Nissan 5.7% 66,062 0.1% 8 Volkswagen 5.2% 60,225 9 Subaru 3.8% 43,600 7.6% 10 Honda 3.5% 40,100 21.5% In 2015 car manufacturers sold a record 1.2m new cars The fourth consecutive year of 1.1 million-plus new car sales. An increase of 3.8 per cent compared to 2014 sales. Toyota tops the rankings, followed by Mazda, Holden, Hyundai and Mitsubishi. Sales for 1H2016 totalled 598,140, a 3.4 per cent increase on STLY. Sources: Federal Chamber of Automotive Industries, VFACTS, 2015, 2016.

Auto industry: key segments New vehicle sales dominated by Passenger cars 45% of sales in 2015, but a declining percentage of total sales SUVs 35% of 2015 sales, rapidly increasing in popularity (+15.9% YoY) Light commercial vehicles 17% in 2015, retaining steady market share Sources: Federal Chamber of Automotive Industries, VFACTS, 2015, 2016.

Auto industry: top selling models The most popular models are still mainly passenger cars Four of the top 5 best selling models, and 6 of the top 10, are passenger vehicles. Three light commercial vehicles make the top 10. Although SUVs outsell light commercial vehicles, only 1 SUV in the top 10 Top 10 individual models (by sales volume) Rank Vehicle Segment 2015 2014 % diff  1 Toyota Corolla Psgr car 42,703 43,735 -2.4%  2 Mazda3 38,644 43,313 -10.8%  3 Toyota Hilux Lt comm’l 35,161 38,126 -7.8%  4 Hyundai i30 32,306 31,505 2.5% 6 Ford Ranger 29,185 26,619 9.6%  5 Holden Commodore 27,770 30,203 -8.1%  8 Toyota Camry 27,654 22,044 25.4%  7 Mitsubishi Triton 25,338 24,256 4.5%  9 Mazda CX5 SUV 25,136 21,571 16.5%  10 Volkswagen Golf 22,092 19,178 15.2% Sources: Federal Chamber of Automotive Industries, VFACTS, 2014, 2015.

Auto industry: big spenders on main media 5 of the top 20 largest advertisers in 2014 were car companies Brand Total Adex Rank Toyota $82m 7th Mitsubishi $54m 12th Mazda $47m 13th Holden $45m 16th Hyundai $43m 17th Source: Ebiquity, 2014 Advertisers Report

Auto industry: big spenders on newspapers Brand Newspaper Adex Rank Toyota $30m 5th Mitsubishi $16m 14th Mazda $13m 16th Volkswagen $12.1m 18th Nissan 19th Hyundai $11.8m 20th Mercedes-Benz $9.6m 24th Brand Newspaper Adex Rank Ford $7.7m 32nd Audi $7.6m 33rd Lexus $7.3m 36th BMW $6.6m 39th Land Rover $6.2m 41st Suzuki $6.1m 43rd Honda $5.9m 45th And 14 of the top 50 newspaper advertisers Source: Ebiquity, 2014 Advertisers Report

Section 2 Support slides for sales presentations

About these slides The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive automotive sales, and to show how news media can help to influence the sales process. These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements. Recap client/agency brief Automotive industry support slides Client specific analysis Recommendations

The automotive market is intensely competitive Over 60 brands competing for 1.2 million new car sales/year

The marketing challenge: Consumers are spoilt for choice. So where do you start?

Start on the short list Most people buy a brand they considered before researching models and prices. Source: The Nielsen Automotive Report 2012

The average new car buyer only considers 3.9 models It’s a very short list The average new car buyer only considers 3.9 models Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

News media influences initial consideration “Despite the increase of online and mobile sources, traditional sources of research remain popular tools. Print media as an awareness and discovery mechanism is particularly popular among new car buyers with two-thirds (65%) using print resources at the awareness stage.” Source: The Nielsen Automotive Report 2012

…and continues to work at every stage of the purchase process From striking brand-building campaigns… …to offer-driven call-to-action retail

News media excels at reaching car buyers 866,000 People intend to buy a new car in the next year. 829,000 Potential buyers read news media each month. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

The combined reach of print and digital news media: In print and digital 81% 79% The combined reach of print and digital news media: 96% of new car buyers. Print Digital Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

Readers are above average prospects News media readers are 45% more likely to buy a new car in the next year than non-readers. Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

Readers use newspapers to help them buy Buyers turn to newspapers to help them when they’re buying a new car. Media most useful when buying a car Newspapers 26% Magazines 24% Television 19% Social media 6% Radio 5% Outdoor advertising 3% Unaddressed mail or catalogues 2% Cinema 1% Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

Automotive sections: high intention, high value Automotive section readers are high value new car prospects 69% more likely to buy within the next year than non-readers Above average spenders: $43,000 vs $40,000 for non-readers Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

Digital news readers are prime targets People who read news media on digital devices are 31% more likely to buy a new car in the next 12 months compared to non-readers. 72% of consumers spend over 2 hours/day on their mobiles. 75% research purchases on mobiles. Sources: emma ™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Deloitte Media Consumer Survey 2015 – Australian media and digital preferences – 4th ed.

Client specific analysis & recommendations This is the point to bridge to a client specific discussion. Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to Analyses that address the client’s specific situation, challenges and opportunities. Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.