US car makers struggle to convince a nation of social sceptics

New York, February18, 2014

Car buyers in the U.S.are more likely to be persuaded bytraditional marketing, rather than blogs, forums and social media, which are often seen as less reliable and ‘infiltrated’ by brands.

This is in stark contrast to China, the world’s largest auto market, where almost one third (31 per cent) of buyers see consumer-driven content – such asautomotive blogsor reviews on social media - as their most trusted source of information, compared to just seven per cent (7%) in the U.S.

The Automotive Path to Purchase Study (TAPPS) by global research consultancy TNS,shows that brand-controlled sources, particularly TV and press ads, are most influential in the U.S. buying process. Almost six in ten (59 per cent) of U.S.car buyers cite these as their most trusted source, compared to 43 per cent in China.

Althoughsocial media still has a role to play in narrowing down choices, car manufacturers looking to build their namein the U.S.should focus their efforts first and foremost on traditional media. The study also showsTV advertisinghas the biggest effectin persuading buyers toconsult other sources of information, whether that is a brand’s website, a car dealershipor friends and family.

Andy Turton, Global Development Director at TNS, said: “Digital-savvy car buyers in the US are increasingly suspicious of brand involvement when it comes to supposedly ‘independent’ sources like blogs and forums. In China, where the car market is comparatively young and people are keen to explore new digital channels, it’s a different story.”

“That’s not to say thatsocial and digital channels should be neglected entirely in the US. In fact thebiggest success stories arewhere auto brands successfully integrate digital engagement with more of the old-style Mad Men* advertising strategies.”

The latest Super Bowl TV advertisement from Volkswagen has been praised for successfully translating to social media. The ad, which shows German engineers suddenly sprouting wings as cars they designed pass the 100,000-mile mark, was accompanied by a staggered social media campaign across Facebook and Twitter.

While most U.S. buyers show an affinity to American brands – including Chevroletand Ford – the study shows it is actually foreign brands that are most effective in linking up all their different channels to convert interest to purchase. Honda is most effective at pulling buyers through from initial consideration to final purchase, with Toyota following close behind.

In both the Chinese and U.S. markets the role of the dealer is also critical in persuading buyers to part with their cash. Almost four in ten (38 per cent) of U.S. buyers and one quarter (26 per cent) of Chinese buyers cite dealers as their most reliable information source.

Turton concluded: “The idea of the dealer being the car buyer’s ‘best friend’ is abundantly clear in both markets. As the US auto market showscontinued signs of recovery – with over 15.6million vehicles sold last year– it is only brands that can keep customers engaged throughout the whole buying process that will see these rewards.”