As smart as automakers are when it comes to marketing, they are frequently surprised by car sales demographics that often defy logic – or certainly go against the grain of why a model was designed in the first place.
Consider this list of vehicles that represents the best sellers among a specific age group. So as you look down this list, are we talking about the most popular cars and trucks among Millennials, Gen Xers, or Baby Boomers?
- Ford F-series pickups
- Honda CRV
- Toyota Camry
- Honda Accord
- Chevy Silverado
- Ford Escape
- Honda Civic
- Chevy Equinox
- Toyota RAV4
- Nissan Altima
Amazingly, it’s Boomers. Among purchasers 55 and older through almost all of last year, these are the leading vehicles. A recent AARP Bulletin feature article – “Detroit Rediscovers Boomers” by Michigan-based Melissa Preddy – goes against the grain of much of the conventional wisdom that permeates the auto business. And it has implications for the radio industry and the advertisers it serves. There are hundreds of great radio station brands that appeal to Boomers, creating an enormous economic opportunity.
Many of these AARP-sters are going through that stage in life where they’re moving away from luxury models and looking for vehicles that are “an expression of their personality and who they are,” according to Bob Zeinstra, a strategic planner for Toyota. Preddy reports that in the past five years, the percentage of new car buyers 55+ has skyrocketed from 33% to 42%.
In the radio business, automotive continues to be the top revenue generating category, and data like this in the hands of sellers for Classic Hits, Adult Contemporary, and News/Talk stations tell a powerful story.
Sales and marketing programs that connect Boomer-targeted stations (many of whom have strong local personalities) with local dealerships looking to sell new and used cars, as well as service and maintenance, might end up making 2014 a year to remember.
But there’s another side of this story – and it’s about those pesky Millennials. There’s this perception out there that young twentysomethings aren’t interested in owning a vehicle. Strategy Analytics’ Roger Lanctot recently wrote a post called “Lies, Damn Lies & a 2014 Ford Focus” where he chronicles his son’s odyssey in the new car market.
And as you might expect, online research, emotion, and financial realities all played a role in the decision to buy a new car – just like for generations older than Roger’s son. There is a universal experience in buying a vehicle, and as Roger points out in his conclusion, Gen Y is every bit as smitten by the emotional process as their parents and grandparents. As he concludes, “As for young people losing interest in cars? I’m not buying it.”
That’s why Roger is one of the smartest guys in the automotive industry. The reality is that most Millennials very much value car ownership, a fact that we affirmed in Techsurvey10 when we offered up this agree/disagree statement:
“It is important for me to own (buy/lease) a car.”
And here are the results – with the generational agree/strongly agree responses on the right-hand side:
When you think about Millennials and what they’re up against – burdensome student loans, low paying and/or part-time jobs without benefits, a shaky economy, and that creeping sense they won’t enjoy the benefits their parents had – it wouldn’t be surprising to see interest in car ownership much lower. But as Roger’s anecdotal story reminds us – backed up by the data – Generation Y presents great opportunities for automakers – IF they can create a responsive chord (and attractive financing options) among these young consumers.
These are a couple of the stories we’ll be sure to track at DASH. We have spoken to a number of attendees of last year’s conference, and some of the feedback points to the need for more relevant panels for small and medium market broadcasters. Marketing efforts that better target the various demographics of car buyers may be at the heart of strengthening – and redefining – radio’s relationships with dealerships and dealer groups.
It’s on the agenda. See you at DASH.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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