1. DMix Impact survey
in Automotive sector
April 2006

2. COMMUNICATION WITHIN AUTOMOTIVE SECTOR …
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3. IN AUTOMOTIVE, THERE ARE SEVERAL IMPORTANT
COMMUNICATION MOMENTS …
Current media pressure
Initiatives Recurrent
of dealers customers
On-going Open doors Auto-fair
(New) makes/ (new relation
brand (entire dealer (big –small)
models showroom, campaigns
campaigns network)
opening, …) (e.g. winter
promotion)
Addressed ++ ++ + ++ + +++*
Unaddressed + +++ ++ +++ +++ -*
ATL +++ +++ +++ + +++ -*
*customers
prospects
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4. EVERY COMMUNICATION NEEDS A CLEAR OBJECTIVE …
 For almost every communication moment in the automotive sector, addressed mailings are
used but less than unaddressed communication or ATL
 However, addressed mailings are the ideal media to attain the following objectives:
• recruitment of new customers (very specific groups)
Reinforce impact of ATL
GET
• traffic generation
campaigns
• cross-selling of new customers (second car – accessoiries)
GROW
• loyalty building
AVOID LOST • improve brand perception / product perception
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5. ATOMOTIVE PILOT CAMPAIGN AND MARKET RESEARCH
SETUP
 Addressed (one model)
Media  Unaddressed (multi models)
 ATL: television, radio, affiches, magazines/newspaper
 Test media effectiveness on promoting the brand in the
Objectives context of the Auto Fair
market research  Compare the impact of targeted addressed mailing focused
on one model to unaddressed folder with general content
 Compare addressed and unaddressed mailing to ATL
campaign
Target group
 Families with children
market research
 1500 phone interviews
Methodology  Group 1 : addressed + ATL (N=500)
 Group 2 : unaddressed + ATL (N=500)
 Group 3 : ATL (N=500)
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6. KEY MESSAGES
 The market research shows that addressed and unaddressed mailings have clear impact
vs. ATL:
1) Addressed mail has significantly higher recall rates than unaddressed and
ATL (37% vs. 21% and 26% respectively)
2) Addressed mail increases consideration to buy with 17% compared to
unaddressed
3) Both mailings improve brand perception vs. ATL only; unaddressed has
highest impact
4) Both addressed and unaddressed are better perceived than ATL
 The ROI calculation shows a positive ROI for addressed mailings
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7. KEY MESSAGE 1: ADDRESSED HAS 76% HIGHER RECALL RATE
THAN UNADDRESSED
Percentage of respondents
"Do you remember seeing a make X ad?"
"Where did you see the ad?"
Addressed 37
+42%
ATL only* 26  Addressed has 76% higher recall rate
than unaddressed mail
+76% (37% vs. 21%)
Unaddressed
 Addressed has 42% higher recall rate
21 than ATL (37% vs. 26%)
* Television, Internet, Radio, Affiche or Magazine/Newspaper
Source: Market research on 1500 Belgian households
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8. KEY MESSAGE 2 : ADDRESSED MAIL LEADS TO HIGHEST
CONSIDERATION TO BUY
Percentage of respondents
Product funnel
Awareness Familiarity Consideration
"Do you know "Are you familiar "Would you
make X?" with make X? consider buying an
Could you name make X?"
some models?"
 Addressed mail increases
consideration to buy compared to
Addressed 99 71
71 70 31
31 22 unaddressed by 17%
+17%
 Addressed increases consideration
Unaddressed 99 66
66 65 28
28 18 to buy compared to ATL by 24%
+24%
ATL only 99 74
74 73 24 17
24
Source: Market research on 1500 Belgian households
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9. KEY MESSAGE 3 : ADDRESSED AND UNADDRESSED IMPROVE
MAKE X BRAND PERCEPTION ON MOST ATTRIBUTES TESTED
Percentage of respondents
Addressed
Unaddressed
"To which extent do you agree with the following statements
ATL only
concerning make X?"
Rating on a scale 1 to 4*; Percent completely agreeing (Percent of 4)
Make for people
like me
Wide offering
of models
Make I know well 40
 Addressed and unaddressed mail
improve make X brand perception on
most of the tested attributes
20
Young and  Unaddressed has a higher impact than
Reliable make
modern make addressed on several brand attributes
0
 Possible cause of differences in
addressed and unaddressed brand
Good value perception: different content in
Innovative make
for money addressed (one model) and
unaddressed (range of models)
Sport car Great design
* 1: I completely disagree, 2: I somewhat disagree, 3: I rather agree, 4: I completely agree
Source: Market research on 1500 Belgian households
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10. KEY MESSAGE 4 : ADDRESSED AND UNADDRESSED HAVE
BETTER MEDIA PERCEPTION THAN ATL
Percentage of respondents* Addressed
Unaddressed
"To which extent do you agree with the following statements concerning ATL
the ad for make X?"
Rating on a scale 1 to 4*; Percent completely agreeing (percent of 4)
I like the ad /
mailing
50
40
30
 Unaddressed is better perceived
than ATL on 4 out of 5 attributes
20
The ad / mailing The ad / mailing
 Possible cause of differences in
was credible 10 was interesting
addressed and unaddressed media
0 perception: different content in
addressed (one model) and
unaddressed (range of models)
 Addressed slightly better perceived
than ATL except on "the ad/mailing
was interesting"
The ad / mailing The ad / mailing
was creative was convincing
* 1: I completely disagree, 2: I somewhat disagree, 3: I rather agree, 4: I completely agree
Source: Market research on 1500 Belgian households
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11. APPROACH TO ASSESS MEDIA RETURN
ON INVESTMENT
Key principles of ROI calculation
Objective
 Assess return on investment  Assessment based on long-term media impact
for addressed and on purchase rate
unaddressed mail  Impact on purchase rate estimated as relative
increase in "consideration to buy" vs. ATL only
 Assess impact of changing observed in market research*
weight of addressed mail in  Revenue impact calculated on full-year
media mix make X revenues
* E.g., 5.7% increase from 17.4% to 18.4% "consideration to buy" leads to 5.7% increase in purchase rate over long term
Source: Market research on 1500 Belgian households
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12. ADDRESSED MAIL HAS HIGHER ROI AND NET MARGIN
IMPACT THAN UNADDRESSED MAIL
Media impact on profit margin
All values are normalized assuming margin impact addressed = 100
Unaddressed Addressed
(+ ATL) (+ ATL)
Margin impact 23,8 100
 ROI of addressed
mail higher than
unaddressed
(245% vs. 185%
Campaign cost* 8,3 29 respectively)
 Addressed mail
should be leveraged
where possible
Net margin impact 15,5 71
ROI
= Net margin impact / 185% 245%
185% 245%
campaign cost
* Based on X mails per year
Source: Market research on 1500 Belgian households
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13. CONCLUSIONS
 It is interesting to send more addressed mailings (in the context of the Auto
Fair because)
– Addressed mailings lead to the highest content recall
– Addressed mailings lead to the highest consideration to buy
– Addressed mailings improve brand perception
– Addressed mailings have better media perception than ATL
– Addressed mailings generate the highest ROI
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14. More details ?
More survey results ?
Contact us at 022 011 111
and ask for a DM specialist
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