DMix Impact survey
in Automotive sector




April 2006
COMMUNICATION WITHIN AUTOMOTIVE SECTOR …




                                           1
IN AUTOMOTIVE, THERE ARE SEVERAL IMPORTANT
COMMUNICATION MOMENTS …
Current media pressure

                               ...
EVERY COMMUNICATION NEEDS A CLEAR OBJECTIVE …



 For almost every communication moment in the automotive sector, address...
ATOMOTIVE PILOT CAMPAIGN AND MARKET RESEARCH
SETUP


                       Addressed (one model)
    Media             ...
KEY MESSAGES




 The market research shows that addressed and unaddressed mailings have clear impact
  vs. ATL:

       ...
KEY MESSAGE 1: ADDRESSED HAS 76% HIGHER RECALL RATE
THAN UNADDRESSED
Percentage of respondents

    "Do you remember seein...
KEY MESSAGE 2 : ADDRESSED MAIL LEADS TO HIGHEST
CONSIDERATION TO BUY
Percentage of respondents
                      Produ...
KEY MESSAGE 3 : ADDRESSED AND UNADDRESSED IMPROVE
MAKE X BRAND PERCEPTION ON MOST ATTRIBUTES TESTED
Percentage of responde...
KEY MESSAGE 4 : ADDRESSED AND UNADDRESSED HAVE
BETTER MEDIA PERCEPTION THAN ATL
Percentage of respondents*                ...
APPROACH TO ASSESS MEDIA RETURN
ON INVESTMENT




                                                            Key principl...
ADDRESSED MAIL HAS HIGHER ROI AND NET MARGIN
IMPACT THAN UNADDRESSED MAIL
Media impact on profit margin
All values are nor...
CONCLUSIONS




     It is interesting to send more addressed mailings (in the context of the Auto
     Fair because)

  ...
More details ?
  More survey results ?


 Contact us at 022 011 111
and ask for a DM specialist




                      ...
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Dm2008 Automotive

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Dm2008 Automotive

  1. 1. DMix Impact survey in Automotive sector April 2006
  2. 2. COMMUNICATION WITHIN AUTOMOTIVE SECTOR … 1
  3. 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 2
  4. 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 3
  5. 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) 4
  6. 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 5
  7. 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 6
  8. 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 7
  9. 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 8
  10. 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 9
  11. 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 10
  12. 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 11
  13. 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 12
  14. 14. More details ? More survey results ? Contact us at 022 011 111 and ask for a DM specialist 13

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