Tuesday, April 1, 2014

Who Is Not Buying New Cars

According to Edmunds.com, The share of new cars purchased by those aged 18-34 dropped 30% in the last five years, 

AARP reports that 50+ drivers purchase 6.2 million new autos each year, while 18-34 year olds account for 1.3 million. That’s a remarkable 400% 50+ advantage.

Tom Libby reports in his Polk blog that, "The much-coveted new vehicle buyers age 18-34, sometimes referred to as millenials, are a dwindling group.  Five years ago they accounted for 17% of all new vehicle buyers and now 11%". 

In his post, The Great Debate: Do Millennials Really Want Cars, or Not?, Bob Tuttle of Time says that,  "one theory has it that the generation that came of age with the Internet and smartphones thinks cars are pretty lame."

Bob Hoffman, The Ad Contrarian continually blogs about how the automobile industry is in love with this market that doesn't buy new vehicles.  From his post, Cats Who Want To Be Dogs,

"People over 50 buy 62% of all new cars, but are not in any auto maker's media target. Auto makers typically buy 18-49 years-olds or 25-54 year-olds.

In other words, auto sellers direct about 100% of their effort at 38% of the market and about 0% of their effort at 62% of the market." 

Yet with all this data the automobile industry continues to target the shopper who represents  about a third of all new car buyers.

And if you are going to hand your ad agencies multi million dollar accounts, you could at least ask for some creativity.  Four car manufacturers TV ads all have current top 40 songs on the radio as the music beds in their ads.  

Talk about sheep.

Nissan is using Bruno, Mazda has Capital Cities, Kia Soul features Lady Gaga and Fiat has Pharrel Williams with P. Diddy, Sean Combs, Puff Daddy or whoever he wants to be this year.

Robin Williams plays Sam Roberts in the TV comedy, The Crazy Ones a show about an ad agency Williams owns with his daughter.  Roberts is an old school ad agency guy.

In one episode he chastises the concept for an ad saying, "It's annoying and obvious.  There is enough visual pollution in this world."


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