Despite study after study of automotive consumer media habits showing a decline in print readership, many dealerships continue to pour large sums of money...often entire ad budgets...into the newspaper. Why? First, it's easy. There is usually only one newspaper. Second, old habits are hard to break. Third, everyone knows you have to be in the newspaper for used cars. Right? Here's some food for thought. Conduct a study of your own customers to discover their media habits. Weight your media mix accordingly. If only 23% of your customers say they read the paper on a daily basis and only 18% say they check the newspaper for automobile ads prior to purchase, consider spending roughly 20% of this year's ad budget on newspaper.
In your analysis of electronic media you may find that over 80% of your customers listen to some radio during they week. Which three stations are mentioned most often? Which time periods are your customers most likely to listen to radio? One dealer who had tremendous success with used car advertising on the radio said he advertised older, less expensive vehicles between 5am and 7am, and late model, more expensive used vehicles from 7am until 10am. He determined this mix by standing on a bridge that carried a large number of morning commuters to his side of town. "Before 7am, most of the cars were older models," he said, "After 7am we saw more late models." Of course that methodology may not work in your market but there are many creative ways to conduct meaningful research.
Idea: Why not have your service department log the radio stations being listened to by your service customers? How about a service "greeter" to offer your customer juice, coffee or a morning paper while they wait in the service line, and ask a handful of media questions.
With over 100 cable channels in some markets, many people have a hard time remembering which channel they watch. You may get a more accurate response to viewership questions by asking which entertainment and news programs your customers watch on a regular basis. When formulating questions for television viewing, be sure not to limit questions to the major networks. You may be surprised to discover the popularity of certain cable channels in your market.
Idea: When interviewing a customer, be sure to ask which cable system they subscribe to. If they don't know, make sure you note their zip code as networks may be on different channel settings on several different cable systems in the same market area.
In any type of media research conducted today, it's a good idea to ask your customer if they use a computer and an internet service at home or at work. If the answer is yes, ask for their e-mail address. Many customers actually prefer to receive e-mail as opposed to regular mail or telephone contact. One customer told us she liked e-mail because it was the least intrusive contact and she could immediately reply with a minimum of effort. Maybe this is the year to allocate a small percentage of your advertising budget to internet development and maintenance. If you do not have a web site yet, you can still use e-mail for both sales and service. Investigate the cost of a direct connection to a local internet provider. You may be able to get a direct connection for as little as $200 to $300 per month. Down the road this could lead to substantial savings in additional phone lines, phone equipment and long distance toll charges.
Idea: With a direct internet connection, mail server and program, your entire staff could have their own e-mail address. Additionally, e-mail addresses for all of your employees can be programmed as alias addresses such as JohnSmith@CAPITALMotors.com or TRM@CAPITALMotors.com.
A research program can help you lower your overall advertising costs while improving effectiveness. If you use an outside research firm, you'll be able to discover the media habits of your competitors as well. Most importantly, if you decide to conduct a meaningful research program, act on the findings. Don't keep doing the same old thing despite evidence of changing consumer habits. With rising costs and media fragmentation, intense competition and shrinking margins, your advertising dollars have to work harder. Research is the answer.