Last year more than $290 million was spent on advertising the automotive industry in New Zealand, with 77% of this spend going to the promotion of vehicles. That’s approximately $223M being spent to target potential car buyers. In New Zealand, 43% (1,632,000) of the 15+ population are considering purchasing a new or used car in the next year. By understanding who they are, what they are looking for, and how much they are willing to spend, the automotive industry can better reach the car buyer.
One in five (743,000) Kiwis over the age of 15 are serious car buyers who are ‘very likely’ to purchase a car in the next 12 months. On average, this group is looking to spend about $20,000 on a car. However, 7% of Kiwis are looking to splurge and spend over $50,000 on their next vehicle purchase.
For serious car buyers, Toyota tops the list with 44% willing to consider the brand followed by Mazda, Nissan, Honda and Ford. There is a larger repertoire of brands being considered by the group who are looking to spend over $50,000 – the highest ranking brand in consideration is Audi at 27% with Toyota, Lexus, Honda and Holden rounding out the top five.
STEERING THE RIGHT BUYER TO THE RIGHT CAR
Reliability, safety, price, fuel economy and how easy they are to fix are the top five considerations that buyers value when looking to purchase their next car. With Kiwis increasingly concerned about the environment, another factor for sellers to consider is the availability of electric/hybrid options. Over half of the serious car buyers believe that there is not enough done to protect the environment and a similar amount are at least open to buying an electric or hybrid car in the future.
IDENTIFYING THE SERIOUS BUYERS
Over half (54%) of serious buyers are independent young adults or adults with young children. They’re also more likely to be male, but females shouldn’t be ignored as they make up 45% of the group. They’re more likely to live in metro areas (Auckland, Wellington, Christchurch, and Hamilton) and to identify as Asian, Indian or Maori. The top five professions for serious car buyers are professional/senior government official, business manager or exec, technical/skilled worker, business proprietor/self employed, clerical/sales employee.
Serious car buyers are more likely to be heavy internet users with 42% of them spending more than 20+ hours a week online, and a similar amount are highly exposed to outdoor media. 20% are heavy magazine readers and compared to the population, they are 16% more likely to read magazines.
With more than two-in-five people considering buying a car in the next year, a deep understanding of the New Zealand car buyer is essential for ensuring your sales and marketing efforts are reaching the right person. Knowing the consumer and steering them in your direction can go a long way in driving automobile sales.
Sources: Nielsen Consumer & Media Insights 2017 (15+) and Nielsen Ad Intel 2017
ABOUT NIELSEN CONSUMER AND MEDIA INSIGHTS (CMI)
In this environment, breadth of understanding of consumer attitudes, media consumption and their day to day behaviours is essential. Nielsen Consumer and Media Insights provides views of consumers you want to identify, understand and then reach. Meaning you don’t rely on too narrow a view of a customer. The data is gathered via an independently audited survey of 11,000 New Zealanders aged 10+. It uses mixed methodology of face-to-face (75%) and online (25%) interviews, combined with a self-completion diary. The sample is then weighted to Statistics NZ population data for national representation.