Segment Insights – Automotive. You Are What You Drive

Segment Insights – Automotive. You Are What You Drive
SHARE
THIS



In this guest post, Andrew Birmingham, editor of Which-50.com, and Vaughan Chandler, executive manager of Red Planet (A Qantas Loyalty business), take a look at how the car you drive impacts the brands you buy into. 

Most Australian car owners say their main car reflects their personality. For marketers far beyond the automotive industry that is a powerful insight. That’s because as you drill deeper into that idea, a simple thought manifests itself in very interesting ways.

Audi drivers for instance enjoy their gin, but not as much as Jeep drivers enjoy their Tequila.

Lexus drivers meanwhile love nothing more than hitting a few shots over the green, whereas the best place to find a Mercedes driver’s ride on a night out on the town is in the car park of the Sydney Opera House.

These are just some of the insights derived by the Red Planet analytics team through analysis of Red Planet research panel survey data and proprietary data sources.

Each fortnight Red Planet and Which-50 will drill deeply into different consumer segments to uncover some of the more interesting insights, and more importantly, to demonstrate how clever segmentation and targeting can maxmise marketing efficiency, reduce wastage, eliminate costs and broaden the market opportunity for brands.

This week we investigate the automotive market.

Did you know that roughly 12 per cent of adults are in the market for a new car every year?. That’s over two million Australians. Of these there are over 21,000 shopping for their next luxury car – each month. Curiously, these consumers prefer to buy their groceries from discount supermarkets.

It’s not unexpected that the people browsing for automotive financing are also looking at cars. But did you know they’re probably watching SVOD in the evening, or that they’re 135 per cent more likely to be looking for life insurance than others? In fact, these Australians are generally more financially conscious than others and are more likely to be looking at financial planning.

Among the other automotive findings:

  • The consumers in this segment skew male, are middle-aged and less affluent
  • Smaller cars appeal to females and younger members of the panel…
  • …while the blokes love nothing more than a medium sized car or a sedan
  • It’s young men who are overwhelmingly more likely (70 per cent) to be looking for sports cars and convertibles
  • Audi and BMW appeal to affluent audiences regardless of their age
  • Mitsubishi, Hyundai and Kia have across the board appeal.

All of this is interesting but how does it help a brand manager get the best return on their investment?

That’s where smart analytics comes in. By using regression analysis, Red Planet’s data scientists are able to build bespoke propensity models to help predict how people will behave. That’s important since this information can be leveraged to help determine the influential characteristics of people in the market for a new car.

Such insights help brands better deploy their marketing tool kits to reach similar consumers who are not yet customers or who are looking to switch to competitors.

As a consequence marketers are able to understand behaviours on an individual level rather than relying solely on vastly defined segments.

How might such an approach play out in real life and what are the budget implications?

Remember that traditional targeting reaches everyone in a demographic segment or post-code, irrespective of their propensity or capacity to convert. However, by identifying people most likely to convert based on their profile and behaviour, a marketer can target a more precise and relevant group of people and refine this further by targeting only the top 30-40 per cent.

And this is a key point. Behavioural segmentation captures the market opportunity that would have otherwise been missed by using only a demographic segment. It also reduces wastage of advertising budget that would have otherwise been spent targeting people who have no intention of converting, simply because they fit a demographic profile.

In an environment where marketing budgets are lean and standing out in a crowded landscape is becoming more challenging, understanding consumers and the best ways to reach them is key. And as always it’s sometimes good to check your assumptions at the door

Please login with linkedin to comment

Designworks Motoring

Latest News

Social Change Maker Profile: Anthony Xydis, ARN
  • Advertising
  • Marketing
  • Media

Social Change Maker Profile: Anthony Xydis, ARN

B&T has partnered with UnLtd over the past few months to showcase some of the heroes in our industry – and their respective charity work – as part of an effort to make equality and inclusion the norm in our industry. We last profiled Richard Sauerman from The Brand Guy – and this week it’s on to Anthony […]

by B&T Magazine

B&T Magazine
Is Kyle All Set To Get His Very Own Reality TV Show?
  • Media

Is Kyle All Set To Get His Very Own Reality TV Show?

Last week, rumours were doing the rounds than none other than Kyle Sandilands had been lured to the Network Ten to host some sort of Judge Judy-esque reality show where the shock-jock would apparently try and “resolve issues” between celebrities and members of the public. For its part, Ten was decidedly quiet on the idea, nor did […]

by B&T Magazine

B&T Magazine
L’Oréal launches AR driven app at Cannes Lions
  • Media

L’Oréal launches AR driven app at Cannes Lions

In the first session hosted on the Lions Innovation stage, L’Oreal’s SVP Open Innovation & Digital Services Esohe Omoruyi hosted an engaging discussion showcasing the beauty giant’s journey of digital transformation. Joining Omoruyi on the panel were Lubomira Rochet, Chief Digital Officer, L’Oréal and Parham Aarabi, CEO of Modiface –  the first tech company to […]

Roseanne Spin-Off All But Confirmed, As Barr Waives Legal Rights
  • Media

Roseanne Spin-Off All But Confirmed, As Barr Waives Legal Rights

A Roseanne spin-off has all but been confirmed after the show’s former lead, comedienne Roseanne Barr, agreed to waive her rights to the characters that she helped create. The sitcom, that aired on Network Ten in Australia, was sensationally axed last month after Barr sent a racist tweet aimed at former Obama adviser Valerie Jarrett that likened her to […]

by B&T Magazine

B&T Magazine
P&G Partners With Queen Latifah To Support Gender Equality In Adland
  • Media

P&G Partners With Queen Latifah To Support Gender Equality In Adland

P&G has advanced its commitment to gender equality through a series of new actions, commitments and partnerships to increase diversity throughout the creative supply chain. This will lead to more accurate and positive portrayals of women in advertising and media, and driving growth and social good. B&T is doing its own part in supporting gender […]

The Best Of CX On Show At ADMA Global Forum In August
  • Partner Content

The Best Of CX On Show At ADMA Global Forum In August

Australia’s foremost think tank for data-driven marketers, adland devotees, thinkers and creatives – ADMA Global Forum – returns to Sydney on August 30-31 and, once again, boasts a stellar line-up of expert speakers that is as authoritative as it is diverse. The words ‘customer experience (CX)’, ‘customer engagement’ and ‘customer centricity’ have been bandied around for the last few […]

Partner Content

by B&T Magazine

B&T Magazine
The 65th Cannes Lions International Festival Of Creativity Opens Its Doors
  • Media

The 65th Cannes Lions International Festival Of Creativity Opens Its Doors

Cannes Lions opened today against the backdrop of the Côte d’Azur. Lions Health, the specialist two-day event celebrating creativity across pharma and healthcare communications, kicked-off with content exploring life-enhancing innovations and ideas. Sessions included insights from ustwo Health on the global digital health market and a talk exploring patient engagement in the social media era with […]

Cummins&Partners Wins Round One Of The Siren Awards
  • Advertising
  • Campaigns

Cummins&Partners Wins Round One Of The Siren Awards

Cummins&Partners creative team, Chris Ellis (left in photo) and Chay O’Rourke (right) have taken out the single category and overall win in round one of the 2019 Siren Awards with the ad for Reflex Paper, “It Always Looks Good on Reflex Paper: Postman”. Ellis and O’Rourke said: “Everyone knows the saying ‘It looked good on paper’, we […]

Aussie Study: Female Adlanders’ Salaries Rocket, But Still Significantly Lag Men
  • Media

Aussie Study: Female Adlanders’ Salaries Rocket, But Still Significantly Lag Men

An Australian study into the salaries of different professions has found that women who work in the advertising industry have enjoyed one of the biggest year-on-year rises in their pay cheques, however, they’re still a long way off what their male counterparts are being paid by a good $35,000 annually. The study was conducted jointly by the Australian Taxation […]

by B&T Magazine

B&T Magazine
David Droga: Advertising Isn’t Going Away, Just Really Sh*tty Advertising Is Going Away
  • Media

David Droga: Advertising Isn’t Going Away, Just Really Sh*tty Advertising Is Going Away

David Droga, arguably Australia’s most successful creative having won more Cannes Lions than anyone else in history, opened the 2018 Cannes Lions Festival of Creativity on a apt topic: the power of creativity. Droga reflected on his career to date and then shared just one piece of recent work. “I’m going to show you one […]

IPG Study: Aussie Ad Spend Per Head Now Second Only To The US
  • Advertising
  • Media

IPG Study: Aussie Ad Spend Per Head Now Second Only To The US

The Australian advertising economy will increase by three per cent this year, according to the latest forecast by IPG Mediabrands’ media intelligence and investment division, MAGNA. The new forecast is in line with previous MAGNA estimates for this year and sees a similar level of growth to 2017.  Australia remains one of the most advanced and […]

by B&T Magazine

B&T Magazine
Charity Group Unveils Glorious Ad Highlighting The Daily Challenges For The Disabled
  • Campaigns

Charity Group Unveils Glorious Ad Highlighting The Daily Challenges For The Disabled

A new ad highlighting the everyday hassles and tribulations of people with disabilities is proving as witty as it is human. The ad is the work of Swiss disability advocacy group Pro Infirmis and show’s people with disabilities dealing with every maladies – awkward dates, weak grocery bags, dog droppings and the infamous red sock in […]

by B&T Magazine

B&T Magazine
Nude Mum The Star Of New Mars Campaign Via Clems Melbourne
  • Campaigns

Nude Mum The Star Of New Mars Campaign Via Clems Melbourne

Mars Bar Australia and Clemenger BBDO Melbourne have launched a new brand platform for the iconic chocolate bar, ‘Enough Chocolate to Deal with Anything’. Representing a shift away from positioning Mars Bar as something that provides energy, the new platform aims to showcase how the chocolate bar can provide Australians with the confidence they need […]

by B&T Magazine

B&T Magazine
Arq Group Activates New Branding By Hulsbosch  
  • Media

Arq Group Activates New Branding By Hulsbosch  

Arq Group has launched a new identity created by award-winning agency Hulsbosch, with the business rebranding from Melbourne IT to Arq. Previously known as Melbourne IT, the company was founded in 1996 as one of Melbourne University’s commercial ventures with the sole rights to manage .au domains in the early days of the Internet. Melbourne IT […]

Adshel Unveils ANZ Takeover Via PHD
  • Campaigns
  • Media

Adshel Unveils ANZ Takeover Via PHD

ANZ, in partnership with PHD and Adshel, have taken to the streets with a total take-over of the entire Adshel Live network. For one hour, between 8am and 9am on Tuesday 19 June, ANZ is inviting commuters to download the new ANZ app by showing six different ways the app can help them manage their […]

Nine Launches Big Ideas Pop-Up Store
  • Media

Nine Launches Big Ideas Pop-Up Store

Nine has today launched a new pop-up store, The Big Ideas Store by 9Powered, which will host a series of events, workshops, research studies and guest speakers that demonstrate how Nine’s integrated business works to formulate better solutions to the challenges facing marketers. Over the next two weeks, The Big Ideas Store will highlight how […]

Gillian Armstrong: Adland’s Become “Brainwashed Into Thinking All Directors Have Beards”
  • Advertising

Gillian Armstrong: Adland’s Become “Brainwashed Into Thinking All Directors Have Beards”

Acclaimed Australian director Gillian Armstrong has launched a scathing attack on the agency “boys’ club” that, she believes, continue to ignore female directors for TV campaigns. Armstrong, 67, cited stats that show half of all graduate directors leaving Aussie colleges are now female, they’re regularly cleaning-up in short film competitions, however, it’s not translating to directing work within the industry. Only about […]

by B&T Magazine

B&T Magazine
Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business
  • Media

Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business

IPG’s Initiative and Dentsu’s Carat have both been awarded a slice of the West Australian government’s $65 million spend. The government account is broken into two entities – campaign and non-campaign – each with its own agency roster. Carat has retained its long-standing position on the agency panel for all campaign work, which accounts for […]

A Golden Opportunity! Lucky Numbers For Sale!
  • Marketing

A Golden Opportunity! Lucky Numbers For Sale!

In case you missed it last week, a very lucky phone number – 1800 80 80 80 – is up for sale. And it could be yours!

Partner Content

by Customer Connect

The AppNexus Marketplace Launches Guaranteed Views
  • Technology

The AppNexus Marketplace Launches Guaranteed Views

AppNexus, the world’s leading independent advertising technology company, today announced the launch of Guaranteed Views, a marketplace product that changes the way advertising is bought and sold on the open internet. Guaranteed Views enables marketers and agencies to pay only for ads that are measured as viewable and is the first programmatic product that enables 100% viewable buying at scale outside of Facebook and Google.

Women In Media Profile: Kirsty Bloore
  • Media

Women In Media Profile: Kirsty Bloore

Bereft of any Monday motivation? Let today's Women in Media profile be like low-current electric waves to the brain.

by B&T Magazine

B&T Magazine
Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%
  • Marketing

Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%

• Ad spend in Australia forecast to grow by 2.8% in 2018 , with main drivers of growth in Government, Retail, Finance and Gambling sectors. • Global advertising spend to grow by 3.9%, revised up from 3.6% in January 2018. • Digital to overtake TV for the first time, to reach 38.4% of global share (TV 35.5%). In 21 out of the 59 markets tracked, digital will be the leading advertising channel in 2018. • One quarter (25.2%) of global ad spend will be delivered through mobile devices for the first time.

Pac Mags Appoints New Client Strategy Director For Victoria
  • Media

Pac Mags Appoints New Client Strategy Director For Victoria

Seven West Media’s Pacific Magazines has announced the appointment of Emma Baston as client strategy director for Victoria. Baston has worked in senior digital media buying and planning roles at various agencies including UM Australia, Cummins&Partners and MindShare, with exposure across the strategy, communications and creative process. She has also worked at Facebook in a […]

Seamless pattern of a crowd of many different people profile heads. Vector background.
  • Media

SBS Launches Diverse Communities Content Initiative

SBS has launched the Short-Form Content Initiative, a commitment to providing increased opportunities for Australian creatives from diverse communities through the commissioning and production of content for SBS On Demand. SBS has partnered with five of Australia’s screen agencies, including Film Victoria, Create NSW, Screen Queensland, Screenwest and South Australian Film Corporation. The initiative aims […]

BIG W Unveils Toy Mania Via M&C Saatchi
  • Campaigns

BIG W Unveils Toy Mania Via M&C Saatchi

BIG W, the home for families, fun and entertainment, has today launched its annual toy sale campaign – Toy Mania. Running until 11 July, the campaign showcases the frenzy and hysteria that comes with the BIG W toy sale. It also highlights that buying toys can be just as fun as playing with them and […]

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’
  • Technology

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’

Datorama, a global technology company, today announced the launch of Data Canvas, a suite of new data visualisation capabilities within its Marketing Intelligence platform. Datorama Data Canvas leverages the power of artificial intelligence (AI) in a brand new way — to help marketers create expert-designed dashboards to tell compelling, data-driven stories. Datorama’s previous AI releases have […]

Who’s Looking The Goods At Cannes Lions 2018
  • Opinion

Who’s Looking The Goods At Cannes Lions 2018

In this opinion, Fjord lead Bronwyn van der Merwe (pictured below) discusses the work to look out for at Cannes Lions 2018. I fully expect there will be some staggering examples of creative brilliance at Cannes Lions this year, and I’d recommend anyone going resists having their attention pulled by projects that are largely based on […]

Opinion

by B&T Magazine

B&T Magazine
We Are Social Acquires Socialize
  • Media

We Are Social Acquires Socialize

We Are Social has acquired Socialize; however, it will not be renamed We Are Socialize or even Margaret for that matter.

Global Marketing Player adm Appoints Country Manager For Australia & NZ
  • Marketing

Global Marketing Player adm Appoints Country Manager For Australia & NZ

International marketing services business adm Group Ltd has appointed Matt Cave as its country lead for Australia and New Zealand. Cave (pictured above) has more than 25 years of industry experience in the Asia-Pacific region, and will be instrumental in driving adm’s expansion throughout Australia and New Zealand. With 26 offices in 19 countries around […]

Weploy CMO Ben Eatwell: “We Want To Help Businesses Challenge The Status Quo”
  • Media
  • Technology

Weploy CMO Ben Eatwell: “We Want To Help Businesses Challenge The Status Quo”

Weploy began with a shared realisation between two friends that recruiting quality staff had become too complicated and it was high-time so declutter the process. Based in Melbourne, the start-up combines Tinder-style online skills-matching with Australian job market, and in doing so, rids eager employers of the strenuous – and at times incredibly uncomfortable – […]

Nielsen Acquires Sydney-Based Media Analysis Business Landsberry & James
  • Marketing

Nielsen Acquires Sydney-Based Media Analysis Business Landsberry & James

Nielsen has announced it has acquired Landsberry & James (L&J), a leading media analysis and software company based in Sydney, Australia. L&J designs, develops and markets software across the entire media analytics, planning, buying and post analysis process for television, digital, radio, advertising expenditure and advertising creatives. Nielsen’s investment in L&J enables an unparalleled and powerful […]

Pac Mags’ Home Beautiful Partners With Harvey Norman To Launch ‘Cooks Co-Op’
  • Marketing
  • Media

Pac Mags’ Home Beautiful Partners With Harvey Norman To Launch ‘Cooks Co-Op’

Home Beautiful and Harvey Norman have partnered on a new content series which will transform a quintessential Aussie shed into a field-to-fork restaurant whilst showcasing culinary local heroes. In 2012, Martin Boetz (pictured above, right) – the chef behind the cult following of Longrain during his 13-year stint – escaped the bustle of the big smoke […]

Music Feeds & Purple Sneakers Join Forces
  • Media

Music Feeds & Purple Sneakers Join Forces

Music Feeds and Purple Sneakers have unveiled a new strategic partnership that will allow music industry and direct advertisers to extend campaign bookings across all Purple Sneakers digital platforms when booking with Music Feeds. Founded in 2005 by Martin Novosel as a club brand and events company, Purple Sneakers is a key player in the Australian […]

by B&T Magazine

B&T Magazine
Headway & App Annie Get Ready For FIFA 2018
  • Media
  • Technology

Headway & App Annie Get Ready For FIFA 2018

Headway, the leading data-driven media buying company, has teamed up with market data and insights company AppAnnie. Together, the companies have unveiled The App Marketer’s Guide to the World Cup – a whitepaper designed to help app marketers succeed. Every year, flagship sporting events are breaking the internet with increasing viewership and the 2018 FIFA World Cup […]