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

Latest News

QMS Goes West With ‘The Leeder’
  • Advertising
  • Media

QMS Goes West With ‘The Leeder’

QMS Media continues to expand its digital portfolio across Western Australia, switching on an iconic billboard in the heart of Perth. Following the launch of two new digital billboards in the major WA regional centres of Bunbury and Kalgoorlie in recent months, ‘The Leeder’ further delivers on QMS’ digital expansion strategy out west. Positioned at […]

PR Firm Text100 Wins NetApp Account For APAC
  • Marketing

PR Firm Text100 Wins NetApp Account For APAC

Global marketing communications agency Text100 has announced it been appointed by data management company NetApp to drive its brand transformation effort across the Asia-Pacific (APAC) region. Following local competitive pitches conducted across the region, Text100 has been appointed as the APAC lead agency out of Singapore, and as the local agency of record in Australia, […]

MFA Awards 2017 Winners Revealed!
  • Advertising
  • Marketing
  • Media

MFA Awards 2017 Winners Revealed!

B&T once again donned the tux, applied the Brut, and primed the liver for last night's MFA Awards in Sydney.

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant
  • Media
  • Technology

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant

Digital publisher Concrete Playground has unveiled a new app that helps Millennials plan their night out using voice control – the first of its kind to become available in Australia. Concrete Playground’s Guide to Tonight now works with Google Assistant, making it available on a range of Google devices and helping people to decide what […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]

Patrick Delany (CEO, Fox Sports), Hugh Marks (CEO, Nine Entertainment Co), Miranda Devine (Columnist, News Corp), Michael Miller (Executive Chairman, News Corp Australasia), Grant Blackley (CEO & Managing Director, Southern Cross Austereo) at Radio Alive 2017
  • Media

Media Bosses Weigh In On Ten-CBS Deal

Do you enjoy articles featuring industry big-wigs? Well, it doesn't come much bigger and wiggier than this, we say.

by B&T Magazine

B&T Magazine