Online channels shape consumers' buying intentions for next car as traditional advertising's influence wanes
Zarca Interactive study reveals insights from brand and type preference to colour and country of origin choice
Dubai, United Arab Emirates, 28 May 2012. The combined TV, radio and outdoor advertising spend of the UAE's automotive industry in 2011 was AED 161 million yet the majority of potential car buyers in the country admit that their car purchase decision is not driven by broadcast or billboard ads, according to a survey conducted by Zarca Interactive.
The study also revealed that consumers are increasingly turning to social media for advice and opinions that eventually determine the brand or type of car they invest in.
Just 10.14 per cent of the 444 people who participated in the survey said that their decision to buy a car is influenced by TV ads and only a further 5.41 per cent base their decision on outdoor billboards. Even less is the influence radio exerts on consumers' car buying intentions with just 2.70 per cent of those surveyed saying that their decision was influenced by messages emanating from the airwaves. UAE nationals are the demographic group most likely to be influenced by opinion/reviews from friends & family but the least to base their decision on TV ads.
As the study showed, a total of 25.67 per cent of participants agreed that their decision to buy a car is influenced by opinions and reviews appearing on online blogs, forums as well as Facebook and Twitter.
"Advertisers, marketers and communicators need to veer to the fast lane where actual consumer decisions are swayed away from traditional media. Look at mobile advertising figures in America which is estimated to exceed the US$ 5 billion mark by 2015. Information consumption habits constantly change due to technological innovations and markets and sectors need to move with the times," said George Kotsolios, Joint Managing Director, GolinHarris, a communications agency in Dubai.
Auto makers invested a mere AED 24 million in online platforms in 2011 despite evidence that the influence of traditional advertising in the automotive industry seems to be losing traction at the expense of the proliferation of social media which are gradually establishing cyberspace as a preferred channel for automotive brands to showcase their unique selling propositions (USP's)
Such USP's include the country of origin of the brand. According to the Zarca Interactive study, 59.46 per cent of consumers who were asked said that the country of origin is a major influencer of their decision.
"Apart from looking at what drives UAE consumers to a certain car brand and what determines their purchasing decision, this study delves deep into UAE consumers' car buying intentions," said Javed Farooqui, Executive Director & Head Middle East and Africa Zarca Interactive. "With the exception of Germany, with four of its brands amongst those considered for purchase by UAE residents, European brands do not fare well in terms of intention to buy with Britain, France and Italy seeing just one of their brands each in the same list. Japanese and American cars list a combined total of 12 brands dominating UAE consumers 'preferences."
The highest influencers however were word of mouth, with 303 of those questioned (68.24 per cent) saying that it is the main driver of their decision to buy a car. Almost 80 per cent of respondents said that their own experience is the determining factor in deciding which car to buy.
Other factors UAE consumers cited as being instrumental in their decision to buy a car include reliability (61.49 per cent) durability (58.11 per cent), value for money (48.65 per cent), fuel efficiency (37.16 per cent) and low emissions (29.73 per cent).
Almost half of the respondents (42.57 per cent) plan to buy a brand new car and a further 19.59 per cent say that they will get a used vehicle. In terms of car type preferences, big SUV's seem to be on the radar of the majority of those looking to buy a car (33.70 per cent), followed by those with a taste for luxury Sedans (20.65 per cent).
As far as specific brands are concerned, Toyota led the pack with 25.00 per cent of respondents thinking to buy a car from the number one Japanese manufacturer. Germany's BMW came second with 13.04 per cent with Mercedes, Ford and Nissan also popular choices of consumer preference each. In terms of colour preferences, UAE consumers seem to mostly go for black or white cars with silver being the third choice, which is mostly preferred by Westerns.
Contacts: Gaurav Bhatnagar, Account Director, +971 50 4568784 gbhatnagar@golinharris.ae
© Press Release 2012
