Dealership Choice And The Death Of The Mainstream Auto Media

Edward Niedermeyer
by Edward Niedermeyer

As surveys go, the Morpace Omnibus Study [ full results in PDF here] isn’t perfect. But even though it’s based on only 1,000 online respondents, it’s chock full of provocative insights. Of course Automotive News [sub] misses the best one, in its haste to trumpet the headline

Buyers usually don’t consider loyalty when choosing dealershipsFine, that pulls uniques out of the dealership bullpen. The real news: when asked to rate how “influential” different media sources are on their “likelihood to visit a dealership,” respondents gave the category “magazines” the weakest scores. A mere three percent rated magazines as the top rating “high influence,” the lowest such number in the survey. A whopping 32 percent gave it the lowest “low influence” rating, the highest result in the test. And all this from a sample in which only six in one thousand rated “an effective marketing/advertising campaign” as the most influential factor in their dealership selection process, while giving top marks to “best deal offerings” (40%), “positive prior experience” (20%) and “referrals from family and friends (10%). But here’s the twist: respondents were asked to assume they already had a brand and model in mind. The plot thickens…So, what does this have to do with the Buff Books? After all, if a consumer’s mind is made up about the car they want to buy, this survey is focused on the influence of dealer rather than brand or model advertising. Dealer advertising tends to be local, so the national glossies have never gone after their business. In fact, the Buff Books are merely the lowest point of a mainstream automotive media that’s going down hard. In a surprising twist, “the internet” came out with the most “10” and “9” scores in the media comparison, barely edging out “television” 12% to 11%. Even the dread “special advertising sections” that make up most newspaper automotive “coverage” received a mere eight percent of “9” and “10” scores, while bargain-basement radio advertising took only 6%.And the effectiveness of online advertising isn’t surprising. Effective ads are ads that reach consumers as close to their active decision-making processes as possible, and for most consumers, deciding on a car means doing research online. Whether the conscious decision-making process takes place while reading reviews at a site like TTAC or doing more in-depth research and comparison at sites like Edmunds, Autoguide or TrueDelta, the ability to match imminent buyers with local advertising options is giving the online media opportunities that Buff Books have never had access to. And because decisions come in groups, former buff book advertisers like automakers, insurers and aftermarket firms are also flocking to where decisions are made, namely the internet.Obviously, a lot of this sounds like self-congratulation at the expense of a struggling industry, but it’s actually a warning. Large amounts of advertising dollars are what brought about “special advertising sections,” and the internet already has plenty of online equivalents of those newsprint “pimpatorials.” What this survey doesn’t address is whether the growing influence of online advertising is a product of sheer convenience for the consumer, or if a sharper contrast between content and advertising plays a role as well. Because only .6% of respondents thought advertising consciously made a difference for them, it seems safe to assume there’s something to that possibility. More than even the ability to put connect local ads with a global audience, the ability to allow readers to conduct valuable independent research and then click ads based on the decision they came to independently (or at least the decision they think they made independently) is the “killer app” of the new automotive media. For up-and-coming online auto media outlets, providing independent content of the highest integrity isn’t just a question of principle… it’s the pragmatic thing to do.
Edward Niedermeyer
Edward Niedermeyer

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  • Speedlaw Speedlaw on Oct 27, 2010

    Buff Books were great back just before the web. You'd wait for the thick C&D (it was hot), R&T (the staid pipe smoking sportscar guys compared to the obnoxious C/D yuppies) and Motor Trend (recycled ad copy). I still miss L.J.K. Setright.... That of course changed...C/D lost it's mojo, R&T took over the recycled ad copy job, and Motor Trend grew a pair and became a decent read. Then the internet showed up. We could suddenly find out that everyone else with our car had a suspension problem, or the fuel pumps spit, or the leak in the dash was a design flaw. The veneer of BS from the mainstream mags was gone....forever. Suddenly you knew what was only known by your dealership service manager and the warranty department back at headquarters. The mainstream books NEVER covered repair problems or defects, any depreciation issues, or admitted that there even WERE used cars, until recently. It made it MUCH more difficult to BS the customers on many, many levels. Want to find out holdbacks, used car values or "cash on the hood" ? Google it. The magazines have the same problem the music industry found....a top down model is not favored by the customer, rather, this interwebs interactive model is better for us.....not them.

  • John Rosevear John Rosevear on Oct 27, 2010

    About 10 years ago it dawned on me: The only buff books worth a damn were the 2 big Brit classic-car mags ("Thoroughbred & Classic Car" and "Classic & Sports Car") and "Sports Car Market". Then about 6 years ago something else dawned on me: Online resources had advanced to the point where I didn't really need them, either (though I'd probably resubscribe to SCM if I were in the market for a classic).

  • Jor65756038 Buick didn't built the Fiero. My mistake. I'm not sure if the consumers really want SUV's or the consumers buys what the automobile companies sell. After all, SUV's are more profitable for automakers as they are cheaper to produce and the average automobile buyer doesn't have a clue about cars. MB, Audi, Toyota, Hyundai, BMW, Tesla among others sell sedans succesfully. I don't see why Buick couldn't. Maybe it's a matter of tastes, but I find SUV's in general boring and uninteresting. And not only beacuse of their design but also when driving them.
  • Ronin Interesting, Mr Farley.Please share with stockholders your track record of forecasts with regard to your EVs, so that we can better assess the degree of credibility to lend to your latest prediction.Best regards,
  • Master Baiter Phase 1: A nanny you can turn off.Phase 2: A nanny you can't turn off. Phase 3: Your car is physically limited to 10MPH over the posted limit. Make no mistake: The end game is phase 3.
  • Mike-NB2 I had no idea these Hertz Cougars existed until today.
  • FreedMike "Passive speed imiters?" No. A little reminder on my gauge cluster of what the speed limit is? Sure.
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