Results from a new self-commissioned study demonstrating the positive impact of sentiment-driven media on automobile consideration and sales were revealed today at a Broadcast Research Council (BRC) event in Toronto. According to the study, established media, including television and radio, play a pivotal role in building up the sentimental connection consumers have with automotive brands. The study investigated ROI and found that while Search played a role in capturing sales during the active state, television and radio were responsible for creating demand and building consideration – actually getting brands on to consumers’ proverbial podium. The study, developed by Bell Media in partnership with MediaCom Business Science and a major automotive company, is the first of its kind in Canada.
The project evaluated two models for automobile sales: the “Sales Model”, which captures short-term sales in the active phase of purchasing, and the “Sentiment Model”, which measures social buzz. Television and radio advertising drove 90.1% of positive buzz within the category and this resulted in a nearly 10% increase above and beyond the short-term sales for which this media is responsible. The research results also demonstrated that broadcast channels led the way during the passive phase, the time when the Top 3 car brands are put on the podium for consideration in the minds of consumers intending to make a purchase. Search did not play a role in getting brands on the podium and did not generate buzz, which is a key driver needed to establish brand health and generate long-term sales.
Key findings from the study include:
- Advertising on broadcast channels are driving the lions’ share of positive buzz in the automotive category with a nearly 10% increase in sales driven by television and radio – a dividend payout on the original media investment.
- In the demand-generating media category, TV and radio achieved the strongest return on advertising investment at $21.55 and $7.44, while newspapers scored the lowest at $1.36.
- Media advertising accounted for 29% of vehicle short-term sales over a three-year time period.
The research findings are based on a three-year time period and include advertising executions in several markets across Canada.