42% Don’t Understand Full Benefits of Buying an Electric Car
Teads, The Global Media Platform, today released the results of its comprehensive automotive research in partnership with Kantar. The global study unveiled that only a few brands are already strongly associated with electric vehicles (EVs) and that there is still education needed as 42% of all respondents aren’t aware of the full benefits of an EV car. Connecting with the consumer and educating them further on EVs is key for brands to stay relevant and to build for the EV future.
A supplementary survey on the Teads platform amongst auto-intenders, specifically about impact of chip shortage on consumer purchase, showed that supply issues are seriously affecting purchase decisions. 89% of consumers looking to buy a car in the next two years, as well as those looking to buy a car in the next 6 months, are aware of the existence of a chip shortage. 31% say the chip shortage will affect their plans to buy a car, specifically 14% of immediate auto intenders globally will consider used cars, 9% will choose from available brands and 8% will delay their car buy, that number being 5% among Europeans. Customers also expect price reductions for longer waiting time, with 31% of global customers expecting such price reductions if they hold off on their new car purchase, increasing to 34% among European auto intenders.
When it comes to advertising for automotive brands, historically TV has been the dominant media choice. However, Teads’ latest research shows that consumers are increasingly relying on digital across their purchase journey and this is even more true for EV intenders. Half of EV consumers would consider going through the entire purchasing process online (vs 35% for fuel intenders), and 74% of them will continue this trend post-covid. Given the importance of digital within the consumer journey it’s interesting to note that, when looking at online channels that influence the consumer EV journey online, news sites were 1.6x more influential than social media, and consumers wanted to see video ads that were short, relevant, and skippable.
Digital ads are very powerful at driving action in the automotive market, as 90% of consumers interested in purchasing an Electric Vehicle, and 85% of overall car buyers, took action as a result of online advertising. The research from Teads found that visiting an automotive brands website was the most likely action (40%) a consumer took after seeing an online auto ad with a further 21% stating they would click on the ad.
A brand’s website is also a key touchpoint in the purchase journey as 49 % of EV intenders in EMEA start their research by visiting the brand’s website, compared to only 28% that visit a dealer. Brand websites are also the most influential sources of purchase decisions with 80% of EV intenders saying that the website has an impact on their final decision.
Auto intenders can be reached in a variety of contexts, with news and tech being the two most popular types of content before automotive. Furthermore, technological advances should feature highly in EV campaigns as those interested in EV’s value the latest technology (76%) more compared to those looking for standard fuel cars (56%).
Ioanna Stagia, VP International Insights, Teads, comments: “Our research shows a significant consumer shift towards more eco-conscious attitudes when it comes to car buying. What is also clear is that online channels are becoming increasingly important in driving the consumer journey, from awareness through to purchase. In order to maximise success, from the difficult times automakers have had, they must plan their 2022 campaigns accordingly to leverage these two key insights.”
Henner Bloemer, Global Senior Industry Director Teads, comments: “It is important to further build out the brand’s EV profile as brand reputation is key for EV intenders. Established brands have to stay attractive for highly profitable customers in order to grow in an evolving market with new competitor entries, as 57% of EV intenders are willing to pay more for an EV car.”