Foresight Research: Influence of Auto-Sponsored Events Impacted by Drop in Incentives

While car sales have improved, the effects of automotive-sponsored events on sealing the deal with buyers seem to have declined as of late, according to a new study.
A reduction in available incentives deals is a likely culprit for the drop, according to researchers at Foresight Research, which released results of its 2012 Automotive Marketing Communications Study this week.
Overall, just 5 percent of all new-vehicle buyers reported being highly influenced in their purchase decision by an auto-sponsored event, down significantly from 12 percent in 2010 and 10 percent in 2009, the study showed.
Event attendance overall was also down somewhat in 2011, with the report showing that 10 percent of new-vehicle buyers in 2011 attended an auto-sponsored event during the 12 months leading up to their purchase, a drop from 13 percent in 2010.
However, among event attendees in 2011, 24 percent said they were highly influenced by the event they did attend.
Researchers cited a reduction in purchase incentives, or less enticing incentives, as a reason for the drop in event influence on purchases.
“The elements of events which traditionally have the greatest impact on lower purchase funnel measures, driving dealer traffic and influencing sales decisions, were less often available during this study’s sampling period — in particular purchase incentives and leasing deals,” said Steve Bruyn, chief executive officer of Foresight Research.
“The reduced availability of these crucial elements negatively impacted the overall influence of events on purchase decisions. However, 2012 is bringing rebounding auto sales, prompting relief on event marketing and sponsorship budgets. The number, and activation, of events is on the rise once again. Perhaps most importantly, some purchase incentives, leasing and other elements of ‘the deal’ are again available,” Bruyn said.
What did influence buyers in the study were ride and drive offerings at events: Buyers who participated in a ride and drive were influenced by the event at a 42 percent higher rate than those who did not, the report showed.
Also, six brands were cited by Foresight as showing the highest purchase influence from events among buyers, namely Mitsubishi, Audi, Mercedes-Benz, BMW, Cadillac and Jeep.
The research was compiled following interviews with 7,851 new-vehicle buyers in the U.S., Foresight company officials said.