Auto Shows: Are They Worth It?

Introduced as a concept at the 2008 North American International Auto Show, the Cadillac CTS Coupe will soon go into production. However, how would GM have introduced the vehicle to the world without using the auto show venue to roll out the car?

From November through April, auto shows are held in cities across the US, sometimes outside of that particular time frame. New car shows allow dealers to showcase their latest cars and, if the venue is popular enough, include a number of concept cars and special presentations from the automaker itself.

This past fall was a very trying time for the world’s automakers, so much so that several automotive manufacturers curtailed or canceled their plans to appear at some of the key shows including Los Angeles and Detroit. Indeed, at this year’s North American International Auto Show in Detroit, seven manufactures pulled out, including Nissan/Infiniti, in a bid to conserve resources.

But, is not having a presence at an auto show a mistake?

According to the results of a consumer survey conducted by Foresight Research (a full-service market research company primarily serving the automotive, financial services and health-care industries), auto shows are still of great value to automakers, delivering better return on investment than many other forms of marketing.

Gleaned from the survey, one out of four new vehicle buyers said they attended at least one auto show in a 12 month period prior to purchasing their vehicle. Among all buyers 10% said that the auto show had a significant influence on their purchase.

The survey also revealed that most often auto shows impact buyers early on in the shopping process as 51% of the respondents indicated that the auto show influenced their interest in a brand or type of vehicle; while 39% said it influenced their decision to shop at dealerships for that vehicle. Lastly, 19% said the auto show influenced their final purchase decision.

The Foresight Research Marketing survey was conducted this past fall among nearly four thousand recent vehicle buyers – people who purchased or leased a vehicle that was acquired during the 2008 model year. These consumers were questioned about what influenced them to shop for and ultimately purchase or lease the vehicle they chose.

So if you are an automobile manufacturer and you are considering skipping an upcoming show, you may want to rethink your strategy. Certainly, money is tight, but auto shows clearly offer a compelling reason why they should be part of an automaker’s overall marketing strategy including your own.

Source: Foresight Research