HEADING HERE DRIVINGHeading SUCCESS: THE VALUE OF PRINT TO THE LUXURY AUTOMOTIVE INDUSTRY ccBis dollecabo. Que liatem verupta teceaqui occabo. Ommolup tatempedit aut pelicim inimilibus renissequis prem veres alis sapici rem quiandunt.Rum rera nos restrum int dolor sa essint renis commolorenis anda nem quidesti ommoditRitiae nem ad quature suntiat estiam eossimpostis re

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The Power of Brand Communitiess | 1

INTRODUCTION

There’s no denying that both the automotive and print media industries have struggled to adapt to the demands of the digital world we live in.

For print media, the focus has been on how digital has eaten away at its But print media also plays a key role beyond the point of purchase, turning audience and its advertising profits. For the automotive industry, digital customers into brand advocates and delivering the luxury experience puts new demands on what is a very slow-moving business. high-net-worth individuals (HNWI) expect from a brand magazine.

Any notion that there’s value in the two industries coming together may At Dialogue, we’ve long understood the importance of print and how it raise some eyebrows. However, there’s a long history of automotive working supports retention and delivers brand loyalty. We know from our with print media, particularly in its use of brochures and specification sheets. multi-platform work with Harley-Davidson that the Harley Owners Group And print is still highly important for the sector and its clients. (H.O.G.) brand magazine plays a key role in engendering community as well as creating a platform for further sales: 62% of H.O.G. members are inspired Deloitte’s Global Automotive Consumer Study highlighted the significance to attend an event, 26% inspired to test a new model and 35% inspired to of printed products at the point of purchase – 80% of customers said engage with the brand. they found traditional information channels most useful when at a dealership, with 61% stating that they preferred printed brochures Print can provide that essential glue between the real and digital worlds, so or specification sheets.1 we wanted to assess the value of print to the luxury automotive consumer in 2020 and we have turned to data insight to do so. It makes sense. When making an expensive purchase, there’s something reassuring about a tangible, tactile list of its attributes – it confirms that it’s worth the investment.

Driving success | 3 THE REPORT

The report at a glance

ABOUT THE REPORT Meanwhile, in his book The Revenge of Analog: Real Things and Why We’ve collaborated with global audience insight consultancy entSight on They Matter, David Sax explains that the millennial fascination for print this report to evaluate the behaviour of 50,000 global luxury automotive comes from digital burnout: “Because the millennial generation came consumers in terms of how they use and value print formats. We surveyed of age with broadband, internet, smartphones and social media, we men and women of all age groups who self-identify as being in the top two assume that is all they want … [but] they don’t view digital as special. wealth tiers as well as car consumers, either owning or planning to own a car Digital is like the air around them. There’s a uniqueness when someone in the next 12 months. presents them something in an analog format. They’re more willing to see the value and not to see it as antiquated.” The data has been evaluated in comparison to a global sample, which allows us to understand how this audience ‘indexes’ compared with the norm. There is a physical, tangible reality to print magazines that exudes trust, The global sample data is drawn from GlobalWebIndex, which provides authority and credibility, which you don’t get online, especially in an era digital consumer insights across 45 countries and 40,000 data points. of fake news.

ABOUT PRINT This is even more applicable to the luxury market, where quality and Print plays a very particular role in the marketing communication mix. To exclusivity are key. OgilvyOne Director Scott Manson explains: “When understand its value, you must understand its unique purpose, which is you print something, it looks like you have gone to a lot of trouble to different to say digital, a platform that is faster to produce and take to make it. There’s a feeling when you pick up a really well-produced print market, but equally more saturated and disposable. product that love and craftsmanship have gone into it, and you can see and feel the production values.”3 Marketing success has been increasingly measured by numbers of eyeballs on content, but digital metrics have been consistently called into question Key statistics about print: as being measurable but unreliable. A key consideration for any medium is engagement and print provides all-important respite from the screen – • Consumers prefer to read the printed version of books (72%), especially relevant in the 2020 Covid-19 crisis, a period that has seen an magazines (72%) and newspapers/news (55%) over digital options – unprecedented rise in screen time, but also huge hikes in magazine and Two Sides, 2019. newspaper subscription rates. • Sales of print books are at a five-year high, while e-book sales have A Bangor University/Millward Brown study proved that the ‘real’ experience fallen by 17% to the lowest since 2011 – Publishers Association, 2017. of physical material involves more emotional processing in the brain than digital media and that is important for memory and brand associations.2 • Brand recall is 70% higher on print than digital – True Impact, 2015.

4 | Driving success THE REPORT

Key insights at a glance

The wealthier the consumer, the more they discover through print (across all age groups) The global luxury automotive audiences we analysed for this report showed a strong preference for printed media when it came to learning about new brands and products ― especially for the Rural luxury audiences respond more to stories in print, while urban audiences higher wealth groups. respond more to adverts in print - Edward Bass, Founder & Director, entSight

Brand communities are expected from luxury automotive audiences

Driving success | 5 KEY LEARNINGS

Key learnings

According to research by Aston Martin, the number of HNWIs in the world (people with $1 million-plus of investable assets) is predicted to climb from 18 million to 30 million by 2030.

In addition, there’s been a shift from inherited wealth to self-made money and the age of entrepreneurs has widened to include some as young as 18.4

With rising wealth comes a growing audience – but how can your brand reach them? Our research has provided an abundance of highly valuable insight, from brand and behaviour to content itself, but what is especially exciting is the fact that automotive luxury consumers value print and that it plays a prominent role in their lives. Here’s how…

6 | Driving success BRAND DISCOVERY

WEALTHY DISCOVER THROUGH PRINT

Brand discovery Discovery through ads in print magazines or newspapers

Average Top 10% +55pts Top 25% +46pts Top 50% +35pts

Discovery through stories / articles in print newspapers or magazines The data shows that the top 10% and 25% wealth groups discovered new brands and products more through print, Average with the top 10% wealth group over-indexing by +79 Top 10% +79pts percentage points more than the global sample (with Top 25% +60pts +30 percentage points considered to be an indication of a key trend). Top 50% +46pts

This is good news for luxury automotive brands and advertisers as it suggests that printed publications still have Discovery through ads in print magazines or newspapers (by age group) a very important role to play when it comes to ensuring Average they are ‘front of mind’ for their audience. 55 to 64 +60pts It is interesting – and perhaps surprising for some – to see 16 to 24 +43pts that both editorial and advertising are significant for this 35 to 44 +41pts audience, indicating that magazines often play the role of 45 to 54 +39pts an evolved ‘brochure’ while the advertiser is ‘educator’. 25 to 34 +34pts Even when we compare the automotive luxury audience to luxury audiences in general, the top 10% still ‘over-index’ and look to print as a key medium. And this interest in print, Discovery through stories / articles in print newspapers or magazines (by age group) stories and advertising isn’t related to age either. All age Average groups show an appetite for the medium, with each age group over-indexing by at least +35 percentage points. 55 to 64 +64pts 25 to 34 +56pts 35 to 44 +50pts 16 to 24 +48pts 45 to 54 +35pts

Driving success | 7 REGIONAL DIFFERENCES

Regional differences

While we can see there is an interest in printed advertising and content RURAL VS CITY across all age groups, there are some small variations when it comes to where people live. For discovering brands and products, rural luxury Discovery through advertising in print magazines or newspapers audiences respond more to stories in print, while urban dwellers respond Average more to advertising. Urban +41pts This is potentially the result of different time constraints audiences Suburban +35pts have in different locations. With less time spent travelling and no city Rural +32pts distractions, people in rural areas have more time to engage in long-form content compared with time-restricted city dwellers. Discovery through stories / articles in print magazines or newspapers

Average Urban +59pts Suburban +51pts Rural +44pts

8 | Driving success COMMUNITY

Print and community

Apart from reflecting their self-worth, the luxury automotive consumer audience is also looking at the provision of some form of community, just like the broader luxury audience. This is especially true for the top 10% income group. Print can be a key part of the mix.

If your customers are spending money on big-ticket items, you will need to provide aftercare – print can support this. On the graph (right), you’ll see the expectation that brands should run customer WHICH OF THESE THINGS DO YOU WANT communities or forums. You can also see the importance of BRANDS TO DO? building knowledge and making customers feel valued – two of the Average key benefits of print (see ‘The role of print’ on page 12). Run customer communities / forums +83pts Help you improve your The evolving trend of consumers expecting more interaction image / reputation +54pts post-purchase is evidenced by initiatives such as Rolls-Royce’s Support charities +39pts Whispers, a virtual members’ club offering money-can’t-buy Offer customised / +36pts experiences as well as connections with fellow owners.5 personalised products Support local suppliers +33pts Help you improve your In Dialogue’s Brand Communities report, we revealed that brand knowledge / skills +24pts communities are of vital importance to Generation Z, who have Make you feel valued +23pts come of age with social media and use it instinctively. Already, 50% Help you organise / +13pts of this 16- to 24-year-old demographic say they are members of at simplify your life least one brand community. Be socially responsible +8pts Be eco-friendly +2pts And the benefits? Generation Z is especially likely to discuss brands Listen to customer feedback +1pt or products they’re connected with, often offline as well as online. Of those polled, 31% said they frequently discussed a brand and 57% said they sometimes discussed a brand – a decisive 88% combined.

Driving success | 9 ADVOCACY

WHAT WOULD MOST MOTIVATE YOU TO PROMOTE YOUR FAVOURITE BRAND ONLINE? Reputation and Average When something enhances my online reputation / status +112pts Access to exclusive content or advocacy services (eg music, videos, etc) +92pts When I have a personal / one-on- one relationship with a brand +82pts Having insider knowledge about the brand or its product +70pts The feeling of taking part / +64pts Naturally, automotive luxury being involved When something is relevant to my +59pts consumers buy into specific brands friends’ interests because of the status it affords Love for the brand +26pts When I’ve received great +25pts them, which is shown throughout customer service When something is relevant to my the data. We see this trend in luxury own interests +23pts consumers across all wealth groups. High-quality products +8pts Rewards (eg discounts, free gifts, etc)

Exclusive content and a direct relationship with the brand itself are vital to motivating consumers to WHICH OF THESE SUBJECTS INTEREST YOU? advocate a company. The global luxury audience also

favoured ‘insider knowledge of the brand’ and ‘being +70pts +70pts +70pts +66pts +65pts +59pts +61pts +55pts +53pts +52pts +48pts +48pts +47pts +46pts +44pts +44pts +40pts +39pts +37pts involved’ as drivers of advocacy, rating much higher than +36pts the products themselves! Average

Once again, the data underlines the fact that consumers are looking for content as well as community to consolidate their relationship.

And in print media, content is elevated because of the medium’s tangibility and longevity, which in turn drives quality attention and engagement. EntrepreneurshipAdventure / extremeCharities sports / volunteeringUrban / modernBusiness art Cars / motoringCelebrity newsInvestments / gossip Dance (ballet, Finestreet, art salsa) Playing sport Fashion Economy / financeTheatre Gardening Watching sportHandicrafts Local issues Museums / galleriesCompetitions

10 | Driving success INTERESTS

COVID-19 This research was conducted during the Covid-19 epidemic. The pandemic WHICH OF THESE THINGS DO YOU WANT initially drove everyone online, so the cluttered, overwhelming digital world BRANDS TO DO? became even more cluttered and overwhelming. As a result, people turned to the physical media world, with UK magazine publishers reporting a triple-digit Average surge in new print (and digital) subscriptions. I would buy a product / service simply for the experience of being part of the +94pts community built around it Insight from magazine.co.uk, the leading magazine subscription website in the I tend to buy the premium version UK, and pocketmags.com, the fast-growing international digital newsstand, of a product +91pts reveals that the first week of lockdown saw a huge increase in print magazine I would consider myself to be much more affluent than the average person +86pts subscription page views, peaking at the end of March 2020.

I am comfortable borrowing money +84pts Although uptake in digital magazine subscriptions rose too, interest in print I like to keep up with the latest fashions +74pts subscriptions has increased by at least twice as much as digital since the

I tend to buy brands I see advertised +67pts start of lockdown. This is also true for Dialogue’s parent company, Archant, whose magazines generated 800 new subscribers per week at the start of I’d rather sign up for a membership to a product / service than pay extra to own it +66pts the lockdown.6

Other people view me as adventurous +65pts This is also true for Dialogue’s parent company Archant, whose magazines I am a risk taker +65pts generated 800 new subscribers per week at the start of the lockdown. I tend to opt in for personalised loyalty rewards from brands +65pts Indeed, print has been the saviour of some brands during the lockdown, as I like to stand out in a crowd +64pts Porsche Club GB’s George Woodward comments: “We were able to draw from a back catalogue of assets and repurpose copy from magazine features earlier in the year and post the incredible imagery on social media to ensure Club members continued to enjoy a stunning supply of Porsches in their timelines.” As you’d expect, interests vary across the luxury automotive print audience age groups. Younger audiences favour adventure sports and older Digital communities are likely to see increased interest and usage audiences prefer cars and motoring as well as political and local issues. post-pandemic as global audiences feel more comfortable interacting in this Areas of interest that age groups share are entrepreneurship, business way following self-isolation. Luxury audiences are already shifting towards and charity work. the use of e-commerce. Burberry were quick to find a tech solution to store closures, inviting influencer Yvonne Ching to visit its Shanghai store alone and As we’ve already shown, print naturally appeals to broader demographics livestream her experience on Tmall. The session achieved more than 1.4 million than digital mediums, and these interests are key in shaping the nature of views and most of the products featured subsequently sold out. the content an automotive luxury brand should be creating as part of their automotive marketing. Luxury brands should consider how to incorporate community features in their digital offering while taking advantage of the sector’s renewed appreciation for print.

Driving success | 11 CONCLUSIONS

The role of print

While a number of luxury automotive brands are already involved in print, our findings highlight the fact that it should be a key consideration for more car manufacturers. Print can serve multiple functions for brand engagement, from awareness and education to loyalty and creating a sense of community.

The role of third-party print media should be focused around awareness – we can see how time-pressed HNWIs use advertising and content to self-educate as well as inform and validate Be it from stories or advertising, their choices. these insights confirm that, even However, a brand magazine can provide a sense of community and engender long-term in an increasingly digital world, advocacy at the other end of the purchase funnel. It also fulfils an important but functional print and its accessible and tactile service. According to research, 62% of customers aren’t ever contacted after a purchase even though they still want some sort of communication from the brand.7 nature is still a vital medium for luxury automotive brands when it This is validated by the McKinsey consumer decision model, which looked at 20,000 consumers’ behaviour across five industries, including automotive. The model suggests that marketers comes to driving interest from must understand a new customer journey and acknowledge that the post-purchase experience high-value consumers. is highly significant. It shapes a consumer’s opinion for every subsequent decision in the category. After making a big purchase, customers want to feel confident that they have made - Edward Bass, Founder & Director, entSight the right decision, which means they still need support and information from the brand and/or dealership. Connecting with customers after a sale can build true customer loyalty and brand magazines are one way of achieving it.

Massimiliano Cariola, Porsche Italia Marketing and CRM Director, says: “In our world, what really makes the difference is the level of attachment and engagement with the brand, as well as the authentic, constant and consistent way the brand offers experiences to their audiences.”8

Print can provide the link between the digital and real worlds, delivering a depth of engagement unattainable in digital and a physical record of fleeting real-life experiences.

12 | Driving success CONCLUSIONS

Conclusions

Based on Dialogue’s experience with popular print products in ABOUT THE AUTHORS automotive brand communities, we invested in research to see how the luxury automotive sector responds to print. Brands simply cannot Howard Wilmot afford to ignore the data. Howard is Marketing and Data Lead at Dialogue, formulating strategy and data A printed product represents time spent and care taken in insights for the agency and its clients, production. Layout has been carefully considered for an attractive including Harley-Davidson, Bentley, the design. Words have been carefully crafted and, crucially, checked so British Automobile Racing Club and they’re perfect. There’s no option to revisit and implement a quick Porsche Club GB. Dialogue is an award- fix. Print must get it right first time. Consumers value this attention to winning team of specialist editors, content detail and trust in print for reliable and accurate information. marketers, analysts, designers, advertising salespeople and brand strategists who A printed product also invites the reader to have some time out, to create content that inspires, informs and switch off and immerse themselves in a topic of interest without excites, connecting brands with consumers distraction. And it’s not just people who were brought up reading to build passionate communities. physical literature who appreciate this analogue time – millennials [email protected] and Generation Z do too, as the data shows. Encouraging your consumer to spend time with your brand via a printed product Edward Bass engenders loyalty and advocacy, and makes them feel connected Edward is Founder and Director of entSight, and cared for. This is important for luxury automotive brands. a leading audience insights consultancy that works with leading brands, including Though we live in a multi-platform world, there will always be a place BMW, Tommy Hilfger, IWC Schaffhausen, for print among luxury automotive audiences. It is the perfect bridge Bulgari and Bowers & Wilkins. As one of between digital and real-world experiences, essential to providing the authorities on how insight and data a 360° experience that guides your consumers from education and can be used to develop more effective awareness to engagement and loyalty. audience strategies, Edward’s comment and perspective have been featured in Purchasing a luxury, big-ticket item is not just buying into a product, publications such as The Times, The Drum, it’s buying into a lifestyle. Our data shows that print is an undeniable Kommersant, FashionUnited, Raconteur part of that lifestyle. It’s up to brands to harness its power to grow an and Luxury Daily. engaged and loyal community. [email protected]

Driving success | 13 KEY LEARNINGS

Sources

1 https://www2.deloitte.com/us/en/pages/manufacturing/articles/automotive-trends-millennials-consumer-study.html

2 https://www.millwardbrown.com/docs/default-source/insight-documents/case-studies/MillwardBrown_CaseStudy_Neuroscience.pdf

3 https://prc.za.com/2017/06/13/print-offers-something-advertisers-covet/

4 https://www.ft.com/content/e81102b2-bf2e-11e9-9381-78bab8a70848

5 https://www.am-online.com/news/digital-marketing/2020/02/25/rolls-royce-launches-most-exclusive-members-club-in-the-world

6 https://whatsnewinpublishing.com/magazine-subscriptions-boom-amid-the-covid-19-crisis/

7 https://www.wardsauto.com/industry-voices/keeping-customers-coming-back-post-purchase

8 https://www.luxurysociety.com/en/articles/2020/02/porsche-how-unconventional-moving-icon-stays-ahead-luxury-game/

14 | Driving success If you would like to contribute to an updated version of this report or think we can help you with your content marketing needs, please get in touch with

Isobel Robson Email: [email protected] T: +44 (0) 1603 772 325 M: +44 (0) 7973 715 281

Prospect House, Rouen Road, Norwich NR1 1RE | +44 (0)1603 664242 5th Floor, 31-35 Kirby Street, London EC1N 8TE | +44 (0)207 6052213 [email protected] | archantdialogue.co.uk