Mail in the automotive sector

Continuing economic uncertainty, the rising cost of motoring and the end of the Government scrappage scheme in March 2010 have depressed consumer demand for new cars.

The data in this MMC report from 2011 shows the industry faces a challenging year, though fleet sales are increasing and there are some signs of recovery.

Automotive advertising spend increased to £724m from April 2010 to March 2011 after falling by 27% between 2007 and 2010 reflecting the global economic crisis.

This report uses the latest Ebiquity, Nielsen, Ad Dynamix, Royal Mail Consumer Panel, SMMT and TGI data to offer a snapshot of the UK's automotive sector, including its advertising spend and direct mail usage.

Key findings include:

• Total new car registrations for 2010 were up year on year, though this was driven mainly by increased fleet sales rather than private sales.

• The Society of Motor Manufacturers and Traders (SMMT) forecasts a 5% dip in car sales for 2011 and predicts a total market of 1.93 million new car registrations.

• Direct mail accounts for only 4% of automotive advertising, but car buyers are more likely to be heavy responders to direct mail than heavy users of any other media other than cinema.

• 48% of adults who intend to buy a car in the next two years have done something in the last 12 months as a result of direct mail they've received.

• Nearly 40% of people who intend to buy a car in the next two years are aged 16-34, but this age group received only 15% of automotive mailings in 2010.

• Men were targeted with automotive mail more than women, but the percentage targeted at women rose from 40% in 2009 to 42% in 2010.