Win on Sunday, Sell on Monday: Nascar’s Effect on the U.S. Auto Industry

On Toyota’s 10-year anniversary, an UberMedia Business Intelligence Study quantified the Japanese manufacturer’s success of becoming integral to American racing culture.

The 2017 Daytona 500 marks Toyota’s 10th year in the Nascar Cup Series and a decade of integrating its sedan, the Toyota Camry, into American automotive culture.

In order to quantify Toyota’s success in getting the attention of Nascar fans, we used our proprietary mobile location data analysis to look into the effect that Toyota’s Nascar participation has had on influencing people to visit actual dealerships. Additionally, we looked into how winning a Nascar race could be related to dealership visits of the participating brands (Chevrolet, Ford, and Toyota).

The Great American Race

The Daytona 500 is a Monster Energy Nascar Cup Series race held annually at the Daytona International Speedway in Daytona Beach, Florida. The Speedway holds 100,000 seated spectators. With general admission it is estimated that there are 250,000 fans that attend, making the Daytona 500 the third most-attended sporting event in the country.   

Currently, Ford, Chevrolet, and Toyota all participate as manufacturers in the Cup Series, producing stock cars that are meant to resemble production-based American family sedans.

Toyota Joins Nascar

When Toyota announced it was joining Nascar in 2006, the manufacturer was met with some opposition. According to one critic, “Not everyone [was] pleased that Japanese automaker Toyota [was prepared] to join the ranks of America’s most celebrated good ol’ boys.” However, The New York Times noted that Toyota was committed “to [getting] many of the estimated 75 million Nascar fans in the United States to notice Toyota and, of course, buy one.”

The Toyota Camry was introduced into the Nascar Cup Series in 2007 and won the Daytona 500 in 2016, marking the first time an import manufacturer won the series since the first Daytona 500 race in 1959. It is currently the only import manufacturer to participate. Additionally, Toyota is an official sponsor of the series.

In January, Toyota released the 2018 Toyota Camry TRD. In an interview with Autoweek, Toyota’s VP of Integrated Marketing said that now “fans can enjoy driving a Camry that closely resembles the one their favorite Nascar driver races each weekend.”

Spectators Visit Toyota Dealerships

As it turns out, Toyota has found its place in Nascar. UberMedia’s Business Intelligence Study revealed that mobile device owners in attendance at a race where a Toyota Camry won were also more likely to be observed at a Toyota dealership in the 30 days after the race. We saw a 25.2% change when we compared that to the race attendees who visited a Toyota dealership in the 30 days before a race. When compared to the percent change Ford (3.6%) and Chevrolet (2.5%) saw, it looks like they are winning more than just races.

Spectators Visit Toyota Dealerships After a Win

Nascar Fans are Car Fans

Additionally, we found that the Daytona 500 and the start of the Nascar season provides huge exposure for the auto industry in general, driving notable increases in dealership visits from fans.

Nascar Fans are Car Fans

Key Takeaways

  • People who saw a given manufacturer win were more likely to visit that manufacturer after the race
  • Toyota dealerships saw the strongest positive correlation between a win and an increase in visits from race attendees
  • Regardless of who won, Nascar race attendees were more likely to visit any auto dealership after attending a race

Methodology

We identified Nascar fans by observing devices seen at Nascar Sprint Cup Series (now known as the Monster Energy Nascar Cup Series) races in 2015 and 2016. Additionally, our team of data scientists identified which of those devices were also seen at Ford, Chevrolet, and Toyota dealerships. Our team then analyzed the location data from those devices to provide a detailed view of Nascar fans and their visitation patterns to automotive dealers. Analysis included identifying the likelihood of race attendees to visit a dealership lot before or after a race, and whether seeing a certain manufacturer win a race was related to that likelihood.

Resources

  1. https://en.wikipedia.org/wiki/Daytona_International_Speedway
  2. https://www.reference.com/sports-active-lifestyle/many-people-attend-daytona-500-637bf2fe7f2a0e36
  3. http://sports.yahoo.com/nascar/blog/from_the_marbles/post/The-most-attended-sporting-events-in-the-country?urn=nascar,243650
  4. https://archive.boston.com/cars/news/articles/2006/01/29/toyota_joins_nascars_good_ol_boys/?camp=pm
  5. http://www.nytimes.com/2006/10/25/automobiles/autospecial/25toyota.html
  6. http://autoweek.com/article/nascar/toyota-racing-development-unveils-new-camry-nascar-cup-series

What Mobile Location Data Can Tell the U.S. Auto Industry About Car Buyers

Our new report analyzes two years’ worth of proprietary dealership visitation data to better understand what mobile location data can tell us about how people shop for cars, and which brands attract the most foot traffic and consumer interest.

The rise of mobile technology, social media, and omni-channel shopping behavior has radically changed the way we buy cars, but that’s not the whole story.

We leveraged mobile location foot traffic data from more than 18,000 dealerships across the U.S. to better understand the impact of real-world cross-shopping behavior and the value that multiple dealership visits still have on the auto purchasing journey.

“The data findings in our automotive report are intended to help guide auto manufacturers, car dealerships, and marketers through the complicated landscape of how today’s consumers make their auto purchase decisions,” said Gladys Kong, CEO, UberMedia.

Utilizing our vast amounts of high-quality location data, demographic data, and interest cues, “UberMedia Data Insights on the Auto Purchasing Journey” provides in-depth analysis of cross-shopping foot traffic data from every major automotive manufacturer and the proportion of car brands that are more frequently cross-shopped, the cities with the most prevalent cross-shopping behavior, and the most competitive brand combinations that consumers cross-shop when on the verge of an auto-buying decision.

Car shoppers visit multiple dealerships before making a decision

There are a lot of industries that have been disrupted due to the dramatic shift we have seen toward online shopping. But rest assured, the auto industry is not one of them. According to  research, 59% of car buyers still visit up to 5 dealerships before buying a car. The typical person considers 2.4 vehicles on average.

“There is so much conflicting information in the marketplace, and our empirical UberMedia mobile location data, spanning across 18,000 U.S. car dealerships, highlights the fact that consumers still actively cross-shop car brands and still engage in-person with the showroom experience. This is great news for anyone in the auto industry,” said Kong.

The car shopping journey varies by city

Cross-shopping is more common in urban areas where there are more brands and dealerships to choose from, and less common in rural areas. Angelenos visit multiple auto dealerships more than any other city.

Ford, Mercedes, and Toyota, which rank high in customer loyalty, are the some of the least cross-shopped brands by proportion of those shoppers seen in other dealer showrooms. Chrysler shoppers are more likely to be seen at other auto dealer showrooms than any other brand.

People shopping for a luxury car tend to visit fewer dealerships, suggesting that affluent shoppers tend to go to only one dealership before making a purchase. People shopping for a car from a mass-market auto manufacturer tend to visit more dealerships. We observed that Dodge and Jeep are the most cross-shopped auto brands by sheer volume across the U.S.

Bottom line: We Google it. But we also show up for a test drive.

Just because shoppers still show up to dealerships doesn’t mean they aren’t doing their research. It turns out that well-informed researchers actually visit more dealerships before buying a car. Despite the wealth of information at consumers’ fingertips, they still want personal interaction with a car brand before making a decision.

Key Takeaways

  • More than half of auto shoppers visit multiple dealerships before making a purchase. Some research sources claim that 41% of new car buyers visit one dealership, but 59% visit an average of up to 5 dealers. The typical person considers 2.4 vehicles on average.
  • Ford, Mercedes, and Toyota, which rank high in customer loyalty, are the some of the least cross-shopped brands by proportion of those shoppers seen in other dealer showrooms.
  • Luxury brands experience less cross-shopping than mass market brands, indicating that the super affluent tend to go to only one dealership before making a purchase.
  • Manufacturers that are visited by the most shoppers (who were also seen at other brand dealerships) tend to be mass market brands that in many cases ladder up to the top-ranked manufacturers.
  • Cross-shopping is more common in urban areas where there are more brands and dealerships to choose from.

To download the report, please click here.

Methodology
To uncover real-world auto shopping patterns for this report, UberMedia, a trusted mobile authority that transforms mobile behavioral data into actionable consumer insights, distilled two years’ worth of proprietary dealership visitation data combined with existing research to better understand what mobile location data can tell us about how people shop for cars, and which brands attract the most foot traffic and consumer interest.

Mobile Data Analysis Reveals New Insights on LA Rams Fans

In moving to LA, the team secured a younger, more diverse, family-oriented fan base, according to our Business Intelligence Study.

With the return of the Rams 22 years after the pro football team left Los Angeles, there has been a lot of talk about who will embrace the team and the effect their return will have on Los Angeles sports fandom as a whole.  

Now that the LA Rams have completed their first NFL season back in Los Angeles, UberMedia’s team of data scientists looked at who the “new” Rams fans are and what neighborhoods they live in. Is your neighborhood the “Mob Squad” epicenter? Check out our interactive map to see LA’s top neighborhoods for Rams fans.

Density of Rams fans by neighborhood

The Most Loyal Fans

We mapped out LA Rams fans by breaking down which neighborhoods have the highest density of fans by ZIP code. Not surprisingly, our map shows a big draw from neighborhoods in South Los Angeles like Hawthorne and Inglewood, close to where the new stadium is currently being constructed.

By providing an objective look at who actually attends Rams games, UberMedia created a powerful tool to inform businesses and the City of Los Angeles on how to better plan for and cater to these specific and influential fan bases.

Where else are the majority of Los Angeles Rams fans coming from? Well, according to our interactive map, Vermont Square, West Hollywood,  Beverlywood, Hermosa Beach, Century City, among others

Who Are Los Angeles Rams Fans?

UberMedia looked at the demographic profiles of Los Angeles Rams fans by analyzing mobile location data  across our platform. We uncovered some interesting similarities and differences between fans that attend LA Rams games at the Los Angeles Coliseum vs. fans of other Los Angeles franchises (as well as differences between Los Angeles Rams fans and St. Louis Rams fans).

We found that LA Rams fans are predominately white (40%) or Hispanic (36%), and that they tend to skew toward younger demographic along with parent-age fans, suggesting more families are attending the games. Dodgers fans tend to skew Hispanic (43.1%) with a similar family-focus. Whereas Lakers fans skew wealthier, older, and white.

How They Differ From St. Louis Fans

Additionally, we compared Los Angeles Rams fans to St. Louis fans prior to the Rams’ move to Los Angeles.

Before moving to LA, St. Louis Rams fans were nearly 75% Caucasian. After the move, LA Rams fans were 40.5% Caucasian.

Fans of the St. Louis Rams were predominately white (74.3%), especially considering that the majority of the overall St. Louis population is African American (49.1%), with Caucasians being the second-largest population (43.9%). Los Angeles Rams fans are mostly white (40%) and Hispanic (36%), reflecting a more representative draw from LA’s overall demographic distribution.

Key Takeaways

  • There is a high density of Rams fans from neighborhoods in South Los Angeles like Hawthorne and Inglewood, close to where the new stadium is currently being constructed.
  • LA Rams fans are 2x more likely to be Hispanic than the national average
  • Before moving to LA, St. Louis Rams fans were nearly 75% Caucasian. After the move, LA Rams fans are 40.5% Caucasian
  • Compared to St. Louis Rams 2015 season, LA Rams fans are 7.5x more likely to be Hispanic, 3.4x more likely to be Asian.

Methodology

UberMedia identified both Los Angeles Rams fans as well as fans of other sports franchises (including other Los Angeles teams and those of the former St. Louis Rams), by observing the devices seen at home games for each team. Our data scientists applied proprietary analysis to the location data harvested from the devices seen at games in order to provide an accurate picture of who attended.

Analysis included identifying which Los Angeles neighborhoods have the highest density of Rams fans, the demographic breakdown of fans that go to the Los Angeles Coliseum, and where fans go before/after attending a LA Rams game. Additionally, we compared the demographic breakdown of LA Rams fans to other sports franchises, including other Los Angeles sports franchises and the former St. Louis Rams.     

The UberMedia Team Places Its Bets: Here’s What 2017 Has In Store

Looking forward to another innovative and exciting year in mobile, members of our executive team weigh in on what to expect in 2017.

UberMedia CEO Gladys Kong discussed her views on 2017 resolutions with CMO.com:

Marketers should resolve to leverage mobile location data:

Most marketers use location data for social and search, and now more than half are also using location for targeting as well, according to a recent report from the Mobile Marketing Association. Marketers value location for driving brand equity and customer experience versus just leads and sales.

According to Gladys Kong, CEO of UberMedia, mobile location data will define 2017 as the year of a more intelligent, informed market strategy.

“At UberMedia, we believe that data won’t change the world without the people who understand it,” Kong said. “Harnessing the power of mobile location data to inform smarter, more strategic business decisions is the most critical component in today’s competitive arsenal, as all industries grapple with an omnichannel world in which customers are more educated, competition is fierce, and media is incredibly fragmented. Mobile location data can provide in-depth population and demographic insights, allowing retailers to analyze real-world visitation trends, assess demographic and psychographic profiles for site analysis, and forecast and measure cannibalization.”

To continue reading, please visit CMO.com.

UberMedia CRO/CMO Michael Hayes made his predictions with LSA Insider:

Agency Review-Mageddon 3.0

After two years of agency review upheaval, we can expect yet another avalanche of advertisers putting their business up for review in 2017. One recent survey found that more than two thirds of advertisers said they are seriously evaluating their advertising agency partners.

The good news is that there should be a tipping point in 2017, as CMOs will need and value stability rather than the disruption of the agency review process. And, more importantly, marketers will more heavily weight agency partners based on talent and technology acumen rather than who can buy spots and dots most efficiently.

A New and Complicated Era between Marketer, Agency & Publisher

We saw hints of this in 2016 when, after a long and much publicized pitch process, McDonalds and Omnicom created a jointly operated “agency of the future” where the client marketing team is embedded within the agency and remuneration is tied to advertiser performance.

The takeaway is that in 2017, as marketers search for new ways to grapple with the velocity, complexity, and data deluge of marketing, we will see marketers demand to be more integrated with their agencies, publishers, data partners, and tech suppliers – all embedded into one multifunctional unit.

To continue reading, please visit LSA Insider.

At UberMedia, we are at the forefront of innovation in the mobile space. We look forward to another year of developing leading technologies in this extremely fast-paced and ever-evolving industry.