3 Seconds to Fame and Fortune

I've got a book somewhere in a box in the attic or garage written by a famous car dealer who got into the ad agency business, wrote several books, and was kind of a big deal back when.

And to tell the truth, I don't remember the guy's name, or the name of the book or the name of his agency, but I do remember one of his ALL-CAPITAL-LETTERS, highlighted-and-underlined, never-forget-this rules of automotive advertising.

And I only remember it for one reason: When I read it, I thought it was the stupidest thing I'd ever heard. Still do.

The guy got rich and famous telling dealers to never, ever, under any circumstances, let any of the viewers/listeners of your ads know you're trying to sell them a car until at least 7 seconds into the ad. I knew he was wrong then, and today, 20 years later, I've got the scientific evidence to back it up.

A new ad skipping study of 100,000 viewers from Tivo, presented to the Advertising Research Foundation, finds that viewers who become emotionally engaged in a TV spot within the first few seconds were dramatically less likely to fast forward through the ad than those who were not engaged.

No new information here, just scientific proof of the obvious fact that people pay attention to stuff that they're interested in, and more importantly, tune out the vast majority of stuff that they're not.

Whether it's radio or TV or any other form of advertising you've only got seconds to grab the consumer's attention, before they mentally tune you out or physically click away from your message.

I can't tell you the number of dealer spot I hear that start with the weather report: "Well, Spring is in the air, flowers are blooming, and here at Jone's Brothers Motors, we're..." Blah, Blah, Blah.

If you were in the market for a new Merdedes, what would get your attention faster, another "spring is in the air" spot or "Over 50 Mercedes Benz C300’s in stock from just $399 a month at Ed Hicks Mercedes Benz"?



Instead of wasting the three most important seconds of your relationship with a potential customer with the weather report, zoom in on the 1% of the population in the market for a car, and right off the bat, grab them by the ears and tell them you can make them a great deal on the car they want. TODAY.

--Terry Lancaster is the co-founder of instant-events.com, an automotive advertising services firm with dealer clients in every English speaking nation on the planet

Buyers Switching to Used Cars

At a time when new car dealers are desperate for every sale, a remarkable number of shoppers are drifting out of the new car market and purchasing a used car instead. Edmunds.com has determined that approximately 511,000 used cars sold in the past three months would have been new car sales in a more normal economy.

"It is safe to assume that many shoppers who normally would be tempted by 'new car smell' and the latest automotive technology made a more cost-conscious decision because of economic pressures," surmised Edmunds.com Senior Analyst David Tompkins, PhD, whose team studied historical ratios of online research and actual sales of new cars versus used cars.

"Right now, dealers need to maximize their short-term profitability more than ever," observed Edmunds.com CEO Jeremy Anwyl. "So it is really no surprise to learn that salespeople are directing some car buyers toward used cars, which have historically delivered a much higher profit margin to the dealer."

Edmunds.com's research shows that recent model year used vehicles have been sold at a faster rate by franchise dealerships lately; in the past, vehicles that were one model year old made up about 11 percent of all dealership sales, but lately they have jumped to 16 percent.

Consumers Turn to Used Cars Instead of New

It's no secret that new car sales at US dealers have been in a steep decline for several months as people worry about their financial future. But many consumers still need a new, if not "brand new" car, and interest is peaking on used cars, as people look to replace their current vehicles. And the category of certified pre-owned vehicles are doing unexpectedly and exceptionally well.