Panelists: Experience trumps cost for younger buyers

Dealers need to change how they advertise and beef up their customer experience to woo younger buyers who act differently than the shoppers that came before them, according to experts from a host of leading media companies.

Speaking Thursday at the J.D. Power Auto Summit in Las Vegas, executives from Spotify, Meta, NBCUniversal and Roku said Gen Z and millennial car shoppers often don't respond as well to traditional advertising because they don't consume TV or radio ads the same way their parents did.

"They're digital natives, they're inherent multitaskers, they're diverse not just ethnically but in their interests as well, they are very frugal and they're allergic to traditional advertising," said Rich Kim, senior manager, vertical marketing at Roku.

Gen Z's proclivity to multitask means that some audio ads work well since they often listen to music as they work out or cook, said Craig Weingarten, category development officer, automotive, Spotify. But he noted that isn't always the case as some of the media content younger shoppers consume comes without adsl.

"As they get into their prime product years, you need to figure out a way that your message lands with them," he said.

Amy Petersen, vice president of client partnerships at NBCUniversal, pointed to a recent ad campaign with Ford Motor Co. as an example of how brands can reach young buyers where they are.

NBCUniversal aired the reveal of the F-150 Lightning last year across its networks including Bravo, E!, SYFY, USA Network, Golf Channel, Universo and Telemundo. It also posted a series of ads leading up to the reveal and aired a special segment on "The Tonight Show with Jimmy Fallon" that lasted more than five minutes. She said the reaction was positive because they gave viewers multiple ways to watch.

Bob Lanham, head of automotive retail for Meta, said another way to break through the clutter was to create meaningful experiences either online or in-person that go beyond salespeople looking to land a deal.

Boomers "want to negotiate, they want to go into the store, they want to haggle because that's all we ever told them what to do," he said. "We now have a generation that's willing to pay more for a vehicle, product or service because experience to them is more valuable than the price of the car."