Nielsen research shows that green marketing by auto companies continues to have a positive effect on consumer perceptions with 51 percent of consumers reporting that green marketing initiatives increased their consideration of the product. This is up 24 percent compared to 2010. Social media discussion about auto makers’ green marketing initiatives has also been more positive this year with a 44 percent increase in positive discussion versus 2010.

“Our research identifies how effective auto manufacturers are in raising awareness of their green products, initiatives, and innovations,” said Lois Miller, President, Nielsen Global Automotive. “We can then understand if they were able to change perceptions and consideration in a positive way among consumers.”

“We are thrilled that Nielsen Automotive has again chosen the Los Angeles Auto Show to host its increasingly important Green Marketer of the Year Award,” said Brendan Flynn, Director of Communications for the Los Angeles Auto Show. “Nielsen’s award provides an accurate and important gauge for auto makers and makes a perfect addition to the green story at the LA Show.”

Methodology
To determine the finalists and winner, Nielsen leveraged three research studies to incorporate awareness levels and perceptions across media types. The studies included:

• A custom survey of nearly 7,000 consumers’ cross-media awareness and perceptions of environmental messages by automotive brand
• Response data from 2.5 million viewers of national television advertising collected by Nielsen’s ad effectiveness measurements service, focusing on green automotive ads
• Measuring social media “buzz” sentiment within green-related discussion threads

Auto manufacturers that ran any national TV ads with “green” themes between October 2010 and September 2011 were eligible for consideration.

To determine the finalists and winner, Nielsen leveraged three research studies to incorporate awareness levels and perceptions across media types. The studies included:

• A custom survey of nearly 7,000 consumers’ cross-media awareness and perceptions of environmental messages by automotive brand
• Response data from 2.5 million viewers of national television advertising collected by Nielsen’s ad effectiveness measurements service, focusing on green automotive ads
• Measuring social media “buzz” sentiment within green-related discussion threads

The results showed that consumers have definite high awareness of environmentally friendly ad campaigns, with eight in 10 consumers in the cross-media awareness survey reporting seeing “green” auto ads recently. Also notable is the generally positive nature of discussion surrounding green topics for auto brands in consumer-generated media (CGM). Less than 1 percent of discussion was negative on average. This is also reflected in the number of consumers who said green ads shift their opinion of the brand, with two-thirds saying their opinion was more positive after seeing these ads.

“We have seen a heightened awareness among consumers for environmental initiatives in the auto sector,” said Lois Miller, President of Nielsen Automotive. “The key benefit is that with this awareness is also a more positive view of the brand and ultimately, this can help auto manufacturers reach consumers that may not have considered their brand before.”

When asked if they would be willing to pay more for an electric car than the cost of a conventional car, 65% of U.S. consumers said they did not want to pay more for electric cars. In the U.K., more than three-quarters (76%) were unwilling to pay more. Of those who accepted the price differential, slightly more than half of consumers in both countries (51% U.S., 57% U.K.) said they would not be willing to pay more than $5,000 above the average price of a standard vehicle.

“Although electric cars have been around for a while, big car manufacturers like Chevrolet and Nissan have been ramping up their advertising efforts recently as they get ready to introduce their new offerings – the Chevrolet Volt and Nissan Leaf,” said Sallie Hirsch, SVP of Research for Nielsen’s automotive unit. “There are some obvious challenges, such as the higher cost of electric cars, that advertisers will need to navigate as they develop their marketing campaigns, but the overall interest shown by consumers in this survey is promising. As electric vehicles are brought further into the mainstream and begin gaining in popularity, the cost will likely come down and many of the other challenges will be addressed as well.”

Through its advertising effectiveness and engagement tools, Nielsen has begun measuring the new national TV ads that debuted last month for the Nissan Leaf. The Leaf ads are part of Nissan’s new “Innovation for All” campaign, which has been gaining traction across Nielsen’s key resonance metrics for recall and likeability.

The increase in advertising is a sign of a rebound in the auto industry, which has struggled amidst the prolonged recession and weak consumer confidence. Of the top 20 product categories in U.S. ad spending, the largest growth in the first half of 2010 was seen in automotive as auto sales began to improve. According to Nielsen, in the first six months of the year, more than $42 million was spent in the U.S. advertising the Chevy Volt and Nissan Leaf brands. Overall, $3.5 billion was spent on auto advertising in the first half of 2010, up 27% over a year ago. The increased automotive advertising was driven largely by spending by Chevrolet parent company, General Motors, which was up 95% over last year.

Despite modest improvements in consumer confidence and a resulting boost in car sales, Nielsen’s survey on electric cars, which was conducted in September among more than 2,300 people in the U.S. and U.K., also showed that inflated gas prices continue to weigh on the minds of recession-weary consumers when considering the purchase of a new car. In fact, despite the global push towards choosing more fuel-efficient and environmentally-friendly cars, 78% of consumers in both the U.S. and U.K. said their main reason for wanting to buy an electric car was to “save on fuel costs.” Helping the environment ranked second on consumers’ list of priorities. While more UK consumers (70%) than U.S. consumers (63%) were likely to cite the environment as a reason for going electric, U.S. respondents were 60% more likely than their U.K. counterparts to say they would buy electric to support the companies making the vehicles.

Challenging some pessimistic expectations, only 16% of the respondents said they were skeptical about the new Russian business and government initiative to develop a new city car with a hybrid or fully electric drivetrain, while 62% fully supported the idea.

A surprising 85% noted they would consider buying if the new car were available now, but only if it met key requirements such as design, dependability and durability.

Twelve percent of participants said that they would consider buying the hybrid city car if it had a unique design that set it apart from existing car models. At the same time, only 4% noted that the innovative fuel supply system was a key consideration, despite it being one of the main advantages of the new car.

A large majority (63%) of Russian car owners stated that quality assembly was of primary importance, and, as expected in the current economic situation, affordable price won 57% of the votes. Long-term cost-effectiveness, such as low fuel consumption and maintenance costs, was important for one in four of those surveyed. Adaptability of a the car to the tough Russian climate was a significant factor as one in three car owners noted it as a purchase consideration condition.

“The results of the survey demonstrate not only the potential of the new initiative of the Russian business to launch a new city automobile, but also provide insights into consumers’ priorities when it comes to purchasing new cars in general,” said Alexey Mishukov, the leading expert on the Automotive market Studies, Nielsen Russia.

“The key takeaway is that in the short-term, it is more beneficial to take into account ‘utilitarian’ motivation of consumers,” Mishukov added. “Five of the most popular factors are directly connected with saving: affordable price and cost effectiveness of ownership. Among non-price factors, Russians are focused the practical side of the deal as well. The most important for them is adaptability of a car to the rough local climate and road conditions and a high quality of assembly.”

Some insights on the Insight

The 2010 Honda Insight is having a tough time breaking out of the Prius’ shadow as the majority of consumers often compare the two vehicles. However, keep in mind that the Honda Insight just came on the market in March 2009 while the Toyota Prius has been around for roughly 10 years. Buzz generated by the Insight’s release in March was no comparison to the attention it gained at the Paris & Detroit Auto Shows.

Shoppers, Buyers and Rejecters are turning to Twitter to tweet about their intentions and experiences. Thus far, the 2010 Honda Insight is outpacing both the 2010 Prius and 2010 Ford Fusion on Twitter.

Which hybrid has the most “positive” charge?

2010 Honda Insight online discussion is driven primarily by comparisons to the Toyota Prius. Price is frequently referenced as the Insight’s selling point; however, some do not feel that the difference in price makes up for the Insight’s lower MPG rate (compared to the 2010 Prius) or perceived lack of features. When diving into the topics surrounding the conversations around the Insight and Prius to gauge sentiment, the Insight created a more polarized view.

If consumers regularly evaluate the Insight as a potential “Prius Killer,” the Insight may fail to emerge with a unique reputation, divorced from the Prius. The perception that the design of the Insight is too similar to that of the Prius highlights the belief that the Prius is the gold standard to which all other hybrids must aspire. Insight and future hybrid cars will have to keep an eye not only on the road, but also the web to help shape the conversations of the new breed of hybrid shopper.