Majority of the vehicle purchases in India will be mobile-influenced between now and 2022. Also, optimising mobile in the auto marketing media mix can help create a potential sales opportunity of over 3.6 million vehicles between brands by 2022, a joint report by Facebook and KPMG released on Thursday said.
The Zero Friction Future Report suggests that by 2022, approximately 8 in 10 (81%) four-wheeler (4W) purchases and approximately 7 in 10 (68%) two-wheeler (2W) purchases will be mobile-influenced. Also, approximately 1 in 2 four-wheeler purchases (47%) and two-wheeler purchases (45%) will be influenced by Facebook. It further highlights that media friction causes one-third (9%) of the total friction loss (26%) in four-wheeler purchase, and almost half (16%) of friction loss (34%) in two-wheeler purchase.
As per the findings, the Indian automobile market is expected to sell 5.6 million and 30.9 million four-wheeler and two-wheeler units, respectively, by 2022, which translates into a big opportunity for brands to tap into, and mobile is the way to go. Mobile is a key catalyst to reduce friction and aid increased customer conversion at lower costs.
In the four-wheeler category, increased role of mobile in media mix can help increase 1.2 percentage points of purchase conversion contributing to approximately 1 million units of potential market by 2022, at a 14.7 lower customer acquisition cost. Similarly, in the two-wheeler category, it can help increase 1.6 percentage points of purchase conversion adding to 2.6 million units of potential market by 2022, at 7.8% lower customer acquisition cost.
The report is authored by KPMG India based on primary research and insights of a survey conducted by Nielsen.
