Acxiom Study Reveals Insights for Squeezing Extra Mileage from “Cash for Clunkers” Program

The success of the government-funded CARS program points to a tremendous opportunity for auto dealers with insights on the estimated 4 million-plus1 households eligible for the Car Allowance Rebate System – insights made available today in the latest Automotive Consumer Dynamics study from Acxiom® Corporation (Nasdaq: ACXM).

The quick reaction to CARS, commonly referred to as “Cash for Clunkers,” surprised Congress when in its first week buyers grabbed nearly all of the $1 billion that Congress originally appropriated for the program, causing it to consider adding another $2 billion infusion. The program allows consumers to trade in late-model vehicles that get less than 18 miles per gallon for new, more fuel-efficient cars or trucks and get $3,500 or $4,500 in incentives toward their purchase.

“CARS is proving to be a tremendous shot in the arm for the automotive industry,” said Tim Longnecker, automotive industry executive for Acxiom. “Even when the program’s funding is exhausted, there will still be a tremendous benefit for automotive marketers to identify and capture eligible buyers for follow-up with marketing and incentive programs.”

Acxiom’s Automotive Consumer Dynamics study gives manufacturers and dealers insight into which consumers are eligible and which of those are most likely to respond to the program – or similar incentives should government funding run out.

Key findings from Acxiom’s study include:

• Consumers with the highest index of clunkers prefer minivans and pickups.
• Two consumer groups that have the next highest index score for clunkers show no particular new vehicle propensities, leaving a wide-open field for marketing.
• One large group of consumers with potential trade-ins has a strong preference for Korean-made vehicles.
• Thousands of consumers who “come late to the party” can still be good prospects for new car sales after the federal money is depleted.
• Least inclined to act are the wealthiest, because most of their vehicles don’t qualify, and the poorest, who can’t afford a new vehicle.

Additional details define geodemographic segments, lifestyle attitudes and current vehicle ownership for potential CARS participants.

The “Cash for Clunkers” program promises to stimulate a market long overdue for increased sales. Although CARS is expected to result in the sale of 250,000 new vehicles, a much larger impact on sales could result as marketers gain insight into the audiences to which CARS appeals.

“The key is to know where these consumers can be found and what will motivate them to act,” said Longnecker. “Those dealers and manufacturers who take advantage of the insights in this study will be much better positioned to win in the longer-term battle for market share.”

Acxiom’s Automotive Consumer Dynamics is the industry’s first comprehensive, consumer-centric view of the U.S. automotive market. Developed from the world’s largest repository of up-to-date consumer intelligence, InfoBase-X®, and Acxiom’s industry-leading PersonicX® life-stage segmentation system, the study applies sophisticated modeling and analysis to deliver a powerful combination of hindsight, insight and foresight that spans more than 200 million U.S. consumers representing more than 128 million households and more than 40 million vehicle purchase/trade-in transactions.

For a copy of Acxiom’s latest study, please go to www.acxiom.com/automotiveconsumerdynamics. For more information on Acxiom products and services, call 1-888-3ACXIOM or visit www.acxiom.com.

About Acxiom

A global leader in interactive marketing services and infrastructure management, Acxiom connects clients with their customers through deep customer insight, powering effective and profitable marketing initiatives and business decisions. Our consultative approach spans multiple industries and incorporates decades of experience in consumer data and analytics, information technology, data integration and consulting solutions for effective marketing across digital, Internet, email, mobile and direct mail channels. Our secure, high-performance technology services deliver consistent value and reliability. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, and serves clients around the world from locations in the United States, Europe and Asia-Pacific. For more information about Acxiom, visit www.acxiom.com.

Acxiom, PersonicX and InfoBase-X are registered trademarks of Acxiom Corporation.

1 HH counts based on vehicle MMY data made available via cars.gov as of July 23, 2009

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