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Selling Cars with Google 104:
US Online Automotive Dealer
Advertising Executive Survey
Jupiter Research




              ...
Internet Generating New Car Sales Leads

A dealer survey revealed that the portion of dealers generating over 10% of their...
Internet Generating Used Car Sales Leads
A dealer survey revealed that the portion of dealers generating over 10% of their...
Dealers Increasing Online Ad Spending

Survey data reveals that 47% of dealers in 2006 allocated over 10% of their overall...
2007 Dealer Internet Ad Spending Growth

Survey data reveals that 47% of dealers are increasing their online ad spending i...
Dealer Online Ad Spending Breakout

                                    Dealers spending <$30,000 in online marketing tend...
Dealers are Utilizing Paid Search & Display
Survey data shows that 74% of dealers are planning to use paid search & 66% ar...
Dealers Use Online Advertising for Branding

  Survey data demonstrates 74% of successful dealers (those who convert more ...
Dealers Use Online Advertising for Branding

                            Survey data demonstrates that 82% of successful d...
Dealer Online Advertising Challenges

                                  55% of dealers surveyed claim that determining whi...
Key Takeaways


Dealers are generating more new & used car sales leads from the
Internet. However, almost all dealers stil...
Thank you & stay tuned for
     future videos…




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Google Automotive; Selling Cars With Google 104

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Google Automotive provides this data and presentation to automotive marketing professionals.

The ADM Professional Community is a living example of the compelling value proposition for online communities that serve the automotive industry. ADM serves as proof that the impact of Social Media on the automotive vertical is more significant than widely understood. Be sure to visit the ADM Professional Community at http://www.AutomotiveDigitalMarketing.com or the acronym URL at http://www.ADMPC.com or the Twitter URL at http://ADM.fm today, and don't just be a Lurker... Join!

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  • The ADM Professional Community is a living example of the compelling value proposition for online communities that serve the automotive industry. ADM serves as proof that the impact of Social Media on the automotive vertical is more significant than widely understood. Be sure to visit the ADM Professional Community at http://www.AutomotiveDigitalMarketing.com or the acronym URL at http://www.ADMPC.com or the Twitter URL at http://ADM.fm today, and don't just be a Lurker... Join!
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Transcript of "Google Automotive; Selling Cars With Google 104"

  1. 1. Selling Cars with Google 104: US Online Automotive Dealer Advertising Executive Survey Jupiter Research 1
  2. 2. Internet Generating New Car Sales Leads A dealer survey revealed that the portion of dealers generating over 10% of their new car sales from online leads jumped from 36% in 2004 to 51% in 2006. Internet-Generated New Car Sales 2004 - 2006 70% % of Dealers by Internet-Generated Sales 59% 60% 55% 2004 51% as a Share of Overall Sales 2005 50% 2006 40% 38% 36% 34% 30% 20% 15% 10% 7% 5% 0% More than 10% 10% or less Not sure/don't measure JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.com 2 Executive Survey (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US)
  3. 3. Internet Generating Used Car Sales Leads A dealer survey revealed that the portion of dealers generating over 10% of their used car sales from online leads jumped from 40% in 2004 to 56% in 2006. • Used car sales tend to be more profitable, making this a critical aspect of a dealer’s business Internet-Generated Used Car Sales 2004 - 2006 60% 56% 54% 54% % of Dealers by Internet-Generated Sales 50% 2004 as a Share of Overall Sales 43% 2005 2006 40% 32% 30% 20% 12% 10% 10% 6% 6% 0% More than 10% 10% or less Not sure/don't measure JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.com 3 Executive Survey (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US)
  4. 4. Dealers Increasing Online Ad Spending Survey data reveals that 47% of dealers in 2006 allocated over 10% of their overall marketing budget to the Internet, up from 35% in 2005. • 43 % of dealers spent more than $30,000 in online advertising in 2006, up from 14% in 2003 • 28% spent over $50,000 in 2006, up from an average of 12% between 2003 & 2005 Dealers’ Online Advertising Spending 2003 - 2006 50% 2003 2004 45% 43% 2005 2006 40% Percentage of Dealers 35% 34% 31% 30% 27% 25% 24% 24% 23% 22% 22% 20% 20% 19% 15% 14% 14% 15% 13% 13% 13% 12% 11% 10% 8% 5% 0% Less than $5,000 $5,000 to $10,000 $10,001 to $30,000 More than $30,000 None/not sure JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.com Executive Survey 4 (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US); JupiterResearch Executive Survey (7/04), n = 133 (US)
  5. 5. 2007 Dealer Internet Ad Spending Growth Survey data reveals that 47% of dealers are increasing their online ad spending in 2007, while 44% said they were maintaining current spending levels. • Dealers who are able to successfully convert leads into sales are more likely to increase their online advertising budgets (60%) vs. those who are not as successful (35%) Expected Change in Dealers’ Online Advertising 60% Spending by Lead-to-Sale Conversion Rates 54% Conversion rate of new car leads to sales greater than 10% 50% Conversion rate of new 44% car leads to sales equal to 10% or less 40% 30% 30% 22% 20% 16% 13% 10% 7% 7% 4% 2% 0% Increase by 25% or more Increase by 1 to 25% Stay the same Decreased by 1% to 25% Decreased by 25% or more JupiterResearch/NADAguides.com Executive Survey (7/07), n = 43 (dealers w/conversion rate of new car leads to sales 5 greater than 10%, US), n = 46 (dealers w/conversion rate of new car leads to sales equal to 10% or less, US)
  6. 6. Dealer Online Ad Spending Breakout Dealers spending <$30,000 in online marketing tend to spend more money on third-party lead sources than any other online advertising tactic. Dealers’ Online Advertising Budget Allocation 60% Dealers with online ad spending less than $30,000 50% 49% Spending Allocation per Tactic Average Online Advertising Dealers with online ad spending greater than $30,000 40% 31% 30% 28% 28% 20% 17% 15% 11% 10% 7% 5% 4% 3% 2% 0% Third-party Online Search engine Online Special lead Other sources classifieds keywords sponsorships/ sources banner type ads JupiterResearch/NADAguides.com Executive Survey (7/07), n = 53 (dealers w/online advertising spending of 6 $30,000 or less, US), n = 45 (dealers w/online advertising spending greater than $30,000, US)
  7. 7. Dealers are Utilizing Paid Search & Display Survey data shows that 74% of dealers are planning to use paid search & 66% are planning to use online auctions in 2007. • This is an expected increase of 85% in the use of paid search & an expected increase of 47% use of online auctions in comparison to 2006 • 61% are planning to use display advertising in 2007, an increase of 47% from 2006 100% Dealers’ Use of Online Advertising Tactics in 2005 & 2006, 92% Planned Use in 2007 90% 82% Expected 2007 80% 79% 76% 76% 74% 2006 70% 66% 2005 62% Percentage of Dealers 61% 60% 51% 50% 47% 45% 43% 40% 39% 40% 30% 20% 10% 0% Third-party Online Search engine Online Online sponorships/ leads classifieds keywords auctions banner-ad types JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); 7 JupiterResearch/NADAguides.com Executive Survey (9/06), n = 98 (US)
  8. 8. Dealers Use Online Advertising for Branding Survey data demonstrates 74% of successful dealers (those who convert more than 10% of Internet leads into sales) use online advertising to increase the number of email leads. Only 51% of less successful dealers invest in online advertising to increase e-mail leads. Reasons for Dealers’ Online Advertising Usage 100% by Share of New Car Sales Generated Online Percentage of Dealers That Advertise Online, 91% 90% More than 10% of new car sales generated online 80% 74% 10% of fewer new car 72% 71% sales generated online 70% 69% 63% 60% 54% 51% 50% 40% 30% 20% 10% 0% Driving traffic to Increasing number of Increasing number of Display inventory dealership website email leads phone leads online JupiterResearch/NADAguides.com Executive Survey (7/07), n = 54 (dealers w/more than 10% of new 8 car sales generated online, US), n = 36 (dealers w/10% or fewer new car sales generated online, US)
  9. 9. Dealers Use Online Advertising for Branding Survey data demonstrates that 82% of successful dealers (those who convert more than 10% of Internet leads into sales) use online advertising to increase the number of consumers who see the dealership name. Only 69% of less successful dealers invest in online advertising for branding. Reasons for Dealers’ Online Advertising Usage 90% 82% by Share of New Car Sales Generated Online Percentage of Dealers That Advertise Online, 80% 76% More than 10% of new car sales generated online 70% 69% 10% of fewer new car sales generated online 60% 57% 56% 50% 46% 40% 30% 20% 10% 0% Increasing number of consumers Increasing dealer’s Building customer who see dealer name brand awareness loyalty JupiterResearch/NADAguides.com Executive Survey (7/07), n = 54 (dealers w/more than 10% of new 9 car sales generated online, US), n = 36 (dealers w/10% or fewer new car sales generated online, US)
  10. 10. Dealer Online Advertising Challenges 55% of dealers surveyed claim that determining which tactics will yield the highest-quality leads is their biggest challenge. Almost all dealers find it difficult to plan & implement online advertising. Notice that only 19% cited competition with offline media budgets as a challenge. Challenges Dealers Face in Planning & Implementing Marketing & Advertising 60% 55% 50% Percentage of Dealers 40% 38% 31% 30% 26% 26% 26% 20% 19% 14% 10% 7% 0% Determining Internet Lack of Performance Increasing Capturing Competition Management Don’t see any which advertising & staff that tracking competition valid lead with offline commitment challenges advertising & marketing is understands online information media budget w/implementing marketing getting more how to use online tactics bring complicated online marketing the highest everyday marketing & quality leads advertising JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US). 10 Question: Please indicate top three challenges in planning online marketing & advertising. Select up to three.
  11. 11. Key Takeaways Dealers are generating more new & used car sales leads from the Internet. However, almost all dealers still find online marketing & advertising challenging to plan & implement. Dealers are utilizing online advertising for both lead generation and branding purposes. Planning & implementing online advertising is easier than it seems! You can learn how easy it is to actually plan & implement online advertising. More information is availabe at: www.adwords.google.com 11
  12. 12. Thank you & stay tuned for future videos… 12
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