Automotive News Webinar Slides 6 28-11

WelcomeThe webinar will begin momentarily

Dave VersicalEditorAutomotive News Online

Howard PolirerDirector, Industry RelationsAutoTrader.com

Understanding the Influencersthat Drive Vehicle Purchase2011 Automotive Buyer Study Howard Polirer, Director, Industry Relations

About the Study• Conducted by Polk / Commissioned by AutoTrader.com• Understand What Media Sources Influence New & Used Vehicle Buyers Prior to Purchase• 2005 New Buyers & 2000 Used Vehicle Buyers who purchased during June 2010 & July 2010• Quotas were set to ensure a representative sample based on the vehicle make & state of residence

Implications of the Study• The Internet is the most useful and influential shopping source among vehicle buyers• Use a broad Internet strategy: 3rd party, OEM, & dealer sites serve as complements, not competitors, during the shopping process• The consumer shopping funnel doesn’t really exist• There is an opportunity to influence shoppers by serving contextually relevant messages

How the Internet Influences Car Shoppers

New & Used Car Buyers Spend 60% ofthe Shopping Process Online NEW VEHICLE BUYERS USED VEHICLE BUYERS 7.5 Hours 7 Hours Offline Offline 11.5 Hours 11 Hours Online Online 19 Hours Total Shopping Time 18 Hours Total Shopping TimeSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Most Influential Sources Leading tothe Dealership 58% New Buyers50% Used Buyers 19% 16% 7% 5% 4% 2% 4% 2% 2% 2% 2% 1% 1%1% Internet Referral From Newspaper Direct Outdoor TV Magazine Radio Friend/Family Mail AdsSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

The Internet Is it a…LEAD GENERATOR? Or is it an… INFLUENCER?

How Are Car Buyers EstablishingInitial Contact with Dealers?

How Car Buyers First Contactedthe Dealership Walk-In Phone 20% Email 11% 69%Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

7 10 out of Car Buyers DO NOT Establish Contact with the Dealer Prior to Their Initial VisitSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Sourcing Studies AmongFranchise Dealerships NationwideConducted by KS&R market research firm

How New & Used Vehicle Buyers FirstContacted the Dealership Walk-In Phone 24% Email 10% 66%Source: AutoTrader.com Sourcing Studies, Mar. 2010 – Jan. 2011Base: New & Used Vehicle Buyers from Franchise Dealerships

Influence Shoppers to Walk Intothe Dealership

Online Shopping Behavior

Car Shoppers Are More ThoughtfulAbout How They Spend Their Money

“ I am doing my homework because I don’t want to make a wrong decision and be stuck with high monthly payments.”Source: Greenfield Consulting Qualitative Research, Feb 2009

How Do They Spend TheirTime Online?

New & Used Car Buyers Spend 60% ofthe Shopping Process Online NEW VEHICLE BUYERS USED VEHICLE BUYERS 7.5 Hours 7 Hours Offline Offline 11.5 Hours 11 Hours Online Online 19 Hours Total Shopping Time 18 Hours Total Shopping TimeSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Car Buyers Spend the Most Time onThird-Party Sites NEW VEHICLE BUYERS 3rd Party Sites 3.25 Hours Dealer Sites 2.25 Hours OEM Sites 2.75 Hours Search 2 HoursSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Car Buyers Spend the Most Time onThird-Party Sites USED VEHICLE BUYERS 3rd Party Sites 6.5 Hours Dealer Sites 2.25 Hours OEM Sites 1 Hour Search 1.5 HoursSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

A Broad Internet Marketing StrategyIs Needed

What About Search & Social?

Vehicle Buyer Search Engine Use Access OEM Site…………………………….……. 62% Access Dealer’s Site………………………….….. 61% Find Dealer Phone Number and/or Website…. 48% Access 3 Party Sites…………….……………… 35% rd Other/None…………………………..…..…………16%Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

The Role of Search =

Social Networking Site Influence Only 3% of vehicle buyers said a social networking site influenced their purchase 97% Source: 2011 AutoTrader.com Polk Automotive Influence Study

The Consumer Shopping Funnel &Cross-Shopping Behavior

2 Out of 3 Shoppers Begin the ShoppingProcess Undecided About Make/Model % 66% % % % % % Knew Knew Exact Knew Knew Knew Did Not Vehicle Vehicle Vehicle Vehicle Vehicle Know What Body Style (make/model) Class Features Make they WantSource: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&RQ50: Thinking back to when you first considered purchasing a vehicle, which of the following best describes your purchase intention?.

The Shopping Funnel Doesn’t Really Exist

2The Average Number of CarsConsidered By Shoppers… 5 Months From PurchaseSource: 2009 J. D. Power & Associates Web Site Performance Study

2.3The Average Number of CarsConsidered By Shoppers… 3 Months From PurchaseSource: 2009 J. D. Power & Associates Web Site Performance Study

3.5The Average Number of CarsConsidered By Shoppers… During Month of PurchaseSource: 2009 J. D. Power & Associates Web Site Performance Study

What About Cross-Shopping?

64% of AutoTrader.com Users Select the “All Cars” PathSource: AutoTrader.com Site Statistics

53% of Shoppers Consider Both New & UsedSource: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&R

58% of 2010 – 2012 Model Year Visitors Also Interact with 2008 & 2009 Models 40% of 2008 & 2009 Model Year Visitors Also Interact with 2010 - 2012 ModelsSource: AutoTrader.com Site Statistics – March 2011

Deliver Contextually RelevantMessages to Influence Car Shoppers

Provide the Information ConsumersAre Seeking Online

Reasons for Using the Internet New Car Buyers Compare car models across different makes Research pricing of car models & makesFind info on special offers, dealer rebates & incentives Look at exterior / interior photos Read car reviews Research reliability and safety info Locate / find a specific vehicle to purchase Evaluate trade-in value Locate a dealer Submit lead Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Create Special Offers & Incentives

Reasons for Using the Internet New Car Buyers Compare car models across different makes Research pricing of car models & makesFind info on special offers, dealer rebates & incentives* Look at exterior / interior photos Read car reviews Research reliability and safety info Locate / find a specific vehicle to purchase Evaluate trade-in value Locate a dealer Submit lead Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Show Stock Photos?

Show Photos of the Actual Vehicle

The Importance of Photos For New Car Listings • New car photos are the single most important factor in improving results (VDP views & prospects) • Adding price and photos increases VDP views 4x and prospects by nearly 2x • There is almost no difference in the click through rate of listings with stock photos vs. listings with no photosSource: AutoTrader.com Site Statistics

Car Shoppers Want More VideoCar Shoppers Want More Video

How Video Influences • More than 75% of Internet users watch video online 1 • 50% of consumers watch videos while shopping for a car 2 • 72% of shoppers are more likely to buy a product or service when a video is used 3Sources: 1 – eMarketer Jan 2009, 2 – AutoTrader.com Site Stats 2010, 3 – Wharton School of Business December 2009

Reasons for Using the Internet New Car Buyers Compare car models across different makes Research pricing of car models & makesFind info on special offers, dealer rebates & incentives* Look at exterior / interior photos Read car reviews Research reliability and safety info Locate / find a specific vehicle to purchase Evaluate trade-in value Locate a dealer Submit lead Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Hyundai Trade-In Value Guarantee

AutoTrader.com Trade-In Marketplace

“It wasto the& when I went easy dealership, I was prepared for ” their offer.Source: July 2010 Trade-In Marketplace Consumer Follow-Up Study

Conclusion

Information properly delivered in context INFLUENCE with compelling messaging 56

INFLUENCE drivesPreference 57

SummaryThe Internet is the most useful and influentialshopping source among vehicle buyers• 71% of New & Used Car Buyers Use the Internet during the shopping process• 50% of New Car Buyers cite the Internet as the most influential source leading to the dealer

SummaryUse a broad Internet strategy: 3rd party, OEM,& dealer sites serve as complements, notcompetitors, during the shopping process• Car Buyers spend 60% of the shopping process online• New & Used Car Buyers spend the most time on 3rd party sites• New Car Buyers spread their time more evenly over the various sites

SummaryThe consumer shopping funnel no longer exists• 2 cars is the average number being considered five months out from purchase• 2.3 cars is the average number being considered three months out from purchase• 3.5 cars is the average number being considered during the month of purchase

SummaryThere is an opportunity to influence shoppers byserving contextually relevant messages• 2 Out of 3 shoppers begin the shopping process undecided about make/model• 64% of our users select the “All Cars” path on AutoTrader.com• 53% of Shoppers consider both new and used vehicles

Thank You!Howard.Polirer@AutoTrader.com

Q&AModerator Dave Versical Editor Automotive News Online Presenter Howard Polirer Director, Industry Relations AutoTrader.com

Thank YouThis webinar will be available on-demand in a few days at www.autonews.com/webinarsAll registrants will receive an e-mail notification when it is available

Automotive News Webinar Slides 6 28-11

by Kathi Kruse on Aug 11, 2011

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Automotive News Webinar Slides 6 28-11 — Presentation Transcript