This is a webinar I attended that has up-to-the-minute stats about online influence of car buyers. AutoTrader and Polk did the study and Automotive News hosted the webinar 6-28-11

1. Welcome
The webinar will begin
momentarily

3. Dave Versical
Editor
Automotive News Online

4. Howard Polirer
Director, Industry Relations
AutoTrader.com

5. Understanding the Influencers
that Drive Vehicle Purchase
2011 Automotive Buyer Study
Howard Polirer,
Director, Industry Relations

6. 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

7. 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

8. How the Internet Influences Car Shoppers

9. New & Used Car Buyers Spend 60% of
the 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 Time
Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

10. Most Influential Sources Leading to
the Dealership
58% New Buyers
50% 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 Ads
Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

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

12. How Are Car Buyers Establishing
Initial Contact with Dealers?

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

14. 7 10 out of
Car Buyers DO NOT Establish Contact
with the Dealer Prior to Their Initial Visit
Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

15. Sourcing Studies Among
Franchise Dealerships Nationwide
Conducted by KS&R market research firm

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

17. Influence Shoppers to Walk Into
the Dealership

18. Online Shopping Behavior

19. Car Shoppers Are More Thoughtful
About How They Spend Their Money

20. “ 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

21. How Do They Spend Their
Time Online?

22. New & Used Car Buyers Spend 60% of
the 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 Time
Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

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

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

25. A Broad Internet Marketing Strategy
Is Needed

26. What About Search & Social?

27. 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

28. The Role of Search
=

29. 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

30. The Consumer Shopping Funnel &
Cross-Shopping Behavior

31. 2 Out of 3 Shoppers Begin the Shopping
Process 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 Want
Source: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&R
Q50: Thinking back to when you first considered purchasing a vehicle, which of the following best describes your purchase intention?.

32. The Shopping Funnel Doesn’t Really Exist

33. The Shopping Funnel Doesn’t Really Exist

34. 2
The Average Number of Cars
Considered By Shoppers…
5 Months From Purchase
Source: 2009 J. D. Power & Associates Web Site Performance Study

35. 2.3
The Average Number of Cars
Considered By Shoppers…
3 Months From Purchase
Source: 2009 J. D. Power & Associates Web Site Performance Study

36. 3.5
The Average Number of Cars
Considered By Shoppers…
During Month of Purchase
Source: 2009 J. D. Power & Associates Web Site Performance Study

37. What About Cross-Shopping?

38. 64%
of AutoTrader.com Users Select the “All
Cars” Path
Source: AutoTrader.com Site Statistics

39. 53%
of Shoppers Consider Both New & Used
Source: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&R

40. 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 Models
Source: AutoTrader.com Site Statistics – March 2011

41. Deliver Contextually Relevant
Messages to Influence Car Shoppers

42. Provide the Information Consumers
Are Seeking Online

43. Reasons for Using the Internet
New Car Buyers
Compare car models across different makes
Research pricing of car models & makes
Find 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

44. Create Special Offers & Incentives

45. Reasons for Using the Internet
New Car Buyers
Compare car models across different makes
Research pricing of car models & makes
Find 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

46. Show Stock Photos?

47. Show Photos of the Actual Vehicle

48. 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 photos
Source: AutoTrader.com Site Statistics

49. Car Shoppers Want More Video
Car Shoppers Want More Video

50. 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 3
Sources: 1 – eMarketer Jan 2009, 2 – AutoTrader.com Site Stats 2010, 3 – Wharton School of Business December 2009

51. Reasons for Using the Internet
New Car Buyers
Compare car models across different makes
Research pricing of car models & makes
Find 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

52. Hyundai Trade-In Value Guarantee

53. AutoTrader.com Trade-In Marketplace

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

55. Conclusion

56. Information properly
delivered in context INFLUENCE
with compelling
messaging
56

57. INFLUENCE
drives
Preference
57

58. Summary
The Internet is the most useful and influential
shopping 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

59. Summary
Use a broad Internet strategy: 3rd party, OEM,
& dealer sites serve as complements, not
competitors, 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

60. Summary
The 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

61. Summary
There is an opportunity to influence shoppers by
serving 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

62. Thank You!
Howard.Polirer@AutoTrader.com

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

64. Thank You
This webinar will be available on-demand in a few
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when it is available