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Understanding 2009 Auto Shopper

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Google presentation at AutoThink 2009 on Automotive shopping and buying patterns

Google presentation at AutoThink 2009 on Automotive shopping and buying patterns

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  • 1. Understanding the 2009 Auto Shopper Jeremy Crane, Compete, Inc. Dr. Angela Reynar, Google, Inc. April 23, 2009 Google Confidential and Proprietary 1
  • 2. Table of Contents • The Studies – Automotive Buyer Flow – Automotive Video – Parts & Service • Key Findings Search plays a critical part in the automotive research and buying process now more than ever Automotive video is growing as an automotive research tool among new vehicle purchasers Search continues to deliver both referral quantity and quality to parts, accessories, services and tires websites Google Confidential and Proprietary 2
  • 3. Automotive Buying Flow Study • The role of the internet in the new vehicle buyer’s purchasing process Google Confidential and Proprietary 3
  • 4. The overall automotive market has been challenged • Industry sales fell considerably in the last half of 2008 • Sales have continued to struggle in 2009 Automotive Retail Registrations (R.L. Polk & Co. retail registration data; number of New Vehicle Registrations (millions), Jan 2007 through Dec 2008 ) 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 Total Luxury Volume Google Confidential and Proprietary 4
  • 5. Market demand has consistently been declining the past 3 years • However, we are starting to see in-market demand rebound following its lowest point in Nov 2008 • Similarly, Consumer Confidence* has started to rebound from a Nov low Market-wide Shopper Counts (Clickstream data; unique number of shoppers (millions) by month, Jan 2007 through March 2009) 4.0 3.5 Lowest Compete shopper count on 3.0 record 2.5 2.0 1.5 1.0 0.5 Compete defines a shopper as someone who exhibits lower-funnel shopping behavior such as build your own vehicle or dealer locate on the top 25+ third-party automotive websites. 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 2009 Google Confidential and Proprietary 5 Source: Monthly Consumer Confidence Index, The Conference Board via TNS
  • 6. Google, R.L. Polk & Co. and Compete created a new dataset to study new vehicle retail registrations New Vehicle Retail Internet Browsers Car Registrations Source: Compete Source: R.L. Polk & Co. 3rd Party Household Match Google Confidential and Proprietary 6
  • 7. Nearly every buyer used an OEM and/or 3rd Party Site during the purchasing process • 84% of new vehicle buyers visited an OEM and/or 3rd Party site within 6 months of purchase • 1 in 4 new vehicle buyers visited only either an OEM site or 3rd Party site Pre-Purchase Automotive Category Visitation (Clickstream data; share of New Vehicle Buyers visiting the site category during the 6 months prior to purchase) 84% 74% 14% 70% 10% 14% 10% 60% 60% 60% OEM Sites 3rd Party 3rd Party Automotive and/or Sites OEM Sites Shared OEM Only 3rd Party Only Google Confidential and Proprietary 7
  • 8. 3rd party sites saw new vehicle buyer growth year-over-year • While OEM site visitation among new vehicle buyers declined • Unique visitation among new vehicle buyers had similar trends Pre-Purchase Automotive Category Visitation (Clickstream data; share of New Vehicle Buyers visiting the site category during the 6 months prior to purchase) 2007 2008 84% 84% 77% 71% 73% 13% 16% 68% 16% 11% 13% 11% 7% 7% 3rd Party 60% 60% 60% Only 61% 61% 61% OEM Only Shared OEM Sites 3rd Party 3rd Party OEM Sites 3rd Party 3rd Party Automotive and/or Automotive and/or Sites OEM Sites Sites OEM Sites Google Confidential and Proprietary 8
  • 9. 49% of new vehicle buyers used a KPI on any OEM site at least once during the 6 months prior vehicle purchase • BYO was the most used KPI tool Pre-Purchase OEM KPI Usage (Clickstream data; share of New Vehicle Buyers during the 6 months prior to purchase) 48% 36% 33% 23% 21% 21% 18% 7% 7% BYO Offers Locate Dealer Search RAQ Compare Estimator Brochure Trade In Inventory Google Confidential and Proprietary 9 * Only used 6/2007 through 12/2008 purchasers, n = 44,865
  • 10. OEM KPI usage aligns with retail vehicle sales • New vehicle buyers were most likely to KPI on Toyota Top-5 OEM KPI Top-5 OEM usage sites among retail sales new vehicle buyers* 2007 - 2008 Toyota 16.8% Toyota 3.8 million Ford 16.5% Chevrolet 2.8 million Chevrolet 15.1% Honda 2.6 million Honda 13.6% Ford 2.5 million Nissan 11.6% Nissan 1.6 million Source: Clickstream Source: R.L. Polk & Co. retail registrations Google Confidential and Proprietary 10 * Only used 6/2007 through 12/2008 purchasers, n = 44,865
  • 11. Where can I find today’s automotive shoppers? • Websites are the #1 consumer information source; dealerships are #2; search is #3 Sources used to learn about or research cars (Google Touchpoints consumer survey data; share of category respondents) Website 48% Dealership 44% Search Result 30% Q: Which of the following sources did you use to learn about or research cars as you made your decision to buy one in the past 6 months? (select all) Base: All category respondents, n=597 Google Confidential and Proprietary 11 Source: Google Touchpoints Consumer Survey, January 2009
  • 12. New Vehicle Buyers are just as likely to use non-branded terms compared to branded terms • However, New Vehicle Buyers have a higher propensity to use branded search terms during their vehicle purchase month Type of Keyword Phrase Used by Buyers Before Purchase (Clickstream data; share of New Vehicle Buyer search referrals to automotive sites by time periods, discrete months) 56% 57% 57% 55% 49% 48% Top 10 Auto Search Terms in purchase month Rank Term 1 kelly blue book* 2 toyota 51% 52% 3 nissan 44% 43% 45% 4 mazda 43% 5 carmax* 6 ford 7 hyundai 8 chevrolet 9 blue book* 10 kia 6 Months 5 Months 4 Months 3 Months 2 Months Within the prior prior prior prior prior Month * Non-branded terms of Purchase Branded Non-Branded Read as: 52% of New Vehicle Buyer search referrals to automotive sites used branded search terms within the month of purchase Google Confidential and Proprietary 12
  • 13. Sources used – at what point? • Websites and Search are widely used throughout the purchase funnel Throughout the process Websites, Dealerships, WOM, Search Results, Sales People Q: At what point in your shopping did you use each source to learn about or research cars? Base: All category respondents, n=597 Google Confidential and Proprietary 13 Source: Google Touchpoints Consumer Survey, January 2009
  • 14. Search played a critical role in the automotive purchase process • Nearly half of new vehicle buyers visiting OEM automotive sites were referred by search Pre-Purchase Share of Buyers Referred by Search (Clickstream data; share of New Vehicle Buyers visiting the site category that were referred by search during the 6 months prior to purchase) Read as: 43% of New Vehicle Buyers that visited a 3rd Party Automotive website were referred by search at least once during the 6 months prior to their purchase dates. 46% 43% OEM Sites 3rd Party Automotive Sites Google Confidential and Proprietary 14
  • 15. Upper and Lower Funnel: Vehicle Buyers Use Search Share of New Buyers Referred by Search OEM Sites 3rd Party Visitors Sites Visitors awareness 6 Months 25% 18% interest 3 Months 31% 22% consideration 2 Months 34% 28% test-drive 1 Month 43% 40% purchase 1 Week 39% 36% Source: Clickstream data, by time periods, discrete months Search is a critical activity at every stage of the buying process Read as: 43% of New Vehicle Buyers that visited an OEM website were referred by search at least once within the month in which they purchased their vehicle. Google Confidential and Proprietary 15
  • 16. Search is viewed as useful throughout the purchase funnel % of consumers who used search engines to … find independent reviews of 69% discover cars they were unfamiliar with 83% cars they were considering find a local dealership where find the car brand’s website 77% they could buy the car 78% find comparisons of similar 74% find the best offers 89% cars Q: Please indicate how helpful the search engine was in the following ways during your shopping experience. Base: Used a search engine as source, n=192 Google Confidential and Proprietary 16 Source: Google Touchpoints Consumer Survey, January 2009
  • 17. Automotive Online Video Study • The role of online video in the automotive buying process Google Confidential and Proprietary 17
  • 18. New vehicle buyers use online video in their research 83% of new vehicle buyers visit video focused websites prior to purchase Source: Clickstream data Types of Websites where Car Videos were Viewed (Google Touchpoints consumer survey data; share of category respondents) Brand, product or company sites 31% Auto-specific websites 24% YouTube 11% Yahoo! Video 7% News Sites 7% MSN Video 6% MySpace 4% Facebook 3% AOL Video 3% Other 3% Q: On which of the following websites have you viewed videos about cars? Please think of any information you have sought regarding automotive, products, brands, product reviews, how-to videos, etc. (select all) Base: All category respondents, n=597 Google Confidential and Proprietary 18 Source: Google Touchpoints Consumer Survey, January 2009
  • 19. YouTube attracts 40% of people online in the U.S. • In February, approximately 70M people visited youtube.com Unique Visitors to YouTube (Clickstream data; unique number of people (millions) visiting youtube.com, Jan 2007 through Feb 2009) 80 70 60 50 40 30 1. Feb 2007/8 year-over-year growth: 22% 20 YouTube 2008/9 year-over-year growth: 5% 2. Feb traffic increased 132% over the period 10 0 Google Confidential and Proprietary 19
  • 20. 50% of Feb in-market automotive shoppers visited YouTube • Compared to 38% of general internet browsing population YouTube Visitation, In-Market Auto Shoppers vs. General Internet Users (Clickstream data; share of in-market auto shoppers and internet browsing population visiting youtube.com, Jan 2007 through Feb 2009) 60% 50% 40% 30% 20% 10% Read As: 50% of in-market automotive shoppers visited YouTube in Feb 2009, compared to 38% of general internet users. 0% In-Market Auto Shoppers General Internet Browser Population Google Confidential and Proprietary 20
  • 21. YouTube attracted a larger percentage of 2008 new vehicle purchasers than 2007 purchasers • This represented a percentage growth rate 13% year-over-year Pre-Purchase YouTube Visitation (Clickstream data; share of New Vehicle Buyers visiting youtube.com during the 6 months prior to purchase) Read as: 62% of New Vehicle Buyers visited YouTube at least once during the 70% 6 months prior to their purchase dates. 62% 2007 2008 Google Confidential and Proprietary 21
  • 22. 2008 new vehicle purchasers spent more time on YouTube than 2007 purchasers • 2008 purchasers spent almost twice the amount of time on YouTube Average Stay on YouTube among Buyers (Clickstream data; average number of minutes per user per month among New Vehicle Buyers visiting youtube.com by purchase year) 21 +90% 11 2007 2008 Google Confidential and Proprietary 22
  • 23. People sought out online videos to see the car, get reviews and learn more about vehicle specifications Reasons for Watching Online Videos (Compete/Google Buy Flow survey data (preliminary results); share of answer responses) To see the car 27% To get an overall review 26% To learn more about vehicle specifications (MPG, safety 24% features, etc.) To get the feel of how the vehicle 11% drives For entertainment 10% Other 1% Q V11: What are some of the reasons you watched online video(s) about the vehicle(s) you recently researched? Select all that apply. n = 350 Google Confidential and Proprietary 23 Source: Compete/Google Buy Flow Survey, April 2009 Preliminary Results
  • 24. Automotive Parts Study • How people shopping for parts, tires, service, and accessories use the internet Google Confidential and Proprietary 24
  • 25. Parts, accessories, services and tires sites continued to gain consumer interest online in 2008 and into 2009 • In aggregate, parts, accessories, services and tires sites attracted 14.8M visitors in Feb 2009 People Visiting Parts, Accessories, Services and Tires Sites (Clickstream data; unique number of people (millions) visiting parts, accessories, services and tires sites (in aggregate) Jan 2007 through Feb 2009) 18 16 14 12 10 8 6 Traffic to parts, accessories, services and 4 tires sites increased 34% over the period 2 0 Dec-07 Dec-08 Aug-07 Oct-07 Aug-08 Oct-08 Apr-07 Apr-08 Jan-07 Nov-07 Jan-08 Nov-08 Jan-09 Feb-07 May-07 Sep-07 Feb-08 May-08 Sep-08 Feb-09 Mar-07 Jun-07 Jul-07 Mar-08 Jun-08 Jul-08 Google Confidential and Proprietary 25
  • 26. Traffic to core maintenance site categories continued to grow • Accessories traffic declined slightly year-over-year as people had less discretionary income to trick out their cars • Parts sites captured the most traffic throughout the period People Visiting Parts, Accessories, Services and Tires Sites (Clickstream data; unique number of people (millions) visiting the categories of sites, Feb 2008 through Feb 2009) 16 +3% 14 12 10 8 6 -2% 4 +12% +28% 2 0 F M A M J J A S O N D J F F M A M J J A S O N D J F F M A M J J A S O N D J F F M A M J J A S O N D J F Parts Accessories Services Tires Google Confidential and Proprietary 26
  • 27. Search referral growth has outpaced growth in site traffic • Search has consistently increased as a referral source • All categories saw a minimum of 50% growth in search referrals year-over-year Search Referrals to Parts, Accessories, Services and Tires Sites (Clickstream data; referring sessions (millions) to the categories of sites, Feb 2008 through Feb 2009) 9 8 +62% 7 6 5 4 3 +52% +74% 2 +77% 1 0 F M A M J J A S O N D J F F M A M J J A S O N D J F F M A M J J A S O N D J F F M A M J J A S O N D J F Parts Accessories Services Tires Google Confidential and Proprietary 27
  • 28. 1 in 4 people referred to parts, accessories, services and tires websites can only be reached by search • Search exclusivity has increased among the parts, accessories, services and tires sites throughout the past year • Search exclusivity grew 14% on average year-over-year Search Exclusivity to Parts, Accessories, Services and Tires Sites (Clickstream data; share of UV-based referrals to the categories of sites, Feb 2008 through Feb 2009) 35% 30% 25% 20% 15% 10% 5% 0% F M A M J J A S O N D J F F M A M J J A S O N D J F F M A M J J A S O N D J F F M AM J J A S O N D J F Parts Accessories Services Tires Google Confidential and Proprietary 28
  • 29. Google provided the largest proportion of referrals to parts, accessories, services and tires sites in Q4 2008 • Google referred more than 4X its closest competitor, Yahoo! Search • 3% of all referrals came from the Google Content Network Referrals to Parts, Accessories, Services and Tires Sites (Clickstream data; referrals to the categories of sites (in aggregate), Q4 2008) 20% 5% 3% 2% 1% 1% 1% 0% 0% 1% 0% Google Yahoo! MSN/Live Yahoo! MSN Portal AOL Gmail Yahoo! Mail Hotmail AOL Mail Search Search Portal Google Webmail Content Network Google Confidential and Proprietary 29
  • 30. Google referred the largest proportion of referrals resulting in a KPI activity in Q4 2008 • 18% of referrals resulting in KPI activity came from Google • The Google Content Network referred 2.9% of all referrals resulting in a KPI KPI Referrals to Parts, Accessories, Services and Tires Sites (Clickstream data; referring sessions to the categories of sites with KPI activity (in aggregate) Q4 2008) 18.2% 4.6% 2.9% 2.1% 1.0% 1.0% 0.5% 0.3% 0.1% 0.4% 0.1% Google Yahoo! MSN/Live Yahoo! MSN Portal AOL Gmail Yahoo! Mail Hotmail AOL Mail Search Search Portal Content Webmail Network Google Confidential and Proprietary 30
  • 31. Search referrals with KPI activity are more apt to use branded terms • On average, 45% of search referrals to parts, accessories, services and tires sites are from branded terms • Branded and non-branded terms both play a role in driving traffic to parts, accessories, services and tires sites Branded Search Referrals (Clickstream data; share of search referrals to parts, accessories, services and tires sites (in aggregate), Q4 2008) 55% 49% 45% 51% Overall KPI Q4 2008 Branded Non-Branded Google Confidential and Proprietary 31
  • 32. Search referrals resulting in Add to Cart activities are more likely to come from paid search • Without paid search parts, accessories, services and tires sites would have seen 30% fewer people with Add to Cart activity in Q4 2008 Paid Search Referrals (left) & Paid Search Exclusivity (right) (Clickstream data; share of search referrals to parts, accessories, services and tires sites (in aggregate), Q4 2008) 9% 19% 67% 74% 61% 65% 33% 30% 26% 16% Overall Add to Cart Overall Add to Cart Q4 2008 Q4 2008 Paid Organic Paid Organic Both Session based Referrals UV-based Referrals Google Confidential and Proprietary 32
  • 33. Key Findings Automotive Buying: Search plays a critical part in the automotive research and buying process now more than ever Video Viewing: Automotive video is growing as an automotive research tool among new vehicle purchasers After Market Research: Search continues to deliver both referral quantity and quality to parts, accessories, services and tires websites Google Confidential and Proprietary 33
  • 34. Studies to ask your Google Team Member about Study Name Objective Components Expected Timing Automotive Buyer Flow Analyze the purchase funnel • Compete/R.L. Partially available by connecting automotive Polk & Co. Data today vehicle purchasers to internet Match behavior • Clickstream • Survey data Value of Automotive Assess the influence of video • Compete/R.L. Partially available Video and when consumers use it Polk & Co. Data today during their automotive vehicle Match purchase process • Clickstream • Survey data Parts & Service Study Quantify the impact of online • Clickstream Partially available research activities that occur • Survey data today as consumers progress through the parts, accessories, services and tires purchase processes Google Confidential and Proprietary 34
  • 35. Studies to ask your Google Team Member about Study Name Objective Components Expected Timing Non-KPI study Quantify the role of search in • Clickstream Available today driving on-site automotive • Survey data behaviors. Discover the difference in KPI and Non-KPI consumer profiles Certified Pre- Quantify the online activities • Clickstream Late Q2/Early Q3 Owned/Used Vehicles within the CPO and used marketplace Hispanic Gain insights into the Hispanic • Clickstream Early Q3 automotive shopping & buying • Survey data process compared to overall • Appended US consumers Ethnicity data Auto SERP Page, Learn how to optimize the • Survey data Late Q3 value of Tier I, 2 & 3 on SERP page across Tier 1, 2, one page and 3 advertizing efforts based on consumer feedback Google Confidential and Proprietary 35
  • 36. Thank You! Q&A Month, 2009 Google Confidential and Proprietary 36