The document discusses how and why the auto industry is shifting billions of dollars away from traditional offline media like newspapers and TV into online digital advertising strategies. It provides data showing that the majority of automotive research is now done online, with consumers spending many hours researching vehicles online. As a result, automakers and dealers are adjusting their advertising spending to better match where consumers are getting their information by moving much of their budgets from offline to online media like search engines, display ads, and video.
1. Social media, websites, and mobile are becoming major influencers in the car buying process. Dealers are adopting mobile and social media marketing.
2. Search is the primary research tool but consumers experience fatigue if not finding what they want in the first 5-7 pages. Dealer websites are important for generating high quality leads.
3. Over 30% of internet leads still go unanswered, demonstrating the need for lead management solutions to handle inbound leads.
Customers researching car purchases want personalized help from dealers alongside independent digital research, expecting seamless transitions between channels. They rely on a variety of information sources including websites, apps, and social media, and want very fast responses to requests. While dealers remain important sources, customers in growth markets also depend heavily on independent sources, search engines, friends and family for purchase information.
Connected consumers are driving changes in the automotive industry. They demand constant access to information from multiple sources, including online reviews and social media. Many are open to new purchasing options like buying cars online or using alternatives to ownership. As consumers become more familiar with connected vehicle technologies, their interest is growing in cars that enable services like safety, maintenance and customer care features. OEMs and dealers must adapt to meet the expectations of these always-connected shoppers by providing information across multiple channels and being responsive to their preferences for flexibility and connectivity throughout the car buying and ownership experience.
Generation Connected car shoppers want information everywhere and all the time. Nearly all consumers now use the internet to research vehicles, though dealers are still cited as the most important information source by many. Shoppers utilize a variety of online sources like manufacturer and dealer websites, search engines, and social media. Positive reviews and recommendations on social media increasingly influence purchase decisions, with over 70% of consumers saying they are more likely to buy a specific brand if they find favorable social media comments. OEMs and dealers must meet shoppers' need for information across multiple online and physical touchpoints.
The car industry : Which nations are more inclined to purchasing a car online Sumit Roy
This document summarizes the key findings of an annual automotive study conducted in 8 countries. Some of the main findings include:
1) The vehicle buying cycle is shrinking significantly, with over half of consumers starting research within 2 months of purchase.
2) The sources of information used varies widely by country, requiring localized marketing approaches.
3) Consumers want both qualitative and quantitative vehicle information in one online location.
4) Consumers in developing markets like China and India have very exacting needs and expectations.
Digital Reroutes The Auto Purchase JourneyStradablog
This document discusses how digital technologies have transformed the automobile purchase journey. It finds that 50-70% of car buyers now choose the make and model before visiting a dealership, with 40-50% making their choice based on online information. The main purpose of dealership visits is now to experience the vehicle in person. OEMs need to adapt by using digital channels more effectively to engage consumers earlier in the purchase process. They also need to rethink strategies around brand engagement, distribution, marketing, and measuring sales performance to better address how digital is changing consumer behavior and expectations.
The document discusses how and why the auto industry is shifting billions of dollars away from traditional offline media like newspapers and TV into online digital advertising strategies. It provides data showing that the majority of automotive research is now done online, with consumers spending many hours researching vehicles online. As a result, automakers and dealers are adjusting their advertising spending to better match where consumers are getting their information by moving much of their budgets from offline to online media like search engines, display ads, and video.
Automotive Digital Advertising for Car Dealers...
For more information on various services available for car dealers, visit http://www.SocialAutoSales.com and join the online network set up by Ralph's ADP Social Media Reputation Management Team at http://www.ADPsocial.com
1. Social media, websites, and mobile are becoming major influencers in the car buying process. Dealers are adopting mobile and social media marketing.
2. Search is the primary research tool but consumers experience fatigue if not finding what they want in the first 5-7 pages. Dealer websites are important for generating high quality leads.
3. Over 30% of internet leads still go unanswered, demonstrating the need for lead management solutions to handle inbound leads.
Customers researching car purchases want personalized help from dealers alongside independent digital research, expecting seamless transitions between channels. They rely on a variety of information sources including websites, apps, and social media, and want very fast responses to requests. While dealers remain important sources, customers in growth markets also depend heavily on independent sources, search engines, friends and family for purchase information.
Connected consumers are driving changes in the automotive industry. They demand constant access to information from multiple sources, including online reviews and social media. Many are open to new purchasing options like buying cars online or using alternatives to ownership. As consumers become more familiar with connected vehicle technologies, their interest is growing in cars that enable services like safety, maintenance and customer care features. OEMs and dealers must adapt to meet the expectations of these always-connected shoppers by providing information across multiple channels and being responsive to their preferences for flexibility and connectivity throughout the car buying and ownership experience.
Generation Connected car shoppers want information everywhere and all the time. Nearly all consumers now use the internet to research vehicles, though dealers are still cited as the most important information source by many. Shoppers utilize a variety of online sources like manufacturer and dealer websites, search engines, and social media. Positive reviews and recommendations on social media increasingly influence purchase decisions, with over 70% of consumers saying they are more likely to buy a specific brand if they find favorable social media comments. OEMs and dealers must meet shoppers' need for information across multiple online and physical touchpoints.
The car industry : Which nations are more inclined to purchasing a car online Sumit Roy
This document summarizes the key findings of an annual automotive study conducted in 8 countries. Some of the main findings include:
1) The vehicle buying cycle is shrinking significantly, with over half of consumers starting research within 2 months of purchase.
2) The sources of information used varies widely by country, requiring localized marketing approaches.
3) Consumers want both qualitative and quantitative vehicle information in one online location.
4) Consumers in developing markets like China and India have very exacting needs and expectations.
Digital Reroutes The Auto Purchase JourneyStradablog
This document discusses how digital technologies have transformed the automobile purchase journey. It finds that 50-70% of car buyers now choose the make and model before visiting a dealership, with 40-50% making their choice based on online information. The main purpose of dealership visits is now to experience the vehicle in person. OEMs need to adapt by using digital channels more effectively to engage consumers earlier in the purchase process. They also need to rethink strategies around brand engagement, distribution, marketing, and measuring sales performance to better address how digital is changing consumer behavior and expectations.
The document discusses how and why the auto industry is shifting billions of dollars away from traditional offline media like newspapers and TV into online digital advertising strategies. It provides data showing that the majority of automotive research is now done online, with consumers spending many hours researching vehicles online. As a result, automakers and dealers are adjusting their advertising spending to better match where consumers are getting their information by moving much of their budgets from offline to online media like search engines, display ads, and video.
Automotive Digital Advertising for Car Dealers...
For more information on various services available for car dealers, visit http://www.SocialAutoSales.com and join the online network set up by Ralph's ADP Social Media Reputation Management Team at http://www.ADPsocial.com
This document discusses various approaches for online new car sales, including those driven by automakers, dealers, and third parties. It examines models where customers can configure vehicles online and are then connected to dealers to complete the offline purchase. Other models involve direct online sales or marketplaces that connect buyers with dealers or private sellers. The document considers factors like impact on dealers, types of vehicles offered, and focus on pre-sales vs sales. It concludes that third party online sales could become more important for automakers' digital strategies if they combine large vehicle selection with improved customer experience when purchasing online.
This document analyzes a study of 366 first-time car buyers ages 18-30 in the US. Some key findings:
- 35% said the internet was the most important information source when buying their first vehicle. Friends/family also had strong influence.
- Over 1/4 entered the market because their previous hand-me-down vehicle was no longer operable. Nearly 1/5 did so because they reached driving age.
- Top considerations for first-time buyers were monthly payment amount and dealer treatment. Half financed through dealerships and 1/3 through banks.
- Two-thirds had the final say in their vehicle selection and nearly half strongly felt they got the vehicle they wanted. Affordable
The automotive retail industry is undergoing substantial changes driven by shifts in customer behavior, new technologies, and industry pressures. Customers are more informed and rely on both online and offline sources across their purchase journey. Sales and service processes need upgrades to address increasingly complex vehicles and technologies. Industry consolidation and competition are squeezing dealer margins. However, dealers remain important for test drives, advice, and servicing. To succeed, dealers must transform into profitable, modern, multichannel networks that combine online and offline strengths. This requires new retail formats, customer data management, and strategic optimization of the dealer network. OEMs must also better integrate touchpoints to ensure a seamless customer experience. Successfully navigating this transition will improve returns and
CARPROOF research has identified two paths used vehicle buyers take: Car-hunters, who search online for their ideal vehicle first before considering dealerships, and Dealer-deciders, who get recommendations from friends/family on dealerships and then shop those lots. 60% are Car-hunters who rely heavily on comprehensive online listings, while 40% are Dealer-deciders who prioritize a dealer's reputation. To succeed, dealers need quality online listings to attract Car-hunters and provide excellent customer service to build their reputation and attract future Dealer-deciders.
Connected consumers are in charge. They are confident about what they want and how they want it, secure in using technology to increase their power as car shoppers and owners, and comfortable driving innovation in the industry
Connected consumers are driving changes in the automotive industry. They demand constant access to information from multiple sources, including online reviews and social media. Many are open to new purchasing options like buying cars online or using alternatives to ownership. As consumers become more familiar with connected vehicle technologies, their interest is growing in cars that enable services like safety, maintenance and customer care features. OEMs and dealers must adapt to meet these informed, engaged consumers throughout the entire purchasing and ownership experience.
1) The automotive purchase decision journey is getting shorter, with most consumers deciding within 3 months and spending less time at dealerships.
2) Consumers now use many online sources throughout the purchase process, from 3 months before deciding to purchase through the final month.
3) While the purchase often begins online, most consumers also visit dealerships and OEM websites in their final month before purchasing.
This document provides a case study of how Orby Technologies provides a community platform for car dealerships to manage leads and vehicle stock. The platform allows dealerships to capture online leads, nurture customers through the sales process, and publish accurate vehicle stock information online in real-time. It also enables collaboration between dealership staff and provides analytics to improve sales performance.
The document summarizes the findings of a study on automotive brand loyalty in Canada. It identifies the key drivers of brand loyalty as functional elements (40%), emotional connection (31%), brand personality (17%), and needs fulfillment (12%). For functional elements, quality, performance, value, and technology/innovation are most influential. Emotionally, confidence, lack of anger, pride, and happiness drive loyalty. Trustworthy, honest, innovative, and leader personality traits also influence loyalty. Providing confidence in the future, fun, self-identity, and respect fulfills customer needs and boosts loyalty. The study reveals opportunities for brands to improve emotional, personality and needs fulfillment factors to increase their strength relative to competitors
The document discusses the growing demand from customers to purchase new vehicles completely online. A survey found that 72% of customers are willing to buy a new car online. However, automakers have been slow to implement online sales and most current initiatives do not meet customer expectations. Customers expect benefits like convenience, time savings, price transparency, and the ability to compare vehicles and negotiate online. While automakers face challenges in developing new online sales models, the document argues that responding to rising customer demand for online purchasing will be crucial for automakers to remain competitive as business models continue to evolve in the industry.
The Internet is the most heavily used and influential media channel for new and used vehicle shoppers. 71% of buyers use the Internet, spending an average of 18-19 hours researching online and offline. 60% of research time (about 11 hours for used vehicles) is spent online, primarily on third-party sites rather than manufacturer or dealer sites. While the Internet heavily influences purchases, most buyers first contact dealers through walk-ins rather than online. The Internet provides pricing info and model comparisons to inform decisions.
How Automotive Brand Affects Used Vehicles Prices.
Brand perception plays an important role in used
vehicle demand as well. Used vehicles from brands
with an established history of successfully meeting
buyers’ most critical needs usually sell for more
than the competition. This consistent ability to
satisfy core purchase drivers gives stronger brands
an innate advantage in cost-of-ownership and
residual value. To better explain this cause and
effect, this report explores the brand characteristics
that drive auto purchase behavior, and their impact
on used vehicle prices.
Wholesale and retail used vehicle prices have changed dramatically in recent years. Retail premiums, which represent the spread between wholesale and retail prices, provide insight into dealer profitability. This document analyzes retail premium trends between 2005-2015 using wholesale and retail transaction data. The key findings are:
1) Retail premiums fluctuated between 33-41% during this period, generally narrowing as wholesale prices increased more than retail prices.
2) Premiums decreased the most for mainstream vehicles like compacts and midsize cars, falling by up to 15 percentage points.
3) Premiums vary seasonally, with the smallest gap in Q1 and largest in Q4, though this seasonal effect has les
The document summarizes key findings from the 2003 JD Power Autoshopper.com study:
- 64% of vehicle buyers now use the internet in their shopping process, up from 60% in 2002.
- 49% were influenced by what they found online in deciding what make/model to buy.
- Dealers are affected by online shopping trends, as 49% said online info influenced the price they paid.
Digital marketing is poised to revolutionize the automotive industry as it transforms how consumers research, evaluate, purchase and interact with vehicles. While automakers have begun using social media and online platforms, the full potential of digital marketing remains largely untapped. Customers now rely heavily on digital channels for information gathering and half would consider online vehicle purchases. To understand digital's impact, McKinsey conducted a survey of 600 car buyers, dealerships, and experts, finding that a strategic, systematic approach to digital could significantly boost operations and revenues through opportunities like digital lead generation, product co-creation, and retail innovation.
icdp_managementbriefing100_futurenetworksSteve Young
The document discusses changes in customer behavior and its impact on the car distribution model. It finds that customers are increasingly researching and purchasing cars online rather than through dealerships. This shifts the traditional sales process and erodes dealer loyalty. It presents opportunities to better understand customers through data and enhance online experiences, but also challenges to adapt operations, people, and systems to the new digital landscape.
(1) The document discusses strategies for growing an auto brand through social media. It outlines key trends in the auto industry including focusing on brand advertising, leveraging consumer advocacy, targeting younger audiences, and thinking globally while acting locally. (2) Data shows the car purchasing process is increasingly social, with over 90% of consumers using social media for research. Brands are adjusting strategies to meet consumers online. (3) Emerging trends include focusing on aspirational and lifestyle content, encouraging consumer advocacy, engaging millennials through mobile and video, and connecting with local communities on social platforms like Facebook. The document advocates developing a social strategy as part of an integrated marketing plan.
Tns automotive path to purchase study tapps chinadkcvoom
1) A study of Chinese car buyers using real-time electronic diaries found that the car buying process is much faster than traditionally thought, with 40% deciding on a make and model within 4 weeks.
2) Chinese buyers rely heavily on social media and consumer reviews online, with 60% reporting changing their mind based on what they read from other consumers.
3) Car dealerships are seen as very trustworthy and important advisors in China, unlike in Western markets, and play a big role in influencing final purchase decisions.
Deloitte Motor Industry Services present our 3rd study on the changing nature of mobility.
The study identified six megatrends which are providing consumers with more choices than ever before in meeting their transportation needs and as a result, redefining mobility.
In 2009, Deloitte began to explore perspectives on automotive brands, desired features, and shopping experiences for consumers born 1977-1994 – “Gen Y”.
The leading purchase considerations for Gen Y have changed every year since the study began in 2009.
Some key insights and takeaways from the study:
• 75% of consumers are interested in acquiring a car within the next 5 years
• Almost half of Generation Y consumers in Australia think they will be driving an alternative powertrain five years from now, with strong preference for Hybrid Electrics, and indicate they are willing to pay more for it
• Improved safety and efficiency technologies are seen as the greatest technology benefits by Gen Y (over cockpit technologies)
• 55% of Gen Y (26% all others) like using a smartphone app to plan transport
• About two-thirds of Gen Y consumers are influenced by friends and family
• Today, most consumers are interested in basic levels of automation e.g. traction control, ABS.
This document discusses strategies for reaching "in-market shoppers" or "recession shoppers" online. It recommends (1) being present across online and offline channels to greet customers, (2) understanding market trends and customer interests through analytics, and (3) optimizing websites and ads using testing and data to ensure maximum relevance for each individual visitor. Case studies and data from Google tools are presented to illustrate how to implement these recommendations successfully.
This document summarizes the state of the US economy in April 2009 according to Google Chief Economist Hal Varian. It notes that the recession is the longest since the Great Depression but also lists some positive signs, including low asset prices, available mortgages, and an economic stimulus plan. It explores using Google query data to track economic indicators in real time and predicts sectors like real estate and autos may start to recover in spring if financial stability continues.
This document summarizes a roundtable discussion on social networking in the automotive industry. Several panelists gave their perspectives on social networking, stating that it should be about relationship building rather than direct sales, and that the technology allows businesses to scale relationships. Best practices discussed included creating an authoritative online presence, building trust, managing brand reputation, and leveraging social media to drive traffic. Emerging areas mentioned were location-based services and using social media to resolve customer complaints.
This document discusses various approaches for online new car sales, including those driven by automakers, dealers, and third parties. It examines models where customers can configure vehicles online and are then connected to dealers to complete the offline purchase. Other models involve direct online sales or marketplaces that connect buyers with dealers or private sellers. The document considers factors like impact on dealers, types of vehicles offered, and focus on pre-sales vs sales. It concludes that third party online sales could become more important for automakers' digital strategies if they combine large vehicle selection with improved customer experience when purchasing online.
This document analyzes a study of 366 first-time car buyers ages 18-30 in the US. Some key findings:
- 35% said the internet was the most important information source when buying their first vehicle. Friends/family also had strong influence.
- Over 1/4 entered the market because their previous hand-me-down vehicle was no longer operable. Nearly 1/5 did so because they reached driving age.
- Top considerations for first-time buyers were monthly payment amount and dealer treatment. Half financed through dealerships and 1/3 through banks.
- Two-thirds had the final say in their vehicle selection and nearly half strongly felt they got the vehicle they wanted. Affordable
The automotive retail industry is undergoing substantial changes driven by shifts in customer behavior, new technologies, and industry pressures. Customers are more informed and rely on both online and offline sources across their purchase journey. Sales and service processes need upgrades to address increasingly complex vehicles and technologies. Industry consolidation and competition are squeezing dealer margins. However, dealers remain important for test drives, advice, and servicing. To succeed, dealers must transform into profitable, modern, multichannel networks that combine online and offline strengths. This requires new retail formats, customer data management, and strategic optimization of the dealer network. OEMs must also better integrate touchpoints to ensure a seamless customer experience. Successfully navigating this transition will improve returns and
CARPROOF research has identified two paths used vehicle buyers take: Car-hunters, who search online for their ideal vehicle first before considering dealerships, and Dealer-deciders, who get recommendations from friends/family on dealerships and then shop those lots. 60% are Car-hunters who rely heavily on comprehensive online listings, while 40% are Dealer-deciders who prioritize a dealer's reputation. To succeed, dealers need quality online listings to attract Car-hunters and provide excellent customer service to build their reputation and attract future Dealer-deciders.
Connected consumers are in charge. They are confident about what they want and how they want it, secure in using technology to increase their power as car shoppers and owners, and comfortable driving innovation in the industry
Connected consumers are driving changes in the automotive industry. They demand constant access to information from multiple sources, including online reviews and social media. Many are open to new purchasing options like buying cars online or using alternatives to ownership. As consumers become more familiar with connected vehicle technologies, their interest is growing in cars that enable services like safety, maintenance and customer care features. OEMs and dealers must adapt to meet these informed, engaged consumers throughout the entire purchasing and ownership experience.
1) The automotive purchase decision journey is getting shorter, with most consumers deciding within 3 months and spending less time at dealerships.
2) Consumers now use many online sources throughout the purchase process, from 3 months before deciding to purchase through the final month.
3) While the purchase often begins online, most consumers also visit dealerships and OEM websites in their final month before purchasing.
This document provides a case study of how Orby Technologies provides a community platform for car dealerships to manage leads and vehicle stock. The platform allows dealerships to capture online leads, nurture customers through the sales process, and publish accurate vehicle stock information online in real-time. It also enables collaboration between dealership staff and provides analytics to improve sales performance.
The document summarizes the findings of a study on automotive brand loyalty in Canada. It identifies the key drivers of brand loyalty as functional elements (40%), emotional connection (31%), brand personality (17%), and needs fulfillment (12%). For functional elements, quality, performance, value, and technology/innovation are most influential. Emotionally, confidence, lack of anger, pride, and happiness drive loyalty. Trustworthy, honest, innovative, and leader personality traits also influence loyalty. Providing confidence in the future, fun, self-identity, and respect fulfills customer needs and boosts loyalty. The study reveals opportunities for brands to improve emotional, personality and needs fulfillment factors to increase their strength relative to competitors
The document discusses the growing demand from customers to purchase new vehicles completely online. A survey found that 72% of customers are willing to buy a new car online. However, automakers have been slow to implement online sales and most current initiatives do not meet customer expectations. Customers expect benefits like convenience, time savings, price transparency, and the ability to compare vehicles and negotiate online. While automakers face challenges in developing new online sales models, the document argues that responding to rising customer demand for online purchasing will be crucial for automakers to remain competitive as business models continue to evolve in the industry.
The Internet is the most heavily used and influential media channel for new and used vehicle shoppers. 71% of buyers use the Internet, spending an average of 18-19 hours researching online and offline. 60% of research time (about 11 hours for used vehicles) is spent online, primarily on third-party sites rather than manufacturer or dealer sites. While the Internet heavily influences purchases, most buyers first contact dealers through walk-ins rather than online. The Internet provides pricing info and model comparisons to inform decisions.
How Automotive Brand Affects Used Vehicles Prices.
Brand perception plays an important role in used
vehicle demand as well. Used vehicles from brands
with an established history of successfully meeting
buyers’ most critical needs usually sell for more
than the competition. This consistent ability to
satisfy core purchase drivers gives stronger brands
an innate advantage in cost-of-ownership and
residual value. To better explain this cause and
effect, this report explores the brand characteristics
that drive auto purchase behavior, and their impact
on used vehicle prices.
Wholesale and retail used vehicle prices have changed dramatically in recent years. Retail premiums, which represent the spread between wholesale and retail prices, provide insight into dealer profitability. This document analyzes retail premium trends between 2005-2015 using wholesale and retail transaction data. The key findings are:
1) Retail premiums fluctuated between 33-41% during this period, generally narrowing as wholesale prices increased more than retail prices.
2) Premiums decreased the most for mainstream vehicles like compacts and midsize cars, falling by up to 15 percentage points.
3) Premiums vary seasonally, with the smallest gap in Q1 and largest in Q4, though this seasonal effect has les
The document summarizes key findings from the 2003 JD Power Autoshopper.com study:
- 64% of vehicle buyers now use the internet in their shopping process, up from 60% in 2002.
- 49% were influenced by what they found online in deciding what make/model to buy.
- Dealers are affected by online shopping trends, as 49% said online info influenced the price they paid.
Digital marketing is poised to revolutionize the automotive industry as it transforms how consumers research, evaluate, purchase and interact with vehicles. While automakers have begun using social media and online platforms, the full potential of digital marketing remains largely untapped. Customers now rely heavily on digital channels for information gathering and half would consider online vehicle purchases. To understand digital's impact, McKinsey conducted a survey of 600 car buyers, dealerships, and experts, finding that a strategic, systematic approach to digital could significantly boost operations and revenues through opportunities like digital lead generation, product co-creation, and retail innovation.
icdp_managementbriefing100_futurenetworksSteve Young
The document discusses changes in customer behavior and its impact on the car distribution model. It finds that customers are increasingly researching and purchasing cars online rather than through dealerships. This shifts the traditional sales process and erodes dealer loyalty. It presents opportunities to better understand customers through data and enhance online experiences, but also challenges to adapt operations, people, and systems to the new digital landscape.
(1) The document discusses strategies for growing an auto brand through social media. It outlines key trends in the auto industry including focusing on brand advertising, leveraging consumer advocacy, targeting younger audiences, and thinking globally while acting locally. (2) Data shows the car purchasing process is increasingly social, with over 90% of consumers using social media for research. Brands are adjusting strategies to meet consumers online. (3) Emerging trends include focusing on aspirational and lifestyle content, encouraging consumer advocacy, engaging millennials through mobile and video, and connecting with local communities on social platforms like Facebook. The document advocates developing a social strategy as part of an integrated marketing plan.
Tns automotive path to purchase study tapps chinadkcvoom
1) A study of Chinese car buyers using real-time electronic diaries found that the car buying process is much faster than traditionally thought, with 40% deciding on a make and model within 4 weeks.
2) Chinese buyers rely heavily on social media and consumer reviews online, with 60% reporting changing their mind based on what they read from other consumers.
3) Car dealerships are seen as very trustworthy and important advisors in China, unlike in Western markets, and play a big role in influencing final purchase decisions.
Deloitte Motor Industry Services present our 3rd study on the changing nature of mobility.
The study identified six megatrends which are providing consumers with more choices than ever before in meeting their transportation needs and as a result, redefining mobility.
In 2009, Deloitte began to explore perspectives on automotive brands, desired features, and shopping experiences for consumers born 1977-1994 – “Gen Y”.
The leading purchase considerations for Gen Y have changed every year since the study began in 2009.
Some key insights and takeaways from the study:
• 75% of consumers are interested in acquiring a car within the next 5 years
• Almost half of Generation Y consumers in Australia think they will be driving an alternative powertrain five years from now, with strong preference for Hybrid Electrics, and indicate they are willing to pay more for it
• Improved safety and efficiency technologies are seen as the greatest technology benefits by Gen Y (over cockpit technologies)
• 55% of Gen Y (26% all others) like using a smartphone app to plan transport
• About two-thirds of Gen Y consumers are influenced by friends and family
• Today, most consumers are interested in basic levels of automation e.g. traction control, ABS.
This document discusses strategies for reaching "in-market shoppers" or "recession shoppers" online. It recommends (1) being present across online and offline channels to greet customers, (2) understanding market trends and customer interests through analytics, and (3) optimizing websites and ads using testing and data to ensure maximum relevance for each individual visitor. Case studies and data from Google tools are presented to illustrate how to implement these recommendations successfully.
This document summarizes the state of the US economy in April 2009 according to Google Chief Economist Hal Varian. It notes that the recession is the longest since the Great Depression but also lists some positive signs, including low asset prices, available mortgages, and an economic stimulus plan. It explores using Google query data to track economic indicators in real time and predicts sectors like real estate and autos may start to recover in spring if financial stability continues.
This document summarizes a roundtable discussion on social networking in the automotive industry. Several panelists gave their perspectives on social networking, stating that it should be about relationship building rather than direct sales, and that the technology allows businesses to scale relationships. Best practices discussed included creating an authoritative online presence, building trust, managing brand reputation, and leveraging social media to drive traffic. Emerging areas mentioned were location-based services and using social media to resolve customer complaints.
Advertisers understand that customers progress through different stages - awareness, consideration, preference, and purchase - when evaluating a purchase. Paid search is useful for reaching customers closer to purchase, but display advertising is needed to reach customers across all stages. Paid search inventory is limited and spread across many advertisers, so no single large advertiser can allocate a significant portion of its budget to paid search alone. Both paid search and display advertising will continue to serve important but different roles for advertisers.
The document provides best practices for creating effective landing pages that persuade visitors to convert into sales leads. It recommends using relevant and scan-able copy tailored to the target audience, identifying what customers want through market research, grabbing visitors' attention within the first 8 seconds with compelling content, and testing landing pages to ensure they are optimised for conversions.
Your automotive or motorcycle dealership thrives on customer interaction and satisfaction. Now you have the opportunity to go beyond traditional media and engage prospects directly by expanding with social media, email and online marketing. If you partner with Benchmark Email, you gain access to open rates and unsubscribes - see what subject lines catch a customer's attention and which kinds of newsletters leave them flat. Best of all, in this comprehensive email marketing guide, we take you through the current state of automotive dealership marketing, compare metrics across dealerships and industries and prescribe a great, interactive way to connect with your customers and optimize your business.
Digital marketing is poised to revolutionize the automotive industry as it transforms how consumers research, evaluate, purchase and interact with vehicles. While automakers have begun using social media and online platforms, the full potential of digital marketing remains largely untapped. Customers now rely heavily on digital channels throughout their decision journey, from initial research to the purchase itself. To succeed, automakers must develop more integrated and compelling digital strategies that address the entire consumer experience holistically.
Disruptive changes in the automotive industry are currently occurring on several fronts. Besides the development of electric vehicles, connected car technologies, mobility services, and autonomous driving, new business models around selling cars online are on the agenda of automotive companies. This report looks at the opportunity ecommerce presents for the automotive industry, the challenges to adoption, and recommendations on what to do next.
Consumers now conduct most vehicle research online rather than at dealerships. Eighty-three percent use the internet and 79% use search engines to research vehicles and dealerships. During the pre-selection phase, consumers filter dealerships based on the information they find online, such as inventory available on a dealer's website. Search engines and dealer/OEM websites are also important sources for finding information and locations of dealerships. Traditional offline advertising sources are now less influential than online sources during consumers' pre-selection research phase of vehicle shopping.
The average car shopper today makes just two
dealership visits in the search for the perfect
vehicle. That’s because today car shoppers turn
to mobile to research models, find deals, and get
real-time advice.
This document summarizes research on using online advertising networks as an alternative to advertising directly on automotive information sites to reach in-market auto buyers. It presents data from five auto advertising campaigns that showed networks can deliver cost-effective results by starting broadly and optimizing over time. Key findings include:
- The majority of auto site visitors are not ready to purchase within 3 months, and in-market buyers spend less than 1% of online time on these sites.
- Campaigns that optimized placements based on performance outperformed those targeting only automotive categories.
- Categories assumed to reach car buyers, like automotive sites, often underperformed while unexpected categories like careers and money/finance performed best.
Cost Effective Reach In Market Car Buyers By Value ClickRalph Paglia
This document summarizes research on using online advertising networks as an alternative to advertising directly on automotive information sites to reach in-market auto buyers. It presents data from five auto advertising campaigns that showed networks can deliver cost-effective results by starting broadly and optimizing over time. Key findings include:
- The majority of auto site visitors are not ready to purchase within 3 months, and in-market buyers spend less than 1% of online time on these sites.
- Campaigns that optimized placements based on performance outperformed those targeting only automotive categories.
- Categories assumed to reach car buyers, like automotive sites, often underperformed while unexpected categories like careers and money/finance performed best.
This document summarizes research on using online advertising networks as an alternative to advertising directly on automotive information sites to reach in-market auto buyers. It presents data from five auto advertising campaigns that showed networks can deliver auto buyers cost-effectively by starting with a broad network and optimizing over time based on performance. Specifically, the document finds that assumed top-performing categories like automotive sites are not always best and optimization outperforms targeting only likely sites. Regional campaign data revealed unexpected high-performing categories beyond automotive like careers, dating, and money/finance.
This document summarizes research on using online advertising networks as an alternative to advertising directly on automotive information sites to reach in-market auto buyers. It presents data from five auto advertising campaigns that showed networks can deliver cost-effective results by starting broadly and optimizing over time. Key findings include:
- The majority of auto site visitors are not ready to purchase within 3 months, and in-market buyers spend less than 1% of online time on these sites.
- Campaigns that optimized placements based on performance outperformed those targeting only automotive categories.
- Categories assumed to reach car buyers, like automotive sites, often underperformed while unexpected categories like careers and money/finance performed best.
Cost Effective Reach In Market Car Buyers By Value ClickRalph Paglia
This document summarizes research on using online advertising networks as an alternative to advertising directly on automotive information sites to reach in-market auto buyers. It presents data from five auto advertising campaigns that showed networks can deliver cost-effective results by starting broadly and optimizing over time. Key findings include:
- The majority of auto site visitors are not ready to purchase within 3 months, and in-market buyers spend less than 1% of online time on these sites.
- Campaigns that optimized placements based on performance outperformed those targeting only automotive categories.
- Categories assumed to reach car buyers, like automotive sites, often underperformed while unexpected categories like careers and money/finance performed best.
Automotive Inventory Syndication - Take Control of Your Marketing and Your In...Lydie Wolfensperger
AT results at a fraction of the cost. Automotive syndication allows dealers to take control of their marketing and their inventory. It automates the creation of car videos with voice-overs and vehicle specific landing pages (VSLPs aka VDPs). It maintains brand consistency while distributing inventory around the net. In essence it provides unheard of exposure and results for a fraction of the cost of AT alone.
Turning social feeds into business leadsGetfly CRM
This document discusses how social media is becoming an important channel for automotive marketers to engage with customers. While automotive companies are still in the early stages of utilizing social media effectively, there is strong evidence that it influences car purchasing behaviors. The document recommends that automotive marketers integrate social media more directly into their sales and lead generation processes to take advantage of the ability to identify purchase intent within social conversations and content.
This document discusses local search capabilities and strategies for GEICO Insurance. It analyzes the media landscape for local business information, noting that consumers use multiple sources like search engines, local search sites, and print/internet yellow pages. Younger generations favor online sources more while older generations use both online and offline. The document recommends developing an optimized media mix for GEICO based on consumer usage behavior and expanding their reach across print, online, social media, and other sources. It provides insights on internet yellow pages, paid search marketing, and creative services opportunities to strengthen GEICO's local search presence.
The document discusses how online media has become the new primetime due to powerful tools for online media planning and analysis. It provides evidence that online advertising is effective by showing it can accurately measure impact, demonstrate long-term branding benefits, and influence offline sales. While budgets are shifting online, many industries still underutilize internet marketing. New metrics allow for improved media planning and analysis beyond just clicks.
Auto recall challenges in the new digital world by teleperformanceTeleperformance
This document summarizes challenges facing the auto industry regarding vehicle recalls in the digital age. It notes that recalls are increasing in frequency and scale, with over 60 million vehicles recalled in the US in 2014 alone. While recalls are intended to get unsafe vehicles off the road, about 25% of recalled vehicles are never repaired. The document discusses how consumer notification and engagement preferences are shifting to digital channels like mobile apps and social media, forcing automakers to modernize their recall processes. It maintains that effective customer communication throughout the recall process can help mitigate potential negative impacts on brand image from recalls. The document proposes solutions from Teleperformance to help automakers improve recall management using social media monitoring, multi-channel engagement, and back-office case management
Chip Perry at J.D. Power and Associates Automotive Internet RoundtableKelly Automotive
The document discusses the future of internet automotive advertising. It notes that in 1999, analysts predicted car buyers would start purchasing vehicles entirely online through a "direct model," bypassing dealerships. However, the transition has been gradual. While the internet now heavily influences research and many purchases, people still prefer buying from people in person. Dealerships remain important but their role is changing. The document examines how the internet impacts different stages of car shopping and what information sources buyers find most helpful at each stage.
Growing digitalization and technology advancements are reshaping the
global automobile industry. Digital Transformation acts as an enabler of
fundamental innovation and disruption in this sector by transforming it to a
digitally driven solutions focussed industry accelerated by the expectations
of the new generation customers.
The Future of Mobility: How We Connect to Our Cars by MRYDavid Berkowitz
MRY released new research in 2014 featuring first-party surveys and social listening to determine what people want out of connected cars, how their decision journey works when purchasing them, and how people value cars versus their smartphones.
Market Study-Consumer Expectations CC926Lonnie Miller
This document summarizes the findings of a market study on consumer expectations for internet lead marketing in the automotive industry. Some of the key findings include:
1) Seven distinct segments of online leads were identified based on attributes like vehicle purchase drivers, shopping behaviors, and expectations of dealership responses. Treating leads uniquely based on their segment can increase sales conversion rates.
2) First time buyers, who made up over 80% of one responding segment, are particularly valuable for developing long-term customer relationships and were more likely to purchase from dealers who responded to their online inquiries.
3) Factors like the shopping experience, trust in the seller, and response time to inquiries influenced a lead's brand loyalty.
During the interest phase of car shopping, customers want to research options using both digital channels like websites and apps as well as physical interactions at dealerships. They expect fast responses to information requests from dealers within 24 hours. Customers also rely heavily on social media and word-of-mouth from friends and family, so automakers and dealers need to engage more on these channels to better influence purchases.
Similar to Automotive Digital Advertising Facts and Charts (20)
The document discusses findings from a 2008 J.D. Power and Associates study on automotive marketing and media. It finds that search engines are an effective way for consumers to find auto shopping sites, with 77% of manufacturer websites, 59% of independent sites, and 49% of dealership sites found through search engines. Consumers also use search engines to find vehicle images (82%) and directions/maps to local dealerships (42%). Additionally, 39% of consumers visiting automaker websites used a third-party search engine like Google to navigate the site.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
The document discusses how traditional press releases are no longer effective due to changes in how people consume news online. It argues that online news releases distributed through services like PRWeb are now more important for companies to reach customers. Online news releases should be written to appeal directly to buyers, include keywords and links to drive people to the company's website. By distributing through a service like PRWeb, companies can get their news release included in RSS feeds and on top news sites to increase their online visibility and search engine rankings.
Many companies are successfully using social media like Twitter, LinkedIn, Facebook, and blogs to acquire customers. Over 40% of companies have acquired customers from Twitter, LinkedIn, Facebook, and their company blog. B2C companies tend to see more value from social media for customer acquisition, especially Facebook, while B2B companies see more value from LinkedIn. Frequent blog posting correlates with higher customer acquisition - companies posting multiple times per day acquired 100% of customers from their blog. [/SUMMARY]
This document discusses eMarketing strategies for success. It begins with an agenda that outlines various digital technologies like search engine optimization, paid search marketing, podcasts/webinars, video advertising, digital simulations and game development. It then discusses how companies can leverage these technologies and be connected in today's digital world. Various eMarketing strategies are explained, like the importance of understanding one's audience and acquiring customers. New marketing approaches like personalized marketing, participation, peer-to-peer communities and predictive modeling are also covered. The document emphasizes developing a multi-channel approach across different digital mediums and networks to effectively reach customers.
This document is a magazine issue from June 2010 focused on digital marketing and technology for auto dealerships. It includes articles on internet sales strategies, website design, CRM systems, and other topics. The issue also provides news briefs on new advertising networks, analytics tools, and other industry announcements. The magazine aims to help dealers master online sales and leverage emerging technologies.
The document outlines lead management policies for the business development center (BDC) and internet sales teams at Courtesy Chevrolet. It defines the statuses that leads can be in, such as new, working, finalized, invalid, and dormant. It provides guidance on when statuses should be changed and that scheduled follow-up activities are required. It also establishes rules of engagement for how BDC representatives and internet sales specialists should coordinate on handling leads.
The Senate voted to instruct negotiators to support language in the House version of the financial reform bill that would exclude auto dealers from additional regulation, but dealers are still at risk of being included in the final legislation. The bill is currently in a House-Senate conference where negotiators will put the final touches on the bill before sending it to the President; while most members of Congress support excluding dealers, the White House and other groups are pushing for their inclusion. Dealers' F&I revenue could dry up if the final bill regulates dealers like banks under a new federal agency.
This document provides information about the staff and features of the May 2010 issue of Digital Dealer magazine. It includes the names and titles of the president, editorial director, publisher, and other staff of the magazine. It also lists some of the main articles in the issue, such as ones about internet sales, social media, and technology trends. The document contains contact information for advertising and mentions that the magazine aims to provide accurate information to help dealers. It lists Horizon Communications as the publisher.
The document discusses how automotive retail and technology can be a recipe for riches. It notes that if you have a good idea in this space and some luck, you may achieve success sooner than expected. The digital version of the magazine provides quick access to fresh information and allows readers to interact by clicking links to authors and advertisers. The interface is intuitive for those familiar with the internet. The editor welcomes feedback on the new digital format.
The document provides a report on the online presence and reputation of a business called Flagship Motorcars Mercedes-Benz & Sprinter. It summarizes that the business has a ChamberList Reputation Manager Score of 29 out of 100, indicating a "Fair" level of presence. It analyzes the business' listings on various search engines and directories, finding basic listings on some sites but few additional details or customer reviews. The report provides recommendations on improving the business' online reputation by completing more listings and having customers write reviews.
This document summarizes the results of a study by Oneupweb analyzing how traffic and conversion rates are affected when a website appears at different positions in Google search results. The study found that average traffic increases 5x when a site reaches the second/third page, and 9x for the second month. Traffic triples and conversions increase 42% when reaching the first page, doubling the second month. Reaching the top 10 positions generates the most traffic and highest conversion rates.
This document summarizes research on automotive shoppers in 2009. It finds that search plays a critical role in the research process, with 84% of new vehicle buyers visiting OEM and/or third party sites. While OEM site visitation declined slightly, third party site visits grew year-over-year. The "build your own" tool was the most used feature on OEM sites. Nearly half of new vehicle buyers who visited OEM or third party sites were referred by search. Online video, especially on YouTube, is also becoming more important in research, with 83% of new buyers watching videos and 50% of in-market shoppers visiting YouTube.
Bz results virtual dealership pegasus website reviewed by brian paschSocial Media Marketing
The document reviews the new BZ Results Virtual Dealership 2.0 platform, which has undergone a complete rebuild. The new platform allows dealers to fully customize their websites using drag-and-drop widgets similar to WordPress. Dealers can select layouts and themes, then add universal or custom widgets to create landing pages for any business need. All pages are SEO compliant and dealers can directly optimize the on-site SEO strategy. The new platform empowers dealers to create customized customer experiences for their websites.
Customer evangelism is a type of word-of-mouth marketing where loyal customers voluntarily promote a company's products or services. As social media has grown, so has customer evangelism's influence. Companies encourage positive conversations by monitoring social media, addressing customer issues, and publishing case studies and testimonials from satisfied customers. However, companies must ensure transparency by clearly disclosing any paid relationships with promoters to build customer trust. When done ethically, customer evangelism can boost brand awareness without large advertising expenses.
AutoNation plans to bid on multiple Fiat franchises after being impressed with Chrysler's presentation on their plans for the Fiat brand. The COO said they intend to seek multiple franchises but have not determined how many or where yet. He was satisfied that Chrysler and Fiat had developed a solid plan with good product cadence and that the Fiat 500 was very cool, but that a single model would not sustain separate Fiat operations long term. Chrysler also discussed plans to bring the Alfa Romeo brand to the US which could provide additional opportunities for dealers awarded Fiat franchises.
This document introduces an index that measures customer satisfaction with major automotive company websites. It finds that Honda has the highest satisfaction and website experience, while Nissan's site provides the least satisfaction. The index also measures how website satisfaction influences future customer behaviors like purchasing and dealership visits. It analyzes satisfaction drivers for individual sites and the industry overall to identify priorities for improvement. Brand communication and navigation are highlighted as top priorities that could increase satisfaction and positively impact sales and loyalty.
The document outlines terms of use for the 2010 AWA Whitepaper published by PCG Digital Marketing. It states that the report and data are the property of PCG and cannot be reproduced without permission. Copies of the report can be distributed for personal use but companies mentioned would need permission for commercial distribution. It provides a link and contact information for reporting any data errors. Changes to websites after publication will not be grounds for updating the data in the report.
Charging and Fueling Infrastructure Grant: Round 2 by Brandt HertensteinForth
Brandt Hertenstein, Program Manager of the Electrification Coalition gave this presentation at the Forth and Electrification Coalition CFI Grant Program - Overview and Technical Assistance webinar on June 12, 2024.
EV Charging at MFH Properties by Whitaker JamiesonForth
Whitaker Jamieson, Senior Specialist at Forth, gave this presentation at the Forth Addressing The Challenges of Charging at Multi-Family Housing webinar on June 11, 2024.
Dahua provides a comprehensive guide on how to install their security camera systems. Learn about the different types of cameras and system components, as well as the installation process.
Expanding Access to Affordable At-Home EV Charging by Vanessa WarheitForth
Vanessa Warheit, Co-Founder of EV Charging for All, gave this presentation at the Forth Addressing The Challenges of Charging at Multi-Family Housing webinar on June 11, 2024.
Understanding Catalytic Converter Theft:
What is a Catalytic Converter?: Learn about the function of catalytic converters in vehicles and why they are targeted by thieves.
Why are They Stolen?: Discover the valuable metals inside catalytic converters (such as platinum, palladium, and rhodium) that make them attractive to criminals.
Steps to Prevent Catalytic Converter Theft:
Parking Strategies: Tips on where and how to park your vehicle to reduce the risk of theft, such as parking in well-lit areas or secure garages.
Protective Devices: Overview of various anti-theft devices available, including catalytic converter locks, shields, and alarms.
Etching and Marking: The benefits of etching your vehicle’s VIN on the catalytic converter or using a catalytic converter marking kit to make it traceable and less appealing to thieves.
Surveillance and Monitoring: Recommendations for using security cameras and motion-sensor lights to deter thieves.
Statistics and Insights:
Theft Rates by Borough: Analysis of data to determine which borough in NYC experiences the highest rate of catalytic converter thefts.
Recent Trends: Current trends and patterns in catalytic converter thefts to help you stay aware of emerging hotspots and tactics used by thieves.
Benefits of This Presentation:
Awareness: Increase your awareness about catalytic converter theft and its impact on vehicle owners.
Practical Tips: Gain actionable insights and tips to effectively prevent catalytic converter theft.
Local Insights: Understand the specific risks in different NYC boroughs, helping you take targeted preventive measures.
This presentation aims to equip you with the knowledge and tools needed to protect your vehicle from catalytic converter theft, ensuring you are prepared and proactive in safeguarding your property.
Charging Fueling & Infrastructure (CFI) Program by Kevin MillerForth
Kevin Miller, Senior Advisor, Business Models of the Joint Office of Energy and Transportation gave this presentation at the Forth and Electrification Coalition CFI Grant Program - Overview and Technical Assistance webinar on June 12, 2024.
Implementing ELDs or Electronic Logging Devices is slowly but surely becoming the norm in fleet management. Why? Well, integrating ELDs and associated connected vehicle solutions like fleet tracking devices lets businesses and their in-house fleet managers reap several benefits. Check out the post below to learn more.
Charging Fueling & Infrastructure (CFI) Program Resources by Cat PleinForth
Cat Plein, Development & Communications Director of Forth, gave this presentation at the Forth and Electrification Coalition CFI Grant Program - Overview and Technical Assistance webinar on June 12, 2024.
1. Why is the Auto Industry shifting billions away from traditional offline media into online digital advertising strategies and media? The following slides are a collection o f recent data, research, marketing studies, acts and f igures that have been assembled to enable seeing a collective vision and research summary o f why so much automotive related marketing money is being shifted f rom o ff line media into online media
3. The Automotive Industry lags behind most other major industry marketing categories in the shift to digital… This will be resolved as OEM’s find ways to shift Tiers 2 and 3 into online advertising medias.
4. “ Which one of these information sources was most important when making decisions about buying your first new vehicle?” Source: Polk Center for Automotive Studies – 2007 New Vehicle Sales Study Why is the Auto Industry shifting billions away from traditional offline media into online digital advertising strategies and media?
5. What are the most important types o f information sources to car buyers with Internet access? OEM sites are replacing 3 rd Party sites! Dealer sites are now more important than Independent sites… Where does Automotive Buying Influence occur ?
6. A Harris Interactive survey of people who considered themselves “very” or “extremely knowledgeable” about cars found that 63% had used the Internet as a resource for their most recent car purchase, while magazines—presumably enthusiast titles—were a distant second, at 33%. Newspapers ranked only slightly ahead of television. What About Automotive Buying Influencers ?
7. When we exclude Paid Search and Video Advertising, the most recent 3 year growth in online automotive display advertising is dramatic…
8. Today’s Biggest Dealer Advertising Challenge Overspending on Newspaper, Radio, Outdoor & Mail Relative to Usage Source: NADA The Average Car Dealer’s Advertising Spend Does Not Match The Car Buying Consumer’s Media Consumption Behaviors… Average Dealer Advertising Spend vs. Consumer Media Consumption Dealer Ad Budget Efficiency Gap
9. The Auto Industry continues to shift Advertising funds into the Online and Interactive Media space at a rapid pace…
10. Respected research firm, Borrell Associates, predicts that online auto ad spending will increase by 13% over the next five years, compared with less than 2% for total auto industry spending. By 2009, digital spending will hit $4 billion, surpassing every other medium except broadcast television.
11. The Automotive Industry continues to shift advertising funds into the Digital Advertising space… From less than $2.5 Billion in 2007, the industry will grow Digital Ad budgets to over $5 Billion during the next 4 years.
12. Automotive Ad Spending Shifts Online Overall spending may be stagnant, but automakers and dealers will continue to shift it among media channels. Between 2005 and 2007, advertising spending moved from traditional media into digital and out-of-home initiatives, according to TNS Media Intelligence data supplied to eMarketer. Hardest hit were newspapers (-30.3%) and magazines (-12.5%), while TV (-6.3%) and radio (-7.6%) experienced smaller by similar declines. At the same time, spending for online display ads rose 109.1%, while outdoor climbed a modest 1.9%.
13. At the OEM level (Tier 1), budgets are skewed towards an over reliance on TV relative to the influence TV has on car buyers. While Internet is budgeted at less than the impact it has.
14. New vehicle franchise dealers in the USA spent $7.86 billion on advertising last year, with the average ad spend per dealership increasing by 4% to slightly over $378,000 . Source: National Automobile Dealers Association (NADA), "2008 NADA Data: Economic Impact of America's New-Car and New-Truck Dealers,“ May 2008
15. The chart below reveals changing trends in media buying at the local dealer level. Total ad spending dropped 13.5% between 2005 and 2007, to $4.9 billion. Newspaper spending fell by almost 22% in that time, followed to a lesser extent by radio and outdoor. Magazine spending, although a modest $29.2 million, actually rose 71% in the same time period—and online display ads surged 189% to $114 million and a 2.4% share of the total advertising budget.
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20. Social Media Marketing Every day, conversations that used to take place with friends and family are shifting to the Internet. Capgemini found that, with the spread of social media, shoppers are now looking for opinions and reviews from total strangers about specific brands, makes and dealers, as well as to discuss their own impressions and experiences. The “New Autoshopper.com Study” from J.D. Power found that nearly 69% of online new-vehicle buyers used one or more types of user-generated content. Consumer ratings and reviews were the most popular form, and enthusiast sites, online forums, blogs and photo-sharing sites were considered helpful but had lower usage rates. Word-of-Mouth Online A few short years ago, price and vehicle specs were the main pieces of information sought online. Today, shoppers turn to the Web for recommendations and reviews. Word-of-mouth has always had a great influence on vehicle purchase decisions, but now the Web—through blogs, user reviews, discussion groups, automotive wikis and other social media—is replacing recommendations from friends and family. What About User Generated Content (UGC) ?
21. Online Media Tools A joint comScore and Kelsey Group study showed that 78% of Internet users who read an online review in the automotive category said it influenced their offline purchase decision. Social Media as Word o f Mouth Not surprisingly, Capgemini found that younger Internet users are more likely to check out automotive blogs. About one-third of respondents ages 18 to 34 did so while researching a purchase, compared with 22% of respondents ages 50 and older. Toyota was an early entrant in the blogosphere, employing staff to, among other things, blog back. Bruce Ertmann, corporate manager of consumer-generated media, told Brandweek he checks Autoblog, Jalopnik, Autoextremist.com and fan sites. As an example, when Al Gore III, son of the former vice president, was pulled over in July 2007 for driving his Toyota Prius at 100 mph, the automaker responded to blog entries about the incident. “We don’t advocate traveling at 100 mph on our nation’s highways, or anywhere for that matter in any of our products, but we’ve also heard from some of our Prius owners that say it’s kind of nice to know the car is not a slug at all but has the power to move fast if needed. Just what is the top speed of a Prius? It’s actually 103 mph. Buy a Prius—but obey the law,” Mr. Ertmann wrote on his blog. In a six-month study of online behavior conducted in 2007, CarGurus found that new-car shoppers spent a majority of their time online looking at photos or watching videos. Reading articles and user reviews or comparing prices and vehicle specifications occupied 38% of their time. What About User Generated Content (UGC) ?
24. Where is the traditional Advertising money being spent within the Automotive channel? Non-digital ad spend is declining as Automotive moves from offline to online advertising, with Automotive Tier 2 (dealer associations) and Automotive Tier 3 (dealers) in the top 3 for both volume and shift towards digital.
25. With 4 of the top 10 offline media buyers being car companies, despite having shifted billions of dollars into digital, even the car companies still spend a disproportionately large amount of money on traditional media channels… This spending will increasingly come under fire and will be further eroded as more OEM dollars shift into the digital and interactive media formats. This is important for Tiers 2 and 3 which are influenced by OEM’s.
26. When Search Advertising is excluded, and we look at where OEM’s have shifted budgets into online advertising in the most recent 3 year period, we can see where the dealers will most likely pull their dollars from as they see the need to invest in online digital marketing. We believe that Tier 1 is a leading indicator for spending shifts at Tier 2, and Tier 2 is a likewise leading indicator of advertising shifts at Tier 3.
27. When we look at the overall growth in Digital Advertising and Online measured media spending, we can see the growth is outpacing the Automotive Industry’s shifting of media buys at Tier 2 and Tier 3 to date… This is an indicator that there is a lag in Automotive Tiers 2 and 3 which shows that there is a gap between what dealers are spending there advertising money on and where both consumers and the rest of the business world has gone.
28. When we look at pure Tier 3 Advertising spend per the most recent NADA numbers, we see that dealers currently show various expenses that they categorize as Internet Advertising using up less than 13% of their total advertising budget. We believe that this share of dealer advertising spend will more than double to over 25% within the next 4 years…
29. A survey from The Kelsey Group indicated that 59 percent of dealers said they would utilize Internet video on their Web sites in the next 12 months, versus the 33 percent who already use the technology. Additionally, the number of dealers who implement online customer ratings and reviews is expected to rise from 29 percent to 43 percent, officials indicated. Meanwhile, 33 percent of franchised dealers indicated they will use social networking sites, an increase from 15 percent. "These findings point to a significant disruption in the auto dealer advertising space," explained Neal Polachek, CEO of The Kelsey Group. "There are valuable opportunities for traditional and new media companies that tune into dealers' adoption of Web 2.0 technologies and align with dealers' online media-buying intentions," Polachek added. Dealers are also shifting the manner in which they advertise. Sixty-two percent of dealers surveyed plan to boost online media spending in the next 12 months . Only 17 percent said they will do the same for traditional media. Likewise, only 8 percent of dealers intend to cut online spending, while 46 percent will decrease traditional media spending. SOURCE: The Kelsey Group gathered information for the study in February/March 2008. How will dealers respond to the Digital Advertising Gold Rush ?
30. Where will these shifting advertising dollars flow into? It is fairly certain that the largest segment will be spent on Search Advertising, with well over half of that going to Google Adwords, followed by online video based advertising and online website placed display advertising combined equaling paid search advertising… Classified (Autotrader.com, Cars.com, etc.) will be the 4 th largest spend category, followed by purchased leads and email marketing.
31. When dealers were asked in January 2008 where they would shift their online advertising investments, Search Advertising was followed by Display Advertising and Video Advertising. This shows a clear justification for ADP Digital Marketing to invest and grow capabilities in these 3 areas.
32. What types of online video advertising should ADP develop? It is obvious that click-to-play, expanding and video built into display advertising space capabilities are what we need to offer… What Types o f Online Video Based Advertising Will Sell ?
33. The Last Ten Years o f Change in the Way Dealers Advertise
34. How Many Dealers Have Started Buying Search Advertising During Past 24 Months ?
54. In 2008-2009 the Internet will impact automotive shopping more than ever before! Automotive Internet Usage: Used 1 Vs. New 2 Vehicle Buyers – 9 Year Trend 1 Based to new-vehicle buyers. Source: J.D. Power and Associates 1999-2007 New Autoshopper.com Studies 2 Based to used-vehicle buyers. Source: J.D. Power and Associates 1999-2007 Used Autoshopper.com Studies
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56. Independent sites are decreasing in likelihood of being the first site visited… Based to new-vehicle AIUs. Source: J.D. Power and Associates 2001-2007 New Autoshopper.com Studies First Auto Site Visited by Online Car Buyers
57. Only 22% submit an Internet Lead, but 39% visit a dealership showroom because o f online information Based to all new-vehicle buyers. Source: 2007 New Autoshopper.com Study
58. Gen Y and Gen X buyers are more likely to submit an online quote request Source: J.D. Power and Associates 2007 New AutoShopper.com Study Lower Funnel Activities by Generation (Based to All Buyers)
59. Search engines can be an effective way to reach consumers looking for auto shopping sites Based to AIUs using search engines; 2007 J.D. Power and Associates New Autoshopper.com Study
60. Consumers use search to find vehicle images Based to AIUs using search engines; 2007 J.D. Power and Associates New Autoshopper.com Study
61. Google continues to dominate and grow in AIU search usage Based to AIUs; 2006-2007 J.D. Power and Associates New Autoshopper.com Study
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64. Good Things Happen When You Combine Display and Search! When combined, Search and Display Advertising deliver profoundly better results than when used independently. Together, they provide: 1. Significant lift in onsite engagement 2. Increase in online and offline purchasing by consumers who are exposed to integrated campaigns Display improves Search performance. Interest generated from Display advertising carries over to consumer Search behavior: • 22% increase in CTR when advertisers run both Search and Display over just Search • 26% increase in related trademark term searches – brand name, company or product names • Higher click-to-conversion rates in Search campaigns makes individual Search clicks more valuable Search improves Display Performance. When users are exposed to both: • 244% increase in purchases of advertiser’s products online • 89% increase in purchases of advertiser’s products offline • 68% increase in page views on advertiser’s site • 66% increase in time spent on advertiser’s site “ Advertisers who approach their marketing holistically drive greater engagement, generate more purchases both online and offline and steal share from their direct competitors.” Greg Coleman Executive VP of Sales, Yahoo Sources: 1. Atlas Digital Marketing Insight Report 2. Yahoo! Report, January 2007
126. How do we know what types of campaigns to offer online consumers so that dealers will want to use ADP Digital Advertising solutions?
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Editor's Notes
The trend we see in online auto shopping is that brand sites are catching up and will soon be replacing third-party sites in importance. They are nearly as likely to be the first site visiting
Brands sites are very dependent on search engines. Even though most brand sites have very intuitive URL’s – Acura is acura.com, Dodge is dodge.com, etc… - three-quarters of shoppers still use a search engine to get to a brand site.
Brands sites are very dependent on search engines. Even though most brand sites have very intuitive URL’s – Acura is acura.com, Dodge is dodge.com, etc… - three-quarters of shoppers still use a search engine to get to a brand site.
Google has been able to increase its lead in usage among the different search engines