IS20G9 Attendees Presentations

1. The Drive to Decide
Mega Trends and Micro Moments in the new Car Buyer’s Path to Purchase
US

2. - 18-34 yrs
- Depends on family size
- Bought my QX60 in 2014
- 7 seater -> Safe -> Fun ->
Eco friendly

3. Today’s Auto shoppers are digitally savvy & visit the
dealership less, instead relying on online research, mobile & video to
stay informed and make decisions.
The traditional, linear path to purchase still applies in today’s world, but to reach & engage
with the digital Auto shopper, we must think in terms of the consumer’s micro
moments of influence.
Purchase paths vary in length & process, but typically the journey begins online -- with
search & online video as key influencers across phases.
The modern Auto shopper walks into the dealership armed with a staggering array of information.
Delivering on research needs & inspiring the consumer is critical -- brands
that succeed in this will win the sale!

4. US
Question asked: Q34 - Decisiveness about make & model - How would you describe your certainty at the start of the vehicle purchase process?
Base: New car buyers, n = 526
Source: Auto CB 2016
Many buyers are at least somewhat decided at the start
% % %
Completely decided Somewhat decided Completely undecided
31 62 4

5. US
2.4# of makes considered
Buyers typically consider multiple vehicle brands
Question asked: Q35 - Considered set of makes - Which makes did you consider, including the one you purchased?
Base: New car buyers, n = 526
Source: Auto CB 2016

6. US
The ‘inner circle’ heavily influences the purchase decision
were influenced by their
partner, husband or wife in
their decision
Question asked: NQ1 - Influencer circle on purchase decision - Who in general was involved in the decision about the new vehicle?
Base: New car buyers who were randomly selected for this question (reduced sample), n = 263
Source: Auto CB 2016
%52

7. US
Buyers
actively look
for
information
before they
visit a
dealer
Question asked: NQ6 - What information did you look for before you went to the dealership?
Base: New car buyers, n = 526
Source: Auto CB 2016

8. US
Question asked: Q38 - Number of dealer visits - Overall, how many times did you visit a dealer of any make until you made your most recent purchase?
Base: New car buyers, 2015 n = 500, 2016 n = 526
Source: Auto CB 2015 / 2016
2.0
The average auto buyer
visits the dealership
times before making a
purchase
# 2.1 dealer visits
in 2015

9. US
Dealer discovery is an important milestone
of auto shoppers bought from a dealer with whom they had no prior relationship or familiarity
Question asked: NQ7 - Relationship to dealer of purchase - How would you describe your dealer?
Base: New car buyers who bought their new car at a dealer and who were randomly selected for this question (reduced sample), n = 242
Source: Auto CB 2016
%53

10. US
Buyers use their smartphone to research –
even when at the dealership
Question asked: Q21 - Devices used for online research - Which of your devices did you use at any stage of your online research?
Q22 - Smartphone research while on the lot - For which of these activities did you use your smartphone while you were at a dealer (or vehicle lot)? Net count
Base: 1) New car buyers who use a smartphone, 2015: n = 399, 2016 n = 457, 2) New car buyers who use a smartphone and who visited a dealer n = 272
Source: Auto CB 2015 / 2016
SMARTPHONE RESEARCH1
SMARTPHONE RESEARCH ON THE LOT2
+ 4% compared to 2015

11. US
Question asked: Q39 - Number of test drives - How many test drive(s) did you take prior to your purchase?
Base: New car buyers, n = 526
Source: Auto CB 2016
It does not take many test drives to make a decision
1.6test drives before purchase,
on average

12. US
Role of video in these auto purchase moments
“which car is best for me?”
moment
“Is this right for me?”
moment
“Am I getting the right deal”
moment
“Can I afford it?”
moment

13. US
65% 63% 49%
59%
Role of video in these auto purchase moments
“which car is best for me?”
moment
“Is this right for me?”
moment
“Am I getting the right deal”
moment
“Can I afford it?”
moment

14. US
Role of video in these auto purchase moments

15. US
Professional content is most
relevant to the auto shopper
Videos professionally produced by vehicle manufacturer
Videos professionally produced by independent 3rd party
Amateur videos produced by consumers or private persons
Question asked: Q26 - Watched online video format - What type(s) of online video did you watch during your purchase process?
Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
Share of buyers who watched online video format:

16. US
Videos help to explore vehicles from different perspectives
Vehicle
highlights of
features or
options
Vehicle ratings Vehicle reviews
incl. interior /
walk-arounds
Consumer
reviews or
testimonials
Vehicle
comparison
videos
Vehicle
performance
videos
Test drive
Videos
Ads or
commercials
Augmented/
virtual reality
content
Question asked: Q27 - Watched online video content - What type(s) of content did you watch?
Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
TYPE OF VIDEOS WATCHED BEFORE DECIDING ABOUT A NEW CAR

17. US
Online video helps the car buyers
narrow down their options
NARROWED DOWN CONSIDERATION SET
EXPANDED CONSIDERATION SET
SAVED TROUBLE OF GOING TO TEST DRIVE
Question asked: NQ23 - Influence of online video on consideration set and test drives - How did online videos help you making your purchase decision?
Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016

18. US
VISIT A DEALER WEBSITE
LOCATE A DEALER
SCHEDULE A TEST DRIVE
USE A CAR CONFIGURATOR TO BUILD & PRICE A VEHICLE
REQUEST A PRICE QUOTE
PARTICIPATE IN SALES EVENTS OR ACTIVATE PROMOTION OR OFFER
REQUEST OR DOWNLOAD A BROCHURE OR CATALOG
Actively did a
follow-up action
Online video creates signals of intent
Question asked: Q31 - Follow up action after watching online video - Did something you saw in an online video lead to any of the actions below?
Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
%81

19. Today’s Auto shoppers are digitally savvy & visit the
dealership less, instead relying on online research,
mobile & video to stay informed and make decisions.
The traditional, linear path to purchase still applies in
today’s world, but to reach & engage with the digital Auto
shopper, we must think in terms of consumers’ micro
moments of influence.
Purchase paths vary in length & process, but typically the
journey begins online -- with search & online video as key
influencers across phases.
The modern Auto shopper walks into the dealership armed
with a staggering array of information. Delivering on research
needs & inspiring consumers is critical -- brands that succeed
will win the sale!
Step in to fill the void. Everywhere the consumer
looks for information, there is an opportunity to
engage them.
The smartphone is the anchor to micro moments.
Invest in the mobile consumer in proportion.
Deliver video content to respond to customer
needs at all phases & moments.
Every brand interaction leaves an impression.
Invest in the experiences that set your brand
apart.

20. Thank You
US

21. TOM ROCHA
COO, Founder of
TOM@LIVEEVENTSTREAM.COM | (210) 685-3613 |
WWW.LESAUTOMOTIVE.COM

23. • How full-motion video can help you increase leads by 20-30%
• How to get customers to come into your store with full motion
video.
• How to be transparent with walk-around videos.
• The importance of mobile HD full-motion video penetration.
• Marketing strategies for your vehicle video inventory
• How to get Video SEO for all your inventory videos

24. • Video now appears in 70% of the top 100
search results listings
• Viewers are anywhere from 64-85% more
likely to buy after watching a product video.
• Visitors who watch video stay on the site
twice as long and visit twice as many pages
versus those who don’t see video.

26. People do business with those that they like, know, and
trust. Brands are a popular proxy for trust: If a
consumer believes that a specific brand produces
quality products or services, anything with their stamp
of approval is likely to pass the basic trust test.

29. • Full-motion video on your website
(desktop and mobile)
• FMV on AutoTrader, Cars.com, Craigslist, etc.
• FMV on YouTube
• Video testimonials, thank you’s, and 360 walk-around
lead follow-ups

30. Video in emails increase
click-through rates by
300 percent

31. Having customers see a video player first thing they on
the VDP, instead of just a video button, increases
video views 10 fold which will likely increase leads

32. One simple change increased views 5X to over 10X

33. Breaking out completion ratio into 4 separate bars, we see that customers either
watch the whole video or only 30 seconds of it. What that tells us that customers
browse videos like browsing a catalog and once they find the car they like, they
don't mind watching the whole 2-3 minutes to see all the features of the car. It
debunks the idea that video should be less than 1 minute long.

34. Content is KING. Video is a powerful Organic SEO
driver

35. Breakdown of viewers is consistently:
35% desktop, 30% tablet and 35% tablet and
mobile
Mobile video viewability
becomes more and more
important every day.

36. Personalized 360 walk arounds work! Jack Phelan
Chevrolet and DeNooyer Chevrolet have been able to
consistently attract customers to the dealership after
emailing and texting
full-motion videos to prospective shoppers.

37. Features & Benefits
• Target/re-target to the vin level
• Tailored offers / copy “Still Interested in your Civic?”
• Real time publishing / updating vehicle offers
• Utilizes existing video assets – no extra work for the dealer
• Qualifies for Co-Op
• Broad reach – Publisher Network

44. Methodology

45. US
Data source of this report
Target Population
New car purchaser who use the internet
Sampling
Sample size USA n = 526
Quotas were applied on age, gender, educational level and region as well as online activities and smartphone usage to ensure local representativeness for the
target audience
Survey administration
Surveys were conducted through online panels
Questionnaires were administered in local language(s) for all countries surveyed
Questionnaire length was 20 minutes, questionnaire followed mobile-friendly design guidelines
Weighting
The reported data was weighted against the Connected Consumer Survey
Timing
Surveys were administered in March / April 2016
Small base
Small bases are clearly highlighted and should be used carefully to showcase the data
Net counts
Some data points are defined by net counts – in this case this is stated per chart. A net count is defined as ‘at least on answer out of a set of answers with multi-
select’

46. Appendix

47. US
researched online to
find their dealer*
Buyers find their dealers online, via
search or dealer’s website
found dealer via
search engine
found dealer via
dealer’s website
found dealer via
website of make
% % %
Question asked: NQ5 - How location of dealer was found - How did you find your dealer?
Base: *New Car Buyers who were randomly selected for this question (reduced sample) and who bought their new car at a dealer n = 242,
New Car Buyers who were randomly selected for this question (reduced sample) and who bought their new car at a dealer (found online) n = 117
Source: Auto CB 2016
%48 40 41 21

48. US
Some purchase cycles are quick, others not
Question asked: Q16 - Length of research cycle - How much time passed between starting to collect information and actually purchasing a vehicle?
Base: New car buyers, n = 526
Source: Auto CB 2016
within 2 months within 3 months more than 3 months
Amount of time needed to collect information, from start to final purchase
% % %75 11 13

49. US
ONLINE VIDEO INTRODUCED A VEHICLE
PREVIOUSLY NOT CONSIDERED
ONLINE VIDEO POSITIVELY CHANGED MIND
ABOUT CAR OR MANUFACTURER
Online Video heavily influences the purchase journey
Question asked: Q30 - Consideration changed because of online video: Online video(s) introduced you to a vehicle you had not previously considered / Online
video(s) convinced you to think differently (more positively) about a vehicle brand or vehicle manufacturer - How much do you agree or disagree with the statements
below?
Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016

50. What have
we learned?“ „
○ Auto shoppers generally begin the
purchase process with some idea of
what they want, but are also influenced
by others
○ It is common to consider multiple
brands and/or change one's mind
during the path to purchase
○ Media plays a key role to inform the
auto shopper; the search engine is an
important channel to influence their
purchase
○ The auto shopper watches many types
of video content; these influence their
consideration and drive purchase-
oriented actions

51. US
Research Online
Research offline: Ads, shows, mailings
Research in-person (dealer)
Research in-person (WOM)
Cross-media research online & in-person - both relevant
Online
research is
important & is
accompanied
by different
offline sources
Net counts of research combinations
Question asked: Q8/ Q9: Which of these offline / online sources informed your recent vehicle purchase?
Q10 Which of these websites or apps did you use? / Q11 On which of these websites or apps did you watch online videos?
Base: New car buyers, 2015: n = 500, 2016: n=526
Source: Auto CB 2015 / 2016
+ 12% compared to 2015

52. US
7
of buyers used more than
10 different touch points
(online & offline) to
research for their new car
Buyers use many different touch points before they decide
Average number of touch points out of questions 8, 9, 10 & 11
Question asked: Q8/Q9: Which of these offline / online sources informed your recent vehicle purchase?
Q10: Which of these websites or apps did you use? / Q11: On which of these websites or apps did you watch online videos?
Base: New car buyers, n = 526
Source: Auto CB 2016
%35

53. US
Search & Video are most commonly used among all sources
% of touch points used by all buyers – online, offline or in-person – used at any time until the final decision
Research Online Research offline Research In-person (dealer) Research In-person (WOM)
Question asked Q8 / Q9: Which of these offline / online sources informed your recent vehicle purchase?
Q10 Which of these websites or apps did you use? / Q11 On which of these websites or apps did you watch online videos?
Base: New car buyers, 2015: n = 500, 2016: n=526
Source: Auto CB 2015 / 2016
+ 4% compared to 2015
+ 5% compared to 2015
+ 13% compared to 2015
+ 9% compared to 2015
+ 7% compared to 2015
+ 6% compared to 2015
+ 5% compared to 2015
+ 4% compared to 2015

54. US
ONLINE
AUCTION
VEHICLE
FORUMS
VEHICLE
BLOGSs
EMAIL
OFFERS
DEALER
WEBSITES
LOW IMPACT HIGH IMPACT
Touch points ranked by impact in customer journey
Impact combines reach (=usage) of touch points with their value to buyers
Search engines have the strongest impact on the purchase
path
REVIEW
SITES
ONLINE
DIRECTORI
ES
SOCIAL
MEDIA
COMPARISO
N WEBSITES
ONLINE
ADVERTISIN
G
VEHICLE
CHANNE
L
SEARCH
ENGINES
BRAND
WEBSITES
ONLINE
MAGAZIN
ES
Question asked: Q12.1.A-E - Impact of aggregated online information sources on all stages of the customer journey - Which online TPs where helpful? Net counts
Base: New car buyers, n = 526
Source: Auto CB 2016

55. US
Auto shoppers use Google & other websites to get informed
Used website to research
Base: search engine users
Question asked: Q10 - Online-Research on dedicated websites - Which of these websites or apps did you use to inform your most recent vehicle purchase?
Base: New car buyers who used a search engine, 2015: n = 374, 2016: n = 333
Source: Auto CB 2015 / 2016

56. US
YouTube & brand/dealer sites are important for research
Used online video to research
Base: online video users
Question asked: Q11 - On which of these websites or apps – if any – did you watch online videos during your most recent vehicle purchase??
Base: New car buyers who watched online video before their purchase and who didn’t watch on OEM sites only, n = 295
Source: Auto CB 2016

57. US
Question asked: NQ14 - Car configurator usage - Did you use an online ‘car configurator’ to customize a vehicle that interested you with specific colors, features, etc.?
Base: New car buyers, n = 526
Source: Auto CB 2016
Digital tools help buyers to decide
YES, CONFIGURED THE VEHICLE BOUGHT
YES, CONFIGURED VEHICLE(S) BUT BOUGHT THEN A DIFFERENT ONE
NO, DID NOT USE A CAR CONFIGURATOR
CAR CONFIGURATOR USAGE