• Delighting the auto buyer




24th August, 2010



                              Google Confidential and Proprietary   1
• Delighting the auto buyer
The online journey

Colin Barnard, Head of Automotive

August, 2010



                                    Google Confidential and Proprietary   2
Agenda



1   Today’s car buyer




2   The impact of car manufacturer websites




3   Measuring the right outcomes



                                              Google Confidential and Proprietary   3
Automotive marketing model
   TV & Cinema                         Press




    Ambient                  Online Media
                                    Google Confidential and Proprietary
Most buyers start with a small consideration set



                 82%
                  1-3                             Ford
                                      Toyota


                                               Holden




                         82%
                                               Ford

                                                         Google Confidential and Proprietary   5

Source: CapGemini Cars Online 09/10
Google Confidential and Proprietary   6
Online is most influential pre-purchase buying activity




                                                                        “          It’s important to get as much
                                                                                   unbiased information as possible

                                                                                                                                                  ”
                                            35%
                                                                                                                                       Online
                                            30%                                                                                        Reviews

                                            25%
                    Influence on purchase




                                            20%                                                                                          OEM Website
                                                                                          Friends &
                                            15%                                           Family                   Dealership

                                            10%                                                                                Car section of
                                                                                                                               newspaper
                                            5%                                                     Car
                                                                     Brochures
                                                                                                   Magazines
                                            0%
                                                  0%	
     10%	
         20%	
      30%	
      40%	
     50%	
       60%	
          70%	
           80%	
  

                                                                                        Did Activity
                                                                                                                                 Google Confidential and Proprietary
Source: TNS – Google Website branding study
                                                                                                                                                                       7
Mix of generic & brand terms used by buyers
                                          Search terms used leading to purchase


                                                                                                                                                                                   Top 10 Auto Search Terms
                                                                                                                                                                                      in purchase month

                                                                                                                                                                                   Rank              Keyword
                                                                                                      49%                       48%
56%                    57%                       57%                        55%                                                                                                    1                 kelly blue book
                                                                                                                                                                                   2                 toyota
                                                                                                                                                                                   3                 honda

                                                                                                                                                           Generic                 4                 nissan
                                                                                                                                                           Branded                 5                 edmunds
                                                                                                                                                                                   6                 carmax
                                                                                                      51%                       52%
44%                    43%                       43%                        45%                                                                                                    7                 hyundai
                                                                                                                                                                                   8                 ford
                                                                                                                                                                                   9                 kelley blue book
                                                                                                                                                                                   10                nada
6mths                 5mths                     4mths                     3mths                     2mths                  Month of
                                                                                                                           purchase




                                                                                                                                                                                             Google Confidential and Proprietary

  Base: Total search referrals to automotive sites in each time period among buyers in the Compete panel/Polk vehicle registration matched dataset with six months of consecutive clickstream data                                 8
You have reached your destination!




                                     Google Confidential and Proprietary   9
But what role is the website playing?




1 Brand Survey

2 Website Survey




                                          Google Confidential and Proprietary   10
Aim: See how opinions change after visit




      WEEK 1             WEEK 2          WEEK 3
    Brand survey   Visit OEM Website   Brand Survey




                                                Google Confidential and Proprietary   11
Aim: Understand what is most visited/valued




    Didn’t visit test   Free browsing on   Visited specific areas
       website            OEM website         of OEM website
                         Website Survey       Website Survey




                                                          Google Confidential and Proprietary   12
Aim: Understand which metrics change

       Classic Funnel                 Consumer Metrics


     Model Awareness         How familiar are you with [make/model]?




     Favourable Opinion      How does the [make/model] stack up for…..




       Consideration          Which make/models would you consider?




      Purchase Intent     Would you be likely to purchase [make/model]?




                                                               Google Confidential and Proprietary
                                                                                                 13
Model awareness increased significantly
                                             Model Awareness

                                            Favourable Opinion

                                                 Relevant Set


                    21%                        Purchase Intent




                    12%

                    13%

                                    Google Confidential and Proprietary   14
Favourable opinion increased for all metrics

                                              Tries to reduce safety
                                                               impact
                                             IsHas excellent driving
                                                   Has the latest
                                              A a on environment
                                                  modern brand with
                                                brand people admire
                                                      features
                                                    performance
                                                    technology
                                                        flair
                                                                                       Would suggest to others        32%

                                                                                       Good range of models           30%
                                                                                       Has attractive styling         20%
                                                                                       Good value for money          19%
                                                                                       Appeals to women               16%


                                                                                                                                            15
                                                                                                                 Google Confidential and Proprietary

Source: Q18 (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 Base n = 325
Up to 3x lift in consideration
                                                                                                                              Model Awareness

                                                                                                                             Favourable Opinion

                                                                                                                                  Relevant Set

                                                        +289%                                                                   Purchase Intent




                                                                                                                     Google Confidential and Proprietary   16

Source: Q11a, Q11b (Stage 1), Q6a, Q6b (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 / Base n = 1173
Increased purchase intent with all models
                                                                                                                              Model Awareness

                                                                                                                             Favourable Opinion

                                                                                                                                  Relevant Set

                                                                                                                                Purchase Intent




                               14%                                                     9%                                22%




                                                                                                                     Google Confidential and Proprietary   17

Source: Q12 (Stage 1), Q8 (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 / Base n = P=23, S=80, VW=28
Customers using buying tools most
                                                                         Pre-Purchase Website Feature Visited

        Car manufacturer sites
         3rd party sites


   70%




                                52%
                                                               48%




                                                                                             31%                                                                              32%

          26%                                                                                         26%                    26%
                                                                                                                                            23%
                                                                       18%
                                         15%                                                                                       15%
                                                                                                                                                   11%                  10%




Build Your Own                    Offers                 Dealer Locator                    Req Quote                   Fin Calculator    Reviews   Brochure       Used Car Values




                                                                                                                                                    Google Confidential and Proprietary
                                                                                                                                                                                      18
   Base: New vehicle buyers visiting at least one OEM site during the six months prior to vehicle purchase Base n = 44,865
Let’s start measuring the things that count!

  Stage of Funnel


Model Awareness      Visitors

Favourable Opinion   Time on model showroom and/or page views

  Consideration      Completed configurations / visits to special offers


 Purchase Intent     Dealer locator results page (& click to dlr site)




                                                        Google Confidential and Proprietary   19
ROI is complex when no online transaction occurs




Activity on site   Measure        July 10   Actual Cost    Target CPA        Actual CPA
                                  Total
Brochures          # brochures    500            $15,000          $5.00                  $30.00
                   downloaded
                   # brochures    250            $15,000         $10.00                  $60.00
                   ordered
Test Drives        TDs booked     25              $2,000         $50.00                  $80.00




                         Was this campaign good value?



                                                                   Google Confidential and Proprietary   20
Different goals should have different metrics
                     Activity on                         July 10    Actual    Target          July 10
                                      Measure
  Stage of Funnel    site                                Total      Cost      CPA             CPA


Model Awareness      Whole site       UBs                  20,000   $20,000        $1.05                  $1.00



                                      UBs spending
                     Model page                             8,000    $1,000        $0.25                  $0.13
Favourable Opinion                    more than 30s


                     Build your       # of completed
                                                            4,000    $4,000        $2.00                  $1.00
                     own              configurations
  Consideration
                     Offers           UBs on offers           600    $2,000        $2.00                  $3.33



 Purchase Intent     Dealer locator   # visits               2000    $2,000        $2.00                  $1.00

                                      # brochure PDFs         500    $2,500        $5.00                  $5.00
                     Brochures
                                      # brochures sent        250    $2,500      $10.00                 $10.00

                     Test Drives      TDs booked               25     $1000      $50.00                 $40.00




                                                                              Google Confidential and Proprietary   21
If you remember nothing else…..



1   Online is the most used & influential sales & marketing tool




2   Websites impact classic brand funnel metrics




3   Focus on site engagement & buying tools not brochures




                                                       Google Confidential and Proprietary   22
• Thank You!




               Google Confidential and Proprietary   23

The auto buyer online

  • 1.
    • Delighting the autobuyer 24th August, 2010 Google Confidential and Proprietary 1
  • 2.
    • Delighting the autobuyer The online journey Colin Barnard, Head of Automotive August, 2010 Google Confidential and Proprietary 2
  • 3.
    Agenda 1 Today’s car buyer 2 The impact of car manufacturer websites 3 Measuring the right outcomes Google Confidential and Proprietary 3
  • 4.
    Automotive marketing model TV & Cinema Press Ambient Online Media Google Confidential and Proprietary
  • 5.
    Most buyers startwith a small consideration set 82% 1-3 Ford Toyota Holden 82% Ford Google Confidential and Proprietary 5 Source: CapGemini Cars Online 09/10
  • 6.
  • 7.
    Online is mostinfluential pre-purchase buying activity “ It’s important to get as much unbiased information as possible ” 35% Online 30% Reviews 25% Influence on purchase 20% OEM Website Friends & 15% Family Dealership 10% Car section of newspaper 5% Car Brochures Magazines 0% 0%   10%   20%   30%   40%   50%   60%   70%   80%   Did Activity Google Confidential and Proprietary Source: TNS – Google Website branding study 7
  • 8.
    Mix of generic& brand terms used by buyers Search terms used leading to purchase Top 10 Auto Search Terms in purchase month Rank Keyword 49% 48% 56% 57% 57% 55% 1 kelly blue book 2 toyota 3 honda Generic 4 nissan Branded 5 edmunds 6 carmax 51% 52% 44% 43% 43% 45% 7 hyundai 8 ford 9 kelley blue book 10 nada 6mths 5mths 4mths 3mths 2mths Month of purchase Google Confidential and Proprietary Base: Total search referrals to automotive sites in each time period among buyers in the Compete panel/Polk vehicle registration matched dataset with six months of consecutive clickstream data 8
  • 9.
    You have reachedyour destination! Google Confidential and Proprietary 9
  • 10.
    But what roleis the website playing? 1 Brand Survey 2 Website Survey Google Confidential and Proprietary 10
  • 11.
    Aim: See howopinions change after visit WEEK 1 WEEK 2 WEEK 3 Brand survey Visit OEM Website Brand Survey Google Confidential and Proprietary 11
  • 12.
    Aim: Understand whatis most visited/valued Didn’t visit test Free browsing on Visited specific areas website OEM website of OEM website Website Survey Website Survey Google Confidential and Proprietary 12
  • 13.
    Aim: Understand whichmetrics change Classic Funnel Consumer Metrics Model Awareness How familiar are you with [make/model]? Favourable Opinion How does the [make/model] stack up for….. Consideration Which make/models would you consider? Purchase Intent Would you be likely to purchase [make/model]? Google Confidential and Proprietary 13
  • 14.
    Model awareness increasedsignificantly Model Awareness Favourable Opinion Relevant Set 21% Purchase Intent 12% 13% Google Confidential and Proprietary 14
  • 15.
    Favourable opinion increasedfor all metrics Tries to reduce safety impact IsHas excellent driving Has the latest A a on environment modern brand with brand people admire features performance technology flair Would suggest to others 32% Good range of models 30% Has attractive styling 20% Good value for money 19% Appeals to women 16% 15 Google Confidential and Proprietary Source: Q18 (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 Base n = 325
  • 16.
    Up to 3xlift in consideration Model Awareness Favourable Opinion Relevant Set +289% Purchase Intent Google Confidential and Proprietary 16 Source: Q11a, Q11b (Stage 1), Q6a, Q6b (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 / Base n = 1173
  • 17.
    Increased purchase intentwith all models Model Awareness Favourable Opinion Relevant Set Purchase Intent 14% 9% 22% Google Confidential and Proprietary 17 Source: Q12 (Stage 1), Q8 (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 / Base n = P=23, S=80, VW=28
  • 18.
    Customers using buyingtools most Pre-Purchase Website Feature Visited Car manufacturer sites 3rd party sites 70% 52% 48% 31% 32% 26% 26% 26% 23% 18% 15% 15% 11% 10% Build Your Own Offers Dealer Locator Req Quote Fin Calculator Reviews Brochure Used Car Values Google Confidential and Proprietary 18 Base: New vehicle buyers visiting at least one OEM site during the six months prior to vehicle purchase Base n = 44,865
  • 19.
    Let’s start measuringthe things that count! Stage of Funnel Model Awareness Visitors Favourable Opinion Time on model showroom and/or page views Consideration Completed configurations / visits to special offers Purchase Intent Dealer locator results page (& click to dlr site) Google Confidential and Proprietary 19
  • 20.
    ROI is complexwhen no online transaction occurs Activity on site Measure July 10 Actual Cost Target CPA Actual CPA Total Brochures # brochures 500 $15,000 $5.00 $30.00 downloaded # brochures 250 $15,000 $10.00 $60.00 ordered Test Drives TDs booked 25 $2,000 $50.00 $80.00 Was this campaign good value? Google Confidential and Proprietary 20
  • 21.
    Different goals shouldhave different metrics Activity on July 10 Actual Target July 10 Measure Stage of Funnel site Total Cost CPA CPA Model Awareness Whole site UBs 20,000 $20,000 $1.05 $1.00 UBs spending Model page 8,000 $1,000 $0.25 $0.13 Favourable Opinion more than 30s Build your # of completed 4,000 $4,000 $2.00 $1.00 own configurations Consideration Offers UBs on offers 600 $2,000 $2.00 $3.33 Purchase Intent Dealer locator # visits 2000 $2,000 $2.00 $1.00 # brochure PDFs 500 $2,500 $5.00 $5.00 Brochures # brochures sent 250 $2,500 $10.00 $10.00 Test Drives TDs booked 25 $1000 $50.00 $40.00 Google Confidential and Proprietary 21
  • 22.
    If you remembernothing else….. 1 Online is the most used & influential sales & marketing tool 2 Websites impact classic brand funnel metrics 3 Focus on site engagement & buying tools not brochures Google Confidential and Proprietary 22
  • 23.
    • Thank You! Google Confidential and Proprietary 23