automotive news webinar slides 6 28-11

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

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Page 1: Automotive News Webinar Slides 6 28-11

WelcomeThe webinar will begin

momentarily

Page 2: Automotive News Webinar Slides 6 28-11
Page 3: Automotive News Webinar Slides 6 28-11

Dave Versical

Editor

Automotive News Online

Page 4: Automotive News Webinar Slides 6 28-11

Howard Polirer

Director, Industry Relations

AutoTrader.com

Page 5: Automotive News Webinar Slides 6 28-11

Howard Polirer, Director, Industry Relations

Understanding the Influencersthat Drive Vehicle Purchase2011 Automotive Buyer Study

Page 6: Automotive News Webinar Slides 6 28-11

About the Study

• Conducted by Polk / Commissioned by AutoTrader.com

• Understand What Media Sources Influence New & Used Vehicle Buyers Prior to Purchase

• 2005 New Buyers & 2000 Used Vehicle Buyers who purchased during June 2010 & July 2010

• Quotas were set to ensure a representative sample based on the vehicle make & state of residence

Page 7: Automotive News Webinar Slides 6 28-11

Implications of the Study

• The Internet is the most useful and influential

shopping source among vehicle buyers

• Use a broad Internet strategy: 3rd party, OEM,

& dealer sites serve as complements, not

competitors, during the shopping process

• The consumer shopping funnel doesn’t really exist

• There is an opportunity to influence shoppers by serving contextually relevant messages

Page 8: Automotive News Webinar Slides 6 28-11

How the Internet Influences Car Shoppers

Page 9: Automotive News Webinar Slides 6 28-11

New & Used Car Buyers Spend 60% of

the Shopping Process Online

7.5 HoursOffline

11.5 HoursOnline

NEW VEHICLE BUYERS

19 Hours Total Shopping Time

7 HoursOffline

11 HoursOnline

USED VEHICLE BUYERS

18 Hours Total Shopping Time

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 10: Automotive News Webinar Slides 6 28-11

Most Influential Sources Leading to

the Dealership

Used Buyers

New Buyers

Internet Referral FromFriend/Family

Newspaper Direct Mail

OutdoorAds

TV Magazine Radio

50%

58%

16%19%

7% 5% 4% 2% 2% 2%4%

2% 2%1% 1%1%

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 11: Automotive News Webinar Slides 6 28-11

Is it a…

Or is it an…

The Internet

LEAD GENERATOR?

INFLUENCER?

Page 12: Automotive News Webinar Slides 6 28-11

How Are Car Buyers Establishing

Initial Contact with Dealers?

Page 13: Automotive News Webinar Slides 6 28-11

How Car Buyers First Contacted

the Dealership

69%11%

20%

Walk-In

Email

Phone

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 14: Automotive News Webinar Slides 6 28-11

Car Buyers DO NOT Establish Contact

with the Dealer Prior to Their Initial Visit

7out of 10

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 15: Automotive News Webinar Slides 6 28-11

Sourcing Studies Among

Franchise Dealerships Nationwide

Conducted by KS&R market research firm

Page 16: Automotive News Webinar Slides 6 28-11

How New & Used Vehicle Buyers First

Contacted the Dealership

66%10%

24%

Walk-In

Email

Phone

Source: AutoTrader.com Sourcing Studies, Mar. 2010 – Jan. 2011

Base: New & Used Vehicle Buyers from Franchise Dealerships

Page 17: Automotive News Webinar Slides 6 28-11

Influence Shoppers to Walk Into the Dealership

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Online Shopping Behavior

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Car Shoppers Are More Thoughtful

About How They Spend Their Money

Page 20: Automotive News Webinar Slides 6 28-11

I am doing my

homework because I

don’t want to make a

wrong decision and

be stuck with high

monthly payments.

Source: Greenfield Consulting Qualitative Research, Feb 2009

Page 21: Automotive News Webinar Slides 6 28-11

How Do They Spend Their

Time Online?

Page 22: Automotive News Webinar Slides 6 28-11

New & Used Car Buyers Spend 60% of

the Shopping Process Online

7.5 HoursOffline

11.5 HoursOnline

NEW VEHICLE BUYERS

19 Hours Total Shopping Time

7 HoursOffline

11 HoursOnline

USED VEHICLE BUYERS

18 Hours Total Shopping Time

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 23: Automotive News Webinar Slides 6 28-11

Car Buyers Spend the Most Time on

Third-Party Sites

3rd Party Sites

2 Hours

3.25 Hours

2.75 Hours

2.25 HoursDealer Sites

OEM Sites

Search

NEW VEHICLE BUYERS

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 24: Automotive News Webinar Slides 6 28-11

3rd Party Sites

1.5 Hours

6.5 Hours

1 Hour

2.25 HoursDealer Sites

OEM Sites

Search

USED VEHICLE BUYERS

Car Buyers Spend the Most Time on

Third-Party Sites

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 25: Automotive News Webinar Slides 6 28-11

A Broad Internet Marketing Strategy

Is Needed

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What About Search & Social?

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Vehicle Buyer Search Engine Use

Access OEM Site…………………………….…….

Access Dealer’s Site………………………….…..

Find Dealer Phone Number and/or Website….

Access 3rd Party Sites…………….………………

Other/None…………………………..…..…………

62%

61%

48%

35%

16%

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 28: Automotive News Webinar Slides 6 28-11

The Role of Search

=

Page 29: Automotive News Webinar Slides 6 28-11

Social Networking Site Influence

97%

Only 3% of vehicle buyers said a social

networking site influenced their purchase

Source: 2011 AutoTrader.com Polk Automotive Influence Study

Page 30: Automotive News Webinar Slides 6 28-11

The Consumer Shopping Funnel &

Cross-Shopping Behavior

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2 Out of 3 Shoppers Begin the Shopping Process Undecided About Make/Model

Source: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&R

Q50: Thinking back to when you first considered purchasing a vehicle, which of the following best describes your purchase intention?.

Knew

Vehicle

Body Style

Knew Exact

Vehicle

(make/model)

Knew

Vehicle

Class

Did Not

Know What

they Want

Knew

Vehicle

Features

Knew

Vehicle

Make

%%

%%

%

% 66%

Page 32: Automotive News Webinar Slides 6 28-11

The Shopping Funnel Doesn’t Really Exist

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The Shopping Funnel Doesn’t Really Exist

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The Average Number of Cars Considered By Shoppers…

5 Months From Purchase

2

Source: 2009 J. D. Power & Associates Web Site Performance Study

Page 35: Automotive News Webinar Slides 6 28-11

The Average Number of Cars Considered By Shoppers…

3 Months From Purchase

2.3

Source: 2009 J. D. Power & Associates Web Site Performance Study

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The Average Number of Cars Considered By Shoppers…

During Month of Purchase

3.5

Source: 2009 J. D. Power & Associates Web Site Performance Study

Page 37: Automotive News Webinar Slides 6 28-11

What About Cross-Shopping?

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of AutoTrader.com Users Select the “All

Cars” Path

64%

Source: AutoTrader.com Site Statistics

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of Shoppers Consider Both New & Used

53%

Source: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&R

Page 40: Automotive News Webinar Slides 6 28-11

of 2010 – 2012 Model Year Visitors Also

Interact with 2008 & 2009 Models

58%

Source: AutoTrader.com Site Statistics – March 2011

of 2008 & 2009 Model Year Visitors Also

Interact with 2010 - 2012 Models

40%

Page 41: Automotive News Webinar Slides 6 28-11

Deliver Contextually Relevant

Messages to Influence Car Shoppers

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Provide the Information Consumers

Are Seeking Online

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Reasons for Using the InternetNew Car Buyers

Compare car models across different makes

Research pricing of car models & makes

Find info on special offers, dealer rebates & incentives

Look at exterior / interior photos

Read car reviews

Research reliability and safety info

Locate / find a specific vehicle to purchase

Evaluate trade-in value

Locate a dealer

Submit lead

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 44: Automotive News Webinar Slides 6 28-11

Create Special Offers & Incentives

Page 45: Automotive News Webinar Slides 6 28-11

Reasons for Using the InternetNew Car Buyers

Compare car models across different makes

Research pricing of car models & makes

Find info on special offers, dealer rebates & incentives*

Look at exterior / interior photos

Read car reviews

Research reliability and safety info

Locate / find a specific vehicle to purchase

Evaluate trade-in value

Locate a dealer

Submit lead

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 46: Automotive News Webinar Slides 6 28-11

Show Stock Photos?

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Show Photos of the Actual Vehicle

Page 48: Automotive News Webinar Slides 6 28-11

The Importance of Photos

Source: AutoTrader.com Site Statistics

For New Car Listings

• New car photos are the single most important factor in improving results (VDP views & prospects)

• Adding price and photos increases VDP views 4x and

prospects by nearly 2x

• There is almost no difference in the click through rate of listings with stock photos vs. listings with no photos

Page 49: Automotive News Webinar Slides 6 28-11

Car Shoppers Want More Video

Car Shoppers Want More Video

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How Video Influences

• More than 75% of Internet users watch video online 1

• 50% of consumers watch videos while shopping for

a car 2

• 72% of shoppers are more likely to buy a product or

service when a video is used 3

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

Page 51: Automotive News Webinar Slides 6 28-11

Reasons for Using the InternetNew Car Buyers

Compare car models across different makes

Research pricing of car models & makes

Find info on special offers, dealer rebates & incentives*

Look at exterior / interior photos

Read car reviews

Research reliability and safety info

Locate / find a specific vehicle to purchase

Evaluate trade-in value

Locate a dealer

Submit lead

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

Page 52: Automotive News Webinar Slides 6 28-11

Hyundai Trade-In Value Guarantee

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AutoTrader.com Trade-In Marketplace

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“It was easy & when I

went to the dealership,

I was prepared for

their offer.”

Source: July 2010 Trade-In Marketplace Consumer Follow-Up Study

Page 55: Automotive News Webinar Slides 6 28-11

Conclusion

Page 56: Automotive News Webinar Slides 6 28-11

Information properly

delivered in context

with compelling

messaging

INFLUENCE

56

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drives

INFLUENCE

Preference

57

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Summary

The Internet is the most useful and influential shopping source among vehicle buyers

• 71% of New & Used Car Buyers Use the Internet during

the shopping process

• 50% of New Car Buyers cite the Internet as the most

influential source leading to the dealer

Page 59: Automotive News Webinar Slides 6 28-11

Use a broad Internet strategy: 3rd party, OEM,

& dealer sites serve as complements, not

competitors, during the shopping process

• Car Buyers spend 60% of the shopping process online

• New & Used Car Buyers spend the most time on 3rd

party sites

• New Car Buyers spread their time more evenly over

the various sites

Summary

Page 60: Automotive News Webinar Slides 6 28-11

The consumer shopping funnel no longer exists

• 2 cars is the average number being considered five

months out from purchase

• 2.3 cars is the average number being considered three

months out from purchase

• 3.5 cars is the average number being considered during the month of purchase

Summary

Page 61: Automotive News Webinar Slides 6 28-11

There is an opportunity to influence shoppers by

serving contextually relevant messages

• 2 Out of 3 shoppers begin the shopping process

undecided about make/model

• 64% of our users select the “All Cars” path on

AutoTrader.com

• 53% of Shoppers consider both new and used vehicles

Summary

Page 62: Automotive News Webinar Slides 6 28-11

Thank [email protected]

Page 63: Automotive News Webinar Slides 6 28-11

Q&A

Dave Versical

Editor

Automotive News Online

Moderator

Presenter

Howard Polirer

Director, Industry Relations

AutoTrader.com

Page 64: Automotive News Webinar Slides 6 28-11

Thank You

This webinar will be available on-demand in a few days at www.autonews.com/webinars

All registrants will receive an e-mail notification when it is available