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Dave Versical

Editor

Automotive News Online

Howard Polirer

Director, Industry Relations

AutoTrader.com

Howard Polirer, Director, Industry Relations

Understanding the Influencersthat Drive Vehicle Purchase2011 Automotive Buyer Study

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

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

How the Internet Influences Car Shoppers

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

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

Is it a…

Or is it an…

The Internet

LEAD GENERATOR?

INFLUENCER?

How Are Car Buyers Establishing

Initial Contact with Dealers?

How Car Buyers First Contacted

the Dealership

69%11%

20%

Walk-In

Email

Phone

Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

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

Sourcing Studies Among

Franchise Dealerships Nationwide

Conducted by KS&R market research firm

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

Influence Shoppers to Walk Into the Dealership

Online Shopping Behavior

Car Shoppers Are More Thoughtful

About How They Spend Their Money

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

How Do They Spend Their

Time Online?

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

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

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

A Broad Internet Marketing Strategy

Is Needed

What About Search & Social?

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

The Role of Search

=

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

The Consumer Shopping Funnel &

Cross-Shopping Behavior

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%

The Shopping Funnel Doesn’t Really Exist

The Shopping Funnel Doesn’t Really Exist

The Average Number of Cars Considered By Shoppers…

5 Months From Purchase

2

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

The Average Number of Cars Considered By Shoppers…

3 Months From Purchase

2.3

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

The Average Number of Cars Considered By Shoppers…

During Month of Purchase

3.5

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

What About Cross-Shopping?

of AutoTrader.com Users Select the “All

Cars” Path

64%

Source: AutoTrader.com Site Statistics

of Shoppers Consider Both New & Used

53%

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

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%

Deliver Contextually Relevant

Messages to Influence Car Shoppers

Provide the Information Consumers

Are Seeking Online

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

Create Special Offers & Incentives

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

Show Stock Photos?

Show Photos of the Actual Vehicle

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

Car Shoppers Want More Video

Car Shoppers Want More Video

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

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

Hyundai Trade-In Value Guarantee

AutoTrader.com Trade-In Marketplace

“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

Conclusion

Information properly

delivered in context

with compelling

messaging

INFLUENCE

56

drives

INFLUENCE

Preference

57

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

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

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

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

Thank You!Howard.Polirer@AutoTrader.com

Q&A

Dave Versical

Editor

Automotive News Online

Moderator

Presenter

Howard Polirer

Director, Industry Relations

AutoTrader.com

Thank You

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