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Dave VersicalEditorAutomotive News Online

Howard PolirerDirector, Industry RelationsAutoTrader.com

Understanding the Influencersthat Drive Vehicle Purchase2011 Automotive Buyer Study Howard Polirer, Director, Industry Relations

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 doesnt 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% ofthe Shopping Process Online NEW VEHICLE BUYERS USED VEHICLE BUYERS 7.5 Hours 7 Hours Offline Offline 11.5 Hours 11 Hours Online Online 19 Hours Total Shopping Time 18 Hours Total Shopping TimeSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Most Influential Sources Leading tothe Dealership 58% New Buyers50% Used Buyers 19% 16% 7% 5% 4% 2% 4% 2% 2% 2% 2% 1% 1%1% Internet Referral From Newspaper Direct Outdoor TV Magazine Radio Friend/Family Mail AdsSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

The Internet Is it aLEAD GENERATOR? Or is it an INFLUENCER?

How Are Car Buyers EstablishingInitial Contact with Dealers?

How Car Buyers First Contactedthe Dealership Walk-In Phone 20% Email 11% 69%Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

7 10 out of Car Buyers DO NOT Establish Contact with the Dealer Prior to Their Initial VisitSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Sourcing Studies AmongFranchise Dealerships NationwideConducted by KS&R market research firm

How New & Used Vehicle Buyers FirstContacted the Dealership Walk-In Phone 24% Email 10% 66%Source: AutoTrader.com Sourcing Studies, Mar. 2010 Jan. 2011Base: New & Used Vehicle Buyers from Franchise Dealerships

Influence Shoppers to Walk Intothe Dealership

Online Shopping Behavior

Car Shoppers Are More ThoughtfulAbout How They Spend Their Money

I am doing my homework because I dont want to make a wrong decision and be stuck with high monthly payments.Source: Greenfield Consulting Qualitative Research, Feb 2009

How Do They Spend TheirTime Online?

New & Used Car Buyers Spend 60% ofthe Shopping Process Online NEW VEHICLE BUYERS USED VEHICLE BUYERS 7.5 Hours 7 Hours Offline Offline 11.5 Hours 11 Hours Online Online 19 Hours Total Shopping Time 18 Hours Total Shopping TimeSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Car Buyers Spend the Most Time onThird-Party Sites NEW VEHICLE BUYERS 3rd Party Sites 3.25 Hours Dealer Sites 2.25 Hours OEM Sites 2.75 Hours Search 2 HoursSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

Car Buyers Spend the Most Time onThird-Party Sites USED VEHICLE BUYERS 3rd Party Sites 6.5 Hours Dealer Sites 2.25 Hours OEM Sites 1 Hour Search 1.5 HoursSource: 2011 AutoTrader.com/ Polk Automotive Influence Study

A Broad Internet Marketing StrategyIs Needed

What About Search & Social?

Vehicle Buyer Search Engine Use Access OEM Site.. 62% Access Dealers Site... 61% Find Dealer Phone Number and/or Website. 48% Access 3 Party Sites. 35% rd Other/None....16%Source: 2011 AutoTrader.com/ Polk Automotive Influence Study

The Role of Search =

Social Networking Site Influence Only 3% of vehicle buyers said a social networking site influenced their purchase 97% Source: 2011 AutoTrader.com Polk Automotive Influence Study

The Consumer Shopping Funnel &Cross-Shopping Behavior

2 Out of 3 Shoppers Begin the ShoppingProcess Undecided About Make/Model % 66% % % % % % Knew Knew Exact Knew Knew Knew Did Not Vehicle Vehicle Vehicle Vehicle Vehicle Know What Body Style (make/model) Class Features Make they WantSource: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&RQ50: Thinking back to when you first considered purchasing a vehicle, which of the following best describes your purchase intention?.

The Shopping Funnel Doesnt Really Exist

The Shopping Funnel Doesnt Really Exist

2The Average Number of CarsConsidered By Shoppers 5 Months From PurchaseSource: 2009 J. D. Power & Associates Web Site Performance Study

2.3The Average Number of CarsConsidered By Shoppers 3 Months From PurchaseSource: 2009 J. D. Power & Associates Web Site Performance Study

3.5The Average Number of CarsConsidered By Shoppers During Month of PurchaseSource: 2009 J. D. Power & Associates Web Site Performance Study

What About Cross-Shopping?

64% of AutoTrader.com Users Select the All Cars PathSource: AutoTrader.com Site Statistics

53% of Shoppers Consider Both New & UsedSource: 2011 Shopper Frame of Mind Study, AutoTrader.com and KS&R

58% of 2010 2012 Model Year Visitors Also Interact with 2008 & 2009 Models 40% of 2008 & 2009 Model Year Visitors Also Interact with 2010 - 2012 ModelsSource: AutoTrader.com Site Statistics March 2011

Deliver Contextually RelevantMessages to Influence Car Shoppers

Provide the Information ConsumersAre Seeking Online

Reasons for Using the Internet New Car Buyers Compare car models across different makes Research pricing of car models & makesFind 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 purcha