Yt for auto dealers 104 final
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Transcript of Yt for auto dealers 104 final
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US Online Automotive Dealer Advertising Executive SurveyJupiter Research
Selling Cars with Google 104:
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Internet Generating New Car Sales Leads
A dealer survey revealed that the portion of dealers generating over 10% of their new car sales from online leads jumped from 36% in 2004 to 51% in 2006.
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.comExecutive Survey (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US)
36%
59%
5%
38%
55%
7%
51%
34%
15%
0%
10%
20%
30%
40%
50%
60%
70%
More than 10% 10% or less Not sure/don't measure
2004
2005
2006
Internet-Generated New Car Sales 2004 - 2006
% o
f D
eale
rs b
y In
tern
et-
Genera
ted S
ale
sas a
Share
of O
vera
ll S
ale
s
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Internet-Generated Used Car Sales 2004 - 2006
Internet Generating Used Car Sales Leads
A dealer survey revealed that the portion of dealers generating over 10% of their used car sales from online leads jumped from 40% in 2004 to 56% in 2006.
• Used car sales tend to be more profitable, making this a critical aspect of a dealer’s business
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.comExecutive Survey (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US)
10%
54%
6%
43%
54%
6%
56%
32%
12%
0%
10%
20%
30%
40%
50%
60%
More than 10% 10% or less Not sure/don't measure
% o
f D
eale
rs b
y In
tern
et-
Genera
ted S
ale
sas a
Share
of O
vera
ll S
ale
s
2004
2005
2006
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Dealers Increasing Online Ad Spending
Survey data reveals that 47% of dealers in 2006 allocated over 10% of their overall marketing budget to the Internet, up from 35% in 2005.
• 43 % of dealers spent more than $30,000 in online advertising in 2006, up from 14% in 2003
• 28% spent over $50,000 in 2006, up from an average of 12% between 2003 & 2005
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.com Executive Survey (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US); JupiterResearch Executive Survey (7/04), n = 133 (US)
Dealers’ Online Advertising Spending 2003 - 2006
31%
23%
20%
14%13%
27%
13%
24%
22%
15%
19%
13%
22%
34%
11%
14%
12%
24%
43%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Perc
enta
ge o
f D
eale
rs
2003
2004
2005
2006
Less than $5,000 $5,000 to $10,000 $10,001 to $30,000 More than $30,000 None/not sure
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2007 Dealer Internet Ad Spending Growth
Survey data reveals that 47% of dealers are increasing their online ad spending in 2007, while 44% said they were maintaining current spending levels.
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 43 (dealers w/conversion rate of new car leads to sales greater than 10%, US), n = 46 (dealers w/conversion rate of new car leads to sales equal to 10% or less, US)
Expected Change in Dealers’ Online AdvertisingSpending by Lead-to-Sale Conversion Rates
16%
44%
30%
7%
2%
13%
22%
54%
7%
4%
0%
10%
20%
30%
40%
50%
60%
Conversion rate of new car leads to sales greater than 10%
Conversion rate of new car leads to sales equal to 10% or less
Increase by 25% or more Increase by 1 to 25% Stay the same Decreased by 1% to 25% Decreased by 25% or more
• Dealers who are able to successfully convert leads into sales are more likely to increase their online advertising budgets (60%) vs. those who are not as successful (35%)
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Dealer Online Ad Spending Breakout
Dealers spending <$30,000 in online marketing tend to spend more money onthird-party lead sources than any other online advertising tactic.
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 53 (dealers w/online advertising spending of $30,000 or less, US), n = 45 (dealers w/online advertising spending greater than $30,000, US)
Dealers’ Online Advertising Budget Allocation
49%
28%
11%
5%3% 4%
31%28%
7%
17%
2%
15%
0%
10%
20%
30%
40%
50%
60%
Ave
rage O
nlin
e A
dve
rtis
ing
Spendin
g A
llocatio
n p
er
Tactic
Third-party sources
Online classifieds
Search engine keywords
Online sponsorships/
banner type ads
Special lead sources
Other
Dealers with online adspending less than $30,000
Dealers with online ad spending greaterthan $30,000
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Dealers are Utilizing Paid Search & Display
Survey data shows that 74% of dealers are planning to use paid search & 66% are planning to use online auctions in 2007.
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguides.com Executive Survey (9/06), n = 98 (US)
Dealers’ Use of Online Advertising Tactics in 2005 & 2006, Planned Use in 2007
Expected 2007
2006
Perc
enta
ge o
f D
eale
rs
92%
82%
74%
66%
61%
79%
51%
43%47%
62%
76%
40%
45%
39%
76%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005
Third-party leads
Online classifieds
Search engine keywords
Online auctions
Online sponorships/banner-ad types
• This is an expected increase of 85% in the use of paid search & an expected increase of 47% use of online auctions in comparison to 2006
• 61% are planning to use display advertising in 2007, an increase of 47% from 2006
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Dealers Use Online Advertising for Branding
Survey data demonstrates 74% of successful dealers (those who convert more than 10% of Internet leads into sales) use online advertising to increase the number of email leads.
Only 51% of less successful dealers invest in online advertising to increase e-mail leads.
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 54 (dealers w/more than 10% of newcar sales generated online, US), n = 36 (dealers w/10% or fewer new car sales generated online, US)
Reasons for Dealers’ Online Advertising Usage
91%
74% 72%
63%
69%
51%54%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
More than 10% of new car sales generated online
10% of fewer new car sales generated online
Perc
enta
ge o
f D
eale
rs T
hat A
dve
rtis
e O
nlin
e,
by
Share
of
New
Car
Sale
s G
enera
ted O
nlin
e
Driving traffic to dealership website
Increasing number of email leads
Increasing number of phone leads
Display inventoryonline
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Dealers Use Online Advertising for Branding
Survey data demonstrates that 82% of successful dealers (those who convert more than 10% of Internet leads into sales) use online advertising to increase the number
of consumers who see the dealership name.
Only 69% of less successful dealers invest in online advertising for branding.
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 54 (dealers w/more than 10% of newcar sales generated online, US), n = 36 (dealers w/10% or fewer new car sales generated online, US)
82%
76%
56%
69%
57%
46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Increasing number of consumers who see dealer name
Building customerloyalty
Increasing dealer’s brand awareness
More than 10% of new car sales generated online
10% of fewer new car sales generated online
Reasons for Dealers’ Online Advertising Usage
Perc
enta
ge o
f D
eale
rs T
hat A
dve
rtis
e O
nlin
e,
by
Share
of
New
Car
Sale
s G
enera
ted O
nlin
e
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Dealer Online Advertising Challenges
55% of dealers surveyed claim that determining which tactics will yield thehighest-quality leads is their biggest challenge. Almost all dealers find it difficult
to plan & implement online advertising.
Notice that only 19% cited competition with offline media budgets as a challenge.
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US). Question: Please indicate top three challenges in planning online marketing & advertising. Select up to three.
Challenges Dealers Face in Planning & Implementing Marketing & Advertising
55%
38%
31%
26% 26% 26%
19%
14%
7%
0%
10%
20%
30%
40%
50%
60%
Perc
enta
ge o
f D
eale
rs
Determining which
advertising & marketing
tactics bring the highest
quality leads
Internet advertising & marketing is getting more complicated
everyday
Lack ofstaff that
understands how to use
online marketing & advertising
Performance tracking
Increasing competition
online
Capturing valid lead
information
Competition with offline
media budget
Management commitment
Don’t see any challenges
w/implementing online
marketing
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Key Takeaways
Dealers are generating more new & used car sales leads from the Internet. However, almost all dealers still find online marketing & advertising challenging to plan & implement.
Dealers are utilizing online advertising for both lead generation and branding purposes.
Planning & implementing online advertising is easier than it seems!You can learn how easy it is to actually plan & implement onlineadvertising. More information is availabe at: www.adwords.google.com
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Thank you & stay tuned for future videos…