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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
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
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 [email protected]
Q&A
Dave Versical
Editor
Automotive News Online
Moderator
Presenter
Howard Polirer
Director, Industry Relations
AutoTrader.com
Thank You
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