ad optimization tier research presentation
TRANSCRIPT
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
T1-T3 Research Study Maximizing the Autotrader Advertising Experience
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Autotrader aimed to prove that its Multi Tier ad experience generates the most impact
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Research Questions
• How do ad placements impact…
o Vehicle purchase consideration and dealership
visitation intent?
o Brand & Dealer recall, perceptions of vehicles and
dealerships, and motivation to take action?
• What impact does incentivized messaging have on
consumers’ response to advertising?
x
Quantify advertising value for…
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Speaking to a relevant audience
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Respondent Qualifications n=2,103:
• In-market for a new sedan or truck within the next 12 months
(70%/30% split)
• Actively searching for next vehicle
• Considering a qualifying vehicle for purchase/lease
• Aware of/have visited an automotive resource site
• Age 18-64
• 59% Male / 41% Female
• Not employed in sensitive industry
• Primary / joint decision maker
• Currently have a driver’s license
Honda Accord
Toyota Camry
Ford Fusion
Chevrolet Malibu
Toyota Tundra
Ford F-150
Chevrolet Silverado
Dodge Ram
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Qualifying
Vehicles
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Consumers evaluated various combinations of Tier advertising within the website experience
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Endemic Regular Messaging Incentive Messaging
Tier 1 Usually filled with an ad
from the VEHICLE
MANUFACTURER
(e.g. Toyota)
Tier 2 Usually filled with an ad
from the REGIONAL
NETWORK
OF DEALERS
(e.g. Southern California
Toyota dealers)
Tier 3 Usually filled with an ad
from the LOCAL DEALER
(e.g. Miller Toyota)
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Consumers answered pre-exposure questions, were exposed to the website experience, then answered post-exposure questions
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Pre Exposure
to Advertising
• Likelihood to consider
buying
• Likelihood to visit
dealer
• Call to action
• Vehicle/Dealer
perceptions
• Brand familiarity
• Dealer awareness
Post Exposure
to Advertising
• Likelihood to consider
buying
• Likelihood to visit
dealer
• Call to action
• Vehicle/Dealer
perceptions
• Make/Model recall
• Dealer recall
N=350
Ad Experience
Tier 1/2/3 Cell
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Does a three tier buy work better than two or one?
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The Power of a Multi Tier Ad Experience on Autotrader
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CREATING VALUE FOR
OEMS
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
A Multi Tier ad experience has the most influence on vehicle purchase consideration
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Base: Total N=2103. Discrete Choice Model: Optimized Comparisons of the Monadic Placements (SRP).
Includes Regular and Incentive. DCM1: Which of the two web pages makes you most likely to consider
[MAKE/MODEL] for your next vehicle purchase or lease?`
Layout that makes you most likely to consider purchasing vehicle
%
Endemic
%
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%
T1 + T2 T1 + T2 + T3 T1 T1 + T3
%
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
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ad experience is more motivating because the ads…
%
%
%
Are more
appealing
together
Stand out more
Give more information
about where to buy
Base: Chose T1/2/3 layout at FC1. N=632
FC3. Please tell us why you chose this webpage.
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Multi Tier – T1+T2+T3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
A Multi Tier experience drives vehicle make and model awareness
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Correct
unprompted
recall for…
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Featured Vehicle Make
(ex: Toyota) Featured Vehicle Model
(ex: Camry)
79% 79%
85%AB
71%
73%
78%A
Base: 3 Tiers N=350; 2 Tiers (Net) N=701; 1 Tier (Net) N=1052.
A/B/C Significantly difference at 90% confidence interval.
AD3. Using the space below, please list the vehicle that was featured in the advertising on the webpage.
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TIER TIER TIER TIER TIER TIER
Double Tier – T1+T3 or T2+T3
Single Tier – T1 or T2 or T3
Multi Tier – T1+T2+T3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Perceptions of style, availability, and performance increase with greater tier exposure
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+17%
+40% +9%
+15%
+13%
Stylish
High performance vehicle
Agree completely that the
featured vehicle…
Newest models available
Base: 3 Tiers N=350; 2 Tiers (Net) N=701; 1 Tier (Net) N=1052.
Significant PRE/POST lift at 90% confidence interval
PRE2/POST2 (Top Box): Based on the automotive resource site web
pages, please rate how much you agree that each statement describes [MAKE/MODEL].
Vehicle Perceptions Pre/Post Lift
OE
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IP Double Tier – T1+T3 or T2+T3
Single Tier – T1 or T2 or T3
Multi Tier – T1+T2+T3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Creating Value for OEMs: Recap
•A Multi Tier ad experience influences purchase consideration 3x more than endemic ads
•A Multi Tier ad experience is more appealing and more noticeable than a Single or Double Tier ad experience
•A Multi Tier experience generates the highest lift in make/model recall – significantly more than a Double or Single Tier experience
•OEMs enjoy a unique boost in perceptions of style, availability, and performance with a Multi Tier ad experience
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TIER 2
IMPACT
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Tier 2 advertising enhances purchase consideration when paired with Tier 3 14
Base: Total N=2103. Discrete Choice Model: Optimized Comparisons of the Monadic Placements (SRP).
Includes Regular and Incentive. DCM1: Which of the two web pages makes you most likely to consider
[MAKE/MODEL] for your next vehicle purchase or lease?`
Layout that makes you most likely to consider purchasing vehicle
%
Endemic
T3 T2 + T3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Tier 2 and Tier 3 also generate higher intent to visit a local dealer than Tier 3 alone
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Layout that makes you most likely to visit local dealer
Base: Total N=2103. Discrete Choice Model: Optimized Comparisons of the Monadic Placements (SRP).
Includes Regular and Incentive. DCM2: And now we’d like to know, which of the two web pages makes you
most likely to visit your local [VEHICLE BRAND] dealer?
%
Endemic T3 T2 + T3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
16 Consumers are significantly more likely to call a local dealer when Tier 2
advertising is shown along with Tier 3
Base: Tier 3 N=351; Tier 2 + Tier 3 N=351. Significant PRE/POST lift at 90% confidence interval
PRE3/POST3 (Top Box). Based on the automotive resource site web pages, how likely are you to do
each of the following in the future when shopping for a [MAKE/MODEL]?
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Call a Local Dealer to ask about Inventory or Pricing Pre/Post Lift – Extremely likely to…
-9%
+45%
Tier 3 Tier 2 + Tier 3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Tier 2 Impact: Recap
•Tier 2 advertising enhances purchase consideration when paired with Tier 3
•Tier 2 and Tier 3 generate higher intent to visit a local dealer than Tier 3 alone
•Consumers are significantly more likely to call a local dealer when Tier 2 advertising is shown along with Tier 3
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® 2015 Cox Automotive, Inc. Proprietary & Confidential.
CREATING VALUE FOR
DEALERS
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Would recommend to others
Newest models available
Is a good value
Broad selection available at the
dealership
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Base: Tier 1 N=351; Tier 2 N=350; Tier 3 N=351.
Significant PRE/POST lift at 90% confidence interval. PRE2/POST2 (Top Box): Based on the automotive
resource site web pages, please rate how much you agree that each statement describes [MAKE/MODEL].
Tier 3 ads encourage word of mouth, and communicate selection & value
+6%
+9%
+6%
+18%
+33%
+24%
+20%
+19%
+12%
0%
-5%
+11%
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Vehicle Perceptions Pre/Post Lift
Tier 1 Tier 2 Tier 3 Agree completely…
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
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Newest models available
Broad selection available at the dealership
Offered at high quality dealerships
Would recommend to others
High performance vehicle
Available at a local dealer
Base: Tier 1 N=351; Tier 1 + Tier 3 N=350.
Significant PRE/POST lift at 90% confidence interval. PRE2/POST2 (Top Box): Based on the automotive
resource site web pages, please rate how much you agree that each statement describes [MAKE/MODEL].
Tier 3 advertising especially compliments Tier 1
0% 40% 10% 20% 30%
TIER 1 TIER 1 + TIER 3
+0%
+11%
+6%
+12%
+6%
+38%
+28%
+26%
+21%
+11%
+4%
-4%
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Vehicle Perceptions Pre/Post Lift
Agree completely…
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
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Base: Tier 1 N=351; Tier 1 + Tier 3 N=350; Tier 1+Tier 2+Tier 3 N=350.
Significant PRE/POST lift at 90% confidence interval. PRE2/POST2 (Top Box): Based on the automotive
resource site web pages, please rate how much you agree that each statement describes [MAKE/MODEL].
All three tiers maximize perceptions of quality, performance, and availability
Offered at high quality dealerships
High performance vehicle
Available at a local dealer
0% 40% 10% 20% 30%
TIER 1 TIER 1 + TIER 3
+6%
+6%
-4%
TIER 1 + TIER 2 + TIER 3
+26%
+33%
+13%
+11%
+4%
+11%
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Vehicle Perceptions Pre/Post Lift
Agree completely…
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Tier 3 enhances Tier 1 and Tier 2 ads. The Multi Tier ad experience is the most effective at driving dealer visits
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Layout that makes you most likely to visit local dealer
OE
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SH
IP
Base: Total N=2103. Discrete Choice Model: Optimized Comparisons of the Monadic Placements (SRP).
Includes Regular and Incentive. DCM2: And now we’d like to know, which of the two web pages makes you
most likely to visit your local [VEHICLE BRAND] dealer?
%
Endemic Tier 1
+ Tier 3
Tier 1 +
Tier 2 + Tier 3
Tier 1
+ Tier 2
Tier 2
+ Tier 3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
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Base: Tier 1+Tier 2+Tier 3 N=350. Significant PRE/POST lift at 90% confidence interval
PRE3/POST3 (Top Box). Based on the automotive resource site web pages, how likely are you to do
each of the following in the future when shopping for a [MAKE/MODEL]?
All three tiers work together to inspire the most interaction with local dealers
+50%
+29%
+17%
+11%
+10%
Extremely likely to…
Call a local dealer to ask about inventory or pricing
Visit a local dealer in person for a quote or a test drive
Visit a sales event at a local dealer
Search for local offers
Visit a local dealer’s website
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Call to Action Pre/Post Lift
TIER 1 + TIER 2 + TIER 3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Creating Value for Dealers: Recap
•Tier 3 ads communicate dealer selection & value, and encourage recommendation. Tier 3 especially compliments Tier 1, with all three tiers maximize quality, performance, and availability perceptions
•Tier 3 enhances Tier 1 and Tier 2 ads, but the Multi Tier ad experience increases dealership visitation intent 3x more than Endemic ads
•Beyond visiting a dealership, Tier 3 activates all types of dealer interaction, while the Multi Tier experience inspires the most interaction with local dealers
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® 2015 Cox Automotive, Inc. Proprietary & Confidential.
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
What messaging produces the most effective SRP?
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Optimizing the Autotrader Advertising Experience
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Incentive messaging is more impactful than regular messaging in driving vehicle purchase consideration
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Impact of Messaging on Likelihood to Consider Purchase
T1 T2
T3
%
T1 T2
T3
%
+32%
Base: Total N=2103
Discrete Choice Model: Optimized Comparisons of the Monadic Placements (SRP). DCM1: Which of the
two web pages makes you most likely to consider [MAKE/MODEL] for your next vehicle purchase or lease?
Regular Incentive
Endemic
%
Multi Tier – T1+T2+T3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Incentive messaging is also more likely to spur dealership visitation 27
Base: Total N=2103
Discrete Choice Model: Optimized Comparisons of the Monadic Placements (SRP). DCM2: And now we’d like
to know, which of the two web pages makes you most likely to visit your local [VEHICLE BRAND] dealer?
%
% % Endemic
T1 T2
T3
T1 T2
T3
+21%
Regular Incentive
Impact of Messaging on Likelihood to Visit Dealer
Multi Tier – T1+T2+T3
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
+6%
+30%
+13%
Incentive messaging is most influential when communicating sales events or cash back offers, especially in driving vehicle purchase consideration
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Base: Total N=2103. Discrete Choice Model: Optimized Comparisons of the Monadic Placements (SRP).
DCM1: Which of the two web pages makes you most likely to consider [MAKE/MODEL] for your next
vehicle purchase or lease?. DCM2: And now we’d like to know, which of the two web pages makes you
most likely to visit your local [VEHICLE BRAND] dealer?
Incentive Messaging Lift Over Regular Messaging
+8%
+20%
+11%
Limited
Time
(T1)
Sales Event
& Cash Back
(T2)
Cash
Back
(T3)
Limited
Time
(T1)
Sales Event
& Cash Back
(T2)
Cash
Back
(T3)
Likelihood to Consider Purchase Likelihood to Visit Dealer
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Optimizing Recap
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• Incentive messaging works 20-30% better than regular messaging in fueling vehicle purchase consideration and intent to visit a dealer
•The most motivating incentive messages feature sales events and specific cash back offers
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
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Summary
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Multi Tier Autotrader Advertising Experience: Summary
Tiers are stronger together. A Multi Tier advertising buy generates the most impact on key outcomes and perceptions for both OEMs and dealers.
Each tier benefits from a Multi Tier advertising experience. An integrated ad experience is more impactful than any of the tiers on their own.
Incentivized messaging is more powerful than regular. Incentivized messaging in the most important ad slots creates the highest impact on vehicle consideration and dealership visitation.
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® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Tier 1 advertising is instrumental for OEMs in communicating the vehicle brand and perceptions, while also positively impacting dealers
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Communicates brand Make & Model
Highlights key vehicle attributes
Inspires action
Broad selection available
High quality dealerships
Special offers/incentives available
Visit dealer website
Find local dealer/call about inventory or pricing
Visit a sales event
PERCEPTIONS
ACTIONS
Good Value Newest models
available Stylish
High
Performance
Recommend to others Visit brand website
Creates halo effect for dealers
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Tier 2 advertising benefits from sales events and cash back messages. Ads highlight the dealers while also reinforcing the OEM
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Sales events & cash back deals are powerful
incentive messages
Highlights key dealer attributes
Inspires action
Visit brand website
Newest models available
Stylish
High Performance
Fuel efficient
Good value Visit local dealer for quote/test drive
Recommend to others Visit local dealer website
Search for local offers Find a local dealer
Call about inventory/pricing Visit a sales event
Available at my local dealership
High quality dealerships Special offers/incentives available
Also
reinforces
OEM
Broad selection available
® 2015 Cox Automotive, Inc. Proprietary & Confidential.
Tier 3 advertising drives awareness of the dealership, and encourages interaction
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Communicates dealership name
Highlights key dealer perceptions
Inspires action
Newest models available Broad selection available
Visit local dealer for quote/test drive
Recommend to others Visit local dealer website
Search for local offers Find local dealer
Call about inventory/pricing Visit sales event
Stylish
Good value
Fuel efficient
High performance
Reinforces
vehicle features