jdpa automotive online marketing review
TRANSCRIPT
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
Automotive Online Marketing Review
Gene Cameron, VP Marketing/Media Solutions
Scott Kane, Senior Research Manager
October 7th, 2008
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
2008 U.S. new vehicle sales will total about 14 million, the lowest annual result since 1993
Source: J.D. Power and Associates *JDPA Forecast
Total U.S. New Light Vehicle Sales
Record Year - 17.4 Million Units
To
tal
Ne
w L
igh
t V
eh
icle
Sa
les
(M
illi
on
s)
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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With higher gas prices, cars are now out-selling light trucks by a substantial margin
Car and Light Truck Share
0%
10%
20%
30%
40%
50%
60%
2000 2001 2002 2003 2004 2005 2006 2007 2008*
% o
f U
.S.
New
LIg
ht
Veh
icle
Sal
es s
Car Share Truck Share
Source: J.D. Power and Associates *August YTD
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Compact vehicles have gained share at the expense of both Midsize and Large vehicles
Mix Based on Vehicle Size
0%
10%
20%
30%
40%
50%
60%
2000 2001 2002 2003 2004 2005 2006 2007 2008*
% o
f Tota
l U.S
. New
LIg
ht V
ehic
le S
ale
s
Compact Share Midsize Share Large Share
Source: J.D. Power and Associates*August YTD
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
5
80
20
264
344
0
50
100
150
200
250
300
350
400
2005 H1 2005 H2 2006 H1 2006 H2 2007 H1 2007 H2 2008 H1
OEMs Dealers and associations Top third-party sites
Online budgets are being reigned in this year. Reaching shoppers efficiently is more important than ever
Source:
Automotive Internet Advertising Spending
Ad
Sp
en
din
g (
Mil
lio
ns
)
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Automotive Internet usage (AIU) rates rise rapidly as shoppers change their purchase behaviors
64% 64%67% 68%
70%75%
47%
54% 53%
59%
60%60%
54%
40%
65%^61%
26%
33%
43%47%
10%
20%
30%
40%
50%
60%
70%
80%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
New Used
Automotive Internet Usage (AIU) Trends New1 Vs. Used2 – Vehicle Buyers 10-Year Trend
1Based to new-vehicle buyers. Source: J.D. Power and Associates 1999-2008 New Autoshopper.com Studies2Based to used-vehicle buyers. Source: J.D. Power and Associates 1999-2007 Used Autoshopper.com Studies
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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When do buyers begin shopping for vehicles?
89/87 days before
First shopped for any model
62/29 days before
First shopped for the model they ultimately purchased
74/56 days before
First shopped for a model within the vehicle segment which they purchased
Average/Median days
prior to purchase
Based to AIUs. Preliminary Unweighted DataSource: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Number of Models Shopped Increases in Month of Purchase
TimeframeNumber of Models Shopped per Buyer
5 Months Prior 1.0
4 Months Prior 1.1
3 Months Prior 1.1
2 Months Prior 1.2
1 Month Prior 1.5
Purchase Month 3.1
Based to AIUs. Preliminary Unweighted DataSource: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Use of Search is also growing, fueled by growth in the use of Google
Used Search for Automotive Information
81%
84%
70%
75%
80%
85%
90%
2007 2008
% U
sin
g S
earc
h
Based to AIUs. Source: J.D. Power and Associates 2007/2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Online NVBs Increased their use of Automotive search terms the month of purchase
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
5 Months Prior 4 Months Prior 3 Months Prior 2 Months Prior 1 Months Prior PurchaseMonth
Retail Automotive Social Networking Search/Portal Directions
Categorized Search Terms throughout the Vehicle Purchase HorizonPercentage of the top 100 search terms by AIUs
3X Increase
Based to AIUs. Preliminary Unweighted DataSource: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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In 2008, use of Mobile access grew by 21% versus 2007
Mobile / Cell Phone Internet Access
15%18%
0%
5%
10%
15%
20%
25%
30%
2007 2008
% W
ith
Mo
bil
e A
cces
s
Based to AIUs. Source: J.D. Power and Associates 2007/2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Mobile should be on some OEMs’ top priorities, but of less concern to others
Based to AIUs buying each brand. Source: J.D. Power and Associates 2008 New Autoshopper.com Study*Caution: Small Sample. Land Rover (n=85), Jaguar (n=61)
Land Rover* 50%Porsche 43%BMW 37%Jaguar* 36%Audi 35%
Suzuki 13%Mercury 11%Buick 11%Hyundai 10%Kia 8%
Mobile / Cell Phone Access to the Internet
Top 5
Bottom 5
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Consumer-generated content (CGC) remains an important part of the online shopping process
Use of Consumer-Generated Content
69% 69%
50%
60%
70%
80%
2007 2008
% U
sin
g C
GC
Based to AIUs. Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Vehicle Ratings and Reviews are by far the most used type of CGC
Consumer-Generated Content Usage
10%
12%
18%
22%
38%
63%
0% 10% 20% 30% 40% 50% 60% 70%
Videos/Podcasts
Blogs
Online Forums/ChatRooms/Q&A Sites
Enthusiast Sites
DealerRatings/Reviews
VehicleRatings/Reviews 95%
87%
81%
78%
69%
66%
% Finding Helpful*
*Based to AIUs who used each type of CGC Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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The model purchase decision is impacted by Expert and Consumer Ratings & Reviews
Based to AIUs using either Consumer or Expert Ratings/Reviews, but not the other. Source: J.D. Power and Associates 2008 New Autoshopper.com Study
Model Purchased Share Model Purchased ShareToyota Camry 3.9% Honda Accord Sdn 3.7%Honda Accord Sdn 3.3% Nissan Altima 3.6%Nissan Altima 3.2% Toyota Camry 3.2%Toyota Yaris 2.8% Honda CR-V 2.9%Toyota Corolla 2.6% Toyota Prius 2.5%Toyota Prius 2.3% Honda Civic Sdn 2.1%Honda Pilot 2.2% Chevrolet Silverado LD 2.0%Ford Focus 2.2% Ford F-150 LD 2.0%Honda Civic Sdn 2.2% BMW 3 Series 1.9%Ford F-150 LD 2.1% Toyota Corolla 1.7%
Shoppers Using Consumer Ratings/Reviews (Not Expert)
Shoppers Using Expert Ratings/Reviews (Not Consumer)
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Online NVBs are avid users of Social and Video Sites
First 6 months 2008
% Reach Index
NVB IBP NVB Reach/IBP Reach
go.com 74% 20% 371
youtube.com 71% 34% 210
myspace.com 68% 35% 196
facebook.com 49% 19% 261
abc.com 12% 1% 1,541
twitter.com 3% 1% 347
hulu.com 1% 1% 184
Based to Online New Vehicle Buyers. Preliminary Unweighted DataSource: J.D. Power and Associates Total Online Media Behavior
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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As a percentage, online submissions hold relatively steady year-over-year
AIUs that Submitted Request for Quote
29.3%31.7%31.6% 32.1% 31.0%
0%
10%
20%
30%
40%
50%
2004 2005 2006 2007 2008
% R
eq
uestin
g Q
uo
te
Based to AIUs. Source: J.D. Power and Associates 2004-2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Realistically, 1 of 5 AIUs will never submit a Request for Quote
Based to AIUs. Source: J.D. Power and Associates 2008 Follow-Up Study to NAS
29%
49%
22%
Submit Request
May be open to Quote Process
Not Likely to Submit a Quote• Prefer to negotiate price
in person or by phone
• Already have relationship with dealer and know where they’ll next purchase
• Use alternate purchasing/discount program
• Etc…
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Reasons Why Shoppers Did Not Submit a Request for Quote
50%
29%
15%7% 7%
0%
20%
40%
60%
Did not want to becontacted by
dealer
Wouldn’t getvaluable / accurate
information
Privacy or IdentityTheft concerns
Wouldn’t get atimely response
Tried it before anddidn’t like it
Fear of dealer contact and doubts about receiving valuable or accurate information deters shoppers from submitting requests
Based to AIUs that did not submit a request for quoteSource: J.D. Power and Associates 2008 Follow-Up Study to NAS
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Request for Quote - Dealer Response Ratings
6.4
7.2
0 2 4 6 8 10
Completeness ofResponse
Timeliness ofResponse
Satisfaction Score
Providing quality responses to requests is at the heart of the problem
Based to AIUs that submitted a request for quoteSource: J.D. Power and Associates 2008 Follow-Up Study to NAS
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Active Online Shoppers have a relatively limited use of sites within type
Active Online New Vehicle Buyers in 6 Months Prior to Purchase by Type
of SiteAverage Number of Sites Visited
Third Party Sites 3.3
OEM Sites 3.1
Dealer Sites 2.6
Based to AIUs. Preliminary Unweighted DataSource: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Pricing/Incentives/MSRP 40%Research Info/Options, Features, Specs
43% Inventory Locator 44%
Reviews/Forums/Ratings 21% Pricing/Incentives/MSRP 20% Pricing/Incentives/MSRP 35%
Compare Vehicles 17% Equip a Vehicle 17%Research Info/Options, Features, Specs
14%
Research Info/Options, Features, Specs
12% Navigation/Easy to Use 15% Navigation/Easy to Use 10%
Navigation/Easy to Use 11% Inventory Locator 7% Request Quote/Contact Dealer 7%
Trade-In Value 8% Vehicle Images/360 Tool/Video 7% Find a Dealer 6%
Vehicle Images/360 Tool/Video 2% Compare Vehicles 4% Vehicle Images/360 Tool/Video 4%
Request Quote/Contact Dealer 1% Find a Dealer 4% Compare Vehicles 2%
Find a Dealer 1%Monthly Payment Calculator/Estimate
3%Monthly Payment Calculator/Estimate
1%
Monthly Payment Calculator/Estimate
1% Request Quote/Contact Dealer 2% Equip a Vehicle 1%
Top 10 Most Useful Content by Type of Site
Independent Web Sites Manufacturer Web Sites Dealer Web Sites
What do shoppers find most useful about different types of sites?
Based to AIUs Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Online New Vehicle Buyers Visit a “Long Tail” of Third-Party Sites
Top 15 Third Party Sites Share of Total Third Party Sessions
Based to AIUs. Preliminary Unweighted DataSource: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
0%
2%
4%
6%
8%
10%
12%
14%
autotra
der.com
edmunds .com
kbb.com
cars.com
autos .m
sn.c om
autos .yahoo.com
consumerre
ports.o
rg
autos .aol.c
om
carmax.com
nadaguides .com
carsdire
c t.com
dmv.org
automotive.c om
autobyte
l.com
carfax.c om
vehix.com
autoweb.com
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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IndependentSite Visitors
Edmunds.comKelley Blue
BookCars.com Vehix.com
Pricing/Incentives/MSRP 40.2% 47.9% 53.7% 28.5% 7.8%Reviews/Forums/Ratings 20.9% 29.6% 8.4% 13.5% 5.3%Compare Vehicles 17.4% 16.1% 7.0% 24.3% 59.3%Research Info/Options, Features, Specs 12.1% 12.5% 6.0% 9.8% 13.5%Navigation/Easy to Use 11.0% 8.4% 7.4% 27.6% 16.3%Trade-In Value 7.8% 4.4% 27.0% 1.9% 0.0%Vehicle Images/360 Tool/Video 1.5% 0.6% 0.1% 8.1% 5.3%Request Quote/Contact Dealer 1.5% 1.6% 0.2% 2.9% 1.3%Find a Dealer 1.4% 1.0% 0.2% 8.4% 3.4%Monthly Payment Calculator/Estimate 0.8% 0.7% 0.8% 4.7% 1.2%
Top 10 Most Useful Site Content
Carving out a niche is important to growing and sustaining a useful site
Based to AIUs visiting each site who thought that site was most usefulSource: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Getting more traffic to the brand site is great, as long as it’s the right traffic
Visitation: Based to AIUs. Close Rate: Based to AIUs visiting each site. Source: J.D. Power and Associates 2008 New Autoshopper.com Study
Top 15 Visited OEM Sites—Year-Over-Year Analysis
-15%
-10%
-5%
0%
5%
10%
15%
20%
-40% -30% -20% -10% 0% 10% 20% 30%
% Change in Close Rate
% C
han
ge
in V
isit
atio
n Saturn
Nissan
Volkswagen
JeepHyundai
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Summary Observations
• Difficult market– Tighter sales– Major shifts in purchase patterns by Segment
• Increasing Internet use with shifts in patterns, fragmentation– Consideration counts are not expanded for models or sites used for shopping– Third Party Sites exhibit long tail, suggesting fragmentation– CGC, Mobile, Video, ?– Shoppers/Buyers in new territory, use of internet
• Request for Quote is only effective if it responds to shoppers, is complete, not just rapid
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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Summary Observations
• Challenge to become more efficient and effective
• Targeting more important than ever, customize targeting– Join the conversation
Common interest Add value Build engagement Relevant traffic that converts
• Understand shoppers, position your site and marketing to give them a reward
• Leverage information throughout the organization
© 2008 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.
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