joint session current and future potential of video in car dealerships
TRANSCRIPT
The Drive to Decide Mega Trends and Micro Moments in the new Car Buyer’s Path to Purchase
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- 18-34 yrs - Depends on family size - Bought my QX60 in 2014 - 7 seater -> Safe -> Fun ->
Eco friendly
Today’s Auto shoppers are digitally savvy & visit the dealership less, instead relying on online research, mobile & video to stay informed and make decisions.
The traditional, linear path to purchase still applies in today’s world, but to reach & engage with the digital Auto shopper, we must think in terms of the consumer’s micro moments of influence.
Purchase paths vary in length & process, but typically the journey begins online -- with search & online video as key influencers across phases.
The modern Auto shopper walks into the dealership armed with a staggering array of information. Delivering on research needs & inspiring the consumer is critical -- brands that succeed in this will win the sale!
US Question asked: Q34 - Decisiveness about make & model - How would you describe your certainty at the start of the vehicle purchase process? Base: New car buyers, n = 526
Source: Auto CB 2016
Many buyers are at least somewhat decided at the start
% % %
Completely decided Somewhat decided Completely undecided
31 62 4
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2.4 # of makes considered
Buyers typically consider multiple vehicle brands
Question asked: Q35 - Considered set of makes - Which makes did you consider, including the one you purchased? Base: New car buyers, n = 526
Source: Auto CB 2016
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The ‘inner circle’ heavily influences the purchase decision
were influenced by their partner, husband or wife in
their decision
Question asked: NQ1 - Influencer circle on purchase decision - Who in general was involved in the decision about the new vehicle? Base: New car buyers who were randomly selected for this question (reduced sample), n = 263
Source: Auto CB 2016
%52
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Buyers actively look
for information before they
visit a dealer
Question asked: NQ6 - What information did you look for before you went to the dealership? Base: New car buyers, n = 526
Source: Auto CB 2016
US Question asked: Q38 - Number of dealer visits - Overall, how many times did you visit a dealer of any make until you made your most recent purchase?
Base: New car buyers, 2015 n = 500, 2016 n = 526 Source: Auto CB 2015 / 2016
2.0 The average auto buyer
visits the dealership
times before making a purchase
# 2.1 dealer visits in 2015
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Dealer discovery is an important milestone
of auto shoppers bought from a dealer with whom they had no prior relationship or familiarity
Question asked: NQ7 - Relationship to dealer of purchase - How would you describe your dealer? Base: New car buyers who bought their new car at a dealer and who were randomly selected for this question (reduced sample), n = 242
Source: Auto CB 2016
% 53
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Buyers use their smartphone to research – even when at the dealership
Question asked: Q21 - Devices used for online research - Which of your devices did you use at any stage of your online research? Q22 - Smartphone research while on the lot - For which of these activities did you use your smartphone while you were at a dealer (or vehicle lot)? Net count
Base: 1) New car buyers who use a smartphone, 2015: n = 399, 2016 n = 457, 2) New car buyers who use a smartphone and who visited a dealer n = 272 Source: Auto CB 2015 / 2016
SMARTPHONE RESEARCH1
SMARTPHONE RESEARCH ON THE LOT2
+ 4% compared to 2015
US Question asked: Q39 - Number of test drives - How many test drive(s) did you take prior to your purchase?
Base: New car buyers, n = 526 Source: Auto CB 2016
It does not take many test drives to make a decision
1.6 test drives before purchase,
on average
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Role of video in these auto purchase moments
“which car is best for me?” moment
“Is this right for me?” moment
“Am I getting the right deal” moment
“Can I afford it?” moment
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65% 63% 49%
59%
Role of video in these auto purchase moments
“which car is best for me?” moment
“Is this right for me?” moment
“Am I getting the right deal” moment
“Can I afford it?” moment
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Role of video in these auto purchase moments
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Professional content is most relevant to the auto shopper
Videos professionally produced by vehicle manufacturer
Videos professionally produced by independent 3rd party
Amateur videos produced by consumers or private persons
Question asked: Q26 - Watched online video format - What type(s) of online video did you watch during your purchase process? Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
Share of buyers who watched online video format:
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Videos help to explore vehicles from different perspectives
Vehicle highlights of features or
options
Vehicle ratings Vehicle reviews incl. interior / walk-arounds
Consumer reviews or
testimonials
Vehicle comparison
videos
Vehicle performance
videos
Test drive Videos
Ads or commercials
Augmented/ virtual reality
content
Question asked: Q27 - Watched online video content - What type(s) of content did you watch? Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
TYPE OF VIDEOS WATCHED BEFORE DECIDING ABOUT A NEW CAR
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Online video helps the car buyers narrow down their options
NARROWED DOWN CONSIDERATION SET
EXPANDED CONSIDERATION SET
SAVED TROUBLE OF GOING TO TEST DRIVE
Question asked: NQ23 - Influence of online video on consideration set and test drives - How did online videos help you making your purchase decision? Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
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VISIT A DEALER WEBSITE
LOCATE A DEALER
SCHEDULE A TEST DRIVE
USE A CAR CONFIGURATOR TO BUILD & PRICE A VEHICLE
REQUEST A PRICE QUOTE
PARTICIPATE IN SALES EVENTS OR ACTIVATE PROMOTION OR OFFER
REQUEST OR DOWNLOAD A BROCHURE OR CATALOG
Actively did a follow-up action
Online video creates signals of intent
Question asked: Q31 - Follow up action after watching online video - Did something you saw in an online video lead to any of the actions below? Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
% 81
Today’s Auto shoppers are digitally savvy & visit the dealership less, instead relying on online research, mobile & video to stay informed and make decisions.
The traditional, linear path to purchase still applies in today’s world, but to reach & engage with the digital Auto shopper, we must think in terms of consumers’ micro moments of influence.
Purchase paths vary in length & process, but typically the journey begins online -- with search & online video as key influencers across phases.
The modern Auto shopper walks into the dealership armed with a staggering array of information. Delivering on research needs & inspiring consumers is critical -- brands that succeed will win the sale!
Step in to fill the void. Everywhere the consumer looks for information, there is an opportunity to
engage them.
The smartphone is the anchor to micro moments. Invest in the mobile consumer in proportion.
Deliver video content to respond to customer needs at all phases & moments.
Every brand interaction leaves an impression. Invest in the experiences that set your brand
apart.
Thank You US
• How full-motion video can help you increase leads by 20-30% • How to get customers to come into your store with full motion
video. • How to be transparent with walk-around videos. • The importance of mobile HD full-motion video penetration. • Marketing strategies for your vehicle video inventory • How to get Video SEO for all your inventory videos
• Video now appears in 70% of the top 100 search results listings
• Viewers are anywhere from 64-85% more likely to buy after watching a product video.
• Visitors who watch video stay on the site twice as long and visit twice as many pages versus those who don’t see video.
People do business with those that they like, know, and trust. Brands are a popular proxy for trust: If a
consumer believes that a specific brand produces quality products or services, anything with their stamp
of approval is likely to pass the basic trust test.
• Full-motion video on your website (desktop and mobile) • FMV on AutoTrader, Cars.com, Craigslist, etc. • FMV on YouTube • Video testimonials, thank you’s, and 360 walk-around
lead follow-ups
Video in emails increase click-through rates by
300 percent
Having customers see a video player first thing they on the VDP, instead of just a video button, increases video views 10 fold which will likely increase leads
One simple change increased views 5X to over 10X
Breaking out completion ratio into 4 separate bars, we see that customers either watch the whole video or only 30 seconds of it. What that tells us that customers browse videos like browsing a catalog and once they find the car they like, they don't mind watching the whole 2-3 minutes to see all the features of the car. It debunks the idea that video should be less than 1 minute long.
Content is KING. Video is a powerful Organic SEO driver
Breakdown of viewers is consistently: 35% desktop, 30% tablet and 35% tablet and
mobile
Mobile video viewability becomes more and more
important every day.
Personalized 360 walk arounds work! Jack Phelan Chevrolet and DeNooyer Chevrolet have been able to consistently attract customers to the dealership after
emailing and texting full-motion videos to prospective shoppers.
Features & Benefits • Target/re-target to the vin level • Tailored offers / copy “Still Interested in your Civic?” • Real time publishing / updating vehicle offers • Utilizes existing video assets – no extra work for the dealer • Qualifies for Co-Op • Broad reach – Publisher Network
Methodology
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Data source of this report Target Population New car purchaser who use the internet Sampling Sample size USA n = 526 Quotas were applied on age, gender, educational level and region as well as online activities and smartphone usage to ensure local representativeness for the target audience Survey administration Surveys were conducted through online panels Questionnaires were administered in local language(s) for all countries surveyed Questionnaire length was 20 minutes, questionnaire followed mobile-friendly design guidelines Weighting The reported data was weighted against the Connected Consumer Survey Timing Surveys were administered in March / April 2016 Small base Small bases are clearly highlighted and should be used carefully to showcase the data Net counts Some data points are defined by net counts – in this case this is stated per chart. A net count is defined as ‘at least on answer out of a set of answers with multi-select’
Appendix
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researched online to find their dealer*
Buyers find their dealers online, via search or dealer’s website
found dealer via search engine
found dealer via dealer’s website
found dealer via website of make
% % %
Question asked: NQ5 - How location of dealer was found - How did you find your dealer? Base: *New Car Buyers who were randomly selected for this question (reduced sample) and who bought their new car at a dealer n = 242,
New Car Buyers who were randomly selected for this question (reduced sample) and who bought their new car at a dealer (found online) n = 117 Source: Auto CB 2016
% 48 40 41 21
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Some purchase cycles are quick, others not
Question asked: Q16 - Length of research cycle - How much time passed between starting to collect information and actually purchasing a vehicle? Base: New car buyers, n = 526
Source: Auto CB 2016
within 2 months within 3 months more than 3 months
Amount of time needed to collect information, from start to final purchase
% % % 75 11 13
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ONLINE VIDEO INTRODUCED A VEHICLE PREVIOUSLY NOT CONSIDERED
ONLINE VIDEO POSITIVELY CHANGED MIND ABOUT CAR OR MANUFACTURER
Online Video heavily influences the purchase journey
Question asked: Q30 - Consideration changed because of online video: Online video(s) introduced you to a vehicle you had not previously considered / Online video(s) convinced you to think differently (more positively) about a vehicle brand or vehicle manufacturer - How much do you agree or disagree with the statements
below? Base: New car buyers who watched online video before their purchase, n = 331
Source: Auto CB 2016
What have we learned? “ „
○ Auto shoppers generally begin the purchase process with some idea of what they want, but are also influenced by others
○ It is common to consider multiple brands and/or change one's mind during the path to purchase
○ Media plays a key role to inform the auto shopper; the search engine is an important channel to influence their purchase
○ The auto shopper watches many types of video content; these influence their consideration and drive purchase-oriented actions
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Research Online
Research offline: Ads, shows, mailings
Research in-person (dealer)
Research in-person (WOM)
Cross-media research online & in-person - both relevant
Online research is
important & is accompanied by different
offline sources
Net counts of research combinations Question asked: Q8/ Q9: Which of these offline / online sources informed your recent vehicle purchase?
Q10 Which of these websites or apps did you use? / Q11 On which of these websites or apps did you watch online videos? Base: New car buyers, 2015: n = 500, 2016: n=526
Source: Auto CB 2015 / 2016
+ 12% compared to 2015
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7
of buyers used more than 10 different touch points (online & offline) to research for their new car
Buyers use many different touch points before they decide
Average number of touch points out of questions 8, 9, 10 & 11 Question asked: Q8/Q9: Which of these offline / online sources informed your recent vehicle purchase?
Q10: Which of these websites or apps did you use? / Q11: On which of these websites or apps did you watch online videos? Base: New car buyers, n = 526
Source: Auto CB 2016
% 35
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Search & Video are most commonly used among all sources % of touch points used by all buyers – online, offline or in-person – used at any time until the final decision
Research Online Research offline Research In-person (dealer) Research In-person (WOM)
Question asked Q8 / Q9: Which of these offline / online sources informed your recent vehicle purchase? Q10 Which of these websites or apps did you use? / Q11 On which of these websites or apps did you watch online videos?
Base: New car buyers, 2015: n = 500, 2016: n=526 Source: Auto CB 2015 / 2016
+ 4% compared to 2015
+ 5% compared to 2015
+ 13% compared to 2015
+ 9% compared to 2015
+ 7% compared to 2015
+ 6% compared to 2015
+ 5% compared to 2015
+ 4% compared to 2015
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ONLINE AUCTION
VEHICLE FORUMS
VEHICLE BLOGSs
EMAIL OFFERS
DEALER WEBSITES
LOW IMPACT HIGH IMPACT
Touch points ranked by impact in customer journey Impact combines reach (=usage) of touch points with their value to buyers
Search engines have the strongest impact on the purchase path
REVIEW SITES
ONLINE DIRECTORI
ES SOCIAL MEDIA
COMPARISON WEBSITES
ONLINE ADVERTISING
VEHICLE CHANNE
L
SEARCH ENGINES
BRAND WEBSITES
ONLINE MAGAZINES
Question asked: Q12.1.A-E - Impact of aggregated online information sources on all stages of the customer journey - Which online TPs where helpful? Net counts Base: New car buyers, n = 526
Source: Auto CB 2016
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Auto shoppers use Google & other websites to get informed
Used website to research Base: search engine users
Question asked: Q10 - Online-Research on dedicated websites - Which of these websites or apps did you use to inform your most recent vehicle purchase? Base: New car buyers who used a search engine, 2015: n = 374, 2016: n = 333
Source: Auto CB 2015 / 2016
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YouTube & brand/dealer sites are important for research
Used online video to research Base: online video users
Question asked: Q11 - On which of these websites or apps – if any – did you watch online videos during your most recent vehicle purchase?? Base: New car buyers who watched online video before their purchase and who didn’t watch on OEM sites only, n = 295
Source: Auto CB 2016
US Question asked: NQ14 - Car configurator usage - Did you use an online ‘car configurator’ to customize a vehicle that interested you with specific colors, features, etc.?
Base: New car buyers, n = 526 Source: Auto CB 2016
Digital tools help buyers to decide
YES, CONFIGURED THE VEHICLE BOUGHT
YES, CONFIGURED VEHICLE(S) BUT BOUGHT THEN A DIFFERENT ONE
NO, DID NOT USE A CAR CONFIGURATOR
CAR CONFIGURATOR USAGE