Automotive Internet Marketing and Advertising Research Data and Statistics

8/8/2019 Automotive Internet Marketing and Advertising Research Data and Statistics

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$$

AdvertisingAdvertising SalespeopleSalespeople

InventoryInventory


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Advertising is theAdvertising is thescience of arrestingscience of arresting

human intelligencehuman intelligencelong enough to getlong enough to get

money from itmoney from it


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0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

6 mo 5 mo 4 mo 3 mo 2 mo 1 Mo 2 Wk

Source: CNW Marketing/Research and Time Inc. Purchase Process

Radio

Newspaper

Internet

Magazine

TV

Time preceding purchase of an automobile

Can they find you & can you turn it into a Lead?


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1%

1%

2%

3%

8%

42%

43%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Newspaper

Radio

Direct Marketing

Family, Friends & Co-Workers

TV

Internet Sites

Dealership Visit

QUESTION? Thinking about all of thesources of information used during theBeginning, Middle, Final, & Entire process,please rank order the sources according tohowhelpful they are?

Overall, the Internet and the Dealershipvisit are considered mosthelpfulthroughout the entire process.

Source: R.L. Polk CO., 2007 New Vehicle Shopping Media Usage.

Consumer Ratings of CarShopping Information Sources


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Source: NADA Data 2007 Report. R.L. Polk CO., 2007 New Vehicle Shopping Media

Usage.

42%

1%

2%

1%

8%

12%

27%

10%

18%

20%

Internet

Newspaper

Direct Marketing

Radio

V

Most Useful Shopping Source

Dealer Advertising

Dealer Spending vs. Car Shoppers

Preferred Media


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39.4%

21.4%

14.2%

9.6%

4.3%

1.2%

0.7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Price (price was competitive)

Dealership Response (good, quick)

Proximity (dealership in close proximity)

Inventory (had what looking for)

Existing Relationship (with dealership)

Other

Trade-in (fair trade-in value offer)

Price (price was competitive) Dealership Response (good, quick) Proximity (dealership in close proximity)

Inventory (had what looking for) Existing Relationship (with dealership) Other

Trade-in (fair trade-in value offer)

Customers Say Buying Decision

Depends on Response Time

Cobalt eBusiness Performance Study 2006


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How do you know it works?How do you know it works?

Phone Tracking N um bers

Radio

Print

Mail

Call SoftwareJoes

Dealership

100 calls

30 appts

10 calls

2 appts

300 calls

80 appts

TV 90 calls

20 app ts

3. Coupon3. Coupon

2. Click2. Click Internet?Internet?

11


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Who is the Advertising Mgr.?Who is the Advertising Mgr.?

EBayEBay Dealix Dealix OEMOEM Cars.comCars.com My WebsiteMy Website


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What are you spending

Total Monthly Budget

Cost per car? Cost per sale?


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What Advertising drives traffic?

Are we running Brown Bananas or leadcars?

What do New ads look like vs. Used?

Hunting vs. Farming?


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AdvertisingAdvertising SalespeopleSalespeople

InventoryInventory

Dealership Management


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Thought starters

What % of customers use the Internet

before they buy (10 yrs. Ago vs. today)?

What are the 2 most important pieces ofDealer real estate?

Did you build the Field of Dreams

website? What are you doing with your Internet

Ups?


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88%88%

% of Customers that use theInternet for Research

priorto visiting a dealership

Fact About Internet Sales


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21%And rising

21%And rising

% of Customers that choosesearched Dealers based onInternet Consumer Reviews



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42%42%

% of Customersthat buy within 30 days

of their 1st search



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30%30%

% of Customers whouse newspaper classified ads

to locate a Used car



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% of customers that use theInternet to locate a Used car

71%71%



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% of Customers that have notdecided if they want a New or

Used car when they visit a

Dealers website

42%42%



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% ofNew CarCustomersthat visit Dealership websites

before buying

48%48%

Fact About Auto Sales


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64%64%

% ofUsed CarCustomers whovisit Dealership websites

before buying



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4-54-5

# of websites Customers visitedbefore submitting a lead



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42%42%

% of Customers that wereNew Car Leads & bought a

Used Carinstead



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% of Customers that buy adifferent car than the one they

submitted a Lead on

58%58%



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% of Dealers that Follow Uponly 1 time with 1 Email

55%55%



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% of Leads sent to Dealersthat go Unanswered

30%30%



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% of Customers thatsubmitted an Internet Lead

by Email

20%20%



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% of Customers thatsubmitted an Internet Lead

by Phone

80%80%



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% of Calls where Salespeoplequoted

discounts, payments or trade value

71%71%



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% of Calls where Salespeopledidnt ask for an appointment

84%84%



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% of Calls where Salespeopledidnt ask for a phone #

66%66%



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% of Calls where Salespeople

didnt ask for a Customers name

42%42%



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% of Customers that submitteda Lead and actually bought

from that Dealer

8%8%



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1st base getting to the website

How do they get there now? Paid leads from other websites

Search Engine (Google, Yahoo)

Type in the web address (how long is it?)

Click on the website off their favorites list

Can a CustomerGoogle you?

Leveraging traditional ads (on lot also)?

Farming the database with e mails


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2nd base converting a visit >lead

Home Page - D.I.S.C?

Clicks to Cars - Managers Specials?

Description Stats or story

Pictures many, scrolling

Print me, call me, e-mail me

Average is only2%!


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3rd base converting a lead > appt

Why are internet leads not ups? Who is responding & # of leads?

6 days, hours, or min.? Auto response?

1. Thanks & intro

2. At least 1 alternative vehicle, 2 or 3 better, 1

CPO with more features

3. A reason to buy from you4. Ask 2 qualifying ?s to start dialogue

5. Give contact info and ask customer preference

6. ASK FORANAPPOINTMENT

Dealers Survey of Avg.Dealers Survey of Avg.Response time = 45 min.Response time = 45 min.

Customers Survey = 5.4 hoursCustomers Survey = 5.4 hoursNeworCPO? This EXACT car,ortheNeworCPO? This EXACT car,orthe

NICESTonelike it?NICESTonelike it?


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E-Mail 1stAuto response

Thank you for your Automotive Internet Inquiry,ourgoal is to make sure that you receive quick and

accurate information.. We have one of the most

successful Internet departments in the Market.

To better serve your Automotive needs

please call us now at 1-800-234-5678.

This is a direct line to your personal Internet

Specialist.

What if they donWhat if they dont respond?t respond?


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Phone Best Practices

Who is answering thecalls?

Set an appointmentto

get them into the

Dealership.

Who with?

What if they are not

buying today?


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Home Run converting appts. > $ales

What % of customers buy a car without

coming in?

Expectations when they come to thestore?

Trade value?

Payment Calculator?


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What are you spending?

Per month? X 12?

So,who is the

AdvertisingManager?

Cost per lead?

Cost per sale?


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Who is the Advertising Mgr.?Who is the Advertising Mgr.?A1.comA1.com B2.comB2.com C3.comC3.com D4.comD4.com Our WebsiteOur Website

SalesSales

$ perSale$ perSale

2424 2424 2424 55 55 42 42

$204$204$470$470$583$583$854$854$719$719

Which #Which #s can we be certain of?s can we be certain of?


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Keeping Score

What do you do with the Leads?

Leads to: Good Great Best

Appts.% 50 60 70

Show% 50 60 70

Sold% 50 60 70

Total 12.5 21.6 34.3

Cost Per $ale!Cost Per $ale!

Documents

Automotive Internet Marketing and Advertising Research Data and Statistics