Post on 21-Feb-2017
The Automotive Buying Processy g
From a Search PerspectivePerspective
Proprietary to Google and Compete, October 2007
Objectives and Methodology
ObjectiveUnderstand the key online activities that consumers undertake prior to new vehicle purchases
ApproachApproach1. 1,837 Automotive Buyers identified through Survey
2. The buyer’s online behavior was analyzed during the i th i t hsix months prior to purchase
3. The following behaviors were studied and quantified
Search engine usage
Third party automotive website visitation
OEM website visitation
2
Proprietary to Google and Compete, October 2007
Key Findings
The Automotive Buying Process has compressed substantially
Search is a major contributor to consumer research throughout the buying process
Search is among the most valuable M di S f BMedia Sources for Buyers
3
Proprietary to Google and Compete, October 2007
The Online Auto Channel O li A t ti A ti it D i th 6 th i t Online Automotive Activity During the 6 months prior to Purchase
4
Proprietary to Google and Compete, October 2007
Nearly Every Buyer Uses the Online Channel
• Over 80% of New Vehicle Buyers visited an OEM site within 6 months of purchase
• Over 90% of buyers in general visited an OEM and/or Third party Site
Pre-Purchase Automotive Category Visitation (Share of Buyers that visited the category of sites during the 6 months prior to purchase)
82% 78%
91%
74%82%
90%
OEM Sites 3rd PartyAutomotive
Sites
3rd Party and/or
OEM sitesSites OEM sites
Share of New Car Buyers Share of Used Car Buyers
5
Proprietary to Google and Compete, October 2007
Search is a Critical Piece of the Online Channel
• 66% of OEM Site visitors who bought new vehicles were referred by search during the 6 months prior to purchase
Pre-Purchase Share of Visitors Referred by Search(Share of Buyers Visiting each category that were referred by search during the 6 month period)
66%
17%
24% 25%
17%
OEM Sites 3rd PartyAutomotive
SitesSites
New Car Buyers Referred by Search Used Car Buyers Referred by Search
6
Proprietary to Google and Compete, October 2007
New Vehicle Buyers Use More Branded Terms
• ¾ of search referrals amongst new vehicle buyers were from high • ¾ of search referrals amongst new vehicle buyers were from high level brand terms
• Used buyers were more likely to use generic search terms
Type of Keyword Phrase used by Buyers Before Purchase(Share of search referrals during the 6 month period)
78%
57%
22%
43%
Brand or Model Generic
Share of Searches for New Buyers Share of Searches for Used BuyersShare of Searches for New Buyers Share of Searches for Used Buyers
7
Proprietary to Google and Compete, October 2007
The Online Research FlowCh i B h i Th h t th B i PChanges in Behavior Throughout the Buying Process
8
Proprietary to Google and Compete, October 2007
The Automotive Research Process Has Compressed
• 65% of vehicle buyers in general indicated that they researched for one month or less
Estimated Research Time Prior to Purchase – All Buyers(Share of Buyers indicating how long they researched their purchased)
29%
17%19%
%
17%
How long did you 10%7%
Less than Around Around Around Around More than
How long did you conduct research before making your recent <Make> purchase?
N= 1,837
1 week2 weeks1 month2 months3 months3 months
9
Proprietary to Google and Compete, October 2007
The Automotive Research Process Has Compressed
• 59% of new vehicle buyers indicated they researched for one month or less
Estimated Research Time Prior to Purchase – New Buyers(Share of Buyers indicating how long they researched their purchased)
21%
16%
22%
20%
16%
12%
9%How long did you
Less than Around Around Around Around More than
How long did you conduct research before making your recent <Make> purchase?
N= 879
1 week2 weeks1 month2 months3 months3 months
10
Proprietary to Google and Compete, October 2007
The Automotive Research Process Has Compressed
• 70% of used or pre-owned vehicle buyers indicated that they researched for one month or less
Estimated Research Time Prior to Purchase – Used Buyers(Share of Buyers indicating how long they researched their purchased)
36%
18%16%15%
How long did you
9%6%
Less than Around Around Around Around More than
How long did you conduct research before making your recent <Make> purchase?
N= 958
1 week2 weeks1 month2 months3 months3 months
11
Proprietary to Google and Compete, October 2007
As time to purchase shortens, more New Vehicle Buyers visit Third Party and OEM sites
• Visitation to OEM and Third party sites increased more than 40ppts from six months to one month prior among new vehicle buyers
Category Visitation By Pre-Purchase Period - New Vehicle Buyers (Share of new vehicle buyers visiting the category by time period)
50%
60%
70%
20%
30%
40%
50%
0%
10%
6 Months Prior
5 Months Prior
4 Months Prior
3 Months Prior
2 Months Prior
Within the Month
of Purchase
12
of PurchaseOEM Sites 3rd Party
Automotive Sites
Proprietary to Google and Compete, October 2007
More Used Vehicle Buyers tend to visit Third Party sites than OEM sites
• Visitation to Third party sites increased more than 50ppts from six months to one month prior among used and pre-owned vehicle buyers
Category Visitation By Pre-Purchase Period - Used Vehicle Buyers (Share of used vehicle buyers visiting the category by time period)
buyers
50%
60%
70%
20%
30%
40%
50%
0%
10%
6 Months Prior
5 Months Prior
4 Months Prior
3 Months Prior
2 Months Prior
Within the Month
of Purchase
13
of PurchaseOEM Sites 3rd Party
Automotive Sites
Proprietary to Google and Compete, October 2007
New Buyers view more information on OEM Sites as they come closer to Purchase
• Content usage on both OEM sites and Third Party sites increase substantially in the month prior to purchase
Page Views by Pre-Purchase Period- New Vehicle Buyer (Page Views for each category by time period)
200
250
300
50
100
150
200
‐
50
6 Months Prior
5 Months Prior
4 Months Prior
3 Months Prior
2 Months Prior
Within the Month
of Purchaseof PurchaseOEM Sites 3rd Party
Automotive Sites 14
Proprietary to Google and Compete, October 2007
Used Vehicle Buyers utilize Third Party Automotive sites more than OEM sites
• Page Views on 3rd party sites increase substantially as time to purchase shortens
Page Views by Pre-Purchase Period- Used and Pre-Owned Vehicle Buyer (Page Views for each category by time period)
200
250
300
50
100
150
200
‐
50
6 Months Prior
5 Months Prior
4 Months Prior
3 Months Prior
2 Months Prior
Within the Month
of Purchaseof PurchaseOEM Sites 3rd Party
Automotive Sites 15
Proprietary to Google and Compete, October 2007
New Vehicle Buyers spend more time on OEM and 3rd Party sites as they come closer to Purchase
• New Vehicle Buyers spend more time on the 3rd party sites when they are one month prior to purchase
Time On Category - New Vehicle Buyer (Number of minutes spent on category sites by period)
60
70
80
20
30
40
50
‐
10
6 Months Prior
5 Months Prior
4 Months Prior
3 Months Prior
2 Months Prior
Within the Month
of Purchase
16
of PurchaseOEM Sites 3rd Party
Automotive Sites
Proprietary to Google and Compete, October 2007
Used Vehicle Buyers spend more time on Third Party Automotive sites Compared to OEM sites
• Used Buyers spend significantly more time on 3rd party sites within the month of purchase
Time On Category - Used Vehicle Buyer (Number of minutes spent on category sites by period)
60
70
80
20
30
40
50
‐
10
6 Months Prior
5 Months Prior
4 Months Prior
3 Months Prior
2 Months Prior
Within the Month
of Purchase
17
of PurchaseOEM Sites 3rd Party
Automotive Sites
Proprietary to Google and Compete, October 2007
Upper and Lower Funnel: Vehicle Buyers Use Search
awareness
Share of New Buyers Referred by Search To OEM Sites
awareness
interest
6 Months 22%
15%3 Months
consideration
test-drive
19%
42%
2 Months
1 Month
purchase 41%1 Week
Search is a critical activity at every stage of the buying process
18
Proprietary to Google and Compete, October 2007
The Automotive Research ToolsU d t di H A t ti B R hUnderstanding How Automotive Buyers Research
19
Proprietary to Google and Compete, October 2007
Search Engines are the Third Most Used and Third Most Important Media Source
79%OEM Site39%OEM Site
Media Sources Used Prior To Purchase (Share of Buyers indicating they used media source)
Media Source Importance – Top 2 Box(Share of buyers indicating source was important )
84%
75%
65%
3rd Party Site
Search Engine
News/Mag. Article
37%
32%
14%
3rd Party Site
Search Engine
News/Mag. Article
59%
49%
51%
Flyer/Brochure
TV Ad
News/Mag. Ad
12%
11%
10%
Flyer/Brochure
TV Ad
News/Mag. Ad
48%
65%
36%
Radio Ad
TV Review
Billboard
3%
3%
2%
Radio Ad
TV Review
Billboard
48%
46%
Online Banner
Online Video
1%
1%
Online Banner
Online Video
N= 1,837
20
1) Which of the following media sources did you use to find automotive related information to help you make your recent <Make> purchase? (Multi-Select)2) Among the media sources you indicated, please indicate the relative importance of each? (Single Select Scale – 1 to 5 rating)
,83
Proprietary to Google and Compete, October 2007
The Value of Search Engines Ranks Among That of OEM Sites and Third Party Sites
OEM Site
3rd Party Site
4 1
4.3More Important
Search Engine
News/Mag. Article
Flyer/BrochureR di Ad
TV Review3.9
4.1
Flyer/Brochure
TV Ad
News/Mag. Ad
Radio Ad
Online Video3.5
3.7Relative Importance
of Media Source
Online Banner
3.1
3.3
Billboard
2.7
2.9
0 00 0 05 0 10 0 15 0 20 0 25 0 30 0 35 0 40
Less Important
Low Usage High Usage0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40
21
Share of Buyers Utilizing Media Source
Proprietary to Google and Compete, October 2007
Test Drives and Past Experience are highly utilized resources and the most important
Resource Used Prior To Purchase (Share of Buyers indicating they used resource)
Resource Importance (Share of buyers indicating resource was important )
56%Dealer Visit
Test
73%Dealer Visit
Test53%
50%
Test Drive
Past Experience
91%
91%
Test Drive
Past Experience
39%
33%
Consumer Reviews
Friends, Family, Colleagues
86%
76%
Consumer Reviews
Friends, Family, Colleagues
1) Which of the following resources did you utilize to find automotive related information to help you make your recent <Make> purchase?
N= 1,837
22
1) Which of the following resources did you utilize to find automotive related information to help you make your recent <Make> purchase?2) Among the resources you indicated, please indicate the relative importance of each?
Proprietary to Google and Compete, October 2007
Test Drives and Past Experience are the most valuable resources for Buyers
More ImportantTest Drive
Past Experience
4.60
4.40
4.50
Relative Importance of Resource
Consumer Reviews
4.30
D lFriends Family4 10
4.20
Less Important
Low Usage High Usage
Dealer Visit
Friends, Family, Colleagues
4.00
4.10
0 30 0 35 0 40 0 45 0 50 0 55 0 60
23
Share of Buyers Utilizing Resource0.30 0.35 0.40 0.45 0.50 0.55 0.60
Proprietary to Google and Compete, October 2007
Key Findings
The Automotive Buying Process has compressed substantially• Nearly 60% of new Buyers researched their purchase for one month or less
before buying
• Over 70% of Used and Pre-Owned buyers researched their purchase for one month or less
Search is a major contributor to the research process throughout the buying process
• Nearly ¾ of new Vehicle Buyers used search at some point in the process dand were referred to an OEM Site or 3rd Party Automotive Site
• In the last month prior to purchase, 42% of New Vehicle Buyers used search
Search is among the most valuable Media Sources for Buyers• Search was valued at near parity with OEM Sites and 3rd Party Automotive
Sites Sites
25
Proprietary to Google and Compete, October 2007