Auto Aftermarket

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thinkinsights Auto Aftermarket: Today’s Digital Driver October 2013

Transcript of Auto Aftermarket

Page 1: Auto Aftermarket

thinkinsights

Auto Aftermarket: Today’s Digital Driver

October 2013

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WHAT WE WANTED TO KNOW

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How does digital drive automotive parts research and purchases?

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WHAT WE DID

Google teamed up with Millward Brown Digital to conduct an online survey using panelists who purchased automotive parts or accessories within the past twelve months. Surveys were fielded between July 18-23, 2013 (n=1,241). We ran clickstream purchase analysis for Q3 and Q4 2012 (aggregated).

We tracked consumer online shopping activity to understand shopping and searching patterns

We analyzed the behavior of parts converters tracking their behavior backward from the point of conversion

We surveyed parts purchasers to understand their shopping behavior

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013

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WHAT WE FOUND

Aftermarket needs haven’t changed, but the research and purchase process is evolving Parts sales are still driven by a range of proactive maintenance to reactive repair needs. Most drivers still purchase in person due to immediate needs, yet online purchasing is a growing channel.

Today’s drivers are increasingly digital 7 in 10 drivers research online before they purchase regardless of where they buy.

Search engines drive consideration & purchase Search is the most used source for shopping, and drivers use both branded and category terms to research. 90% of drivers clicking on paid category search terms were new customer prospects.

Video introduces drivers to new brands and drives action Over one third purchased parts or visited a parts retailer as a result of watching online videos.

Mobile is the digital driver’s constant companion, even in-store Drivers use their phones throughout the purchase process for proactive research, a reactive need, or in-store showrooming. 32% use their devices while at a parts store.

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Aftermarket update

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Aftermarket needs haven’t changed

34% 16%

54% 67%

Enhancement Seasonal Maintenance Repair

Proactive Reactive

6 Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 O1. Why did you purchase this/these [CATEGORY]? Please select all that apply. N =1241

PRIMARY REASONS TO PURCHASE

Parts purchases range from proactive vehicle enhancements to reactive vehicle repairs

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How drivers purchase depends on the need

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018

41% 47% 33% 29%

59% 53% 67% 71%

Enhancement Seasonal Maintenance Repair

Bought Online

Bought Offline

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METHOD OF PURCHASE

Proactive Reactive

Proactive drivers are more likely to purchase online, and reactive shoppers need parts quickly

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More purchases are happening online

8 Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 O6. Was this the first time you purchased [CATEGORY} Online? N=310

43% of surveyed drivers bought there for the first time

WAS THIS THE FIRST TIME YOU PURCHASED PARTS ONLINE?

First time purchasing online

43%

Not first time purchasing online

57%

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While most purchases still happen offline, 7 in 10 drivers start their parts purchase process online

9 Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018

39% Researched online, purchased offline

30% Purchased online

25% Researched &

purchased offline

6% None

THESE ARE TODAY’S DIGITAL DRIVERS

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The digital driver

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Google.com/ThinkSource: Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Clickstream IT01, Unique Site Visitors

0 1 2 3 4 5 6 7 8

0

2

4

6

8

10

12

14

Mill

ions

Industry (Left) Brick & Mortar eCommerce Only

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Digital drivers are on the rise, up to 14% year over year

UNIQUE VISITORS TO PARTS CATEGORIES (JUNE 2012 – JUNE 2013)

Ecommerce had the largest year-over-year gains, increasing 19% in the period, brick & mortar also up 7% year over year

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Digital drivers are younger, educated and have a higher income

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018 S1. Which of the following categories contains your age? D4. What is the highest level of education you have completed? D5. What is your annual household income before taxes?

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79% are younger than

55 years old

81% have some

college education

51% have a HHI of

more than $60K

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29% 33% 41% 47%

43% 40% 37% 33%

27% 27% 22% 21%

Repair Maintenance Enhance Seasonal

I researched offline and purchased offline I researched online and purchased offline I purchased online

They’re online regardless of their vehicle need

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018

DIGITAL DRIVERS

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PURCHASE PROCESS BY VEHICLE NEED

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AMOUNT SPENT ON PARTS AND ACCESSORIES

And spend more money per transaction

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 SPEND1. Which of the following best describes the price range of the [CATEGORY] you recently purchased? Please select one answer only. N=1241

3%

30%

45%

20%

2% 8%

59%

21%

10% 3%

40% 33%

23%

5% 0%

Less than $25 $25 to less than $100 $100 to less than $250 $250 to less than $500 $500+

I purchased online

I researched online and purchased offline

I researched offline and purchased offline

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Google.com/ThinkSource: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Clickstream: BF02, cut by converters

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Cross-shopping is the norm

1 Site 24%

2-4 Sites 32%

5+ Sites 44%

76% of purchasers visited multiple parts websites prior to purchase

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Where are digital drivers considering vs. converting (ecommerce brands)

Source: MBD Clickstream: BF10

Auto Anything

Auto Parts Warehouse CarID JC Whitney Summit

Racing

12% 17% 14% 10% 27%

88% 83% 85% 90% 73%

eBay Parts 19%

AutoZone 15%

AutoZone 20%

eBay Parts 17%

eBay Parts 20%

AutoZone 15%

eBay Parts 18%

AutoZone 16%

eBay Parts 22%

AutoZone 18%

Advance Auto Parts 10%

Advance Auto Parts 14%

Advance Auto Parts 11%

Advance Auto Parts 12%

Advance Auto Parts 14%

Amazon Parts 9%

Amazon 9%

Amazon 8%

PepBoys 7%

PepBoys 9%

PepBoys 9%

Amazon 8%

Pepboys 8%

PepBoys 7%

Amazon 7%

Retailer Considered

Converted

Converted elsewhere

Converted elsewhere at

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Where are digital drivers considering vs. converting (brick & mortar brands)

Source: MBD Clickstream: BF10

Retailer Considered

Converted

Converted elsewhere

Converted elsewhere at

Advance Auto Parts AutoZone NAPA O’Reilly PepBoys

37% 45% 30% 9% 44%

63% 55% 70% 91% 56%

AutoZone 30%

eBay Parts 15%

Advance Auto Parts 19%

eBay Parts 16%

AutoZone 28%

Advance Auto Parts 19%

AutoZone 26%

Advance Auto Parts 14%

AutoZone 21%

Advance Auto Parts 16%

PepBoys 11% PepBoys

13%

eBay Parts 10%

eBay Parts 13%

Walmart Parts 15%

Walmart Parts 8%

PepBoys 10%

NAPA 9%

PepBoys 9%

NAPA 8%

NAPA 10%

Walmart Parts 9%

Walmart Parts 7%

eBay Parts 13%

Auto Parts Warehouse

7%

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Brands and retailers have limited opportunities to convert shoppers

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Clickstream: BF03, cut by converters

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NUMBER OF VISITS TO CONSIDERED BRANDS AMONG ONLINE CONVERTERS

1 Visit 38%

Over one third visited each

parts website in their consideration set only once

2 Visits 21%

3-4 Visits 22%

5-9 Visits 17%

10+ Visits 3%

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And they decide quickly

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 O11. How much time past between when you started researching and purchased?

35%

44%

13% 8%

Same Day Same Week 1-2 weeks More than 2 weeks

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TIME PASSED BETWEEN RESEARCH AND PURCHASE

79% made a purchase within one week

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how to reach them: Search

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Search is the #1 resource used by today’s digital driver

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT1. Which of the following sources, if any, did you use to lxook for information on [CATEGORY] using these types of devices? N=1241; RT2. Besides the Internet, which of the following sources, if any, did you use to look for information about [CATEGORY]? N=1241

23% 26%

31% 35% 35%

39%

31% 55%

63% 65%

28% 30% 31%

39% 40% 41% 41%

43% 45%

48% 52%

63% 65%

70%

Radio Magazines

Newspapers Flyers or brochures received at a store

Flyers or brochures received in the mail TV

Salesperson at a dealership Service advisor, Technician, or Mechanic

Family members, friends, and/or colleagues Salesperson at a store

Blogs Newspaper websites

Vehicle service center websites Video sharing websites

Social networking websites Professional automotive review websites

Vehicle dealership websites Automotive parts/accessories brand websites

Consumer-generated reviews online General automotive websites

Vehicle brand websites Automotive parts/accessories retail websites

General retail websites Search engines

Online

In Person

Offline

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ONLINE AND OFFLINE RESOURCES USED

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Search is a key component in the path to purchase

On average, buyers conduct more queries while shopping

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Parts Query Pathing among parts shoppers and converters, Q4 2012 22

6 10 12 16

6.7 QUERIES Shopped, did not purchase

15.7 QUERIES Purchased

QUERIES

On average, buyers conduct more queries while shopping

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Drivers use a mix of brand and category terms when searching

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Parts Query Pathing among parts shoppers and queries, Q4 2012

CATEGORY TERMS

39%

BRANDED TERMS

18%

18% of shoppers only use branded terms 39% use only category terms 43% use both keyword types while searching

43%

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Category terms play a key role in the search path

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Parts Query Pathing among parts converters and queries, Q4 2012 24

Last Query

46%

54%

62%

38%

Assisting Queries

Brand Category Brand Category

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Brand terms capture existing customers, while category searches capture new customers

Prospects Existing customers

BRANDED TERMS 30% 70%

CATEGORY TERMS 90% 10%

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013

BTGC Study, June 2012 – June 2013

DISTRIBUTION OF PAID CLICKS BY CUSTOMER TYPE

Category terms are more likely to drive site visits from prospects than existing customers

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Category terms drive additional conversions, engagement and brand interest

Value of THE IMPRESSION

Value of THE CLICK

Exposed to ad and didn’t click

Exposed to ad and clicked

Site Visits 2x more likely than those who weren’t exposed

5x more likely than those who weren’t exposed

Brand Searches 2x 3x

Product Views 4x 22x

Conversions 4x 28x

Source: Google/Millward Brown Digital Breaking the Glass Ceiling Study June ’12 – June '13 All Brands, All customers, Non-Branded terms

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how to reach them: video

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Over one third of drivers are actively looking for vehicle parts videos online

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 VI5. In general, how did you first hear about the videos you watched online? Please select one answer only. N=546

3%

3%

3%

4%

5%

5%

5%

7%

7%

9%

12%

14%

22%

I received it via email

I saw it on a vehicle dealership website

I saw it on a vehicle service website

I saw it on a part/accessory brand website

I noticed it on a social networking website

I saw it on a professional review website

I saw it on a general automotive website

I saw it on a vehicle brand website

I saw it on a general retail website

I noticed it on a video sharing website

I saw it on parts/accessories retailer websites

I searched for it on a video sharing website

I searched on a search engine

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HOW CONSUMERS FIRST HEARD ABOUT PARTS VIDEOS

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Drivers visit YouTube often and stick around

On average, parts purchasers visit 10 times per

month

They spend 17 minutes on the site on average

Buyers engaging with parts content spend

3 minutes on average with parts

videos per visit

Source:  MBD/Google  Parts  Study,  October  2013,  Clickstream  Video  Module.    Parts  converters  

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They’re looking for DIY tips, more information on product features, and reviews

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT8. Did you watch any videos about [CATEGORY] to help you shop for [CATEGORY]? N=1241 VI4. Which of the following describe the type of videos you watched while shopping for [CATEGORY]? Please select all that apply. N=546

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49% DIY Videos

29% Customer

testimonials & reviews

22% TV ads online

34% Product videos

13% Racing or

sports videos

30% Professional

review videos

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Drivers move to search for information after viewing parts videos on YouTube

31 Source:  MBD/Google  Parts  Study,  October  2013,  Clickstream  Video  Module.    Parts  converters  

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

5  weeks  pre  

4  weeks  pre  

3  weeks  pre  

2  weeks  pre  

1  week  pre  Same  Day   1  week  post  

2  weeks  post  

3  weeks  post  

4  weeks  post  

5  weeks  post  

Branded   Non-­‐Branded  

Increase in parts searches within the week that videos are

watched

1 in 4 search after watching a parts

video

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Online videos help drivers discover new brands and move them to buy or visit a store

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 VI8. How much do you agree with each of the following statements about the online videos you watched to learn about [CATEGORY] N= 546 (2013); Top 2 Box; VI7. As a result of watching videos about [CATEGORY] online, which of the following actions, if any, did you perform? Please select all that apply. N=546

Watching online video introduced shopper to new brands

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67%

Purchased parts/accessories after watching online videos

37% Went to a retailer that sells parts/accessories

34%

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Complementing TV with online video reaches drivers who are ready to act immediately

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 MI5. How soon after you saw the following ads did you look up the advertiser for [CATEGORY] online to learn more? N= 133, 226

34% 38%

16%

5% 2%

4%

48%

36%

13%

2% 1% 1%

Within 24 hours 1 day to less than 1 week later

1 week to less than 2 weeks later

2 weeks to less than 1 month later

1 month or more later Not Sure

TV ad

Online video ad

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HOW SOON AFTER YOU SAW THE FOLLOWING ADS DID YOU LOOK UP THE ADVERTISER ONLINE TO LEARN MORE?

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Automotive parts video research is on the rise and here to stay

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 VI9. How likely would you be to watch videos about [CATEGORY] online the next time you shop for [CATEGORY]? N=546

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85% of video researchers plan to watch automotive videos the next time they shop for parts/accessories

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how to reach them: mobile

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Mobile devices are a driver’s constant companion

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT4. When did you use each of the following devices while shopping for [CATEGORY]? Please select all responses that apply for each device. N=339-364

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MIDDLE

END

BEGINNING 43%

45%

36%

54%

48%

31%

Share of purchasers using their mobile phone to research during:

Share of purchasers using their tablet to research during:

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Drivers use mobile devices throughout the full shopping process, even when in-store

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT12. From which of the following locations did you use your mobile device(s) (e.g., mobile phone and/or tablet) to shop for [CATEGORY]? Please select all that apply. *Base- Selected mobile phone or tablet for at least one source in RT1 N=448

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PROACTIVE RESEARCH REACTIVE RESEARCH SHOWROOMING UP

UNTIL PURCHASE

70% Home

33% Work

27% Service center

17% While stranded

29% In line

32% At a parts store

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They’re price shopping, driving in-store purchases and researching products

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT10. Which of the following, if any, did you do on your tablet while shopping for [CATEGORY]? Please select all that apply. *Base- Selected tablet for at least one source in RT1 N=339; RT10a. Which of the following, if any, did you do on your mobile phone while shopping for [CATEGORY]? N=364; Net N=448

23%

25%

26%

28%

36%

38%

34%

35%

42%

38%

52%

Read 3rd party/consumer reviews

Diagnosed a problem with my vehicle

Watched a part/accessory review or video

Checked part/accessory warranty information

Searched for parts/accessories by vehicle

Compared part/accessory features

Checked prices at other locations

Checked availability for in-store pickup

Looked up stores hours of operation

Looked for discounts/offers

Looked up pricing information

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ACTIVITIES CONDUCED ON MOBILE DEVICES

Price shopping

Mobile to store

Product research

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Mobile advertising drives brand consideration and influences purchase

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 MI3. What role did each of the following advertisements play while shopping for [CATEGORY] N=162

4%

21%

22%

25%

25%

26%

28%

30%

None of these

Prompted me to check my current parts/accessories to see if they needed to be replaced

Prompted me to visit the website of the advertiser

Prompted me to visit the advertisers retail location

Encouraged me to purchase parts/accessories

Prompted me to search online for information

Prompted me to contact the advertiser

Encouraged me to consider the brand that was advertised

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ACTIONS TAKEN AFTER SEEING A MOBILE AD

1 in 4 parts shoppers are prompted to purchase after seeing a mobile ad

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Drivers are cross-screen shoppers

Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 MI4. Thinking about the last time you saw each of the following types of advertisements, did you then look up the [CATEGORY] advertiser to get more information? N=68

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SCREENS DRIVERS MOVED TO AFTER SEEING A MOBILE AD

62% of drivers that see a mobile ad

move to another screen to learn more

Tablet 9%

No 4%

Mobile phone 28%

Not sure 28%

Desktop 53%

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WHAT THIS MEANS FOR MARKETERS

Reaching today’s digital driver Drivers research online and make their decisions quickly — having an always-on digital presence is critical to catch consumers when they are deciding

Get considered with search Parts retailers can get in the consideration set as drivers search on category terms. Be there on paid generic, category search terms to drive new customers and demand for your brand

Engage and educate with online video Provide instruction videos and product videos to help bring your offerings to life for potential customers

Be there across all screens Having a cohesive cross-device strategy is critical in reaching drivers — make it easy for them to move between screens while they research and buy

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Turning insights into action

Next Steps

Get considered with search •  How is their brand vs. non-brand coverage?

Engage & educate with video

•  Are they YouTube crawling, walking, running? Set up a follow up meeting for the YouTube story?

Connect across screens

•  Follow up with a mobile scorecard

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Methodology – Brands With Actions vs. Without clickstream analysis

Brands with Actions: MBD measured actions on these 20 sites (i.e. purchases, store locator, etc.). Anytime we mention “converters” or conjunction with clickstream data we are referring to people who purchased on one of these 20 sites. We were limited to 20 sites with actions per the parameters of the study.

Brands without Actions: We tracked visitation to these sites, however did not track actions (e.g. purchases or store locator). Whenever you see data based on conversions/purchases – these sites are NOT included.

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Methodology – Parts Definitions clickstream analysis

Brands  with  Ac.ons  Brands with Actions 1A Auto

Advance Auto Parts Amazon

Auto Anything Auto Parts Warehouse

AutoZone BuyAutoParts

Car ID eBay Motors

Empire Covers eTrailer

Interstate Batteries JC Whitney

NAPA O'Reilly Auto Parts

Pep Boys Summit Racing

Walmart weathertech.com

XTreme Diesel Performance

Actions KPI - Chat

KPI - Coupons KPI - News

KPI - Product Page Conversion – Schedule Appointment

Conversion - Store Locator Conversion - Add to Cart Conversion - Purchase

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Methodology – Parts Definition Clickstream analysis

Brands without Actions Bike Bandit

Camping World Cheap Cycle Parts

Covers Direct Eastwood J&P Cycles

Jeep 4x4 Center Jegs

Motorcycle Superstore Parts Geek

Revzilla Rock Auto

Transamerican Auto Parts Truck Add Ons

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Methodology – Parts Brand Categories clickstream analysis

Brick & Mortar: Advance Auto Parts, AutoZone, Interstate Batteries, NAPA, O’Reilly, Pep Boys, Walmart E-Commerce Only: 1AAuto, Amazon, Auto Anything, Auto Parts Warehouse, BuyAutoParts, CarID, eBay Parts, Empire Covers, eTrailer, ExtremeDiesel, JC Whitney, Summit Racing, Weathertech.com