Media influence on Seat Car Dealer Visits · Media influence on Seat Car Dealer Visits . ......

Google Confidential and Proprietary 1

Understanding Media ROI for SEAT Ibiza Spain – June 2013

Media influence on Seat Car Dealer Visits


About this project

SEAT S.A. wanted to identify the key marketing drivers and quantify the effect

and efficiency in driving car dealer visits, focused on Seat Ibiza model, with

special focus on:

• Direct and indirect effects

• The role of online and offline advertising

Google Confidential and Proprietary

Methodology

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Prim

eros

Cont

acto

s Ibi

za T

otal

Medios largo plazo Plan E Publicidad TV

Ecomotive Nuevas motorizaciones Número de días laborables

Visitas Web Total IBIZA Tercera semana del mes Post San José 2011

Tasa de paro Primera semana del mes Agosto 2010

Agosto 2011 Semana Santa Nochebuena sin 2011

Semana 11/07/2010 Salida vacaciones 2011 Semana 11/03/2012

Reyes 2012 Post Semana Santa 2012

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2,000

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/2010

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/2010

26/09

/2010

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/2010

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/2010

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/2011

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Prime

ros Co

ntacto

s Ibiza

total

Primeros Contactos Ibiza total Ajuste

R2 95.2

An analytical DB was generated,

comprising more than 500 variables

likely to have an effect on visits from

28/06/10 to 01/07/12.

Eight econometric models were

developed to identify the drivers and

understand their significance.

Finally, we identified and measured

all the variables that affect the traffic

to the dealer.


Sources of information

• All the analysis was performed by Conento in December 2012

• Internal data used, owned by SEAT S.A. (June 2010 - July 2012)

• Car Dealer visits (daily)

• Visits to SEAT Ibiza website (weekly)

• Purchase Orders (daily)

• Transaction price (monthly)

• Investment in offline and online advertising (weekly)

• Launch dates / restyling and News

• Advertising creativities (qualitative)

• Mentions in social networks *

• Data from other internal and external sources have also been tested

(including search volume data in Google.es).

• Unemployment rate. Source: INE

• Internet Penetration Source: EGM

• Tax hike Source: Banco de España (Spain National Bank)

• Oil price Source: Ministry of Industry, Energy and Tourism

• Holidays Source: Official State Bulletin (BOE)

* Sources: http://www.seat-mediacenter.com/es-content/proc, Sources SEAT Buzz Monitor of MediaCom and Nurun Monitoring


The process for Car Dealer Visit was identified and quantified

8 econometric models were constructed to understand and quantify the effect of SEAT

Ibiza's marketing actions in contributing visits to dealers, with a particular focus on the

synergy between online and offline media activity.

Car Dealer Visit= Person visiting the dealer and opening a budget order form

Indirect effect: the model does not show a direct influence, but an indirect one by influencing intermediate variables

Setting an optimal level of investment for each media

Dealer

Visits (*) Web traffic

Web

Visits SEM

Display

SEO Offline Media

Web traffic Visit to SEAT

Ibiza website SEM Purchase

Order

Display

SEO Offline Media

Car Dealer

Visit


1. Drivers of Car Dealer Visit

6


Unemploym ent

25.8%

Visits to SEAT Ibiza

web site

19.6%

*Dealers number of

opening days

25.7%

Positive seasonality 0.7%

Negative sesonality 2.8%

Long-term on and off

advertising

23.4%

Short-term TV 1.4%

Plan E campaign 0.6%

7

Understanding the Car Dealer Visit

Car Dealer Visit Web visits

Paid Search

Purchase Order Organic Search

Offline media

Display

Other 9.0%

Transaction price

15.5%

Visit to

dealer 28.1%

Purchase Order Direct Drivers

* Dealers number of

opening days

47.4%

* Dealers’ number of opening days, it shows the evolution of the number of operational dealers opened

Dealer visits are key drivers to generate orders:

advertising and web visits are key drivers for generating traffic to the dealer

Car Dealer Direct Drivers



0.7% - Positive seasonality

19.6% - Visits to SEAT Ibiza's web

23.4% - Long-term on and off advertising

2.8% - Negative seasonality

25.8% - Unemployment

25.7% - Dealers’ number of opening

days

1.4% - Short-term TV

Media accounts for 45% of

total traffic to the dealer

0.6% - Plan E (Multimedia campaign)

Web visits have a 19.6% weight in visits to dealers.

Long-term advertising also has a significant 25.3% weight.


Paid Search


Offline media

Display

25.8%

25.7% 2.8% 0.7% 0.6% 1.4%

19.6%

23.4%

Unemployment Dealers’

number of

opening days

Negative

seasonality

Positive

seasonality

Plan E

multimedia

campaign

Short-term

TV

Visits to

SEAT Ibiza’s

web

Long-term

on and off

advertising

9


Plan E

0.6%

Short-term TV

1.4%

Visits to SEAT Ibiza’s web

19.6%

Long-term on and off advertising

23.4%


Paid Search


Offline media

Display

45% of visits to the dealer are

influenced by media

Web visits generate a large proportion of the car dealer visits influenced by media.


Understanding Visits to SEAT Ibiza website

10

SEM is the main driver of traffic to the website:

33.3% of web visits are due to SEM clicks


Paid Search


Offline media

Display

Unemploym 25.8%

Visits to SEAT

Ibiza’s web

19.6%

*Dealers’ number of

opening days

25.7%

Seasonality + 0.7% Seasonality – 2.8%

Long-term on and

off advertising

23.3%

Car Dealer Direct Drivers Visits to Seat Ibiza website

Estacionalidad positiva

0,3%

TV 1,6%

Estacionalidad

negativa 1,6%

New Ibiza + Salón G.

2.3%

Display 3.2%

SEM clicks 33.3%

Baseline 57.8%

Seasonality –

1.6%

Seasonality + 0.3%

11

Understanding Visits to SEAT Ibiza website

33.3% of web traffic is due to paid search (SEM)

The change of SEM strategy in October 2011, led to a 56% visits increase in Ibiza's

car world.

SEM Strategy change

Display: 3.2%

Presentation of the new

SEAT Ibiza

Baseline : 57.8% (Direct traffic/SEO/Other webs, etc.)

SEM: 33.3%

Negative seasonality 1.6%

Vis

its

to

SE

AT

Ib

iza

’s w

eb

sit

e

TV :1.6%

Geneva Motor Show


Paid Search


Offline media

Display

Average

position

% Lost

clicks

1 +3.5%

1.4 -

1.9 -5.4%

2.5 -11.4%

12

SEAT Ibiza

# SEAT Ibiza’s

keywords 294 384 366 159

2009 2010 2011 2012 Fewer

keywords

Better

position

Better quality

clicks

The change in SEM strategy to focus on quality means fewer keywords, better

positions and more quality clicks.

Optimizing SEM

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Ave

rage

po

siti

on

Seat

Ibiz

a D

efe

nd

Cli

cKs

Se

at Ib

iza

Def

en

d

Clicks Seat Ibiza Defend Average position Seat Ibiza Defend

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Ibiz

a D

efe

nd

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cKs

Se

at Ib

iza

Def

en

d

Clicks Seat Ibiza Defend Average position Seat Ibiza Defend

Clic

s S

EA

T I

biz

a D

efe

nd


2. ROI and Media Optimization


SEM is the most efficient

Monetary value of an application and actual returns are not shown due to client confidentiality – ROI data indexed 14

Offline ROI

Online ROI ROI data indexed: dealer visits

considering both direct and indirect

contributions

SEM, TV and Display, are the most efficient media to generate car dealer visits

100.00

18.05 17.88 6.27 5.98 5.74 5.26 3.96 1.70 0.72 0.53

Paid Search

Ibiza

Brand

Paid Search

TV IBIZA RADIO Magazines DISPLAY PRESS/SUPL. OOH TV Plan E TV Gama TV León


We know how to optimize our budget…

1. We have identified the optimal and historical contribution of each media

2 We have calculated the ROI of each media

Historical spend by week

Optimal spend not shown for confidentiality

15

TV DAYLY NEWS. MAG

OOH RADIO DISPLAY

RO

I

Inversión €

ROI Exterior 500 ROI SEM 500 ROI TV 500

ROI Revistas 500 ROI Display 500

Investment €

TV DAYLY NEWS. MAG

OOH RADIO DISPLAY

TV PRENSA REVISTAS EXTERIOR

RADIO DISPLAY SEM

Investment €

Vis

it t

o d

eale

r


… to achieve an improved Media Mix

16

3.0%

- 58.1%

6.0%

24.3%

- 5.6%

13.6%

93.2%

TV Ibiza Press Magazines Radio OOH Display Paid Search

% increase / decrease recommended % de Incremento o Decremento recomendado

http://es.fotolia.com/id/14074332


3. The importance of media in Google Search


Advertising is the main driver for Google searches

TV advertizing

also drives clicks,

but to a lesser

extend

Searches drivers SEM clicks drivers

Ibiza: 1,8%

León 1,25%

Automóviles 0,7%

18

LongTerm advertising

57.3%

TV

9.6%

Internet Usage

30.7%

OOH

0.1%

Radio

0.2%

News and Social Media

2.1%

Baselevel (Impressions

+ Queries ) 84,9%

Average Position

7.6% TV, advertising

3.4%

Otros 1.2%

Clicks drop

2.9%

Advertising generates 67% of Seat Ibiza’s Google searches (57.3% + 9.6%).

“S

EA

T IB

IZA

” s

ea

rch

es

Restyling prices

SEAT Ibiza January

2012

Mentions in relation to

Geneva Motor Show

0

50

100

150

200

250

300

Qu

ery

Se

at

Ibiz

a

Internet penetration Advertising Long T. TV Seat León Copa TV SEAT Brand

TV Ibiza OOH Radio

TV biza Copa Restyling & News TV Plan E0

50

100

150

200

250

300

Qu

ery

Se

at

Ibiz

a

Internet penetration Advertising Long T. TV Seat León Copa TV SEAT Brand

TV Ibiza OOH Radio

TV biza Copa Restyling & News TV Plan E

OOH

SEM improves its performance (clicks) during the TV weeks and the following ones (halo effect)

1 The econometric models show that TV

advertising increases searches and paid

seach clicks:

2 And through the models we know both the duration of

TV effectiveness and its contribution in searches and

clicks.

week 1 week 2 week 3 week 4 week 5 week 6 week 7 week 8 week 9 week 10

Optimal TV Spend minimum to get visit to dealer Effectiveness TVInversion SEM

3 Additional Clicks achieved thanks to the synergy between TV and SEM

19

33.1% 48% 54.7%

24.6% 11.1%

1st week 2nd week 3rd week 4th week 5th week

TV investm. % Extra clicks through TV

SEM investm.


4. The importance of position in SEM

20


R2 92.3

Average

position

% Lost

clicks

1 +3.5%

1.4 -

1.9 -5.4%

2.5 -11.4%

Average position

Position is key to increase clicks C

lic

s p

aid

Se

arc

h S

EA

T Ib

iza

QUERIES

TV SEAT Ibiza TV SEAT Ibiza

Face lift January 2012

TV much more than an Ibiza

Impressions

TV SEAT León TV SEAT Ibiza

TV SEAT Ibiza

Week 24/10/2010 Week 25/09/2011 Epiphany 2011

Christmas Week

Baseline

(Impressions

+ Queries) 79.3%

Average position 9.4%

TV advertising 4.4%

Other 1.5%

Negative

seasonality 5.4%


Conclusions and Recommendations

22


Conclusions

1

2

3

4

5

Paid Search, with a 33%, is the main source of traffic to the website

Advertising directly explains 25.9% of car dealer visits (23.4% in the long-term

and 1.9% in the short-term).

SEM, TV and Display, are the most efficient media to generate visits to the

dealer.

Using econometric models we have been able to identify and quantify the

drivers car dealer visits for SEAT Ibiza.

Web visits, with a 19.6% weight, are one of the main drivers of car dealer

visits:

The change of SEM strategy in October 2011, in favor of improving the

position of words with better conversion, increased Paid Search effectiveness

The buying process in the automotive industry has changed dramatically in recent years

due to the Internet. Now people do not go to dealers in search of a special offer, this

research process is now conducted online.

In the case of SEAT Ibiza, we have seen that without our website we would have had 20%

fewer dealer visits.

We have also seen that following the strategic change we made in October 2011, the

weight of SEM in web visits accounts for one-third of the overall visits, also becoming the

source of traffic to the dealer with the best ROI.

24

Txema Garitano

Digital Marketing

Social Media, Search and Analytics

SEAT, S.A.


Appendix


Models and settings

92,26% 89,84%

Fit Fit

Clicks paid search SEAT Ibiza Defend Ajuste

Visitas a la Web de SEAT IBIZA Ajuste Visitas a concesionarios SEAT Ibiza Ajuste

96,69% 95,17%

Clicks paid search SEAT Brand Defend AjusteFit Fit


Opening days, car dealer visits and price are the main drivers for purchase orders

The baseline is composed by the first contacts of the previous week and the number of working days

In the last week of the month, and in the week of New Year’s Eve,

Orders increase

In the first week of the month, as well as in

Easter and Epiphany, orders drop

Extra: Previous face lift

2012

TRANSACTION PRICE 15,5%

Dealer visits: 28,2%

Number of working days: 47.4%

Last week of the month 3%

First week of the month - 1,7%


Paid Search


Offline Media

Display

27


R2 89,8

Average position

Average

position

% Lost

clicks

1 +2,9%

1.5 -

2 -3,7%

2.5 -7,4%

What accounts for the clicks in “SEAT”? C

lic

ks p

aid

Se

arc

h S

EA

T (

Bra

nd

)

SEAT automobiles TV

TV SEAT León TV SEAT Ibiza

Facelift January2012 TV SEAT Ibiza

“SEAT” Paid Search impressions

Other SEAT car queries

SEAT brand queries

SEAT dealers queries

Ibiza: 1,8%

León 1,25%

Automóviles 0,7%

Baseline (Impressions

+ Queries )

84,9%

Average Position

7,6% TV advertising,

3,4%

Other 1,2%

Clicks drop, 2,9%

Media influence on Seat Car Dealer Visits · Media influence on Seat Car Dealer Visits . ......

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