Using Video to Drive Auto Sales and Profitability
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1 Using Video to Drive Auto Sales and Profitability
2 Larry Bruce President/CEO Online Drive James Dykstra Automotive Sales Manager Comcast Spotlight Michael Nealy President Team One, Seattle Bret Rice Senior Director of Research Comcast Spotlight
3
4 Larry Bruce Online Drive Which channel has the largest impact on the success of other channels?
5 Lift Attributed to Electronic Media
6 Larry Bruce Online Drive What role should electronic media play in a dealer s marketing mix?
7 Poll Question: According to the Online Drive study, which channel experienced the greatest lift once electronic media was introduced into the marketing mix? opay Per Click odirect Mail owebsite Behavioral Targeting o Marketing
8 James Dykstra Comcast Spotlight
9 DRIVERS & CHALLENGES Strong demand; avg years (Automotive News, Jan 2013 ) ` Production up to 16.5m units in 14 (Automotive News, Jan 2013) 90% of shopping process done online
10 DRIVERS & CHALLENGES Strong demand; avg years (Automotive News, Jan 2013 ) ` Production up to 16.5m units in 14 (Automotive News, Jan 2013) 90% of shopping process done online Average loyalty 44%, ford 60% (RL Polk Loyalty Data, Jan-June, 2013) 52% of buyers leapfrog their local dealer (True Car, Inc. Industry Analysis, Dec 2012) 15% of sales > 30 miles from dealer (True Car, Inc. Industry Analysis, Dec 2012)
11 A NEW PATH TO PURCHASE Google, Multiscreen Cross Platform Consumer Behavior Study, August 2012
12 MULTI-SCREEN USE But Don t Forget About Boomers 2 out of 5 Multi-device Users 77% Simultaneously GenX & Millennials 54% your future!
13 MULTI-SCREEN USE But Don t Forget About Boomers 2 out of 5 Multi-device Users 77% Simultaneously peak period for auto search is 5 to 8pm -Amy Peet, Sr. Digital Mktg. Mgr. Chrysler TV Creates Demand The Internet Fulfills It
14 VIDEO RULES 50% Internet Traffic; Sandivine
15 VIDEO RULES TV: 283m Online Video 187m (Nielsen TV Universe 2012). 25% of YouTube s global views are from mobile devices (1b+) ss/statistics.html 50% Internet Traffic; Sandivine
16 UPPER FUNNEL TARGETING DRIVES ROI Geo targeted demand *Americans consume 60 hrs/wk of media Digital fulfills increases: Local dealer share (% in PMA) Service retention Owner loyalty 78% or 47 hours of which is video demand: Search Auto sites OEM Direct (type URL)
17 PLANNING DRIVES ROI New Car Buyers 10% hh s always in the market (US Census) 58% in market < 30 days (Compete Vehicle Shoppers You Tube Audience & Behavior) 52% leapfrog local dealers (True Car, Inc. Industry Analysis, Dec 2012) 87% watch online videos (Comscore, 2012) 61% visit after an online auto video (Compete Vehicle Shoppers You Tube Audience & Behavior) Dealer visits have fallen; 2005: 4.6 > 2010: 1.2
18 PLANNING DRIVES ROI New Car Buyers Annual Plan 10% hh s always in the market (US Census) 58% in market < 30 days (Compete Vehicle Shoppers You Tube Audience & Behavior) consistency drives ROI customer 401k 52% leapfrog local dealers (True Car, Inc. Industry Analysis, Dec 2012) 87% watch online videos (Comscore, 2012) 61% visit after an online auto video (Compete Vehicle Shoppers You Tube Audience & Behavior) Dealer visits have fallen; 2005: 4.6 > 2010: 1.2 local sales most profitable more videos = more sales You only get one shot!
19 James Dykstra Comcast Spotlight
20 Poll Results: According to the Online Drive study, which channel experienced the greatest lift once electronic media was introduced into the marketing mix? opay Per Click odirect Mail owebsite Behavioral Targeting o Marketing
21 Lift Attributed to Electronic Media
22 Poll Question: What percentage of new car buyers purchase their car from a dealer located 30 miles or more miles from their home? o5% o10% o15% o20% Source: True Car, Inc. Industry Analysis, Dec 2012
23 Michael Nealy Team One Development HOW IMPORTANT IS CONSISTENT VIDEO ADVERTISING TO A DEALER'S SUCCESS?
24 Michael Nealy Team One Development WHY IS ONLINE VIDEO AN IMPORTANT ADDITION TO A TV CAMPAIGN?
25
26 Michael Nealy Team One Development
27 Poll Results: What percentage of new car buyers purchase their car from a dealer located 30 miles or more miles from their home? o5% o10% o15% o20%
28 Bret Rice Comcast Spotlight
29 RESEARCH S AREAS OF FOCUS Qualitative Provides answers to, What does my target audience look like? What cable networks and online sites do they frequent? Who is currently in the market for a new / used vehicle? Quantitative Sheds light on the inefficiencies of traditional media. Measures the effectiveness of targeted advertising, and dealers share of business against competitors and the market average. Geographic Captures a manufacturer s / dealer s best market(s) and zone(s). Illustrates retail trade areas and priority communities. Identifies natural barriers and zones of opportunity.
30 New Vehicles December November 2013 Competitor: Broadcast: PHILADELPHIA O&O,Turnkey Out,Turnkey In,Other 5 zones 3 selected 579 of 796 (72.7%) similar registrations for this dealer 579 of 1,837 (31.5%) similar registrations in these zones 579 of 25,509 (2.3%) all registrations in these zones Dealer Location Zone Data Zone data -# regs Trade Area Broadcast: PHILADELPHIA Competitor Comcast 100% target coverage 61% target coverage 98% out of target 11% out of target Wasted coverage: Wasted coverage: 98% 11%
31 New Vehicles December November 2013 Competitor: Broadcast: PHILADELPHIA O&O,Turnkey Out,Turnkey In,Other 1,000 5 zones 3 selected Aggregated Sales 579 of 796 (72.7%) similar registrations for this dealer 579 of 1,837 (31.5%) similar registrations in these zones 579 of 25,509 (2.3%) all registrations in these zones % % 700 Registrations % % % % % % % % % % EQUINOX CRUZE MALIBU SILVERADO TRAVERSE CAMARO SONIC IMPALA SPARK TAHOE % % Total Aggregated Sales Filtered by Make Total Aggregated Sales with Filters
32 New Vehicles December November 2013 Competitor: Broadcast: PHILADELPHIA O&O,Turnkey Out,Turnkey In,Other 5 zones 3 selected 579 of 796 (72.7%) similar registrations for this dealer 579 of 1,837 (31.5%) similar registrations in these zones 579 of 25,509 (2.3%) all registrations in these zones Dealer Trend and Forecast Share Dec 10-Nov 11 Dec 11-Nov 12 Dec 12-Nov 13 Dec 13-Nov 14 Dec 14-Nov 15 DEALER GORDON ACHEV DEALER BRYNER BCHEVROLET DEALER REEDMANTOLL C AUTO WORLD DEALER CHAPMAN D NISSAN LLC DEALER MALL CHEV E INC
33 *Partial Schedule Broadcast Post Local Chevrolet Dealer
34 Cable Network Ranker Chart Last Vehicle Was a Chevrolet, Looking to Purchase New / Used % of Target FAM -TV TWC -TV TBSC-TV ESPN-TV USA -TV TLC -TV DISC-TV LMN -TV AEN -TV HIST-TV LIF -TV APL -TV FOOD-TV ESP2-TV ZCSN-TV Past 7 Days Philadelphia, PA-Syndicated-Mosaic, Au12-Jl13, Scarborough, Total Survey Area, Adults 18+ This report has been prepared using STRATA report design copyright 2014 Strata Marketing, Inc Scarborough Ratings Data Copyright 2014 Scarborough Research Corporation. Scarborough Data & Reports are protected under the federal Copyright Act and are the registered intellectual property of Scarborough Research & Arbitron, Inc. Any use of the Scarborough Data is subject to all limitations and qualifications contained in the Report.
35 Cable Network Ranker Chart Last Vehicle Was a Chevrolet, Looking to Purchase New / Used Index MTV2-TV CMT -TV MLBN-TV TLC -TV BET -TV FBN -TV ESP2-TV AEN -TV FAM -TV LMN -TV VH1 -TV TVL -TV CNBC-TV APL -TV MTV -TV Past 7 Days Philadelphia, PA-Syndicated-Mosaic, Au12-Jl13, Scarborough, Total Survey Area, Adults 18+ This report has been prepared using STRATA report design copyright 2014 Strata Marketing, Inc Scarborough Ratings Data Copyright 2014 Scarborough Research Corporation. Scarborough Data & Reports are protected under the federal Copyright Act and are the registered intellectual property of Scarborough Research & Arbitron, Inc. Any use of the Scarborough Data is subject to all limitations and qualifications contained in the Report.
36 *Partial Schedule Proposed Cable Schedule Local Chevrolet Dealer
37 Berks County Upper Bucks County W Montgomery County Central Bucks County Mercer County Lower Bucks County 2013 Ad Zone Report for the Philadelphia DMA Buick GMC Dealer Location Against Direct Competitors Central MontCo SE Montgomery County NW Philadelphia Delaware Valley NE Philadelphia Lower Merion West Philadelphia E Delaware County Burlington County Chester County Center City Camden County West W Delaware County Camden County East Wilmington Gloucester Co. SW Jersey Atlantic County Middletown Cape May County Central Delaware DMA
38 Allentown Ad Zone Report for Volvo Ranked by Vehicles in Operation Within the Philadelphia DMA Vehicle Range Per Zone 4,614 6,687 2,882 4,614 2,104 2,882 1,533 2, ,533 Berks Upper Bucks Central Bucks Central Montgomery County Mercer Western Montgomery County Lower Bucks Southeast Montgomery County Chester County Cecil County West Wilmington Northeast Philadelphia Northwest Philadelphia Lower Merion West Philadelphia East Delaware County Center City West Delaware County Southwest Jersey Middletown DE Burlington Camden West Camden East Gloucester Ocean County South Atlantic Broadcast DMA Central Delaware Cape May Source: 2013 Polk (Jan 12 Dec 12 Regs).
39 ZIP Code Report for Dealer F Ranked by Customer Concentration Within the Philadelphia & New York DMAs Dealer Plotted With Primary Towns Customer Range Per ZIP Broadcast DMAs 20 Mile Radius Princeton Princeton Junction Lawrenceville Hightstown Trenton Trenton
40 ZIP Code Report for Dealer F Ranked by Customer Concentration Within the Philadelphia & New York DMAs Dealer Plotted With Primary Zones Customer Range Per ZIP PRINCETON Broadcast DMAs Cable Ad Zones MIDDLESEX MERCER
41 Bret Rice Comcast Spotlight
42 Using Video to Drive Auto Sales and Profitability
43
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