Appealing to Today s Auto Buyer

Transcription

1 #WinLocal Appealing to Today s Auto Buyer How Search Advertising and Targeted s Affect Car-Shopping Behaviors

2 Introduction With 16.5 million new car sales in 2014, the auto industry hit a post-recession high for cars sold in a single year. The report, released by Autodata, cited a number of reasons for the uptick in purchases a rebounding economy, increasing consumer confidence in the market, reduced gas prices and cheaper leases are all contributing factors. The recovering market is ripe for dealerships to increase sales, but that doesn t make the actual decision of what to buy any easier for a consumer. Dealers need to understand how their customers shop for vehicles and respond to messaging. Car-buying decisions require a large amount of time, effort and research on the consumer s part, from searching online to actually visiting dealerships and test-driving vehicles. The process is lengthy with lots of information and minor decisions made as the buyer approaches the actual purchase, like what make? Model? Color? Should I spring for the upgrades? The process is slow because the cost is high and the purchase is something the consumer will use regularly for the next 5, 10, even 20 years. Dealerships need to understand how a customer moves through the buyer journey, what forms of advertising and promotion work, what convinces people to click through to online inventory pages and ultimately what makes them walk into the showroom to test-drive a vehicle. To aid comprehension of consumer behaviors in this industry, we conducted a survey of more than 1,000 car-buying consumers to see how they go about the process. The results show today s consumers turn to the Internet to gather information and research local dealers before ever stepping foot in a dealership. Because consideration happens long before a consumer speaks to a sales representative, dealers need to meet their consumers along their journey, with information and ads relevant to each person. Methodology & Objectives G/O Digital conducted a research study to determine how consumers shop for new and used cars. The survey garnered a total of 1,034 responses from American consumers interested in using the Internet to research new or used vehicles before purchasing and was conducted from March 20 through March 31, 2015.

3 QUICK HITS Survey respondents share what affects their auto-purchasing habits: 42% Say online ads have the most influence over their purchasing decision 51% Need at most two weeks from when they receive a personalized to actually walk into a dealership 23% Use smartphones and tablets for car-buying research 35% Look for s that are personalized to their current interests 22% Want s targeted to their location 61% Would immediately delete an from a car dealership if it wasn t optimized for their mobile device 60% Would likely visit car-related websites while at a dealership 43% Would visit a dealership if it offered seasonal specials in an 30% Say search engines are the most useful source of finding information about new or used cars 32% Would be irritated and resentful toward a dealership if they were sent an that didn t speak to their needs or interests 46% Would open an from a car dealership if it included a current sale or discount in the subject line Appealing to Today s Auto Buyer #WinLocal 3

4 RESEARCH Consumers Make Decisions Before Stepping into a Dealership Purchase decisions are based on the information consumers glean from various sources in the buying process, and an overwhelming amount of that information gathering starts with Internet searches. When we asked new and used car shoppers to choose, out of 17 different sources, the most useful place to learn about local car dealerships, 30 percent say search engines are the best source. This beat out going directly to a dealer s website, manufacturer s website and even car pricing and review sites. When asked which sources are most useful when looking for more information about local car dealerships, respondents overwhelmingly said search engines were their go-to source. 7% Friend/family referrals 1% Auto blogs or discussion forums 5% Mobile apps 9% Other* 30% Search engines Additionally, 22 percent of respondents cite search engines as the top source that influences them to go to a car dealer s website. Car pricing and review sites carry the same weight in this category, indicating it s crucial to maintain a robust search presence and positive reviews on various car-buying sites. When consumers make it to a dealer s site, the dealership then has the most influence over getting the searcher to actually visit their location. 8% Car reviews on independent sites 15% Car pricing & review sites 16% Dealer websites 9% Manufacturer websites /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Search engines were just as popular as car pricing and review sites when it came to the top sources that influence which local dealer s website respondents visit. 6% Manufacturer websites 2% Auto blogs or discussion forums 22% Car pricing & review sites 12% Dealer websites 22% Search engines 13% Other** 12% Friends & family referrals 9% Car reviews on independent sites 2% Mobile apps * Other encompasses YouTube 0.2%, ebay (website only) 0.1%, TV 0.5%, Billboards/outdoor ads 0.2%, News/articles 0.6%, Personal social media pages 0.4%, Dealer social media pages 0.5% and an other category 6.5%. ** Other encompasses TV 1%, ebay 1%, YouTube 1%, News/articles 1%, Billboards/outdoor ads 1%, Dealer social media pages 1%, Personal social media pages 1% and an Other category 6%. Appealing to Today s Auto Buyer #WinLocal 4

5 RESEARCH Consumers want to know more about what they re getting into before actually visiting a dealership. They re searching online for what make and model they want and even checking out review sites to see how their local dealership ranks in terms of customer service and inventory. Today s auto consumers come armed with information they need to make a decision before stepping foot in a dealership; it s up to the dealership to get noticed in that online process. Although pricing and discounts are important when consumers are on dealers websites, information on current inventory also influences car-buying decisions. 14% Vehicle types 17% Vehicle models 6% Vehicle colors & features 20% Sales/discounts 14% Price quote forms 3% Finance rates 8% User reviews 5% Photos & videos 13% Other* * Other encompasses Opt-in for newsletter 0.25%, Map/directions 0.75%, Phone number 1%, Test-drive scheduling forms 1%, Informative blog 1%, Business hours 1%, Live chat 1% and an Other category 7%. Appealing to Today s Auto Buyer #WinLocal 5

6 MOBILE Consumers Use Mobile to Search and Visit In today s mobile world, almost a quarter of respondents say they use mobile devices to research and shop for cars. Although most searches are still performed on desktop and laptop computers, 23 percent of respondents say they do their car buying research on smartphones and tablets. Consumers don t have patience for non-mobile friendly websites and s; an astounding 61 percent of respondents say they d immediately delete an from a car dealership if it was not optimized for their mobile device. Today s market provides a lot of options for consumers, and if a dealership isn t mobile friendly, shoppers will ignore the message or go to a competitor s website that is optimized for mobile browsing. Although the majority of car shopping is still done on desktop and laptop computers, almost a quarter of shoppers use their tablet or smartphone for research. 77% Computer (desktop/laptop) 9% Tablet 14% Smartphone Mobile searching is a major part of being discovered by car shoppers, and the way people use mobile is very different from how they use desktop. While respondents primarily search for make and model of vehicles while on a desktop or laptop computer, they use mobile devices to look up directions, contact information and nearby dealerships. Search engines will prominently place click-to-call features and address information for mobile users, but dealerships need to claim their proper listings so they appear in relevant searches. Respondents enter different search terms depending on if they re doing research on a computer or a mobile device. If a dealer sends an that isn t compatible with mobile devices... Desktop/Laptop Computer: 5% Auto dealerships nearby 31% 1% Contact information Smartphone/Tablet: 24% 0.5% Directions to dealership 9% Auto dealerships nearby 61% Would delete It IMMEDIATELY 1.5% Contact information 4% Directions to dealership Make Model Price Style of car Dealership offers/promotions Directions to dealership Color Features Auto dealerships nearby Contact information APR/Financing rates Reviews of dealerships 12% Would unsubscribe 17% Would still try to read it 7% Would put It in spam 3% Would send a complaint Appealing to Today s Auto Buyer #WinLocal 6

7 ADVERTISING Online Ads Trigger Purchases In and Out of the Dealership Consumers find advertising useful when sifting through search results and online listings. When asked what role online advertising plays in purchase decisions, 33 percent of respondents say that online ads are useful and trustworthy in their car-buying process. Almost half of the respondents, 42 percent, say that online ads have the most influence in their shopping process over more traditional forms of advertising like newspaper, direct mail and TV ads. What s more, 38 percent of respondents say they d likely visit car-related websites while at a dealership. This presents an opportunity for dealers to target consumers and incentivize them to buy with very specific geotargeted ads and offers, ensuring buyers make a purchase decision. Competing dealerships also have an opportunity here to snag customers with information and pricing that can sway a consumer shopping around to leave one showroom for another. The majority of respondents are likely to visit a car-related website on their smartphone or tablet while inside a dealer s showroom. 60% Likely When people look for cars, they are most influenced by: 5% Direct mail ads 17% Newspaper & magazine ads 42% Online ads (search engines) 29% TV ads 4% Radio ads 3% Billboards & outdoor ads Appealing to Today s Auto Buyer #WinLocal 7

8 TARGETED BEHAVIOR Personalization Fosters Clicks and Visits When Targeted Correctly Our survey showed that consumers want personalized offers in auto-related s, with 35 percent of respondents looking for s tailored to their current interests and 22 percent wanting s targeted to their location. Respondents also say they often click through to a dealer s website or walk into car dealerships based on messaging that includes information about a model, style or color they re interested in. And messages that speak to respondents intended vehicle purchase are most likely to bring them to a dealer s inventory pages and dealership. 3% Based on devices used to open previous s How respondents prefer to have auto s personalized: 3% Based on age and gender 37% No preference 22% Based on location 35% Based on interests It takes a lot to bring consumers from an to a website. When asked which messages are most likely to bring them to a dealer s website, respondents say: 5% Addressed to you personally 5% Has interactive content (photos, videos) 23% Speaks to interests or needs 28% Includes information about car model, style or color you re interested in 16% Includes links to sales/discounts at local dealership 14% No preference 4% Includes salesperson s name, and phone number 5% Includes links to dealer website and social media pages Appealing to Today s Auto Buyer #WinLocal 8

9 TARGETED BEHAVIOR Consumers aren t interested in irrelevant mass-messaging from local dealerships. In fact, impersonal s cause 32 percent of respondents to feel irritated and resentful toward the sender, and 23 percent say they d be less likely to visit that dealer s website if they didn t receive an tailored to their interests. These results confirm consumers need targeted messages to click through to a dealer s site or visit the showroom. When sent impersonal or irrelevant s from a car dealership, respondents: 32 % Additionally, almost half of the respondents say that subject lines promoting current sales and discounts make them most likely to open an from a car dealership. At the same time, only 2 percent said customer testimonials would get them to act, and only 8 percent said invitations to dealership events would incite them to open the % Feel irritated and resentful Are less likely to visit that dealer s website The subject line is the first point of interest for the consumer. Almost half of respondents say that current sales and discounts in the subject line of an will increase their likelihood to open the . 13% Highlights popular/ available car models, styles or colors 46% Promotes current sale or discount * 10% Personal appreciation from owner/ general manager of dealership *Additional survey results: 2% Features a customer testimonial, 4% Gives regular scoop on what to expect from car dealership, 5% Promotes seasonal promotion (i.e. New Year s Clearance), 5% Showcases sale on maintenance services/parts, 7% Provides how-to tips for car maintenance and 8% Invitation to a dealership event. Appealing to Today s Auto Buyer #WinLocal 9

10 TIMELINESS Consumers Look for Timeliness, Even If They Aren t Timely with Visits It s no secret that promotional events and discounts are a draw for shoppers in any industry, but it s even truer in the car-buying industry, where real deals are hard to come by. Thirty-nine and 16 percent of respondents say that seasonal promotions or sales and special financing rates, respectively, would make them click through to a dealer s site from an . Forty-three percent say seasonal specials are even more effective in generating actual visits to dealerships, and the same was true for 17 percent of respondents when it came to special financing rates. Today s car shopper is savvy and on the lookout for the right promotion or deal for their next big purchase, and auto dealerships need to cater to those desires if they re going to bring people to their online inventory pages and into the showroom. What does it take to get people in a showroom from an ? Respondents say: 6% Contests & Sweepstakes People are relatively quick to visit; most respondents (50 percent) would visit a dealership within two weeks of receiving a personalized or promotion from a local dealership. 10% Other 13% Deals on car maintenance services/parts 43% Seasonal promotions & sales 23% Never 50% Two weeks or less 18% One month+ 17% Special financing rates 2% Dealer news 4% Quick lube shops 1% Behind-the-scenes photos/videos 4% Auto service & repair 8% Three weeks 1% One hour Although consumers want timely and relevant deals and promotions, they need a few weeks to actually visit. When asked how quickly after receiving a personalized would respondents actually walk into a dealership, the majority, 50 percent, say it would take two weeks at the most. For some, it might be as long as a month or more, but those customers will eventually come if you re sending additional s at the right frequency to stay top-of-mind. Successful events and offers require advance planning with a strategy that can target the right groups at the right times to incentivize online auto browsers to come in-store for a great deal. Appealing to Today s Auto Buyer #WinLocal 10

11 Conclusion As the auto industry gets stronger each year, consumers are gaining confidence in their car-buying decisions through their own research. The Internet provides numerous tools for shoppers to find information, reviews and pricing before ever visiting a dealership, so it s crucial for today s dealers to meet consumers along the buyer journey with the right digital messaging, offers and incentives. //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// About G/O Digital G/O Digital, a TEGNA company, provides local businesses with marketing resources and services that allow them to launch digital marketing campaigns across multiple channels, including search, social, mobile, website and . G/O Digital has helped thousands of local businesses across diverse industries expand their digital footprint and drive revenue with strategic partnerships and innovative technology. For more information, visit godigitalmarketing.com. //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Contact Us For Corporate Communications/PR, Please Contact: Andrea Parker, Senior Content Marketing Manager G/O Digital, A TEGNA Company (TGNA) Tel: (602) andrea.parker@tegna.com Appealing to Today s Auto Buyer #WinLocal 11