Online Automotive Shopping

Gene Cameron
Vice President, Media Marketing Solutions
2007 J.D. Power and Associates,
The McGraw-Hill Companies, Inc.
All Rights Reserved.

Steve Witten
Executive Director, Automotive Research

Automotive Internet usage (AIU) rates continue

to increase

% of All Buyers

Automotive Internet Usage (AIU) Trends

New1 Vs. Used2 Vehicle Buyers 9-Year Trend

Based to new-vehicle buyers. Source: J.D. Power and Associates 1999-2007 New Autoshopper.com Studies
Based to used-vehicle buyers. Source: J.D. Power and Associates 1999-2007 Used Autoshopper.com Studies

1
2

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

^Preliminary Data

% of All Buyers

23% of late-model used vehicles sold are sourced

online

2003

2004

Based to late model used-vehicle buyers

Source: J.D. Power and Associates 2003-2007 Used Autoshopper.com Studies

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

2005

2006

2007^
^Preliminary Data

Request for online quote is not growing for newvehicle sales

% of All Buyers

Visited Dealer
Found Online
39%

Based to new-vehicle buyers

Source: J.D. Power and Associates 2004-2007 New Autoshopper.com Studies

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Manufacturer sites are more popular than

independent sites among new-vehicle buyers

% of AIUs

Types of Web Sites Visited

by New-Vehicle Online Shoppers

Based to AIUs. Source: J.D. Power and Associates 2001-2007 New Autoshopper.com Studies

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Manufacturer sites are just as likely as

independent sites to be the first site visited

% of AIUs

First Auto Site Visited

by New-Vehicle Online Shoppers

Based to AIUs. Source: J.D. Power and Associates 2001-2007 New Autoshopper.com Studies

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Manufacturer sites are catching up to the

independent sites in being most useful

% of AIUs

Most Useful Type of Site Visited

by New-Vehicle Online Shoppers

Based to AIUs. Source: J.D. Power and Associates 2001-2007 New Autoshopper.com Studies

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Consumer ratings are the most frequently used

consumer generated media

55% = Very Helpful

Based to AIUs
Source: 2007 J.D. Power and Associates New Autoshopper.com & Used Autoshopper.com Studies

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The Vehicle Shopping Process

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The Funnel Still Exists

The Goals
Awareness
Familiarity

10

Make them aware of your model

Show your model is for them

Consideration

Convince them to consider your model

Visit Dealer

Convince them to shop your dealership

Purchase

Convince them to purchase your vehicle

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Different media channels are more effective at

distinct stages of the shopping funnel
Marketing Channel

Consideration

Purchase
11

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Newspapers

Visit Dealer

Internet

Magazines

TV Ads

Familiarity

Events

Awareness

Upper funnel marketing requires different metrics

Measures of Success
Awareness
Familiarity
Consideration
Visit Dealer

Purchase
12

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Change in awareness
Improvement in familiarity
Improvement of opinion
Click on ad
Click to site
Build a vehicle
Search inventory
Search for dealer info
Request a quote

Consumer Shopping Process

1. Should I be in market?
Resale value/condition of current vehicle
Change in vehicle needs
Gotta have new model

2. Which models meet my needs?

Price, styling, reliability, size
Previous experience
Advice from friends

3. Where should I purchase?

Price
Convenient location
Service

13

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The new-vehicle shopping process takes about

three months for the average AIU

Decide it was
time to purchase

Shop vehicles
on the Internet

10.4

11.7
14.7

Decide on
model

6.3
7.6

11.0

Start actively
researching vehicles

Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

14

0
Start visiting
dealers

Decide on type
of vehicle

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Purchase
new vehicle

The process is not much different for late-model

used vehicle buyers

Decide it was
time to purchase

13.8
14.9

Shop vehicles
on the Internet

Purchase
new vehicle

Decide on
model
9.9

6.9

10.9 10.1

0
Start visiting
dealers

Decide on type
of vehicle

Start actively
researching vehicles

Source: 2007 J.D. Power and Associates Used Autoshopper.com Study. Based to AIUs.

15

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Preliminary Data

One-third of new-vehicle buyers purchase within

one month of deciding they need a new vehicle

34% Shopping Process

One Month or less

27% Shopping Process

Over Six Months

Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

16

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

About half of AIUs dont begin their online

shopping until one month before purchase

49% Online-Shopping
One Month or less

16% OnlineShopping
Over Six Months

Source: 2007 J.D. Power and Associates New Autoshopper.com Study. Based to AIUs.

17

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Over one-third of new-vehicle buyers seriously

consider only one model

Source: 2007 J.D. Power and Associates Escaped Shopper Study

18

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Those with only one vehicle on their shopping list

are less likely to use the internet to vehicle shop

Source: 2007 J.D. Power and Associates Vehicle Shopping Study

19

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Those shopping several models are more likely to

find independent sites more useful

Source: 2007 J.D. Power and Associates Vehicle Shopping Study. Based to AIUs.

20

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Online Vehicle Shopping

And Dealer Visits

21

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Nearly one-fourth of new-vehicles shopped and

not bought are rejected due to online information

Source: 2007 J.D. Power and Associates Escaped Shopper Study

22

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Base: Vehicles rejected

Price, gas mileage, exterior styling, and reliability

information is important in online shopping decisions

Source: 2007 J.D. Power and Associates Escaped Shopper Study

23

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Base: Vehicle rejecters

Compete PIN Data Match

Online Behavioral Analysis
of Vehicle Buyers

24

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Vehicle Buyer Click Stream Methodology

Power Information Network
Dealers in Markets of 70% Sales

Compete Panel
4.4M Records
Third party

Internet activity

Surname &
Address
Match

Vehicle Buyer Info

12/2004 7/2007

6/2005 7/2007

~73,700 Matches: with continuous click stream data 6 months prior

to purchase (60% new-vehicle purchases, 40% used)
Purchase
Site A
Site B
Site C

25

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

P-1

P -2

P 3

P-6

33% of those who will visit a 3rd-party site, will do

so at least six months before purchase

100%
78%
69%
59%
47%
33%

Base: New vehicle buyers with internet access visiting a 3 rd-party automotive site

27

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

NOTE: Preliminary data

30% of those who will visit an OEM site, will do so

at least six months before purchase

100%
79%
67%
56%
42%
30%

Base: New vehicle buyers with internet access visiting an OEM site

28

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

NOTE: Preliminary data

Auto sites are high in both composition and reach

Web Site Composition and Reach Among Vehicle Buyers

Calendar/Address Books
Dealer Sites

OEM Sites
3Rd Party Sites

Search

Base: All vehicle buyers with internet access

29

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

NOTE: Preliminary data

Auto shoppers can be found on non-auto sites

Reach
27%
21%
55%
22%
21%
39%
31%
11%
54%
25%

Base: All vehicle buyers with internet access

30

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

NOTE: Preliminary data

Summary
Manufacturer and independent sites have reached parity
Dealer sites will be next

The internet is the only medium that works efficiently

across the entire shopping funnel
Significant online shopping activity occurs six months out
Highest bump in online auto shopping occurs within the
month of purchase
Purchase and web-wide behavioral data are now being
linked for the first time creating new marketing insights

31

2007 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Thank
You
2007 J.D. Power and Associates,
The McGraw-Hill Companies, Inc.
All Rights Reserved.