10. Context for Automotive Marketing (Pre-Internet) Prior to the advent of the Internet communicating with a potential car buyer was a proposition Key Consumer Decisions Media Marketers Action
11. Context for Automotive and Dealer Marketing to Consumers (Pre-Internet) Marketers Traditional Media TV Radio Magazine Outdoor Newspaper Key Consumer Decisions Action Vehicle Purchase Which vehicle? When to buy? Which dealer? Right Price? Ad Associations Dealers OEMs Tier 1 Tier 2 Tier 3 Tier 3 Tier 3 Tier 3
12. Today’s Context is Different Marketers TraditionalMedia Ad Associations Key Consumer Decisions Action Vehicle Purchase Which vehicle? When to buy? Which dealer? Right Price? Dealers OEMs Internet
13. The Internet Efficiently & Effectively Influences All Key Consumer Decisions Key Consumer Decisions Which vehicle? When to buy? Which dealer? Right Price? 65% will buy in next 60 days 1 28% Impacted by Internet 2 1 MORPACE; AutoTrader.com User Profile Study 2 J.D. Power and Associates; 2007 New Autoshopper.com Study 3 R.L Polk New Vehicle Shopping Media Usage 59% considering multiple vehicles 1 Most Important Item Researched Online 3 Action Vehicle Purchase
14. Car Shoppers Are Bombarded by Automotive Advertising What’s sticking? 9
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16. Buyers Consider Multiple Vehicles Middle Phase Final Phase Beginning Phase Average Number of Vehicles Considered Source: R.L. Polk CO., 2007 New Vehicle Shopping Media Usage.
17. Length of New Car Shopping Process On average consumers take slightly less than 3 months shopping for a new car Q24. How many month(s) did the entire new vehicle shopping process take you from start to end?
18. Consumer Ratings of Car Shopping Information Sources Overall, the Internet and the Dealership visit are considered Most Helpful throughout the Entire Process. QUESTION Thinking about all of the sources of information used during the Beginning, Middle, Final, & Entire process, please rank order the sources according to how helpful they are. Source: R.L. Polk CO., 2007 New Vehicle Shopping Media Usage. 10
19. Most important information consumers say they “need” to know when shopping for a new car PRICE INFORMATION QUALITY/RELIABILITY INFORMATION GAS MILEAGE INFORMATION SAFETY INFORMATION MAKE/MODEL INFORMATION 13
20. QUESTION What one source of information (TV, Internet, etc) did you find most helpful with each of the items that you needed during the entire process? Source: R.L. Polk CO., 2007 New Vehicle Shopping Media Usage. Most important information consumers say they “need” to know when shopping for a new car 14
21. Dealer Spending vs. Car Shoppers’ Preferred Media Source: NADA Data 2007 Report. R.L. Polk CO., 2007 New Vehicle Shopping Media Usage. 25
22. Media Share of Ad Spend 27 Internet Other Radio Television Newspapers/ Print
23. QUESTION Internet sites offer different features to assist new car buyers. Not all sites offer the same array of features. Rank order the first five most helpful features during the vehicle buying process. Source: R.L. Polk CO., 2007 New Vehicle Shopping Media Usage. Most important information consumers say they “need” to know when shopping for a new car 15
29. Most important information consumers say they “need” to know when shopping for a new car PRICE INFORMATION QUALITY/RELIABILITY INFORMATION GAS MILEAGE INFORMATION SAFETY INFORMATION MAKE/MODEL INFORMATION 13