The Role of the Internet in Automotive Buying
Presentation of Key Findings for United Kingdom
Google Confidential and Proprietary
1
Agenda
1 Objectives
2 Methodology
3 Key Findings
4 Summary Charts
5 Market Profile
6 Brand Loyalty
7 Prior to Information Search
8 Information Search
9 Final Purchase
10 In Summary
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
2
Objectives
The primary objective of the research was:
To understand how consumers use the Internet and traditional
sources to research and purchase new and used cars
Key research questions include:
• What kinds of information are Internet buyers looking for to assist with their
purchase?
• What is the role of the Internet at different stages of the purchase cycle?
• What is the role of search engines during the process?
• How do attitudes and behaviors around the purchase process differ between
buyers of new versus used cars?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
3
Methodology
• Research was conducted among new and used car buyers, representative of the
Internet population in the UK by age within gender
• Respondents were purchasers of a new or second-hand personal vehicle and had
made the purchase within the last 12 months
• Data were collected online with fieldwork for UK conducted from July 21 to July 30,
2009
• Interviews in 16 countries were distributed across the following quotas:
Argentina
Australia
Brazil
China
France
Germany
India
Italy
Japan
Mexico
Netherlands
New Zealand
Russia
Spain
United Kingdom
United States
New Car Buyers
Used Car Buyers
TOTAL
500
501
500
501
500
500
509
506
501
500
500
307
508
503
500
501
502
510
508
504
507
508
500
500
500
510
510
405
501
503
511
505
1002
1011
1008
1005
1007
1008
1009
1006
1001
1010
1010
712
1009
1006
1011
1006
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
4
Reporting
• Almost all findings presented in this report separate buyers of new and used cars for
comparative purposes
• In the first “Market Profile” section, aggregate data are often reported (new and used
car buyers combined) to illustrate the total car buying market

Data in this section represent the actual car buyer market, that is the sample prior to quotasampling undertaken to achieve an even mix of new and used car buyers
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
5
Key Findings
1
The Internet is used at every stage of the purchase funnel. Fifty-five percent of car buyers begin
their search online. Seventy-eight percent use the Internet throughout the purchase process
2
Many online sources – including manufacturer sites, dealer sites, auto sales sites and
classified-ad sites – are used and valued more than many traditional (offline) sources
3
Eighty-five percent of online car researchers use a search engine for research and to locate
other websites. Search engines therefore assist in expanding consumer choice and influence
the overall automotive purchase decision
4
Online sources are key in locating final dealers and sellers. Forty-five percent use the Internet to
locate dealers and seventeen percent use a search engine specifically
5
Among search engine users, Google is the most used and most helpful search engine – ninetythree percent use it and eighty-six percent say it is the most helpful search engine
6
Online videos are growing in importance, with forty percent of online researchers using them to
help decide. Manufacturer sites, YouTube, Google Video and Topgear are top destinations for
auto-related online videos
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
6
Summary Charts
•
•
Trends in Purchasing Behavior 2008 – 2009, New Car Buyers
Key Indicators Among New Car Buyers and Used Car Buyers
Google Confidential and Proprietary
7
The Internet together with dealerships inform car purchasing
decisions
New Car Buyers
Sources of Information in Vehicle Purchasing Decisions
100%
90%
80%
78%
80%
70%
70%
60%
60%
50%
37%
40%
31%
30%
25%
26%
20%
24%
13%
10%
0%
Internet
2009 (n=500)
Auto dealerships
Magazines/ brochures
2008 (n=500)
Friends, f amily,
colleagues
Newspapers
Base: All new car buyers
Note: difference in question presentation impacts exact comparison between 2008 and 2009
Q: As you started to research your vehicle purchase, where was the first place you began searching for information? Please select any additional places you looked at any stage in
researching your vehicle purchase.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
8
More test drives are booked in person than online or by phone
New Car Buyers
Number of dealers visited
2009
Average
2.9
Average number of test
drives booked
2008
2.9
70%
1.4
58%
60%
1.2
47%
50%
40%
30%
1.0
0.9
0.8
33%
27%
0.6
20%
20%
15%
0.4
10%
0.2
0%
0.0
1 seller/dealer
2009 (n=365)
1.0
2- 4
5 or more
sellers/dealers sellers/dealers
2008 (n=447)
0.4
0.3
0.4
0.2
Online
2009 (n=435)
By phone
In person
2008 (n=481)
Base : New car buyers, purchased car at a dealer
Note: Excludes those who do not remember or, in 2009, did not visit.
Q: Approximately how many different dealers or sellers did you
visit in person before purchasing?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Base : New car buyers, purchased car at a dealer or vehicle supermarket
Q: In total, how many test drives did you book? Insert a whole
number for each method of booking.
Confidential and Proprietary
9
Search engines primary gateway to websites during the
purchase process
Typical Method of Accessing Websites for Vehicle Research
71%
Use search engine
70%
22%
Type URL
22%
9%
Use bookmark
15%
6%
Link from another online source
6%
0%
10%
Percentages are a weighted average of responses from
those who used Auction sites, Consumer rating/review
sites, Auto magazine/enthusiast sites, Vehicle
comparison sites (3rd-party), Classified ad/listing sites,
Auto sales sites, Dealer sites, Manufacturer sites when
researching their vehicle purchase. Proportionately more
weight is given to more popular types of sites.
20%
30%
40%
50%
60%
70%
80%
Responses f rom new car buyers (n=1037)
Responses f rom used car buyers (n=1105)
Q: Which methods did you typically use to find the websites you used during your purchase process?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
10
The Internet supports key phases in new car purchase
decision process, especially general research and comparison
New Car Buyers
Usage
Importance *
2009
2008
2009
2008
63%
76%
83%
73%
68%
77%
73%
65%
40%
46%
63%
56%
49%
39%
64%
56%
* Top 2 box score, 5-pt. “important” scale
Q – Usage in research, comparison, decision: Which sources of information did you use
for each of the following activities related to researching and buying your vehicle?
Q – Usage in identifying the seller: How did you find the seller you purchased your vehicle
from?
Q – Importance: Thinking of your use of the Internet in the research and purchase
process, how would you rate its importance for each of the following aspects?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
11
The Internet supports key phases in used car purchase
decision process, especially general research and comparison
Used Car Buyers
Usage
Importance *
68%
83%
69%
70%
39%
57%
41%
66%
* Top 2 box score, 5-pt. “important” scale
Q – Usage in research, comparison, decision: Which sources of information did you use
for each of the following activities related to researching and buying your vehicle?
Q – Usage in identifying the seller: How did you find the seller you purchased your vehicle
from?
Q – Importance: Thinking of your use of the Internet in the research and purchase
process, how would you rate its importance for each of the following aspects?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
12
Google’s favorability among its users increased since 2008 for
a variety of activities related to car research
New Car Buyers
Impact of Search Engines on Vehicle Research:
Performance Indicators for
58%
Aided search of blogs, articles, videos, reviews
38%
52%
Enabled discovery of new models
35%
48%
Enabled discovery of new makes/brands
34%
42%
Inf luenced type-of -vehicle considerations
Top 2 box scores (4 or 5 on
5-pt. "agree" scale)
18%
0%
10%
20%
Google (2009) n=302
30%
40%
50%
60%
70%
Google (2008) n=319
Base: Those who selected Google as “the most helpful” among the set of engines
they use for vehicle research
Q: Please read the statements below, related to [most helpful search engine], and indicate to what extent you agree or disagree with each statement.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
13
Google users rate the engine favorably for a variety of
activities related to car research
Impact of Search Engines on Vehicle Research:
Performance Indicators for
58%
Aided search of blogs, articles, videos, reviews
61%
52%
Enabled discovery of new models
39%
48%
Enabled discovery of new makes/brands
42%
42%
Inf luenced type-of -vehicle considerations
34%
0%
10%
20%
Google (New car) n=302
30%
40%
Top 2 box scores (4 or 5 on
5-pt. "agree" scale)
50%
60%
70%
Google (Used car) n=282
Base: Those who selected Google as “the most helpful” among the set of engines
they use for vehicle research
Q: Please read the statements below, related to [most helpful search engine], and indicate to what extent you agree or disagree with each statement.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
14
Compared with 2008, more manufacturer site video users see
such videos as a way to get car information, discover new cars
Impact of Online Videos on Vehicle Research
92%
Online video is a convenient way to get
inf ormation about vehicles
76%
56%
Online videos helped me to narrow my
choice of vehicles
56%
21%
I f irst heard about a vehicle by watching an
online video
23%
Base: Watched an online video
about a particular brand, on a
manufacturer website
44%
Online videos made me aware of vehicles
that I had not previously considered
Top 2 box scores (4 or 5 on
5-pt. "agree" scale)
29%
0%
10%
20%
2009 (n=52)
30%
40%
50%
60%
70%
80%
90%
100%
2008 (n=96)
Q: You stated that you used online auto videos when researching and buying your vehicle. Please read each statement and indicate to what extent you agree /disagree.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
15
Three-fourths of car buyers who watch car-related online
videos say they are a convenient way to get information
Impact of Online Videos on Vehicle Research
76%
Online video is a convenient way to get
inf ormation about vehicles
76%
60%
Online videos helped me to narrow my
choice of vehicles
55%
52%
Online videos made me aware of vehicles
that I had not previously considered
47%
4 in 10 new car buyers first heard
about a car through online video
39%
I f irst heard about a vehicle by watching an
online video
Top 2 box scores (4 or 5 on
5-pt. "agree" scale)
26%
0%
10%
20%
New car n=191
30%
40%
50%
60%
70%
80%
Used car n=85
Base: Watched videos and recall the type
Q: You stated that you used online auto videos when researching and buying your vehicle. Please read each statement and indicate to what extent you agree /disagree.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
16
37% of those who did not access manufacturers websites
cite a poor previous experience, led by limited pricing info
Poor past experience as
reason for not using
manufacturer sites during
the purchase process:
New car buyers - 40%
Used car buyers - 35%
Deterrents to Using Manufacturer Websites
Limited pricing Inf ormation
34%
29%
Lack of vehicle reviews
Website's load time too long
23%
9%
Website too conf using / dif ficult to find inf ormation
19%
Limited specif ications about vehicle models
17%
25%
10%
4%
6%
Insuf f icient loan and f inancing inf ormation
21%
Lack of reviews is a deterrent
for 3 in 10 new car buyers—
one-third of used car buyers—
who did not use manufacturer
sites due to a poor experience
19%
17%
Insuf f icient inf ormation about particular make of vehicle
Unable to purchase online
Base: Did not use manufacturer sites
due to a poor past experience
9%
3%
Other
0%
33%
25%
10%
Unable to obtain a quote
37%
5%
New car n=99
33%
10%
15%
20%
25%
30%
35%
40%
Used car n=137
Q: You indicated that you were not satisfied with a previous visit to a manufacturer website. Which of the following reasons best describe why you were dissatisfied ?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
17
Market Profile
Google Confidential and Proprietary
18
Among those who purchased a car in the last 12 months,
65% purchased a used car
Average Purchase Price: £ 15 701
Average Purchase Price: £ 5 340
35%
New Car
Buyers
25% of Internet users
surveyed purchased a
car in the last year
65%
Internet Population
Used Car
Buyers
n=784
Base: All respondents, prior to quota-sampling
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
19
Car buyers are male, age 42, earning £ 40 K annually
New and Used Car Buyers
Gender
Age
15%
23%
46%
Avg. Age
41.5
22%
Male
Female
54%
18%
22%
18-24
25-34
35-44
45-54
55+
Avg. Annual Income
£ 40 326
Avg. Number of Cars
in Household
1.7
n=784
Base: All respondents, prior to quota-sampling
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
20
New car buyers earn more and are more likely to be male
New car
Used car
Age
Age
28%
Avg. Age
42.2
Avg. Age
20%
41.1
19%
25-34
35-44
Avg. Annual
Income
£ 47 374
19%
45-54
18-24
55+
£ 36 648
24%
25-34
35-44
45-54
55+
Gender
Gender
43%
Female
23%
Avg. Annual
Income
15%
18-24
13%
20%
18%
48%
Male
Female
57%
Male
52%
Avg. Number of
Cars in Household
Avg. Number of
Cars in Household
1.7
1.8
n=276
Base: New car purchasers, prior to quota-sampling
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
n=508
Base: Used car purchasers, prior to quota-sampling
Confidential and Proprietary
21
Summary – Market Profile
1
Among UK Internet users who purchased a vehicle in the last 12 months, 65%
purchased a used car
2
The average Internet-enabled UK car buyer is male, age 42 and earns
£ 40K annually. New car buyers earn more than used car buyers
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
22
Brand Loyalty
Google Confidential and Proprietary
23
Brand loyalty is not strong among used car buyers, as more
switched from a previous brand
Used car buyers
New car buyers
New to market
New to market
10%
14%
32%
45%
Loyal
Switched
Loyal
Switched
45%
55%
n=487
n=477
Base: Identified a specific (previously) purchased
brand or are new to the vehicle market
Q: What was the make/brand of your previous vehicle? (Select one) What was the make/brand of the vehicle you purchased? (Select one)
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
24
Ford and Vauxhall are considered and purchased more than
other brands
New + Used Car Buyers
Ford
47%
Vauxhall
34%
Volkswagen
27%
Peugeot
27%
Toyota
22%
Honda
22%
Citroen
18%
Nissan
18%
Audi
14%
Fiat
14%
Skoda
6%
6%
6%
4%
4%
2%
4%
3%
11%
10%
1%
9%
1%
9%
1%
Mercedes-Benz
8%
2%
Hyundai
8%
2%
Volvo
8%
1%
Mitsubishi
7%
1%
5% 1%
Saab
5% 1%
Suzuki
5% 1%
Land Rover
5% 1%
Average Number of Car
Makes Considered :
2%
Kia
Mini
7%
7%
16%
BMW
Seat
11%
24%
Renault
Mazda
16%
New car buyers – 3.7
Used car buyers – 4.1
Considered
Purchased
Note: Brands considered by less
than 5% not shown
n=1011
Base: All respondents
Q: When you first started your research, which vehicle makes/brands were you considering? (Select all that apply) What was the make/brand of the vehicle you purchased?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
25
Summary – Brand Loyalty
1
Brand loyalty is not strong — half of car buyers switch from a previous make of car.
Few new car buyers are new to the market
2
On average, UK car buyers begin their research with nearly four brands in their
consideration set
3
Ford and Vauxhall are the brands most likely to be considered and purchased
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
26
Prior to Information Search
Google Confidential and Proprietary
27
New car purchases are predominantly triggered by improved
fuel efficiency or the need to replace a non-functional car
Improved fuel efficiency prompted 36%
of new car buyers to purchase a vehicle;
14% say it was the main trigger
Former vehicle no longer f unctional
17%
Improved f uel ef f iciency
14%
Change of circumstances
22%
12%
Wanted a second/another vehicle
14%
11%
Lease term ran out
3%
7%
Better f inancing options
5%
Did not own a vehicle previously
5%
The latest saf ety or convenience f eatures
5%
A change in circumstances triggered
one-fourth of new purchases
9%
9%
Government scrappage incentive
Company car no longer available
10%
3%
14%
4%
Safety or convenience features
triggered one-fourth of new purchases
20%
n=500
Base: New car buyers
2% 2%
0%
5%
10%
Main trigger
15%
20%
25%
30%
35%
40%
45%
50%
Additional
Q: What was the main trigger for the purchase of your vehicle?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
28
Buyers of used cars are most likely to replace a car that is no
longer functional
The need to replace a no-longer-functional car prompted 43%
of used car purchases; one-third say it was the main trigger
Former vehicle no longer f unctional
33%
Change of circumstances
16%
Wanted a second/another vehicle
10%
Improved f uel ef f iciency
Company car no longer available
15%
11%
Did not own a vehicle previously
Better f inancing options
10%
10%
3%
8%
3%
15%
0%
23% of used car purchases are also
prompted by improved fuel efficiency
5%
Two-thirds (64%) of used vehicles
purchased are 4 years old or older
2%1%
The latest saf ety or convenience f eatures 2%
Change of circumstances triggered
31% of used car purchases
n=511
Base: Used car buyers
5%
5%
10%
Main trigger
15%
20%
25%
30%
35%
40%
45%
50%
Additional
Q: What was the main trigger for the purchase of your vehicle?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
29
At the start, most car buyers plan their efforts around a new or
used vehicle purchase and concentrate on a few brands or models
New car
Used car
1%
3%
Definitely planned to purchase a new car
2%
3%
16%
0%
Was leaning toward a new car
19%
Considered both new and used cars
Was leaning toward a used car
52%
0%
Definitely planned to purchase a used car
65%
25%
77% planned to
purchase a new car
14%
79% planned to
purchase a used car
30%
26%
27%
26%
Knew which one I
wanted
Had a few options
in mind
56%
60%
55%
55%
Had a few options
in mind
Had no real idea
14%
13%
17%
19%
Had no real idea
Brand
Model
Brand
Model
Knew which one I
wanted
Base: New car buyers; n=500
Base: Used car buyers; n=511
Q: How sure were you that you wanted to purchase either a new or used car?
Q: When you first started looking, how much did you know about the make/brand of vehicle you wanted to buy? How much did you know about the model ?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
30
Summary – Prior to Information Search
1
Improved fuel efficiency has the biggest impact on new car purchases. The need
to replace a non-functional vehicle drives a large percentage of both new and
used car purchases. Three in ten used car buyers cite changes in circumstances
as a trigger for purchase
2
3
Two-thirds of used car buyers bought a car that is four years old or older
Most car buyers enter the process planning to purchase a new or used car and
most have a few options in mind for the brand and model of car they want to
purchase. New car buyers are more likely to know the brand than used car
buyers
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
31
Information Search
Part 1: Online and Traditional Sources
Google Confidential and Proprietary
32
The Internet is the most popular starting point for car buyers
60%
First Place for Research
57%
54%
50%
40%
30%
27%
20%
14%
10%
13%
6%
6%
6%
4%
3%
3%
6%
1% 0%
0%
Internet
New car n=500
Auto dealerships
Friends, f amily,
colleagues
Magazines/
brochures
Private sellers
Used car n=511
Newspapers
Television
Base: All respondents
Q: As you started to research your vehicle purchase, where was the first place you began searching for information?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
33
A variety of other sources support the research process
Other Sources Used for Research
60%
50%
43%
40%
37%
31%
31%
29%
30%
25%
25% 24%
24%
21%
20%
20%
15%
15%
10%
6%
0%
Internet
New car n=500
Auto dealerships
Friends, f amily,
colleagues
Magazines/
brochures
Used car n=511
Private sellers
Newspapers
Television
Base: All respondents
Q: Please select any additional places you looked at any stage in researching your vehicle purchase.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
34
The Internet, together with dealerships, influence many pivotal
points in the purchase of new cars
New Car Buyers
The Internet helps a third of new car
buyers to inform their purchase decision
Helped inform decision
32%
Aided discovery of new vehicle makes
34%
29%
Modified choice of model
21%
28%
Modified choice of make
26%
Influenced selection of options
26%
Confirmed initial choice
25%
Influenced budget
22%
Prompted purchase consideration
21%
Modified choice of dealer
10%
5%
24%
5%
34%
10%
11%
23%
20%
30%
5%
4%
19%
6%
7% 2%
40%
4%
10%
50%
11%
13%
33%
6%
29%
5%
28%
6%
6%
39%
20%
11%
5% 7% 5%
26%
16%
0%
5%
29%
4%
11%
21%
4%
4%
15%
29%
9%
29%
45%
60%
70%
80%
Online sources
Dealerships
Other sellers
Friends / f amily
TV, Newspapers, Magazines
Not applicable
90%
100%
n=500
Base: New car purchasers
Q: Please select the most influential channel for each statement
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
35
For used cars buyers, the Internet influences many pivotal
points
Used Car Buyers
The Internet helps 4 in 10 used car buyers
to inform their purchase decision
Helped inform decision
41%
Confirmed initial choice
14%
29%
18%
Modified choice of make
27%
11% 2%
Influenced selection of options
26%
13%
Aided discovery of new vehicle makes
25%
Modified choice of model
24%
Influenced budget
14%
14%
17%
Modified choice of dealer
12%
0%
7% 3%
7% 4%
10%
3%
14%
3%
23%
22%
1%
15%
4%
4%
24%
3%
40%
54%
13%
3%
21%
26%
30%
15%
45%
43%
2%
37%
5%
43%
9% 1%
20%
3%
3%
8% 3% 5% 5%
21%
Prompted purchase consideration
3%
67%
40%
50%
60%
70%
80%
Online sources
Dealerships
Other sellers
Friends / f amily
TV, Newspapers, Magazines
Not applicable
90%
100%
n=511
Base: Used car purchasers
Q: Please select the most influential channel for each statement
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
36
The Internet is “important” for a variety of purchase-decision
activities
0%
20%
40%
General research and information
gathering
80%
48%
Establishing whether a particular make or
model met your requirements
Helping you to get the best deal
29%
14%
Top box
New car purchasers, n=392
70%
67%
41%
66%
32%
27%
56%
Top 2 box (5-pt. “important” scale)
69%
37%
25%
8%
100%
83%
33%
63%
29%
80%
32%
64%
28%
60%
45%
65%
32%
Reaching your final purchase decision
40%
70%
29%
Helping to identify local sellers/dealers
20%
73%
36%
Helping you to find the actual vehicle you
ended up buying
0%
77%
33%
Helping to find the exact make and model
of the vehicle you ended up buying
100%
83%
35%
Comparison and refinement of choices
Helping you to arrange financing
60%
66%
57%
58%
16%
Top box
Top 2 box (5-pt. “important” scale)
Used car purchasers, n=400
Base: Use the Internet
Q: Thinking of your use of the Internet in the research and purchase process, how would you rate its importance for each of the following aspects?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
37
72% of new car buyers say online sources are important—
more than in-person when dealerships are excluded
Auto dealerships
70%
Friends, f amily, colleagues
31%
Private sellers
Excluding dealerships, 66% say
in-person sources are important
18%
Manuf acturer websites
80%*
50%
Dealer websites
46%
Search engines
30%
Auto magazine/enthusiast sites
78% of manufacturer site users
say such sites are important
26%
Third-party comparison sites
72% of dealer site users say
they are an important source
24%
Consumer ratings/review sites
19%
Auto sales websites
16%
Classif ied Ads/listings websites
14%
Auction websites
11%
Online video sites
6%
Blogs
5%
Social networking sites
72%*
3%
Car magazines
24%
Brochures
18%
Regional/national newspaper
11%
TV Advertisements
9%
Major local newspaper
9%
Specialized newspaper
6%
TV Programming
6%
General interest magazines
6%
0%
10%
Source is Important
Use Source
Top 2 box scores
(4, 5 on 5-pt. scale)
65%*
20%
30%
* Weighted average, percent who say [type of] source is important
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
40%
50%
60%
70%
80%
90%
100%
n=500 Base: New car purchasers
Confidential and Proprietary
38
68% of used car buyers say online sources are important—
on a par with in-person sources
Auto dealerships
51%
Friends, f amily, colleagues
37%
Private sellers
37%
Manuf acturer websites
Excluding dealerships, 69% say
in-person sources are important
70%*
24%
Dealer websites
35%
Search engines
30%
Auto magazine/enthusiast sites
68% of auto sales site users
say such sites are important
24%
Third-party comparison sites
28%
Consumer ratings/review sites
12%
Auto sales websites
20%
Classif ied Ads/listings websites
42%
Auction websites
69% of classified ad site users say
they are an important source
31%
Online video sites
3%
Blogs
2%
Social networking sites
68%*
3%
Car magazines
18%
Brochures
6%
Regional/national newspaper
15%
TV Advertisements
3%
Source is Important
Major local newspaper
20%
Specialized newspaper
Top 2 box scores
(4, 5 on 5-pt. scale)
6%
TV Programming
Use Source
1%
General interest magazines
3%
0%
55%*
10%
20%
30%
* Weighted average, percent who say [type of] source is important
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
40%
50%
60%
70%
80%
90%
100%
n=511 Base: Used car purchasers
Confidential and Proprietary
39
Among buyers of a newly discovered brand, 7 in 10 say online
sources are important—on a par with in-person sources
Auto dealerships
59%
Friends, f amily, colleagues
33%
Private sellers
Excluding dealerships, 66% say
in-person sources are important
26%
Manuf acturer websites
69%*
30%
Dealer websites
34%
Search engines
31%
Auto magazine/enthusiast sites
27%
Third-party comparison sites
31%
Consumer ratings/review sites
20%
Auto sales websites
18%
Classif ied Ads/listings websites
37%
Auction websites
25%
Online video sites
65% of auto sales site users say
they are an important source
4%
Blogs
5%
Social networking sites
69%*
4%
Car magazines
18%
Brochures
11%
Regional/national newspaper
18%
TV Advertisements
Source is Important
4%
Major local newspaper
Top 2 box scores
(4, 5 on 5-pt. scale)
18%
Specialized newspaper
Use Source
7%
TV Programming
1%
General interest magazines
3%
0%
57%*
10%
20%
30%
* Weighted average, percent who say [type of] source is important
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
40%
50%
60%
70%
80%
90%
100%
n=125 Base: Purchased brand not initially considered
Confidential and Proprietary
40
Two-thirds use online sources for general research and to
compare options; half identify the seller via the Internet
New Car Buyers
Sources Used at Each of 3 Phases
Auto dealerships
Manuf acturer websites
Used Any Online Sources
Dealer websites
Friends, f amily, colleagues
Search engines
63%
Auto magazines/enthusiast websites
68%
Car magazines
Brochures
40%
Consumer ratings/review websites
Third party vehicle comparison sites
49%
Private sellers
(n=500)
Auto sales websites
Classif ied ads/listings websites
TV Advertisements
0%
10%
General research n=466
20%
30%
Comparing choices n=428
40%
50%
60%
Final purchase decision n=418
Q: Which of the following sources of information did you use for each of the following activities related to researching and buying your vehicle?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
41
7 in 10 used car buyers use online sources for general research
or comparison; 4 in 10 use the Internet to identify the seller
Used Car Buyers
Sources Used at Each of 3 Phases
Friends, f amily, colleagues
Auto dealerships
Used Any Online Sources
Classif ied ads/listings websites
Dealer websites
68%
Private sellers
Search engines
69%
Auction websites
Third party vehicle comparison sites
39%
Manuf acturer websites
Auto magazines/enthusiast websites
41%
Auto sales websites
(n=511)
Major local newspapers
Car magazines
Regional or national newspapers
0%
10%
20%
General research n=457
30%
Comparing choices n=413
40%
50%
60%
Final purchase decision n=433
Q: Which of the following sources of information did you use for each of the following activities related to researching and buying your vehicle?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
42
Information Search
Part 2: Role of Internet and Manufacturer Websites
Google Confidential and Proprietary
43
Half or more new car buyers go online to read reviews or learn
about makes
New Car Buyers
Read vehicle reviews
53%
Learn about make
49%
Locate a dealer or showroom
44%
Compare specif ications
40%
Compare prices
37%
Contact a dealer
29%
Find out the cost of insurance
27%
Conf igure options
22%
Order a vehicle brochure
22%
Obtain a quote
22%
Print details to take to dealers
21%
Watch an online video about a vehicle
20%
Find out servicing/ warranty inf o
A fifth watch online videos
16%
Book a test drive
13%
Find out about f inancing options
13%
Buy accessories
9%
Use a loan calculator
9%
Apply f or f inancing
7%
Arrange a lease agreement
n=392
Base: Use the Internet
4%
Purchase support f or your last car
4%
0%
10%
20%
30%
40%
50%
60%
Q: Thinking about specific activities related to your final purchase, did you use the Internet to do any of the following?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
44
More than 4 in 10 used car buyers go online to find out insurance
costs, read reviews, compare prices or learn about makes
Used Car Buyers
Find out the cost of insurance
47%
Read vehicle reviews
44%
Compare prices
44%
Learn about make
43%
Compare specif ications
40%
Locate a dealer or showroom
38%
Print details to take to dealers
22%
Contact a dealer
21%
Obtain a quote
19%
Find out servicing/ warranty inf o
12%
Conf igure options
10%
Purchase support f or your last car
9%
Watch an online video about a vehicle
9%
Buy accessories
9% watch online videos
8%
Find out about f inancing options
6%
Use a loan calculator
6%
Order a vehicle brochure
4%
Apply f or f inancing
4%
Book a test drive
4%
Arrange a lease agreement
n=400
Base: Use the Internet
1%
0%
10%
20%
30%
40%
50%
60%
Q: Thinking about specific activities related to your final purchase, did you use the Internet to do any of the following?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
45
New car buyers visit manufacturer sites to learn about makes/
brands or compare specifications
New Car Buyers
Learn about make
21%
Compare specif ications
37%
18%
Compare prices
10%
Conf igure options
10%
Order a vehicle brochure
6%
Print details to take to dealers
6%
Locate a dealer or showroom
5%
Contact a dealer
4%
Find out the cost of insurance
4%
Read vehicle reviews
4%
Watch an online video about a vehicle
3%
Obtain a quote
3%
33%
26%
25%
22%
19%
37%
22%
22%
33%
23%
5.2
18%
Book a test drive 2%
14%
Find out about f inancing options 1%
17%
activities done on
manufacturer sites
Apply f or f inancing 1% 7%
Use a loan calculator 1%
12%
Find out servicing/ warranty inf o 1%
Arrange a lease agreement 0%
24%
9%
Purchase support f or your last car 0% 6%
Buy accessories 0%
0%
12%
10%
Most important
20%
30%
Additional
40%
50%
60%
70%
n=251
Base: Use manufacturer sites
Q: Thinking about these online activities, which of the following did you specifically do on vehicle manufacturer sites?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
46
Used car buyers who use manufacturer sites turn to them
primarily to learn about makes/brands
Used Car Buyers
Learn about make
28%
Compare prices
14%
Compare specif ications
24%
12%
Read vehicle reviews
41%
10%
Locate a dealer or showroom
30%
8%
Find out the cost of insurance
Obtain a quote
37%
38%
5%
24%
3%
Purchase support f or your last car 2%
15%
6%
Conf igure options 2%
20%
Find out about f inancing options 2%
Book a test drive 2%
12%
9%
Contact a dealer 2%
Arrange a lease agreement 1%
8%
Order a vehicle brochure 1%
Use a loan calculator 1%
activities done on
manufacturer sites
15%
10%
Watch an online video about a vehicle 1%
23%
Print details to take to dealers 1%
32%
Find out servicing/ warranty inf o 1%
Apply f or f inancing 0%
Buy accessories 0%
0%
5.1
23%
23%
10%
11%
10%
Most important
20%
30%
Additional
40%
50%
60%
70%
n=123
Base: Use manufacturer sites
Q: Thinking about these online activities, which of the following did you specifically do on vehicle manufacturer sites?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
47
Over 4 in 10 new car buyers who inquire online rate the
responsiveness negatively; 3 in 10 select another dealer or model
Responsiveness of Dealers and Manufacturers to Researchers’ Online Requests
Online request for finance/leasing quote or offer
Online request to book a test drive
8%
18%
11%
10%
14%
15%
Online request for individual product/price quote
4%
Online request to be contacted by dealer
5%
0%
Never got a response
19%
13%
10%
Slow and complete
12%
9%
20%
15%
48%
12%
49%
11%
55%
16%
30%
57%
40%
Slow but incomplete
28% say a slow or incomplete response to a request
prompted them to select another dealer
50%
60%
70%
Fast but incomplete
80%
90%
100%
Fast and complete
Base: Requested the specific type of
information online —from a dealer or
manufacturer; n varies: 84 - 138
• 18% … another brand
• 31% … another model
Base: Rated responsiveness negatively; n=103
Q: How would you describe the responsiveness from either dealers or manufacturers to your online requests for contact or information? Did the
response to your request(s) prompt you to take any of the following actions?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
48
Over 4 in 10 used car buyers who inquire online rate the
responsiveness negatively; 35% of them select another dealer
Responsiveness of Dealers and Manufacturers to Researchers’ Online Requests
Online request for finance/leasing quote or offer
18%
Online request to book a test drive
15%
13%
39%
12%
9%
58%
8%
11%
57%
11%
14%
Online request to be contacted by dealer
12%
10%
Never got a response
21%
6%
Online request for individual product/price quote
0%
8%
10%
Slow and complete
20%
6%
16%
30%
40%
Slow but incomplete
35% say a slow or incomplete response to a request
prompted them to select another dealer
56%
50%
60%
70%
Fast but incomplete
80%
90%
100%
Fast and complete
Base: Requested the specific type of
information online —from a dealer or
manufacturer; n varies: 33 - 74
• 15% … another brand
• 25% … another model
Base: Rated responsiveness negatively; n=52
Q: How would you describe the responsiveness from either dealers or manufacturers to your online requests for contact or information? Did the
response to your request(s) prompt you to take any of the following actions?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
49
Information Search
Part 3: Role of Search Engines
Google Confidential and Proprietary
50
89% of online researchers use search engines, 75% consider
them an “important” source
New Car Buyers
75% of those who use
search engines for
vehicle research find
them “important” **
Search Engine Brands Used
100%
92%
90%
80%
89% of those who use the
Internet for vehicle research
use search engines*
70%
60%
50%
40%
30%
18%
20%
10%
0%
Google
Yahoo
n=348
Base: Use a search engine
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
78% use the Internet for
vehicle research
* Use search engines as a source or
as a gateway to other online sources
** Top 2 box scores (4 or 5 on 5-pt. “important” scale)
Confidential and Proprietary
51
82% of online researchers use search engines, 60% consider
them an “important” source
60% of those who use
search engines for
vehicle research find
them “important” **
Used Car Buyers
Search Engine Brands Used
100%
94%
90%
80%
82% of those who use the
Internet for vehicle research
use search engines*
70%
60%
50%
40%
30%
78% use the Internet for
vehicle research
21%
20%
10%
0%
Google
Yahoo
n=329
Base: Use a search engine
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
* Use search engines as a source or
as a gateway to other online sources
** Top 2 box scores (4 or 5 on 5-pt. “important” scale)
Confidential and Proprietary
52
More use search engines than any other method to access
various types of websites when researching new cars
Consumer rating/review sites
84%
Vehicle comparison sites (3rd-party)
7% 5% 4%
81%
Auto sales sites
76%
Classified ad/listing sites
75%
Dealer sites
8% 3% 8%
15%
10%
71%
Auto magazine/enthusiast sites
19%
67%
Manufacturer sites
20%
62%
Auction sites
10%
20%
25%
30%
11%
40%
50%
5% 7%
4% 4%
23%
60%
70%
80%
9%
90%
Used a search engine
Typed the website address
Site was in f avorites, bookmarked
Followed links f rom other sources
n varies: 56-251;
4%
4% 6%
30%
43%
0%
4% 5%
100%
Base: Use site
Q: Which method did you typically use to find the websites you used during your purchase process?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
53
More use search engines than any other method to access
most types of websites when researching used cars
Consumer rating/review sites
89%
Vehicle comparison sites (3rd-party)
3% 5% 3%
81%
Auto sales sites
12%
76%
Classified ad/listing sites
18%
64%
Dealer sites
21%
71%
Auto magazine/enthusiast sites
70%
Auction sites
38%
0%
10%
20%
40%
50%
6%
11%
9% 2%
21%
5% 4%
25%
60%
70%
80%
3%
90%
Used a search engine
Typed the website address
Site was in f avorites, bookmarked
Followed links f rom other sources
n varies: 61-216;
5%
17%
35%
30%
1%5%
10%
12%
73%
Manufacturer sites
3%4%
100%
Base: Use site
Q: Which method did you typically use to find the websites you used during your purchase process?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
54
Car makes and models are the most common keywords used
to search for cars online
New car buyers are more likely to
use makes/brands as search terms
78%
Make or Brand
72%
50%
Model
54%
25%
Generic
44%
(e.g., used car, cars for sale)
Used car buyers are much more
likely to use generic search terms
24%
21%
Car type
24%
Dealer
16%
16%
Offers
12%
1%
3%
Other
0%
10%
New car n=340
20%
30%
40%
Used car n=326
50%
60%
70%
80%
Base: Recall brand of search engine used
Q: Which type of terms did you use when looking for vehicle information on a search engine?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
55
7 in 10 or more users rate Google favorably for car comparisons,
informing the decision or discovery of relevant sites
New and Used Car Buyers
Among those who say
was the most helpful search engine (86%)
Aided make/model comparisons
77%
Helped inf orm decisions
76%
Enabled discovery of relevant sites
72%
Aided search of blogs, articles, videos, reviews
59%
Helped f ind the best price
57%
Enabled discovery of new models
46%
Enabled discovery of new makes/brands
45%
Inf luenced type-of -vehicle considerations
Top 2 box scores (4 or 5 on
5-pt. "agree" scale)
38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Base: Search engine (Google) was most helpful during vehicle research; n=584
Q: Please read the statements below, related to [most helpful search engine], and indicate to what extent you agree or disagree with each statement.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
56
Information Search
Part 4: Role of Online Videos, UGC and Social Networking Sites
Google Confidential and Proprietary
57
55% of new car buyers who use the Internet for vehicle
research watch car-related online videos
General Usage of
New Car Buyers
Among New Car Buyers
• 71% of new car buyers watch any type of
video on YouTube (n=500)
55% of those who used the
Internet for vehicle research
watched online auto videos
Video Sites for Auto-Related Videos
50%
45%
40%
35%
30%
25%
20%
39%
31%
28%
21%
18%
15%
10%
10%
5%
78% used the Internet
for vehicle research
0%
Base: Watched online videos for auto and recall the type;
n=191
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
n=392
Base: Use the Internet
Confidential and Proprietary
58
Seven in ten new car buyers say they visit YouTube
General Usage of
Among New Car Buyers
• 71% of new car buyers watch any type of
video on YouTube (n=500)
• 65% of YouTube users visit the site
once a week or more often (n=355)
YouTube
33%
Google Video
13%
20%
MSN Video
15%
8%
7%
Yahoo Video
13%
6%
Topgear
13%
7%
0%
10%
6%
6%
20%
Several times a week or more of ten
8%
11%
14%
11%
54%
9%
64%
8%
9%
29%
66%
10%
30%
61%
40%
Once a week
Q: How often do you typically visit the following online video websites?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
50%
60%
2 - 3 times a month
70%
80%
Once a month or less
90%
100%
Never
n=500
Base: New car buyers
Confidential and Proprietary
59
26% of used car buyers who use the Internet for vehicle
research watch car-related online videos
General Usage of
Used Car Buyers
Among Used Car Buyers
• 73% of used car buyers watch any type of
video on YouTube (n=511)
26% of those who used
the Internet for vehicle
research watched online
auto videos
Video Sites for Auto-Related Videos
50%
44%
45%
40%
35%
30%
25%
20%
28%
20%
18%
16%
18%
78% used the Internet
for vehicle research
15%
10%
5%
0%
Base: Watched online videos for auto and recall the type; n=85
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
n=400
Base: Use the Internet
Confidential and Proprietary
60
Nearly three-fourths of used car buyers say they visit YouTube
General Usage of
Among Used Car Buyers
• 73% of used car buyers watch any type of
video on YouTube (n=511)
• 51% of YouTube users visit the site
once a week or more often (n=373)
YouTube
27%
Google Video
9%
10%
3% 7%
16%
20%
14%
68%
Yahoo Video
6% 3% 4%
7%
80%
MSN Video
5% 3% 5%
7%
80%
Topgear
4% 5% 5%
0%
10%
9%
20%
Several times a week or more of ten
27%
77%
30%
40%
Once a week
Q: How often do you typically visit the following online video websites?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
50%
60%
2 - 3 times a month
70%
80%
90%
Once a month or less
100%
Never
n=511
Base: Used car buyers
Confidential and Proprietary
61
The most common type of videos are online versions of car
commercials
Denotes stat. sig. difference at a 95% confidence level
80%
Other videos by the manufacturer are
watched less by used car buyers
70%
60%
Amateur videos are watched
by more used car buyers
59%
52%
51%
50%
38%
40%
38%
33%
27%
30%
18%
20%
10%
0%
Online version of a car
commercial
New car n=191
Other videos by the
manuf acturer
Used car n=85
Prof essional videos f rom a third
party
Amateur online videos
Base: Watched videos and recall the type
Q: Which of the following describes the types of online auto videos you watched?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
62
Car buyers who use online videos for research praise their
convenience, among other characteristics
Top 2 box scores (4 or 5 on 5-pt. “agree” scale)
New and Used Car Buyers
Online video is a convenient way to get inf ormation about
vehicles
76%
I am satisf ied with the quality of vehicle-related online videos
71%
It was easy to f ind videos about the vehicle(s) that I was
researching
67%
I wish that car manuf acturers would of f er more online videos of
their vehicles
67%
I became more interested in the vehicle(s) as a result of seeing
online videos
63%
I wish there were more online videos available
61%
Online videos helped me to narrow my choice of vehicles
58%
Online videos made me aware of vehicles that I had not
previously considered
n=276
Base: Watched videos
and recall the type
50%
I f irst heard about a vehicle by watching an online video
35%
0%
10%
20%
30%
40%
35% first heard about a vehicle
by watching an online video
50%
60%
70%
80%
90%
Q: You stated that you used online auto videos when researching and buying your vehicle. Please read each statement and indicate to what extent you agree /disagree.
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
63
29% of new car buyers who research online use UGC
(user-generated content) sources
New Car Buyers
29% of those who used the
Internet for vehicle
research use UGC
Types of User-Generated Content
Sources Used
30%
25%
25%
20%
15%
10%
6%
5%
4%
78% used the Internet
for vehicle research
0%
Consumer
ratings/review
websites
Blogs
Social networking
websites
n=392
Base: Use Internet
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
n=392
Base: Use the Internet
Confidential and Proprietary
64
18% of used car buyers who research online use UGC
(user-generated content) sources
Used Car Buyers
18% of those who used the
Internet for vehicle
research use UGC
Types of User-Generated Content
Sources Used
30%
25%
20%
15%
15%
78% used the Internet
for vehicle research
10%
5%
2%
4%
0%
Consumer
ratings/review
websites
Blogs
Social networking
websites
n=400
Base: Use Internet
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
n=400
Base: Use the Internet
Confidential and Proprietary
65
UGC sources get high ratings from car buyers—they are
considered informative, interesting and a good supplement
When researching a vehicle
purchase, user-generated content
is…
A good supplement
78%
Inf ormative
75%
Interesting
75%
A type of inf ormation I am using more
58%
Very inf luential
58% say UGC is a type
of information they are
using more
53%
Trustworthy
42%
More important than manuf acturer inf o
42%
More important than third-party prof essional inf o
41%
0%
10%
20%
30%
40%
50%
60%
Top 2 box scores (4 or 5 on 5-pt. “agree” scale)
70%
80%
90%
100%
n=187 Base: Use UGC
Q: How much do you agree or disagree with each of the following statements about your experience with "user-generated content" during the auto purchase process?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
66
UGC users consistently rate vehicle-related UGC content
more positively than online researchers overall
Impressions of UGC Among Car Buyers
who Used the Internet to Research
0%
A good supplement
Informative
20%
40%
60%
11%
54%
13%
A type of information I am using
more
Very influential
Trustworthy
8%
More important than manufacturer
info
8%
More important than third-party
professional info
8%
20%
37%
13%
56%
16%
12%
27%
10%
26%
Agree
n=792, Base: Use the Internet
80%
62%
19%
11%
27%
60%
60%
43%
14%
33%
Completely agree
40%
18%
52%
10%
9%
0%
54%
11%
Interesting
80%
Impressions of UGC Among Car Buyers
who Actually Used UGC
39%
31%
30%
30%
Completely agree
Agree
n=187, Base: Use UGC
Q: How much do you agree or disagree with each of the following statements about your experience with "user-generated content" during the auto purchase process?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
67
36% of new car buyers who used the Internet for research
are members of social networking sites
New Car Buyers
100%
90%
Top Social Networking Sites:
Membership
36% of those who used the
Internet for vehicle research
are members of a social
networking site
88%
80%
70%
60%
50%
78% used the Internet
for vehicle research
40%
30%
20%
13%
10%
0%
Facebook
MySpace
n=140
Base: Use the Internet for car research and are members of at least one SN site
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
n=392
Base: Use the Internet
Confidential and Proprietary
68
48% of used car buyers who used the Internet for research
are members of a social networking site
Used Car Buyers
100%
90%
Top Social Networking Sites:
Membership
48% of those who used the
Internet for vehicle research
are members of a social
networking site
90%
80%
70%
60%
50%
40%
78% used the Internet
for vehicle research
30%
20%
8%
10%
0%
Facebook
MySpace
n=190
Base: Use the Internet for car research and are members of at least one SN site
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
n=400
Base: Use the Internet
Confidential and Proprietary
69
Summary – The Information Search
1
2
Fifty-four percent of new car buyers, and fifty-seven percent of used car buyers,
begin their search online, more than 10 times higher than other media
3
Car buyers focus their research on auto dealerships and the Internet. Other
sources, like friends, family, colleagues, magazines or brochures play a
supporting role
4
Both new and used car buyers get information from a variety of online sources.
New car buyers visit manufacturer sites and dealer sites; used car buyers rely on
classified listing sites, dealer sites and a variety of other online sources
5
Manufacturer sites play a key role in the research process. Users of such sites do
an average of over 5 activities there
Eight in ten new and used car buyers use the Internet throughout the purchase
process
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
70
Summary – The Information Search
6
Among online researchers, 89% of new car buyers and 82% of used car
buyers use search engines, either as a main source for research or as a
gateway to other websites. Among users, three-fourths of new car buyers and
six in ten used car buyers consider them “important” in the purchase process
7
Google is by far the engine used most. 86% of search engine users consider
Google to be the most helpful engine in their purchase process
8
Online auto videos are used by 55% of new car buyers and 26% of used car
buyers who use the Internet for research. Manufacturer sites, YouTube, Google
Video and Topgear are the most common places to find and watch videos
9
10
User-generated content (UGC) is a notable source of information for car
buyers. UGC users say such sources are informative, interesting and a good
supplement
42% of car buyers who used the Internet for research are members of social
networking sites; Facebook dominates in popularity
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
71
Final Purchase
Google Confidential and Proprietary
72
Most car buyers purchased a brand they had initially
considered; 16% of used buyers discovered a new vehicle
Used car buyers
New car buyers
Discovered during research
Discovered during research
9%
16%
35%
41%
First choice
First choice
51%
Initially considered
49%
Initially considered
n=500
Base: New car purchasers
n=511
Base: Used car purchasers
Q: Which of these statements best describes the vehicle you purchased?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
73
Car buyers spend an average of 3.4 months in the purchase
decision process
New car buyers
Used car buyers
Average Number of Calendar
Days in the Market
Average Number of Calendar Days
in the Market
3.7 months
3.1 months
Time Spent Actively Researching
while in Market
Time Spent Actively Researching
while in Market
Less than 1 week: 64%
Less than 1 week: 65%
Less than 1 month: 84%
Less than 1 month: 87%
1 month or longer: 16%
1 month or longer: 13%
n=500
Base: Purchased new car
n=511
Base: Purchased used car
Q: Approximately how much time did you spend actively researching vehicles from the time you first started to look into a vehicle to the time you purchased it?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
74
64% of new cars are purchased from a franchised dealer
New Car Buyers
How Found Seller
Driven or walked past the dealer or seller
Where Purchased
5%
Private seller
Purchased f rom the dealer in the past
21%
Search engine
Other
Car supermarket
22%
7%
20%
Dealer's website
16%
Vehicle manuf acturer's website
6%
15%
Recommended by f amily or f riends
18%
Independent dealer
12%
Franchised dealer
Online directories
8%
64%
Newspaper/magazine ad
6%
Classif ied website
5%
0%
5%
10%
49% use at least
one online
source to find
the seller
15%
20%
25%
30%
n=500
Base: New car purchasers
Q: Where did you buy the vehicle? How did you find the seller you purchased your vehicle from? How many different dealers/sellers did you visit in person before purchasing? What was the
approximate purchase price of the vehicle that you bought?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
75
Half of used cars are purchased from a dealer
Used Car Buyers
Where Purchased
How Found Seller
Recommended by f amily or f riends
Other
Service garage
Car supermarket
11%
6%
3%
Independent dealer
30%
18%
Classif ied website
16%
Driven or walked past the dealer or seller
15%
Search engine
14%
Purchased f rom the dealer in the past
31%
Dealer's website
20%
Private seller
11%
10%
Classif ied ads in newspapers/magazines
7%
Newspaper/magazine ad
7%
Franchised dealer
Vehicle manuf acturer's website
41% use at least
one online
source to find
the seller
5%
0%
5%
10%
15%
20%
25%
30%
n=511
Base: Used car purchasers
Q: Where did you buy the vehicle? How did you find the seller you purchased your vehicle from? How many different dealers/sellers did you visit in person before purchasing? What was the
approximate purchase price of the vehicle that you bought?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
76
On average, car buyers visit nearly three sellers before
purchasing; more test drives are booked in person
Average number of dealers/sellers visited in person
2.7
2.7
n=500
Base: New car purchasers
n=511
Base: Used car purchasers
Q: How many different dealers/sellers did you visit in person before purchasing?
Test-Drive Booking Channels
70%
34%
did not book any test drives
19%
55%
48%
did not book any test drives
26%
21%
9%
Online
By phone
In person
n=329
Base: New car purchasers who booked a test drive
Online
By phone
In person
n=267
Base: Used car purchasers who booked a test drive
Q: In total, how many test drives did you book?
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
77
Summary – The Final Purchase
1
12% of all car buyers ultimately purchase a brand they discovered during their
research, underscoring the impact that online sources have on consumer
awareness and choice
2
The majority of UK car buyers prefer to book test drives in person as opposed to
online or by phone. New car buyers are more likely to book a test drive
3
The car dealership is an important aspect of the purchase process. On average,
car buyers visit nearly three dealers/sellers before making a purchase; most new
car buyers (64%) purchase from a franchised dealer
4
The Internet is used by 45% to locate a dealer or seller. One-fifth of new car
buyers use a search engine, specifically
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
78
In Summary
Google Confidential and Proprietary
79
Summary of Findings
Trigger for
purchase
Prior to information
search
• Fuel efficiency has the biggest impact on new car purchases. Both
new and used car purchases are prompted by the need to replace a
non-functional vehicle. Changes in circumstances are a trigger for
more used car buyers
• Approximately 17% of car buyers are open to purchasing either a new
or used vehicle, but the vast majority of buyers are focused on one
type of purchase
• Prior to beginning their search for information, the majority of buyers
have a few options (e.g., make, model) in mind
 New car buyers are more likely to know the brand of car they want than
used car buyers
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
80
Summary of Findings
Trigger for
purchase
• The Internet is the preferred source to gather information throughout
the vehicle purchase process
 Fifty-five percent begin their research online and eight in ten use the
Internet throughout the process
Prior to information
search
• The Internet together with dealerships are the most commonly used
sources
• Online sources, both small and large, combine to make a powerful
impact on consumer awareness and choice
 Manufacturer sites and dealer sites are key online sources for new car
buyers
Information search
 Used car buyers turn to classified listing sites and other online sources
• Google is by far the engine used most and the one cited most helpful
among search engines
 Over nine in ten of those who use search engines for car research use
Google. Nearly nine in ten say that Google is the most helpful search
engine
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
81
Summary of Findings
Trigger for
purchase
• Underscoring the importance of online research is its role in helping
buyers discover new brands and sellers
 Twelve percent ultimately purchase a brand they discovered while
researching
 Online sources are used to locate the final seller by forty-five percent of
Prior to information
search
car buyers
 Search engines play a key role in this discovery process, leading
consumers to discover and access new options
• Car dealerships must also be recognized as a basic component of the
purchase process, particularly for new car buyers
Information search
 On average, car buyers visit nearly three different sellers before making a
purchase; almost two-thirds of new car buyers purchase from a franchised
dealer
• Half of car buyers switch makes at the time of purchase
The final purchase
Source: Global Automotive Study, UK, August 2009, Netpop Research, LLC
Confidential and Proprietary
82
Thank You!
Q&A
Google Confidential and Proprietary
83