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
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