MarketingResearch & Analysis

Marketing
Connected Television Represents A Great Disruptive Opportunity for Dealers

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It is estimated that 39% of adults are watching video on a CTV device on a daily basis. This is up from 31% back in 2019 according to  data  from Leichtman Research Group (LRG)1. This represents a large audience with spending power and the desire to shop for a vehicle. As a result, dealerships are taking a closer look at the connected television medium because of who is viewing CTV, as well as how often, not just the overall households.  The increase in CTV also represents a disruptive leveling of the playing field for advertisers who historically have purchased traditional TV, and those who could not previously afford it due to budget constraints or efficiency concerns.  The programmatic targeting capabilities of CTV allows for large advertisers to buy more efficiently through diversification of their media mix and better data fidelity in their audience reach. It also allows smaller or more niche advertisers an opportunity to advertise in front of larger audiences on television without the high cost and ad waste associated with traditional media buys. Creating greater efficiencies The decision for auto retailers and their advertising agency partners to consider CTV is less about re-allocating digital media budgets to video, which most dealers already execute through programmatic and social video campaigns.  Furthermore, dealers should not entirely abandon their traditional media buys and budgets, either. However, in many cases those dealers that begin to explore a reallocation of portions of their traditional media investments over to CTV see significant improvement in the performance of their overall media mix and experience a positive impact on their cost per unit sold and serviced.  Increases in target markets The first CTV benefit is scale, where dealers can leverage large programming opportunities and access across major recognizable logos that has strong coverage across networks and devices. Secondly, dealers and their partners in CTV are continuously working to understand the market penetration they are gaining or losing, and have access to unique data technology to ensure campaigns are on par with the reach of top cable providers. These partners also offer dealers access to digital media purchase technology that leverages a Demand Side Platform (DSP), which is software that allows media buyers to buy each impression based on whether the viewer meets their audience parameters. They can also help ensure ad content is not played along side or in tandem with violence or other sensitive subjects that would be detrimental to a dealer’s overall brand values. Driving greater bottom-line results While all of this sounds promising, results are what matters. One mid-size regional dealer in Florida recently tested an Amazon DSP against other traditional media platforms and ran a two-week CTV campaign, directed to in-market shoppers on FireTV, within their store’s PMA. Their campaign measured correlative metrics holistically against all digital media channels including search, fixed ops, social, sales, and ROs. The dealer saw significant gains in performance across every measured metric when looking both at period-over-period and month-over-month. Furthermore, to test the fidelity of the data, they also measured key metrics when the campaign was terminated and saw almost a 15% decline in impressions and clicks in search, coupled with a distinct drop in shopper engagement on the website. This included a +57% increase in sales, +17% increase in closed ROs, and a +16% month-over-month increase in dealership revenue, according to data from PureCars. Dealers are naturally hesitant to jump into the CTV pool all at once. However, with the results from this dealer’s trial along with the ongoing growth of the CTV category, this disruptive platform will continue to grow as a viable alternative providing a competitive edge to those dealers that explore their options early on.   1:  https://www.leichtmanresearch.com/39-of-adults-watch-video-via-a-connected-tv-device-daily/
google game
Dealer Websites: When Gaming Google Hurts

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It’s been nearly 6 years since “Dieselgate” broke and Volkswagen was busted by the EPA for gaming their diesel car emissions tests. When the vehicle emissions were tested, the vehicle software adjusted the emissions to be “clean”, when in reality they were anything but. The result of this scandal ranged from lawsuits to government fines. The lesson, aside from the various ethics debates we could have over beer, was that gaming the EPA might have seemed like a good idea at the time, but when they got caught it cost Volkswagen its reputation and a carload of money. “Gaming” Google” But what if I told you that I can show you that at least 3 website vendors are gaming Google in a similar fashion. Is this a victimless act or does it potentially cause problems for dealers? What’s the game? It’s simple: Some vendors serve up an amended version of their website when Google’s tools evaluate the website’s performance. While you’re seeing a fully functioning website, Google “sees” a bare-bones fraction of the real thing. The result is that Google thinks that the site is extremely fast, when the truth is something else. How’d We Get Here? I imagine that you are now wondering how we discovered the “game”. It’s pretty straightforward. Part of the work that we have been doing for the last 21 years is creating performance optimized websites for dealers. This means that we have a lot of experience building websites that work as well as possible for dealers given the constraints sometimes imposed by OEMs, and the myriad of third party apps and code embedded on websites. As our work evolved, we started using Google’s algorithm as a benchmark for success through its Google Lighthouse Chrome extension and its Google PageSpeed Insights tool (they both basically do the same thing, but GPSI is easier to use). How did we do this? A couple of years ago we built a tool called SurgeRecon that, among other things, evaluates website performance for a range of factors. For the purposes of our conversation here, the analysis gives us information on mobile page speed and SEO, two things that are critical to website success for a dealer. This data, drawn from Google Lighthouse or GPSI, can identify the probable causes of a slow website thus giving you a checklist for potential success. Time to Test and Validate We decided to test Google’s recommendations over a year ago on a bunch of our dealer websites and the data was compelling.   When we compared the performance of these Google optimized websites to their unfixed earlier versions of a year before, we discovered significant improvements: Page speeds had been cut in half to about 3.8 seconds Sessions had increased and their average duration had improved by 27 seconds Bounces had significantly decreased And, most importantly, organic leads had increased by an average of over 30/month  This data tells us that Google’s recommendations work. Therefore, ignoring Google’s evaluation, or gaming it so that one’s mobile speed appears better than it really is, risks lost opportunities for the dealer. ( Follow this link to read our full post about our work on this subject written by me with David Kain and Tom Kline , both industry heavyweights.) What Your Customer Sees vs What Google Sees Let’s now take a look at what “gaming” looks like. We’ll start with a simple Google Lighthouse analysis of a buy here/pay here dealer (seen below).   Check out those stats!!! This dealer’s mobile website is rated 100/100 ( #1 ) for performance. That’s incredible, but it is just too good to be true. If you look at #2 below, you see that the “largest contentful paint” (when the site is ready for interaction) is 6.6 seconds. Not good. But when you look at #3 , you see that the reported time is only .8 seconds. Oops. Those are the reported numbers. What you might ask now is what do the actual “websites” look like? For the dealer website that we’re showing here, here is a comparison between “What you see” and “What Google sees” when the website gets tested by Google. This difference is massive. The gamed version on the right lacks images and third party apps and code that can slow down load time. In order to serve up the abbreviated site on the right, the website code does something called “user agent sniffing”. In this case, it identified that Google Lighthouse was testing the site, and then served up a different batch of code. It might be a mistake or intentional. You decide. But remember: The most important lesson here is that the mobile website does not take .8 of a second to load before it is usable; it actually takes over 6 seconds. This is important because according to a Forrester study (from over 10 years ago), 40% of consumers won’t wait more than 3 seconds for a web page to load before abandoning the site. Add on more seconds, and even more people abandon the site. Get to 10 seconds, and many won’t ever return. So What Can You Do? Test with Google PageSpeed Insights Testing with Google is very easy. All you have to do is follow this link , enter your dealer website’s URL, and select the “ANALYZE” button.   Don’t be surprised if the results are poor, say 30/100 or lower for your mobile page speed (how long your mobile website takes to download to a mobile device). That’s very common, and even high when you look at the industry average of 13/100 (from a test we did with over 10,000 dealer websites).   However, if your results seem really good, say 80 or higher, then getting a second opinion is advised. To do this, you can download another extension called User Agent Switcher for Chrome and add it to Chrome.     Once loaded, find the extension, click your right mouse button on the extension, select Options, and then add this information to the User-Agent list: Mozilla/5.0 (X11; Linux x86_64) AppleWebKit/537.36(KHTML, like Gecko) Chrome/61.0.3116.0 Safari/537.36 Chrome-Lighthouse . Once done, save the item, open the extension, and then load your website.   Of course, if you want to skip the work to set up User Agent Switcher, then just use our free SurgeDective app . It just takes a few seconds to test. Hopefully, when you run your test, the website will look like your existing site. If it doesn’t, has less content, or is just a bunch of text, then you have a problem. You should talk with your vendor to see what’s going on or contact us for help. Where Do We Go From Here? Testing your website every quarter is a good idea. Websites can collect code and other things that slow down its performance over time. Getting the test done lets you know how well your site is working, or if it has problems, it tells you that you better get your vendor on the line to do some improvements.   To encourage improvements, you can request that your vendor run the GPSI test, and then discuss the results with you. Or, if you find out that your vendor appears to be gaming Google, then you can have them use our SurgeDective tool, and Google PageSpeed Insights, to make improvements. Whatever you do, paying attention to your site speed is critical. Every second above 3 seconds can cost you a customer. And that means potentially lost money for you.
zero click searcg
Zero-Click Search Is Important, but Web Clicks Have Not Gone Away

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There has been an increase in discussion of late (blog posts, conference sessions, etc.) talking about the Zero-Click search trend related to Google My Business, and the impact it is going to have on your business. For those of you not in the loop on this, Zero-Click searches are those where a consumer conducts a search on Google (or other search engine but really, almost all searches go to Google) and then never clicks through to any website.  Sometimes this is not a bad thing.  Consumers conduct a search to find a phone number and if they click to call, that counts as a zero-click search. They might also be checking your business hours or your reviews, and again, they can get that information right from your Google my Business page with no need to visit your website.  The concern though is, that as Google adds more content to the GMB pages, such as Products, and Cars for Sale, will your GMB page (or pages, assuming you have at least one for Sales, one for Service) essentially steal traffic that would have otherwise gone to your website? It is a justified concern, at least enough so that you should be optimizing your Google My Business pages as consumers spend more time there, but have web clicks really disappeared? Re-strategizing I propose that people still visit the dealer website prior to purchase even if they start their process on Google My Business, and that web clicks are, for the most part, alive and well. To check my theory, I actually looked at 100 dealers and the interactions from their GMB page, specifically, how are web clicks trending compared to Click to Call, and Direction Requests. (on a side note, 100 dealers out of approximately 18,000 is a 90% confidence level with a 8% margin of error.) Seasonality and the variance in demand over the last year make the numbers challenging to compare, so more research is needed, over a longer period of time to truly determine a trend, but here is what we can see today: Comparing 100 dealers, between 2nd quarter 2021 vs 3rd Quarter, 2020, we see that Phone Calls are up 9.2 % and Direction Requests are up 13.4%, so if Zero Click is impacting how consumers engage, we would expect the Web Clicks number to have decreased, or at least see a lower increase than the other interactions. However, Web Clicks actually fall in the middle with an 11% increase during the same period. This would lead us to believe that the Zero-Click trend has not impacted auto dealers' web clicks, at least as of yet. Even looking at the chart above, we see Web Clicks growing steadily along with other interactions. Why do we care so much about Zero-Click? You always want to have a deep understanding of how consumers buy your products, this includes: how long is the buying process? What triggers start the process? And where do they start their research? What is critical to understand is at what point consumers are making a decision on which vehicle they intend to purchase and from which dealer. If you understand this, it can tell you when you need to be in front of the consumer with marketing messages so you are included as one of the purchase options. Once consumers have decided, at least on the model they want, we want to know where they go to find the relevant information they need to decide where to buy. That is where the Zero-Click conversation comes into play.  Will they go to your website to get the information they need? Third-party websites? Or as the Zero-Click trend would suggest, Google My Business. Wherever the consumers spend their time researching to make a decision, is where you what to invest your time and marketing resources. Google does dominate in consumer searches, but what we see from is the data above is they have not abandoned dealer websites as of yet. 
Car sales deal
Reputation is Everything. Hispanic Car Buying Preferences Survey Review

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In my first article on Hispanic Car Buying Preferences , I gave a broad overview of our 2020 and 2021 surveys. For this article, I will focus on dealer and brand reputation. As you know, your dealership’s reputation is worth its weight in gold, especially on the Internet where negative reviews can cost you money. But reputation isn’t just about a review that lauds praises or trumpets condemnation; it is also about how customers feel about your business or the vehicles that you sell.   For our last two Hispanic Car Buyer surveys, we asked a series of questions that sought to surface the Hispanic community’s feelings about a range of topics, some of which are laser-focused on brand and dealership reputations, while others look at tangential, but related, issues such as how a respondent would feel if they were marketed to in Spanish. The results are telling… Your Reputation US Hispanics, like everyone else, see a dealer’s reputation as very important to their car buying decision. In 2021, when we asked respondents, “When you buy a car, truck, or SUV, which of these things do you consider?”, we found that dealer reputation was the most important thing to the community, even ahead of the response “Dealer advertised in Spanish”. If you combine these two questions - a strong positive reputation and advertising in Spanish - you will see the roots for a strong argument why you should direct your dealership towards building a good reputation with your local Hispanic community while marketing to them in Spanish (or a mixture of Spanish and English).  Other general market data supports our results. A quick Google search can find a number of surveys that show that a company’s reputation is an important concern in the buying process. For example, according to one survey , 75% of US Hispanics said that they are more likely to think favorably of a brand or purchase their products, if the brand makes an effort to include elements of their culture in their advertisements. And more importantly, 80% stay loyal to a brand when they find one that they like. Although this data doesn’t directly relate to car buying, it’s not intellectually dangerous to assume that this same logic applies to dealerships. Meet Your Next Hispanic Customer Referral Traffic Referral traffic is a powerful thing. A well-developed referral program can be quite profitable as many dealerships know all too well. In our experience, we’ve found that many Hispanics will refer customers when they’ve been treated well.   The data vigorously supports our anecdotal information. According to our 2021 survey, 79% of all respondents said that they are moderately to extremely likely to refer a customer to a dealer who speaks Spanish.  Sales and Service So what happens when we market in Spanish for car sales and service? Pretty much the same thing. When asked if they would visit a car dealer who advertises in Spanish to buy or service a car, just under 75% chose moderately likely or higher.   And, even more interestingly, 43% said that they would travel further if a dealership advertised to them in Spanish. Throw in the “Not Sure” respondents and the number jumps to 69%. This should make you go “Hmmmm.” if you aren’t already marketing to your local Hispanic community. With that said, our 2021 data quite interestingly contrasts with 2020’s results. According to last year’s survey, only 55% of the respondents replied that they prefer to buy a vehicle from a dealership who advertises to them in Spanish. This discrepancy could be due to the nature of the two samples and will require further research. For example, if last year’s study was weighted heavily in favor of multi-generational US Hispanics, rather than foreign born Hispanics, then marketing in a culturally sensitive way makes more sense than just in Spanish. This supposition is born out by other data. Check out this 2013 MSNBC video illustrating this point.  Most Valued Auto Brands for US Hispanics If building a good reputation and selling to U.S. Hispanics in Spanish makes members of the community more likely to buy from your dealership or refer a friend, then what happens when manufacturers spend time marketing and building a reputation with the community? Not surprisingly, what you see is what you would expect. In both last and this year’s survey we found that the brands that had a reputation for reaching out to the community in Spanish are the same brands that are viewed positively by the respondents. Below are the results when respondents were asked to choice rank their favorite brands. Were there any differences between the two years in terms of who is on top? Yes. For 2021, Ford edged into third place pushing Chevrolet into the #4 slot.   What the most significant lesson learned from this data is that Toyota’s Hispanic-focused marketing continues to produce great results. Our data just echoes what other surveys have found before: Toyota holds a solid lead because it has invested in creating a good reputation and relationship with US Hispanics.   Final Comments Your reputation requires investment and good planning. Those dealerships that work hard to create a good reputation with their customers reap the rewards in terms of better sales and better long-term growth prospects. Creating a good reputation with your local Hispanic community is more than just the act of advertising in Spanish and responding to reviews, it is found in understanding your local culture and marketing accordingly. Do you know which holidays are important to your local community? Do you understand how to flavor your Spanish advertising so that it uses words that resonate culturally? It is these things that we have to think about when creating a marketing plan that works with US Hispanics. The investment is worth it with a market that will continue to grow and mature in the coming years.
target market
Did You Know This? Latest Hispanic Car Buying Preferences

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There are over 60 million Hispanics are living in the United States and their purchasing power hit $1.7 trillion in 2020 , up from $210 billion in 1990! The U.S. Hispanic population continues to grow rapidly, accounting for around half of all U.S. births.   Rapidly Changing Demographics Many states are facing rapidly changing Hispanic demographics.  Texas ranks #2 and has a Hispanic to white population growth of 9:1 , and that same population is expected to become the largest sub-group in the state this year.  North Carolina's population , on the other hand, is much smaller, but is also growing rapidly reaching 1 million in 2019. Next, while New York has the fourth-largest concentration of Hispanics in the U.S., their spending power is $170 billion , around 10% of the national average.   Young Buyers are Good for Your Dealership Next, the U.S. Hispanic population is very young with a median age of about 30. Compare this with the national average of 38 years, and you can see long-term value in building with the Hispanic community around your dealership. Thinking more broadly about these stats, it is no wonder that U.S. Hispanics are fueling the growth of several key segments of the economy, including the auto industry.   These numbers are no joke. If you are a dealership and you don't know the volume and composition of the Hispanic market around you, then you are making a big mistake. So let's look at the data first, starting with last year's survey and then the highlights of this year's. A Snapshot of Our 2020 Survey We did our first Hispanic Car Buyers survey in early 2020, just before COVID changed everyone's lives.     In 2020, 58% of our respondents were women, and 42% were men. Over half the respondents were 18-31 years of age. Add just seven more years, and the number jumped above 75%.   Five things stand out from last year: Women play a bigger role in decision-making than most people think. U.S. Hispanics want to touch, feel and test-drive vehicles. Toyota enjoys a dominant role in appealing to the Hispanic market because they have reached out to them for years. Selling in Spanish does matter. Hispanics are online and in force and they respond to digital advertising. 2021 Overview - Who'd We Talk To? In this year's survey, we sought to overlap but not completely mimic last year's survey. Consequently, we dug deeper to understand Hispanic online buying behavior. Our sample composition is very similar to last year's, although we had more who were 45 and older. The distribution breaks down in the following way: 54% of respondents were women; 43% of respondents were men; 3% Preferred not to say 17% fell in the age range of 18-25; 37% fell between 25-31; 23% were between 35-44; 17% were between 45-54; and 6% were 55 or older.  As with last year's survey, we hope that this data will encourage executive management at car dealerships and advertising agencies to explore marketing to the community, even if they start with baby steps. The U.S. Hispanic market is growing too fast to ignore and their buying power is exploding. Failing to connect with them will leave any dealership with a large Hispanic population at a disadvantage, especially when competitors act first. 5 Things We Learned in Our 2021 Hispanic Car Buyer's Survey Massive amounts of data show that U.S. Hispanics are becoming a financial juggernaut in America. Still, yet they are often ignored in advertising either culturally or through the use of Spanish language marketing.   If the stats in the introduction are not enough proof that U.S. Hispanics are becoming financially powerful, perhaps a current article in the Wall Street Journal will help convince you. According to the WSJ, in 2020, the number of U.S. Hispanic homeowners rose by more than 700,000, the largest 1-year increase in 20 years… and that was during a pandemic! So what are the highlights of this year's survey and what do they tell us?  Key Findings in 2020 / 2021 Hispanics are tactile . The data proves over both years that they love to test-drive vehicles. U.S. Hispanics prefer to be marketed to in Spanish . Of course, this number is nuanced depending on where you are in the States. For example, with such a long history in the U.S., Texan Hispanics require different messaging than those that might be new to our country. Brand reputation means a lot - whether it is your dealer brand or the manufacturer's . If you market in Spanish and focus on building a solid reputation with the community, then you will be on a good track. And if you sell vehicles whose brand is well recognized, then all the better. Cell phones are the primary shopping tool for U.S. Hispanics . What does this mean to you as a dealer? Your dealer mobile website best be fast, or you'll lose business. Sadly, dealer websites are often relatively slow.  Check out this article I wrote with David Kain and Tom Kline if you are curious. Like last year's data said, U.S. Hispanics are online and in force.  They over-index on social media use and are fully engaged on all the major platforms. This gives you, as a dealer, a straightforward direction to go… get a social media strategy in place and start marketing to Hispanics around your dealership in Spanish. Final Comments For this first article, we gave you an overview of our 2021 study and its highlights. Our next article will delve into raw stats, and our interpretations, around search and shopping behavior of U.S. Hispanics. In the meantime, think about what this article series means to you as a dealer. Do you know the size and composition of the Hispanic community around your dealership? Are you marketing to your local Hispanic community? If your answer is negative for either of those questions, then drop us an email, and we'll give you a hand. 
Latest Research: Evolution of The Car Shopping Journey in 2020

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CarGurus and GfK recently studied the digital path to purchase of over 3,000 car shoppers. We dug into that data, as well as data from a series of  COVID-19 Sentiment Studies  we conducted this year, to see how the shopping journey has evolved.  What we found is that today’s car buyers aren’t experts on car shopping anymore. Since many only replace their vehicles every five years, a lot can change between purchases. As a result, the process takes around five weeks for most. This leaves lots of time for shoppers to spend hours researching online and comparing options across multiple devices — all with the goal of finding a reliable vehicle at a price point they’re comfortable with.  Car Shoppers Are Full of Uncertainty at the Start of the Journey  Today’s consumers are increasingly beginning the research and shopping process full of uncertainty. In 2020, 41% of shoppers were undecided on the price they’re willing to pay for a vehicle — up 25% in just two years . Similarly, uncertainty around whether to buy new or used has also increased since 2018, going from 26% to 32%. To fill in the gaps and inform the many decisions they must make along the journey, shoppers turn to online sources to research their options. Shoppers estimate roughly 60% of their shopping process is spent online, researching, and comparing options.  While there are many online resources shoppers can use, including dealership, OEM, and industry sites, auto shopping sites are the most commonly used resource by car buyers: 93% of shoppers use auto shopping sites. And they visit this category of sites multiple times: the average shopper visits auto shopping sites 12 times before buying a vehicle, with the use of these sites only accelerating as the purchase nears. In comparison, 63% of car shoppers visit OEM sites, and 58% visit dealership sites, with the average shopper visiting them only 5.5 times total before purchase.  Car Shoppers Have Different Objectives When Using Desktop and Mobile Devices More and more consumers use a combination of desktop and mobile, switching continually between devices while shopping for their next vehicle. Though this makes it clear that the shopping experience must be optimized across all devices, each device plays a specific role throughout the process: Desktop drives vehicle comparisons and selection.  Desktop sessions deliver more engagement and play a critical role in the journey, especially as the purchase nears. Car shoppers spend 2x as long per session on desktop as on mobile, likely because the desktop experience provides a larger screen for comparisons and is free from distractions like text messages and push notifications.   Mobile is used at the dealership and to prepare for negotiations.  More than two-thirds of car buyers continue to research mobile during the dealership visit because of its convenience. The use of mobile devices on the lot has been steadily increasing — from 59% in  2018 , to 64% in  2019 , to 67% in 2020.  Vehicle and Dealership Selection Come Down to Price and Reliability When it comes to dealership selection, price greatly influences where consumers buy. That doesn’t necessarily mean shoppers are only looking for the lowest price though. It’s that they want to feel confident they’re paying a fair price for the vehicle they’re purchasing. On CarGurus, 81% of all leads go to vehicles with a fair deal rating or better, with the biggest percentage (37%) going to Fair deals.  Ultimately, reliability is paramount to consumers when choosing a vehicle. And it tends to be especially important to shoppers searching for a vehicle less than $10,000 (58%) and Gen X shoppers (49%).  Interest in Digital Retail Has Surged Since the Spread of COVID During this rollercoaster of a year, it’s not just car dealers who have been forced to adapt and evolve — consumers’ preferences around buying have also changed. Among car shoppers, both openness and preference for buying online roughly doubled due to the pandemic and, despite dealers re-opening to foot traffic, have not declined. Before Covid, 32% of car shoppers were open to buying online. According to CarGurus’ recent  COVID-19 Sentiment Study , now 60% are. Similarly, 37% would now prefer to buy online — up from 19%.  Ultimately, car shoppers are spending more time online, leaving fewer decisions to be made during the dealership visit. Optimizing the car shopping experience across both desktop and mobile, providing digital retail solutions, and offering competitively priced, reliable vehicles will increase your dealership’s likelihood of converting more shoppers into buyers.