Automotive manufacturer web sites are gaining ground on independents, as the percentage of new-vehicle shoppers who initially visit manufacturer sites achieves parity, according to the JD Power and Associates 2007 New Autoshopper.com study.
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The study found that 47% of new-vehicle buyers using the internet in their shopping process visit an independent site when initiating research for their new vehicle, and 46% first visit a manufacturer site. This marks a substantial shift from 2003, when 62% of new-vehicle online shoppers first visited an independent web site, compared with only 36% initially visiting an auto manufacturer web site.
Additionally, the trend is not limited to the beginning of the shopping process. Shoppers are relying on manufacturer sites throughout the entire purchase cycle more than ever before.
“As automotive manufacturers have steadily pulled advertising dollars out of traditional media and redirected them toward digital media and search engine marketing, manufacturer web site visitation has increased,” said Steve Witten, executive director of marketing/media research at JD Power. “Since the automotive industry makes some of the largest advertising expenditures in the United States, a small shift in the percentage of marketing dollars to digital media has quickly leveled the visitation share between manufacturer and independent sites.”
However, the study found that, despite a steady decline in visitation rates to independent sites – some of which offer newer vehicle selector tools and improved vehicle pricing estimates – they remain the most useful type of site.
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By GlobalData“Third-party sites will always have a key role in the automotive shopping process due to their independent nature,” said Witten. “However, independent sites may need to investigate the areas of navigation, speed and – most importantly – content offered in order to retain favourable shopper ratings and increase visitation.”
Continued improvements in usability and site content on manufacturer web sites have also likely contributed to increased consumer reliance during the shopping process.
The study also found that nearly 69% of new-vehicle buyers who utilize the internet in their shopping process use one or more types of consumer-generated content. Consumer ratings and reviews are the most popular form of consumer-generated content among shoppers, with 64% reporting usage. Enthusiast sites, question and answer sites, online forums, blogs and photo-sharing sites are considered helpful by shoppers, but have much lower usage rates than do consumer reviews and ratings.
“Consumer reviews are almost always available on the most heavily trafficked independent web sites, which is likely contributing to high usage of consumer reviews among shoppers,” said Witten. “Lower usage of other consumer-generated content may be due to lower visibility. However, opportunities exist to invite vehicle shoppers and owners to share content on the web, especially for independent sites, which might have fewer concerns about negative comments and reviews. Taking advantage of these opportunities will in turn encourage greater engagement among site visitors and provide content that shoppers are clearly finding valuable.”
