The Car Buyer Journey is one of our longest running studies, marking its 15-year anniversary this year. Over this extensive period, the study has continuously evolved, yet our core objective remains unchanged: to understand how consumers purchase vehicles and to share these valuable insights with our clients and the industry.
The Journey Continues
In this study, we examine the car buying journeys of over 1,500 new vehicle buyers, including nearly 700 non-luxury import buyers, 400 non-luxury domestic buyers, and 450 luxury buyers. Our research has uncovered five key takeaways that are currently shaping consumer buying behaviors.
Key Takeaways
Buyers shop options as inventory & incentives rise: With new vehicle inventory more than doubling compared to two years ago, limited inventory is no longer a significant obstacle for most buyers, with only 30% of buyers mentioning it as a concern. Buyers are keeping their options open, with cross-shopping between new and used vehicles at 37%, driven by an increasing number of attractive deals.
Buyers dedicate more time to the shopping journey: In 2024, new buyers spent an average of 2 hours more on the shopping process compared to the previous year. This significant increase is driven by buyers investing more time in test driving and exploring new product features, rather than focusing solely on price negotiation. This shift indicates a growing interest in understanding and experiencing the vehicles before making a purchase decision.
Third party sites widen their lead as top source: As new vehicle inventory and prices have fluctuated, buyers are dedicating more time to research. Third-party sites have surged ahead, becoming the top online source at 72%.
Omnichannel experience is more seamless: While few new shoppers initially plan to complete their purchase entirely in-person, 51% of buyers end up doing so. The main reasons for this shift from online to in-person purchasing are:
Test Drives – Once buyers come in for the test drive, they often find it more convenient to complete the transaction at the dealership.
Direct answers – New buyers prefer working directly with the dealers to get answers to their questions, as they feel not all pertinent information is available online.
Buyer satisfaction reaches an all-time high: The percentage of buyers who were highly satisfied with their shopping experience has reached 75%, marking an all-time high in the past 9 years. Changes made to the online shopping process during the pandemic have had a significant impact on this increase.
Growth in aftermarket products & service loyalty: With increased buyer satisfaction, we’re also seeing continued growth with aftermarket products, extended warranties, and service contracts, especially among non-luxury domestic buyers. Our data shows that 82% of buyers are likely to have their vehicle serviced at the dealership of purchase. Additionally, buyers who have visited the dealership’s service department within the 12 months prior to deciding to buy are more inclined to purchase from the same dealer again.
Embrace the Digital Shift
The advantages of completing more of the car buying process online are undeniable. It saves time, enhances transparency and ensures a smoother transition from online shopping to in-store purchasing. New buyers report they are increasingly more satisfied with this seamless experience.
In fact, 78% of new buyers rated their experience of picking up in-store where they left off online as highly satisfactory. It’s important to encourage your dealers to digitize and automate their processes and to provide them with access to effective partners who can facilitate this transformation.
Where to Next?
As the needs and preferences of car buyers evolve, it’s important to meet them where they are. Make the buying process so seamless that it’s harder for them not to buy from you. Ready-to-buy consumers are not just on dealer sites, so its essential to provide multiple entry points into the purchase funnel. Begin with third-party listing sites for their extensive reach, but also focus on integrating direct retail capabilities into your own website.
Stay Ahead of the Curve
To stay ahead in the automotive industry, it’s important to understand the customers’ preferences, to help guide them along their journey. Buyer satisfaction is at an all-time high, and a Cox Automotive Marketing Partnership provides you with the tools and insights to keep you ahead of that curve. Our consumer data and dynamic content allow you to create personalized marketing strategies that build trust and loyalty with shoppers, helping them make smart decisions that align with their evolving needs.
By leveraging the insights from the Car Buyer Journey study and partnering with Cox Automotive, you can navigate the twists and turns of the market, ensuring your strategies remain impactful.
For more insights and marketing tips, download our Car Buyer’s Journey infographic, or click Learn More to download the full study.
Did you know that the Big Game pulled in an audience averaging 126 million viewers this year? With Fox commanding a record ad price of $8 million (and in some cases more) for a 30-second spot, it’s no wonder that the stakes are higher than ever. However, as evident by a shrinking number of participating OEMs, this price point is steep. In a time where automakers are looking for more efficiency, advertising in the Big Game might feel like a Hail Mary. But is it worth the gamble?
When automakers advertise in the Big Game, it’s not like convincing a consumer to buy a bag of chips or make an impulse buy. In automotive, we are talking about much higher price points and detailed lifestyle considerations. It cannot be a one-and-done event. Advertisers need to follow up that awareness play to help generate more shoppers for their respective brands.
Momentum is hard to sustain. Often, we see a burst on GameDay, but sometimes we don’t see meaningful shopping activity impact in the days and weeks that follow. We’ve seen lifts over 10,000% for debut car models, and exponential lift for established car models. The momentary lift can be staggering but short-lived. We’ve seen the most success with model specific ads – compared to brand spots or ads featuring halo vehicles, which are sometimes too expensive for most consumers.
While the goal and intent of any Big Game ad varies, when the goal is to sell more cars, or sustain brand momentum – Big Game ads should be reinforced where consumers are shopping. Cox Automotive sees 28M+ unique visitors each month across Autotrader and Kelley Blue Book. Automakers who reinforce their Big Game ads on sites like Autotrader and Kelley Blue Book see sustained lift* for the month of and following the Big Game.
Here’s an example of some of the lift metrics we’ve seen
+40% organic lift to Kelly Blue Book VDPs from a client campaign
+400% Increase in Research Activity for the Advertised Model on Kelly Blue Book
+36% Increase in Shopping Activity for the Advertised Model on Autotrader
+397% Lift in total visits for Dealer.com
So, while the initial impact of a Big Game ad may be impressive, the key to long-term success lies in the follow-up. By strategically reinforcing those ads on platforms where consumers are actively shopping, automakers can turn that momentary lift into sustained momentum. The Big Game may be the kickoff, but the real game is in the follow-up.
They say the Big Game is the biggest night in sports—unless you’re a Denver Broncos fan like me, in which case it’s more of a nostalgic event where we reminisce about the glory days of John Elway and try to forget about, well… Big Game XLVIII against the Seahawks. (Hey, at least we made history for the fastest score ever—just, you know, not the way we wanted.)
But while some teams struggle to make the most of their Big Game moments, automotive advertisers don’t have to. Thanks to Connected TV (CTV) advertising, Cox Automotive is unlocking a game-changing opportunity: delivering dynamic ad messages tailored to different shoppers based on where they are in their car-buying journey.
The Evolution of Advertising: Reaching the Right Shopper at the Right Time
In the past, advertising was a one-size-fits-all approach. A single TV commercial would air to millions of viewers, hoping that a fraction of them were in-market for a car. But today’s digital ecosystem gives us the ability to serve hyper-targeted CTV ads to households that have already identified themselves as car shoppers.
Instead of guessing, we can now serve distinct ad experiences based on where shoppers are in their journey allowing for the message to resonate. Let’s look at how we are doing it with three distinct Cox Automotive signals:
Low-Funnel Shoppers (Ready to Buy)
These are consumers who have actively engaged with Cox Automotive websites, viewed inventory, or checked financing options.
Ad Message: “Final offers,” real-time dealership inventory, trade-in promotions, and calls to action like “Schedule a Test Drive.”
Mid-Funnel Shoppers (Actively Shopping)
These are shoppers who are researching models, comparing features, and engaging with online vehicle reviews.
Ad Message: Lease and finance options, vehicle comparisons, and dealership incentives to guide them toward a decision.
High-Funnel Shoppers (Just Starting Their Journey)
These consumers are casually browsing, considering different makes and models, and engaging with automotive content.
Ad Message: Brand-building, lifestyle-focused creative, and emotional storytelling to create future brand preference.
CTV: The Smartest Way to Advertise in Today’s Digital Landscape
This isn’t just about targeting—it’s about delivering the right message to the right audience at the right time. Having three distinct ad strategies within an individual market ensures that every household gets a relevant ad experience that matches their current buying process. So, instead of spending millions on broad-reach advertising that hopes to resonate with a fraction of the audience, this CTV solution enables automotive advertisers to maximize their return on ad spend by speaking directly to engaged, in-market shoppers with messages tailored to their intent.
A Smarter Approach to Big Game Advertising
Gone are the days when advertisers had to throw a message out to a massive audience and hope it sticks. With CTV, automotive brands can ensure that every Big Game ad dollar is working harder, reaching the right households with the right messaging. Like a great football team adjusts its strategy based on the game situation, advertisers today have the tools to be more strategic than ever before. By leveraging CTV’s ability to deliver custom messaging based on actual shopper behaviors, automotive brands can drive stronger engagement, better conversion rates, and more efficient ad spending.
This isn’t the future of advertising—it’s already here. For OEM or dealers looking to maximize impact during high-profile events like the Big Game, CTV is the smartest play in the modern digital landscape.
Want to learn how Cox Automotive can help you tailor your CTV strategy for maximum impact? Let’s connect.
Did you know that over 80% of consumers believe that macrotrends will reshape car buying in the next decade? As our needs and behaviors evolve at an unprecedented pace, it’s crucial for industry leaders to stay ahead of the curve. Whether you’re an OEM, dealer, or lender, understanding these shifts is key to meeting the demands of tomorrow’s consumers.
Cox Automotive surveyed over 2,000 consumers about their current car shopping attitudes and how they expect these to change over the next 10 years. Our research focuses on major changes with widespread impacts.
Customers’ Needs are Driven by Defining Moments
The needs of consumers today are very different from those of just 4 years ago, and the consumers of tomorrow will have new expectations and preferences. This evolution is shaped by the significant events we’ve experienced and those we will encounter in the future. The most impactful changes are those that span multiple industries and will sustain over time. These are what we call macrotrends.
Macrotrends Have Widespread Impacts
These trends were selected because they are reshaping every aspect of our lives, including car buying. We asked these consumers how they pictured their lives in 10 years, relative to these macrotrends.
Trust & Transparency: Personal data is fueling all our experiences. People feel more exposed and expect companies they trust to prioritize their privacy and protection over profit. A significant 77% will only share data with companies that are transparent with their privacy policies.
Shifting Needs: Consumersare rethinking how products are used and how they shop for them, prioritizing flexibility and convenience. For example, 61% would be comfortable buying entirely online, especially younger buyers.
Redefining Affordability: With money not stretching as far as it used to, consumers are more selective in their spending. For many, affordability is no longer about “what can I afford?” but rather “what do I want to afford?” In fact, 62% are willing to indulge in their next vehicle, if it makes them feel good and improves their quality of life.
Environmental & Social Causes: More people today are holding businesses accountable to act toward a greener, more inclusive and equitable world. About 65% pay attention to the environmental impact of their purchases.
Immersive Experiences: Technological innovation, such as Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI), is driving change. Around 55% are comfortable using chatbots for routine questions within the vehicle shopping experience.
Impact of Macrotrends on the Future of Car Buying
Consumer behavior in vehicle shopping has changed significantly and will continue to evolve over the next decade. As younger generations become a larger percentage of car buyers, OEMs must be prepared for these shifts. While consumers predict a rise in “all online” purchases, omnichannel experiences are expected to remain the most popular.
Ultimately, OEMs and dealers will need to support all online purchases, as 1 in 3 buyers prefer this path. However, with a 43% preference, omnichannel remains the favored method, even when looking 10 years ahead.
Embracing the Future
To stay ahead in the automotive industry, it’s important to understand and adapt to these big trends. A Cox Automotive Marketing Partnership gives you powerful tools and insights to keep you ahead of the curve. Our consumer data and dynamic content allow you to create personalized marketing strategies that build trust and loyalty with shoppers, helping them make smart decisions that align with their evolving needs.
The future of car buying is already here. Together, we can shape it by connecting every moment, understanding every need, and making the car buying experience smooth and enjoyable for everyone.
Electric vehicles are becoming more mainstream, but growth is hitting a speedbump.
It’s been an exciting time in the industry as electric vehicle (EV) sales hit new records. For the first time, in 2023, over a million EVs were sold. Fast forward to January 2024, and now there are more than 3.2 million EVs in the U.S. 1 More EV models are entering the market from more manufacturers, which means pricing is getting more competitive and more people can afford them.
Yet the EV growth rate is slowing. An increase in supply and more available models have outpaced consumer demand. With weakening demand, Tesla led the pack in making price cuts and began a domino effect across the industry. EV consideration among car shoppers has begun to wane and inventory is sitting on dealership lots longer. So what’s next for the EV market?
Many consumers aren’t ready for EVs…yet.
An EV Skeptic is defined as a car shopper who is only considering vehicles powered by traditional internal combustion engines (ICE). According to the 2024 Path to EV Adoption Study by Cox Automotive, nearly half of vehicle shoppers in the market today are Skeptics. These shoppers are apprehensive about the idea of fully committing to an electric vehicle.
Why aren’t most car buyers ready to take the leap into the electric vehicle segment? There are multiple barriers to adoption that OEMs and dealers will need to overcome to move Skeptics into a consideration and purchase mindset:
Driving Range and Lack of Infrastructure – Consumers are still worried about the range for electric vehicles and that they won’t be able to drive as far. Notably, there is still widespread concern that a lack of charging stations could impact their travel plans.
Battery Fears – EV batteries continue to serve as a deterrent to purchase due to concerns about the battery losing charge, the length of time to charge as well as the cost to replace the battery.
Affordability – While purchase price is coming down and the addition of more models provides more affordable options, consumers still perceive ownership costs for EVs to be higher than comparable ICEs and hybrids.
These perceptions continue to make consumers apprehensive about EVs so many are still looking to the familiarity of ICE and hybrids for their next vehicle.
But there is still hope for an EV future. How can OEMs encourage car shoppers to take the leap?
While growth has slowed, for many brands, awareness and consideration of EV models is strengthening. This could signal that more consumers will look toward EVs sooner than later. EV consideration will notably increase with 54% of current Skeptics saying that 3-5 years from now will be the right time to purchase an EV. By 2033, 90% of vehicle shoppers will be considering an electric vehicle.2
This shift will be driven by continued advances in technology, more EV charging infrastructure and consumer education. More models and price reductions will cast a wider net attracting Gen Z, multicultural and less-affluent shoppers.
Educating consumers on EV ownership will be key in driving this shift. OEMs and advertisers can start now to nudge them into the consideration stage.
Content helps EV buyers make decisions.
EV buyers consume more content than ICE buyers. They rely heavily on content, especially videos, when researching online. Expert reviews and ratings, vehicle awards and more help consumers better understand the new world of electric vehicles. New EV buyers also visit more sites than new ICE buyers as they gather information.3
Powerful video advertising and content leads EV buyers to take actions like contacting or visiting a dealer, looking up more information on a vehicle, submitting a form and scheduling a test drive. 74% of new EV buyers took action after viewing an online auto video ad compared to 65% of new ICE buyers.4
Your EV content should highlight your brand’s line up. With more models entering the market, consumers need to know what sets yours apart. EV considerers tend to be technology focused. Spotlighting tech enhancements and features in your line up is a critical way to move shoppers closer to purchase.
Call out the key benefits of electric (EV) versus internal combustion (ICE) vehicles. As EV shopper demographics are skewing younger, lower income and multicultural, helping these audiences understand the benefits of EV will move them closer to their purchase.
Entice EV shoppers and skeptics with key offers.
Free charging and maintenance offers could help push both EV Considerers and Skeptics closer to purchase. A free at-home charger, free maintenance or service plan, as well as free charging at charging stations are concepts that would help increase EV sales with consumers. Survey respondents indicated that six months of free maintenance and free charging would be the optimal trial period.2
Accelerate EV adoption with coordinated efforts across OEM and Dealer levels.
67% of franchise dealers prefer that OEMs share in the responsibilities for upper funnel activities, while they take charge of the lower funnel steps.2 Dealers want OEMs to help educate consumers on their line-up, on the key differences and benefits of EV vs. ICE, as well as provide information on EVs listed for sale.
Get Ready for the Switch
While maybe not as quickly as OEMs and dealers would like, the automotive shopper is moving toward the new frontier of electric vehicles. Understanding and addressing why Skeptics and Considerers are delaying an EV purchase can help you entice them to purchase sooner. Brand and model content tools, especially video, will be critical to educate, build awareness and drive higher consideration. Higher incentives and working across tiers will move shoppers closer to an electric future.
With elevated vehicle prices, CPO vehicles have become more attractive to buyers who don’t want to spend new car money but want the peace of mind that comes with warranty protection.
It’s becoming harder than ever to afford a new vehicle. The average American who bought a new car in September signed up for a $738 monthly payment. That’s a record high for consumers to consider when determining if they can afford one.
But that doesn’t mean that life stops just because there’s higher monthly payments, tight inventory, and fewer incentives. Despite these headwinds, consumers still need vehicles, and they’re willing to change their minds for the right opportunity.
As your trusted partner, Cox Automotive is right there alongside you to help navigate changes in the automotive industry, so that you can still drive more engagement with the consumer and continue to deliver more vehicle sales. With that in mind, let’s take a deeper look at what’s shaping up to be big CPO opportunities for 2023!
“ Demand remains robust for certified vehicles as the new market continues to be very supply constrained and CPOs offer the best substitute for consumers.”
– Jonathan Smoke | VP Chief Economist | Cox Automotive
Shoppers Still Need Vehicles
First the good news…shoppers still need vehicles, and there are many reasons that triggered Certified Pre-Owned shoppers to enter the market.
Our 2022 Gfk Content Influence research shows that the top reasons these CPO shoppers entered the market were:
29% – their previous vehicle was deemed unreliable or deemed too expensive to repair?
26% – triggered due to their previous vehicle having high mileage and/or it was older?
These shoppers can’t afford to wait for a better price. They know prices are high, and unfortunately, they can’t delay for that long.
CPO vehicle interest increases, and cross-consideration intensifies
The new car market continues to feelthe impacts of high-inflation and elevated prices, which is also making CPO vehicles more attractive to buyers who don’t want to spend new car money, however, want the peace of mind that comes with warranty protection. And we’re seeing a rising interest for certified vehicles on Autotrader:
Most impressive were the September CPO results:
+17% VDP Visitors Year over Year?
+26% Vehicle Details Page Views Year over Year?
Pencils are up +76% Year over Year?
Something else that should be on our industry’s radar, as interest increases, many shoppers are considering multiple brands and segments to find a vehicle that meets their needs. So getting in front of the CPO buyer, as well as staying side by side with them throughout their car purchase journey, should be a priority.
CPO Car Shoppers are Willing to Change Their Mind
A key thing all OEM’s and Dealers need to be aware of is that even in today’s market conditions, our 2022 Digital Influence research with GFK shows that car shoppers are still willing to change their minds for the right opportunity. You not only need to know if your vehicle is in their consideration set, but also what you’re up against competitively, from brand preference to inventory availability.
It’s a staggering statistic that 80% of CPO buyers bought vehicles that were different than what they originally considered. And just as important to call out, automotive advertising has persuaded them to research vehicles after exposure. Especially on third-party sites, which are valuable in helping shape brand decisions.
40% of CPO customers stated auto ads motivated them
to research a different car than they originally considered
That’s right… 2 out of every 5 CPO customers stated automotive ads motivated them to research a different car than they originally considered. This data should give you an extra incentive as you plan the year ahead to not only stay in front of your target audiences, but put an increased focus on getting in front of new audiences. Because the brand they thought they wanted to purchase, might not end up being the brand they ultimately purchase.
Where the Majority of a CPO Purchasers’ Time is Spent
Although the decision and purchasing timeframes have shortened over time, we now see more time devoted in the exploration phases for a CPO purchaser. Working with a partner to find shoppers further out from purchase, before they’re even giving you an indication that they’re doing anything, will offer the greatest opportunity for influence.
CPO buyers reported they spent the most time trying to find actual vehicles for sale, which should be of no surprise due to tight inventory. Of equal interest is that they are also heavily comparing different models by researching reviews, options, and pictures, as well as researching vehicle pricing.
Here are the Top 4 Activities research shows a CPO buyer spent the most time doing:
Find actual vehicles listed for sale
Compare different models using reviews, options or pictures
Research vehicle pricing
Browse vehicle images
CAMP 360 – Data That Drives
Cox Automotive understands your CPO shoppers. And with your partnership, our data can make your data drive efficient and more informed marketing decisions.
Your marketing partnership follows CPO buyers along the full purchase horizon, every step of the way. We’re seeing half of CPO site visitors 6+ months out from purchase, which is the optimal time to reach and influence them, before they have decided. It’s why you need a first-in-class data partner to help you find those shoppers, to not only get their attention, but keep their attention.
It’s more important than ever for advertisers to be front and center at the critical decision points along the CPO’s car purchasing journey in order to influence consideration and reinforce brand loyalty. Especially as you focus on your marketing strategy for 2023.
Because with the power of your Cox Automotive Marketing Partnership alongside you, our successes, data, audiences and destinations can be yours. Powered by advanced AI learning capabilities and proven by transparent reporting, CAMP 360 utilizes first-party data across the entire customer journey to ensure the right CPO message and content is reaching, and most importantly, resonating with CPO shoppers in the moments that matter most.
Sources:
2022 Gfk Content Influence Study Commissioned by Cox Automotive
2022 Gfk Digital Influence Study Commissioned by Cox Automotive
Autotrader September 2022 Site Metrics
COX Auto BTR based on Drive IQ; Visits = January 2021 – Dec 2021; Sales = January 2021 – Aug 2022
Are you ready for data that drives? To seamlessly integrate content and native advertising within a personalized environment? If so – find out more about a CAMP 360 data-driven marketing partnership by clicking HERE.
The Driving Forces for Automotive Digital Marketing in 2023: Mid-Year Predictions for Navigating the Road Ahead
As summer winds down and the fourth quarter of the year looms on the horizon, it’s hard to believe that in many ways the automotive market is still uncertain. Microchip shortages have now shifted to inflation concerns. Consumer confidence for the road ahead is waning. At Cox Automotive, I have spent the last few months assessing the automotive marketplace to help OEMs better navigate digital marketing decisions, as many begin planning for 2023. With that in mind, here are my top five automotive industry trends to watch while preparing for the year ahead.
Supply and Demand
Let’s be honest, the vehicle supply chain situation is still bad. There are approximately 75 thousand fewer vehicles than 2021 and ~1.5 million fewer than 2020. Right now, the days-supply for new vehicles is around 37 days.?
Continued chip shortages and supply chain problems are leading to low inventory, with up to 85% of car dealers predicting they will never return to pre-pandemic inventory levels.?
Low inventory does not mean car researching has stopped. Actually, we’ve seen quite the opposite.
As the post-Covid world reopens, we will return to car dependency, regardless of whether world events are favorable. Consumers are still shopping for new cars, and we can see the activity on Autotrader and KBB.com. Online shopping visitation for non-luxury vehicles has increased from 3.9 million in 2020 to 5.6 million in 2022.? Consumers are looking at an average of four brands and two car segments. About a quarter of shoppers are very flexible in their purchase behavior, shopping both new /used and luxury/ non-luxury categories.? And we don’t anticipate seeing that trend change much.
Finding the Sweet Spot in Digital Marketing
The good news is we are seeing that buyers are willing to wait for the right vehicle. They understand the current inventory issues, and approximately 85% of those who are likely to postpone are willing to wait 3 or more months for the right vehicle.?
We also know that about half of our site visitors are 6 or more months out from making their vehicle purchase, so OEMs definitely have the opportunity to influence. They also should think of Autotrader and KBB.com as the premiere digital marketing solution to reach and influence car shoppers long before they have made their purchase decision. With Cox Automotive’s DRiVEQ data technology, OEMs can reinforce brand messaging while shoppers are still influenceable.
Vehicle Pre-Order as the New Norm
The past two years have disrupted systems, and long-held instincts about automotive marketing that have guided the industry for years. About one-third of consumers are likely to pre-order their vehicles and expect delivery to take around 10 weeks. And, nearly two-thirds of shoppers believe pre-orders are the new normal for future vehicle purchases.?
As inventory shortages persist, shoppers believe that custom ordering will allow them to get what they want in the future, even if it takes a little longer for their vehicle to arrive. Which has been shown to lead to increased satisfaction and loyalty.
The Rise of Digital Retailing
Recent studies show that 7 in 10 consumers agree that by 2023 most people will prefer to shop for a car online versus visiting a dealership in person.? The fact that this number remains unchanged from 2021 suggests that this is almost definitely becoming our new normal. And it’s not surprising given that automotive digital retailing has proven to deliver a better experience for shoppers and dealers alike.
In 2020, we significantly moved the needle as an industry on improving consumer satisfaction with the car buying process, reaching the highest levels we’ve ever seen. In 2021, we saw an overall dip due to low inventory levels and high prices, but buyers who completed more than half of the process online maintained satisfaction levels that were in line with 2020.?
It’s interesting to note that when we talk to dealers, fewer than 2 in 10 believe that OEMs will create online sales channels that completely bypass the dealership network. In fact, most believe that dealers will remain an important part of process of buying a car.
Almost half of dealers see a future where their on-site inventory is greatly reduced and they start functioning more like experience centers or showrooms that deliver vehicles to consumers from a distribution center for OEMs.? Ultimately, what happens with this trend will be predicated in part on what consumers demand, Whatever the outcome, automotive digital marketing will need to adapt along with it.
Electrify Your Digital Marketing
It’s no secret, rising oil prices are increasing consumers’ consideration of electric vehicle and hybrid vehicles. Affordability and fuel efficiency are becoming more important to shoppers, and we’re seeing an increase in search habits, based on these features.?
This massive growth in electric vehicle (EV) volume will not be possible without shoppers being receptive to EV technology. And it appears as we see consumer shifts in interest, with the top barriers to adoption, a softening over the last three years.?
Another way to make EVs more affordable is through leasing. According to Experian, roughly 1 in 4 EVs acquired in 2021 were leased. But one thing we’ve learned is that leasing penetration varies greatly across EV brands. So while approximately only 17% of all Teslas were leased in 2021, leasing penetration for other OEMs reached nearly 50%. That’s a stark contrast and significantly higher than the average leasing rate of ICE vehicles, which stands at around 27%.
Something else we discovered about EV lessees is that fewer than half (47%) of them were leaning towards leasing when they first started the shopping process – much lower than the typical ICE vehicle lessee, of which approximately 68% leaned towards leasing. Given what we are learning about EV prices, it’s no surprise that those who end up leasing an EV are most often influenced to do so because of the lower monthly lease payment.?
So, What Does This Mean for Automotive Digital Marketing?
Shopping for a new car will never look the same most likely. Data and intelligent marketing strategy is more important than ever. Consumers are still making decisions and considering their options as well as browsing with intent despite economic obstacles.
But as we’ve seen, their behaviors are shifting, and rapidly. However, car shoppers are still impressionable, and you still have the opportunity to influence them with the right message at the right time during the buying process. However, in order to have success in digital marketing, your communication strategy needs to adapt in 2023 to reflect these evolved buyer’s needs and wants. When you do this, closing the gap between OEM campaigns and auto sales becomes possible.
Are you ready for data that drives? To seamlessly integrate content and native advertising within a personalized environment? If so – find out more about a CAMP 360 data-driven marketing partnership by clicking HERE.
Many have heard the phrase “content is king” – a saying coined by Bill Gates nearly 30 years ago. At that time, it was the rise of the Internet that forever changed consumer behaviors and pushed content marketing into the mainstream.
Fast forward to now, and content marketing is once again at the forefront and gaining significant momentum. With the pandemic fueling a shift to e-commerce, many businesses across all industries are rethinking how to most effectively connect with consumers through relevant content. Because the overall goal has always been, and will continue to be, to maximize your content to DRIVE consumer decisions.
What Is Content Marketing?
“ A technique of creating and distributing
valuable, relevant and consistent content to
attract and acquire a clearly defined audience –
with the objective of driving profitable customer action.
– Content Marketing Institute
This is just one definition of many that I’m sure you might have seen before from various sources. But, one theme across all definitions, is that content marketing is about education, not promotion. The keyword here is “valuable”. If the content provided doesn’t add value to a shopper’s journey, then it likely won’t be effective.
There are many advantages to content marketing that work, such as building customer trust and loyalty, improving SEO, increasing your reach to new people and audiences as well as increasing website traffic. And although those main four goals of content marketing have not changed much over the last few years, what HAS changed in the automotive shopper’s journey are the behaviors as well as preferences in how, when and where to maximize your content.
The Stages of the Shopper Journey
The automotive consumer journey contains two important stages. Stage 1 includes: explore, consider, select, and buy. Stage 2 includes that last and final stage in a shopper’s journey: own.
An exceptional automotive content marketing strategy reaches a consumer in all stages of their journey – it accompanies them as a valuable resource in all instances whether they are a shopper in market for a vehicle (in the Explore, Consider, Select, or Buy stage) or an owner (in the Own stage) looking for general car care information. Content marketing allows you to cover all parts of the journey at one time.
When focusing on Stage 1 – the shopping phase – Cox Automotive recently partnered with research experts GFK on our 2022 Content Influence Study. Based on surveys among over 2,000 new vehicle buyers and shoppers, we found that an overwhelming 83% used content marketing sources when researching their upcoming vehicle purchase.
Notably, this percentage is down from 88% in 2021 – likely the result of consumer shopping behaviors starting to normalize as we begin to put the pandemic in our rearview mirror. Regardless, 86% said they plan to use content marketing sources again when researching future vehicle purchases. And this trend is not unique to automotive. In a recent study by Lucidpress, 85% of marketers surveyed report an increase in demand for content among their customers over the last year – giving many businesses good reason to increase their content marketing budgets even more in 2022.
Types of Content Consumers Prefer
It’s no secret, consumers expect personalized interactions, and nearly all of them get frustrated when this doesn’t happen. And automotive buyers are no exception. Yes, content marketing focuses on distributing valuable and relevant content to a reader, but consumers definitely have preferences on what types of content they are willing to view and engage with, as well as what formats they prefer.
To help us better understand where content marketers should invest in 2022, in a recent Cox Automotive study we asked shoppers to tell us what they prefer the most – content that you read or content that you watch. We also asked what type of content marketing sources have the greatest influence over vehicle selection. The results tell us that shoppers today have a higher preference for consuming content through videos that are both engaging as well as interactive.
Find the order of preference listed below in types of content that had the GREATEST influence over vehicle selection in the purchase process:
Consumer ratings & reviews (43%)
Online video reviews from an expert (43%)
Online test drive videos from an expert (41%)
Official expert car ratings & awards (40%)
‘Top lists” of best vehicle models (37%)
Side-by-side comparisons of models (36%)
Articles about vehicles, new tech/features (30%)
BEST PRACTICES: When creating video marketing content, it’s important PRIOR to creating the content to know the needs of your audience and make sure they are addressed from beginning to end. According to our research, consumers aren’t looking for a lot of special effects or entertainment. The main point of your video should be to add value to their journey, and that is accomplished by giving them content which they find informative, simple, informational, and educational.
Keys to Success
The keys to success when it comes to creating and maximizing your content marketing efforts can be placed in 2 categories: those related to process and those related to content.
PROCESS:
Strategy – Have a documented content marketing strategy. The Content Marketing Institute has found that having a documented strategy is highly correlated with success because it will help align your team around common goals, makes it easier to determine which types of content to develop, and it keeps the team focused on documented priorities.
Dedicated Focus on Content – Research shows that having dedicated resources is a common characteristic across companies that are most successful in content marketing. You need a partnership that can help drive deliverables and is responsible for keeping your content up to date.
CONTENT:
Provide Value – Prioritizing consumer information needs over promotional messages is the key. Just remember that it isn’t considered content marketing unless it provides value to your customer.
Stand Out – Part of truly maximizing your content is making sure to differentiate YOUR content from the competition. Your brand has a niche: there are things that distinguish you from the rest of the automotive world in the minds of your audience. Tap into these things every time you create a piece of content.
Customer Journey – Craft content based on stages of the consumer journey. By diversifying your content across each stage of the journey, your experience will be more personalized to your customer.
No matter WHAT type of content marketing you’re focusing on in 2022, make sure to leverage your Cox Automotive Marketing Partnership team to make sure your content is reaching the right shopper, at the right time, with the right message. CAMP 360: it’s more than media, it’s data that drives.
Want to see all the highlight stats from the GFK research that was conducted on content marketing for Cox Automotive? Click HERE for immediate access!
With inventory and market disruptions continuing to tighten the in-market car shopping journey, OEMs in today’s times have additional challenges when it comes to successfully reaching auto shoppers. It’s essential they span the entire digital purchase journey in every stage to inform and engage potential new vehicle shoppers. Our May webinar was packed with advice, insights and useful strategies from Cox Automotive experts on that very topic – how to empower and stay alongside shoppers during the purchase process. If you missed this engaging discussion, you can watch the replay here:
The Cox Automotive Research and Market Intelligence team is excited to announce the latest Digital Influence Study results. I recently had the pleasure of presenting these findings during an AIADA AutoTalk webinar, and here are the top three things you need to know:
1. There is good news on the horizon for OEMs
2022 is showing great potential for rebounds in the automotive industry. While we don’t expect supply constraints to ease until later this year, new vehicle inventory levels are already showing some early signs of recovery. In fact, Cox Automotive’s new vehicle inventory index increased in Q1 for the first time since Q4 of 2020.1 With increased inventory, there is an excellent opportunity to influence new vehicle buyers. According to our study, 74% of new vehicle buyers purchased a different vehicle than they initially considered.2
2. The purchase process has accelerated with shoppers spending less time online
New vehicle shoppers are spending less time in market. In 2019, shoppers spent approximately 100 days in market, and now that number has dropped to 83 days. The time new vehicle shoppers spend on exploration and consideration has accelerated. Still, these two stages account for the bulk of the shopper journey, which includes four stages overall (explore, consider, select buy). In addition, new vehicle shoppers are spending less time online, but it by far remains their top shopping source. In 2019, new vehicle shoppers spent an average of 6 hours 44 minutes online, which has now dropped to 5 hours and 22 minutes.2 For this reason, marketers have less time than ever before to make an impression on buyers.
3. Third-party sites remain highly influential in the new car buyer shopping journey
New vehicle shoppers visit an average of 3.7 websites, and almost 70% of those consumers visited a third-party site during their shopper journey. New vehicle shoppers have expressed that third-party sites and OEM websites provide unique and complementary benefits, listing third-party sites as knowledgeable, trustworthy, reliable, and unbiased. Shoppers pair this information with the help of OEM sites, listing these sites as having specific, up-to-date, and comprehensive information for vehicles.2
In addition to these three key takeaways, it is essential to understand that a well-executed digital strategy makes or breaks your plans. Automotive ads play a more significant role in purchase decisions than ever before, with almost 40% of new vehicle shoppers saying that auto ads were helpful in their decision-making process.2 This is up from just 15% in 2019! As macroeconomic trends continue to influence the shopping journey, relevant and real-time messaging will continue to influence new vehicle shoppers. Being present at the critical decision points across the purchase horizon is key to influencing consideration and reinforcing brand loyalty.
1 Q1 2022 Cox Automotive Dealer Sentiment Index
2 2022 Cox Automotive Digital Influence Study; data is reflective of in-market shoppers who eventually purchased
