thinkinsights
Auto Aftermarket: Today’s Digital Driver
October 2013
Google.com/Think
WHAT WE WANTED TO KNOW
2
How does digital drive automotive parts research and purchases?
Google.com/Think
WHAT WE DID
Google teamed up with Millward Brown Digital to conduct an online survey using panelists who purchased automotive parts or accessories within the past twelve months. Surveys were fielded between July 18-23, 2013 (n=1,241). We ran clickstream purchase analysis for Q3 and Q4 2012 (aggregated).
We tracked consumer online shopping activity to understand shopping and searching patterns
We analyzed the behavior of parts converters tracking their behavior backward from the point of conversion
We surveyed parts purchasers to understand their shopping behavior
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013
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Google.com/Think
WHAT WE FOUND
Aftermarket needs haven’t changed, but the research and purchase process is evolving Parts sales are still driven by a range of proactive maintenance to reactive repair needs. Most drivers still purchase in person due to immediate needs, yet online purchasing is a growing channel.
Today’s drivers are increasingly digital 7 in 10 drivers research online before they purchase regardless of where they buy.
Search engines drive consideration & purchase Search is the most used source for shopping, and drivers use both branded and category terms to research. 90% of drivers clicking on paid category search terms were new customer prospects.
Video introduces drivers to new brands and drives action Over one third purchased parts or visited a parts retailer as a result of watching online videos.
Mobile is the digital driver’s constant companion, even in-store Drivers use their phones throughout the purchase process for proactive research, a reactive need, or in-store showrooming. 32% use their devices while at a parts store.
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Google.com/Think 5
Aftermarket update
Google.com/Think
Aftermarket needs haven’t changed
34% 16%
54% 67%
Enhancement Seasonal Maintenance Repair
Proactive Reactive
6 Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 O1. Why did you purchase this/these [CATEGORY]? Please select all that apply. N =1241
PRIMARY REASONS TO PURCHASE
Parts purchases range from proactive vehicle enhancements to reactive vehicle repairs
Google.com/Think
How drivers purchase depends on the need
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018
41% 47% 33% 29%
59% 53% 67% 71%
Enhancement Seasonal Maintenance Repair
Bought Online
Bought Offline
7
METHOD OF PURCHASE
Proactive Reactive
Proactive drivers are more likely to purchase online, and reactive shoppers need parts quickly
Google.com/Think
More purchases are happening online
8 Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 O6. Was this the first time you purchased [CATEGORY} Online? N=310
43% of surveyed drivers bought there for the first time
WAS THIS THE FIRST TIME YOU PURCHASED PARTS ONLINE?
First time purchasing online
43%
Not first time purchasing online
57%
Google.com/Think
While most purchases still happen offline, 7 in 10 drivers start their parts purchase process online
9 Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018
39% Researched online, purchased offline
30% Purchased online
25% Researched &
purchased offline
6% None
THESE ARE TODAY’S DIGITAL DRIVERS
Google.com/Think 10
The digital driver
Google.com/ThinkSource: Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Clickstream IT01, Unique Site Visitors
0 1 2 3 4 5 6 7 8
0
2
4
6
8
10
12
14
Mill
ions
Industry (Left) Brick & Mortar eCommerce Only
11
Digital drivers are on the rise, up to 14% year over year
UNIQUE VISITORS TO PARTS CATEGORIES (JUNE 2012 – JUNE 2013)
Ecommerce had the largest year-over-year gains, increasing 19% in the period, brick & mortar also up 7% year over year
Google.com/Think
Digital drivers are younger, educated and have a higher income
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018 S1. Which of the following categories contains your age? D4. What is the highest level of education you have completed? D5. What is your annual household income before taxes?
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79% are younger than
55 years old
81% have some
college education
51% have a HHI of
more than $60K
Google.com/Think
29% 33% 41% 47%
43% 40% 37% 33%
27% 27% 22% 21%
Repair Maintenance Enhance Seasonal
I researched offline and purchased offline I researched online and purchased offline I purchased online
They’re online regardless of their vehicle need
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 C1. Which of the following best describes how you approached your most recent [CATEGORY] purchase? Please select one answer only. N=219-1018
DIGITAL DRIVERS
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PURCHASE PROCESS BY VEHICLE NEED
Google.com/Think
AMOUNT SPENT ON PARTS AND ACCESSORIES
And spend more money per transaction
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 SPEND1. Which of the following best describes the price range of the [CATEGORY] you recently purchased? Please select one answer only. N=1241
3%
30%
45%
20%
2% 8%
59%
21%
10% 3%
40% 33%
23%
5% 0%
Less than $25 $25 to less than $100 $100 to less than $250 $250 to less than $500 $500+
I purchased online
I researched online and purchased offline
I researched offline and purchased offline
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Google.com/ThinkSource: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Clickstream: BF02, cut by converters
15
Cross-shopping is the norm
1 Site 24%
2-4 Sites 32%
5+ Sites 44%
76% of purchasers visited multiple parts websites prior to purchase
Google.com/Think 16
Where are digital drivers considering vs. converting (ecommerce brands)
Source: MBD Clickstream: BF10
Auto Anything
Auto Parts Warehouse CarID JC Whitney Summit
Racing
12% 17% 14% 10% 27%
88% 83% 85% 90% 73%
eBay Parts 19%
AutoZone 15%
AutoZone 20%
eBay Parts 17%
eBay Parts 20%
AutoZone 15%
eBay Parts 18%
AutoZone 16%
eBay Parts 22%
AutoZone 18%
Advance Auto Parts 10%
Advance Auto Parts 14%
Advance Auto Parts 11%
Advance Auto Parts 12%
Advance Auto Parts 14%
Amazon Parts 9%
Amazon 9%
Amazon 8%
PepBoys 7%
PepBoys 9%
PepBoys 9%
Amazon 8%
Pepboys 8%
PepBoys 7%
Amazon 7%
Retailer Considered
Converted
Converted elsewhere
Converted elsewhere at
Google.com/Think 17
Where are digital drivers considering vs. converting (brick & mortar brands)
Source: MBD Clickstream: BF10
Retailer Considered
Converted
Converted elsewhere
Converted elsewhere at
Advance Auto Parts AutoZone NAPA O’Reilly PepBoys
37% 45% 30% 9% 44%
63% 55% 70% 91% 56%
AutoZone 30%
eBay Parts 15%
Advance Auto Parts 19%
eBay Parts 16%
AutoZone 28%
Advance Auto Parts 19%
AutoZone 26%
Advance Auto Parts 14%
AutoZone 21%
Advance Auto Parts 16%
PepBoys 11% PepBoys
13%
eBay Parts 10%
eBay Parts 13%
Walmart Parts 15%
Walmart Parts 8%
PepBoys 10%
NAPA 9%
PepBoys 9%
NAPA 8%
NAPA 10%
Walmart Parts 9%
Walmart Parts 7%
eBay Parts 13%
Auto Parts Warehouse
7%
Google.com/Think
Brands and retailers have limited opportunities to convert shoppers
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Clickstream: BF03, cut by converters
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NUMBER OF VISITS TO CONSIDERED BRANDS AMONG ONLINE CONVERTERS
1 Visit 38%
Over one third visited each
parts website in their consideration set only once
2 Visits 21%
3-4 Visits 22%
5-9 Visits 17%
10+ Visits 3%
Google.com/Think
And they decide quickly
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 O11. How much time past between when you started researching and purchased?
35%
44%
13% 8%
Same Day Same Week 1-2 weeks More than 2 weeks
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TIME PASSED BETWEEN RESEARCH AND PURCHASE
79% made a purchase within one week
Google.com/Think 20
how to reach them: Search
Google.com/Think
Search is the #1 resource used by today’s digital driver
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT1. Which of the following sources, if any, did you use to lxook for information on [CATEGORY] using these types of devices? N=1241; RT2. Besides the Internet, which of the following sources, if any, did you use to look for information about [CATEGORY]? N=1241
23% 26%
31% 35% 35%
39%
31% 55%
63% 65%
28% 30% 31%
39% 40% 41% 41%
43% 45%
48% 52%
63% 65%
70%
Radio Magazines
Newspapers Flyers or brochures received at a store
Flyers or brochures received in the mail TV
Salesperson at a dealership Service advisor, Technician, or Mechanic
Family members, friends, and/or colleagues Salesperson at a store
Blogs Newspaper websites
Vehicle service center websites Video sharing websites
Social networking websites Professional automotive review websites
Vehicle dealership websites Automotive parts/accessories brand websites
Consumer-generated reviews online General automotive websites
Vehicle brand websites Automotive parts/accessories retail websites
General retail websites Search engines
Online
In Person
Offline
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ONLINE AND OFFLINE RESOURCES USED
Google.com/Think
Search is a key component in the path to purchase
On average, buyers conduct more queries while shopping
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Parts Query Pathing among parts shoppers and converters, Q4 2012 22
6 10 12 16
6.7 QUERIES Shopped, did not purchase
15.7 QUERIES Purchased
QUERIES
On average, buyers conduct more queries while shopping
Google.com/Think 23
Drivers use a mix of brand and category terms when searching
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Parts Query Pathing among parts shoppers and queries, Q4 2012
CATEGORY TERMS
39%
BRANDED TERMS
18%
18% of shoppers only use branded terms 39% use only category terms 43% use both keyword types while searching
43%
Google.com/Think
Category terms play a key role in the search path
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 Parts Query Pathing among parts converters and queries, Q4 2012 24
Last Query
46%
54%
62%
38%
Assisting Queries
Brand Category Brand Category
Google.com/Think 25
Brand terms capture existing customers, while category searches capture new customers
Prospects Existing customers
BRANDED TERMS 30% 70%
CATEGORY TERMS 90% 10%
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013
BTGC Study, June 2012 – June 2013
DISTRIBUTION OF PAID CLICKS BY CUSTOMER TYPE
Category terms are more likely to drive site visits from prospects than existing customers
Google.com/Think 26
Category terms drive additional conversions, engagement and brand interest
Value of THE IMPRESSION
Value of THE CLICK
Exposed to ad and didn’t click
Exposed to ad and clicked
Site Visits 2x more likely than those who weren’t exposed
5x more likely than those who weren’t exposed
Brand Searches 2x 3x
Product Views 4x 22x
Conversions 4x 28x
Source: Google/Millward Brown Digital Breaking the Glass Ceiling Study June ’12 – June '13 All Brands, All customers, Non-Branded terms
Google.com/Think 27
how to reach them: video
Google.com/Think
Over one third of drivers are actively looking for vehicle parts videos online
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 VI5. In general, how did you first hear about the videos you watched online? Please select one answer only. N=546
3%
3%
3%
4%
5%
5%
5%
7%
7%
9%
12%
14%
22%
I received it via email
I saw it on a vehicle dealership website
I saw it on a vehicle service website
I saw it on a part/accessory brand website
I noticed it on a social networking website
I saw it on a professional review website
I saw it on a general automotive website
I saw it on a vehicle brand website
I saw it on a general retail website
I noticed it on a video sharing website
I saw it on parts/accessories retailer websites
I searched for it on a video sharing website
I searched on a search engine
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HOW CONSUMERS FIRST HEARD ABOUT PARTS VIDEOS
Drivers visit YouTube often and stick around
On average, parts purchasers visit 10 times per
month
They spend 17 minutes on the site on average
Buyers engaging with parts content spend
3 minutes on average with parts
videos per visit
Source: MBD/Google Parts Study, October 2013, Clickstream Video Module. Parts converters
Google.com/Think
They’re looking for DIY tips, more information on product features, and reviews
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT8. Did you watch any videos about [CATEGORY] to help you shop for [CATEGORY]? N=1241 VI4. Which of the following describe the type of videos you watched while shopping for [CATEGORY]? Please select all that apply. N=546
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49% DIY Videos
29% Customer
testimonials & reviews
22% TV ads online
34% Product videos
13% Racing or
sports videos
30% Professional
review videos
Google.com/Think
Drivers move to search for information after viewing parts videos on YouTube
31 Source: MBD/Google Parts Study, October 2013, Clickstream Video Module. Parts converters
0%
5%
10%
15%
20%
25%
30%
35%
5 weeks pre
4 weeks pre
3 weeks pre
2 weeks pre
1 week pre Same Day 1 week post
2 weeks post
3 weeks post
4 weeks post
5 weeks post
Branded Non-‐Branded
Increase in parts searches within the week that videos are
watched
1 in 4 search after watching a parts
video
Google.com/Think
Online videos help drivers discover new brands and move them to buy or visit a store
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 VI8. How much do you agree with each of the following statements about the online videos you watched to learn about [CATEGORY] N= 546 (2013); Top 2 Box; VI7. As a result of watching videos about [CATEGORY] online, which of the following actions, if any, did you perform? Please select all that apply. N=546
Watching online video introduced shopper to new brands
32
67%
Purchased parts/accessories after watching online videos
37% Went to a retailer that sells parts/accessories
34%
Google.com/Think
Complementing TV with online video reaches drivers who are ready to act immediately
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 MI5. How soon after you saw the following ads did you look up the advertiser for [CATEGORY] online to learn more? N= 133, 226
34% 38%
16%
5% 2%
4%
48%
36%
13%
2% 1% 1%
Within 24 hours 1 day to less than 1 week later
1 week to less than 2 weeks later
2 weeks to less than 1 month later
1 month or more later Not Sure
TV ad
Online video ad
33
HOW SOON AFTER YOU SAW THE FOLLOWING ADS DID YOU LOOK UP THE ADVERTISER ONLINE TO LEARN MORE?
Google.com/Think
Automotive parts video research is on the rise and here to stay
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 VI9. How likely would you be to watch videos about [CATEGORY] online the next time you shop for [CATEGORY]? N=546
34
85% of video researchers plan to watch automotive videos the next time they shop for parts/accessories
Google.com/Think 35
how to reach them: mobile
Google.com/Think
Mobile devices are a driver’s constant companion
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT4. When did you use each of the following devices while shopping for [CATEGORY]? Please select all responses that apply for each device. N=339-364
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MIDDLE
END
BEGINNING 43%
45%
36%
54%
48%
31%
Share of purchasers using their mobile phone to research during:
Share of purchasers using their tablet to research during:
Google.com/Think
Drivers use mobile devices throughout the full shopping process, even when in-store
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT12. From which of the following locations did you use your mobile device(s) (e.g., mobile phone and/or tablet) to shop for [CATEGORY]? Please select all that apply. *Base- Selected mobile phone or tablet for at least one source in RT1 N=448
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PROACTIVE RESEARCH REACTIVE RESEARCH SHOWROOMING UP
UNTIL PURCHASE
70% Home
33% Work
27% Service center
17% While stranded
29% In line
32% At a parts store
Google.com/Think
They’re price shopping, driving in-store purchases and researching products
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 RT10. Which of the following, if any, did you do on your tablet while shopping for [CATEGORY]? Please select all that apply. *Base- Selected tablet for at least one source in RT1 N=339; RT10a. Which of the following, if any, did you do on your mobile phone while shopping for [CATEGORY]? N=364; Net N=448
23%
25%
26%
28%
36%
38%
34%
35%
42%
38%
52%
Read 3rd party/consumer reviews
Diagnosed a problem with my vehicle
Watched a part/accessory review or video
Checked part/accessory warranty information
Searched for parts/accessories by vehicle
Compared part/accessory features
Checked prices at other locations
Checked availability for in-store pickup
Looked up stores hours of operation
Looked for discounts/offers
Looked up pricing information
38
ACTIVITIES CONDUCED ON MOBILE DEVICES
Price shopping
Mobile to store
Product research
Google.com/Think
Mobile advertising drives brand consideration and influences purchase
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 MI3. What role did each of the following advertisements play while shopping for [CATEGORY] N=162
4%
21%
22%
25%
25%
26%
28%
30%
None of these
Prompted me to check my current parts/accessories to see if they needed to be replaced
Prompted me to visit the website of the advertiser
Prompted me to visit the advertisers retail location
Encouraged me to purchase parts/accessories
Prompted me to search online for information
Prompted me to contact the advertiser
Encouraged me to consider the brand that was advertised
39
ACTIONS TAKEN AFTER SEEING A MOBILE AD
1 in 4 parts shoppers are prompted to purchase after seeing a mobile ad
Google.com/Think
Drivers are cross-screen shoppers
Source: Millward Brown Digital/Google Auto Parts/Accessories Purchase Study, August 2013 MI4. Thinking about the last time you saw each of the following types of advertisements, did you then look up the [CATEGORY] advertiser to get more information? N=68
40
SCREENS DRIVERS MOVED TO AFTER SEEING A MOBILE AD
62% of drivers that see a mobile ad
move to another screen to learn more
Tablet 9%
No 4%
Mobile phone 28%
Not sure 28%
Desktop 53%
Google.com/Think
WHAT THIS MEANS FOR MARKETERS
Reaching today’s digital driver Drivers research online and make their decisions quickly — having an always-on digital presence is critical to catch consumers when they are deciding
Get considered with search Parts retailers can get in the consideration set as drivers search on category terms. Be there on paid generic, category search terms to drive new customers and demand for your brand
Engage and educate with online video Provide instruction videos and product videos to help bring your offerings to life for potential customers
Be there across all screens Having a cohesive cross-device strategy is critical in reaching drivers — make it easy for them to move between screens while they research and buy
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Google.com/Think 42
Turning insights into action
Next Steps
Get considered with search • How is their brand vs. non-brand coverage?
Engage & educate with video
• Are they YouTube crawling, walking, running? Set up a follow up meeting for the YouTube story?
Connect across screens
• Follow up with a mobile scorecard
Google.com/Think 43
Methodology – Brands With Actions vs. Without clickstream analysis
Brands with Actions: MBD measured actions on these 20 sites (i.e. purchases, store locator, etc.). Anytime we mention “converters” or conjunction with clickstream data we are referring to people who purchased on one of these 20 sites. We were limited to 20 sites with actions per the parameters of the study.
Brands without Actions: We tracked visitation to these sites, however did not track actions (e.g. purchases or store locator). Whenever you see data based on conversions/purchases – these sites are NOT included.
Google.com/Think 44
Methodology – Parts Definitions clickstream analysis
Brands with Ac.ons Brands with Actions 1A Auto
Advance Auto Parts Amazon
Auto Anything Auto Parts Warehouse
AutoZone BuyAutoParts
Car ID eBay Motors
Empire Covers eTrailer
Interstate Batteries JC Whitney
NAPA O'Reilly Auto Parts
Pep Boys Summit Racing
Walmart weathertech.com
XTreme Diesel Performance
Actions KPI - Chat
KPI - Coupons KPI - News
KPI - Product Page Conversion – Schedule Appointment
Conversion - Store Locator Conversion - Add to Cart Conversion - Purchase
Google.com/Think 45
Methodology – Parts Definition Clickstream analysis
Brands without Actions Bike Bandit
Camping World Cheap Cycle Parts
Covers Direct Eastwood J&P Cycles
Jeep 4x4 Center Jegs
Motorcycle Superstore Parts Geek
Revzilla Rock Auto
Transamerican Auto Parts Truck Add Ons
Google.com/Think 46
Methodology – Parts Brand Categories clickstream analysis
Brick & Mortar: Advance Auto Parts, AutoZone, Interstate Batteries, NAPA, O’Reilly, Pep Boys, Walmart E-Commerce Only: 1AAuto, Amazon, Auto Anything, Auto Parts Warehouse, BuyAutoParts, CarID, eBay Parts, Empire Covers, eTrailer, ExtremeDiesel, JC Whitney, Summit Racing, Weathertech.com