AUTO RETAILERS PLAYBOOK - 3RD PARTY FALL 2021
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FA L L 2 0 2 1 3RD PARTY AUTO RETAILERS PLAYBOOK
PURPOSE
The This presentation provides an overview of the
digitization 3rd Party Auto
of the Auto consumer journey has led Retailer marketplace
to the growth of 3rd Party Retailers. and NBCU solutions for the challenges.
2 2TABLE OF CONTENTS
1. 2. NBCU
Marketplace Strategic Solutions
3MARKETPLACE
An overview of the 3rd Party Auto Retailer landscape including the
opportunities and challenges
4NOW IS THE TIME
The car buying process is moving online, with
FOR 3RD PARTY a focus on used cars
AUTO RETAILERS
Brand and Product Diffusion
Headwind
Search volume is up
With rising consumer interest
As sales continue to soften for many fashion houses, new
and shifting marketplace
conditions, 3rd Party Auto Retailers brands or goods with lower price points continue to be a
are experiencing success lever of growth, sometimes at the expense of brand
3rd Party sitesimage
are indispensable to the
consumer journey
Consumers see them as trustworthy, offering
good warranties, and convenient
5THE CURRENT CAR BUYING PROCESS IS
SHIFTING IN FAVOR OF 3RD PARTY AUTO RETAILERS
DIGITAL ACCELERATION SHORTENED PURCHASE PROCESS
64% of shoppers want to do more of the Car buyers are spending 13h 13m in the purchase
purchase process online the next time they process in 2020 vs. 14h 53m in 20192
buy a vehicle1
USED CAR GROWTH NEW SOURCES FOR EXPLORATION
57% of vehicle buyers looked at both new Dealership visitation fell an avg of 7% YoY
and used vehicles in 2020 vs. 53% in 20192 since 2016 while online retailer use
increased an avg of 5% YoY2
Source: 1) Cox Automotive, As the Car-Buying Process Moves Online, Satisfaction Jumps to an All-
Time High, February 1, 2021; 2) Cox Automotive Car Buyer Journey Study: February 2021. 6CONSUMERS ARE INCREASINGLY INTERESTED
IN 3RD PARTY AUTO RETAILERS
Search Volume has Risen to a 4-year High
Google Search Trends – Inventory Google Search Trends – Non-Inventory
2017 - May 2021 2017 - May 2021
100
100 Pandemic
Pandemic
90
90
80
80
70
Search Index Value
70
Search Index Value
60
60
50
50
40
40
30
30
20
20
10
10
0
0
1/1/2017
4/1/2017
7/1/2017
1/1/2018
4/1/2018
7/1/2018
1/1/2019
4/1/2019
7/1/2019
1/1/2020
4/1/2020
7/1/2020
1/1/2021
4/1/2021
10/1/2017
10/1/2018
10/1/2019
10/1/2020
1/1/2017
4/1/2017
7/1/2017
1/1/2018
4/1/2018
7/1/2018
1/1/2019
4/1/2019
7/1/2019
1/1/2020
4/1/2020
7/1/2020
1/1/2021
4/1/2021
10/1/2017
10/1/2018
10/1/2019
10/1/2020
CarMax Carvana DriveTime Vroom CarGurus Autotrader TrueCar Cars.com
7
Source: Google Trends (pulled 5/18/2021). Note: search trends do not seem to be correlated with media spend.3RD PARTY WEBSITES ARE A CRITICAL
TOUCHPOINT IN THE SHOPPING EXPERIENCE
First & Last Website Visited Among New and Used Vehicle Buyers
3rd party websites are the
5%
13% 6% most common
9% first and last website visited
Google Sites
OEM Sites
56%
80%
61% of all car buyers visit them during the shopping process
Third-Party Sites
Dealership Sites
Consumers use these websites to get ideas, research
33% more objective information, and more often, complete
17% some or all of the buying process
First Last
Source: Cox Automotive, 2019 Car Buyer Journey Study; Cox Automotive, 2020 Car Buyer Journey Study: Pandemic Edition 8A CONSUMER-FOCUSED APPROACH IS FUELING GROWTH
TRANSPARENCY WARRANTY CONVENIENCE
Consumers trust a brand that is A vehicle warranty provides peace of A low-pressure sales environment
transparent and appears to truly mind and adds to a brand’s helps car buyers feel heard and able to
have their best interest at heart perception as trustworthy and reliable choose a car that best meets their needs
CarMax Example:
Of buyers said, “They had an easy
Of buyers said, “I trusted this Of buyers said, “They gave me a good
purchasing process,” vs. 21% for a
seller,” vs. 37% for a traditional warranty,” vs. 17% for a traditional
traditional dealership, and 21% for a
dealership, and 31% for a dealer group dealership, and 19% for a dealer group
dealer group
Source: Mintel, Dealerships and Third-Party Car Buying, Including Impact of COVID-19 – US, August 2020
9“Where was the most recently acquired vehicle in your
…ESPECIALLY household purchased?”
AMONG YOUNGER,
DIGITALLY NATIVE 16%
CONSUMERS 15%
13%
12%
“I think of them [third party auto 9%
retailers] as convenient and 8%
trustworthy. They’re not pushy and
urgent like typical car dealerships.” 6% 6%
- Female, 18-24
3% 3% 3%
2% 2%
1% 1%
18-24 25-34 35-44 45-54 55+
Any third-party car dealer CarMax Carvana
10
Source: Mintel, Dealerships and Third-Party Car Buying, Including Impact of COVID-19 – US, August 2020HOWEVER, THERE IS A SIGNIFICANT GAP BETWEEN
AWARENESS AND CONSIDERATION FOR ALL BRANDS
3rd Party Auto Retailers Need to Focus on Middle-funnel Tactics
Key Objectives
AWARENESS 54.8%
CONSIDERATION 11.5%
0.7%
Source: YouGov. Brand Index. 2020 Calendar Year vs 2019 Calendar Year. NBCU Viewers vs non-NBCU Viewers. 11C O N S I D E R AT I O N U S E D T O B E D R I V E N B Y A S U P E R I O R W E B S I T E ,
NOW IT NEEDS TO COME FROM MARKETING
9 Points
separate the top 6 websites (vs. 38 in 2013)
Overall Customer Satisfaction Website Index Ranking
800
790 2018 New Brand Campaign
780
Marketing
770
760
750
2019 New Brand Campaign
740
730
720
710
Autoblog Segment CarFax TrueCar Edmunds CarGurus Cars.com Kelley Blue AutoTrader
Average Book 2020 Full Rebrand
Source: JD Power 2020 US Automotive Website Evaluation Study 12NBCU STRATEGIC SOLUTIONS
Media Solutions Addressing 3rd Party Auto Challenges
133RD PARTY AUTO RETAILERS FACE UNIQUE CHALLENGES
Marketplace Quickened Leaving a smaller window to reach in-market buyers during their
Purchase Process decision process
Low
Giving consumers little reason to choose one brand over another
Differentiation
Business
Middle Funnel Resulting in a steep decline between awareness, consideration, and
Conundrum purchase intent
Crowded
Leading to difficulty breaking through the noise
Media Landscape
14NBCU CAN HELP ADDRESS THESE CHALLENGES…
Build brand association Establish your unique Engage high value Motivate audiences
among potential in- value proposition and audiences at scale with actionable content
market buyers through become top-of-mind
cultural relevance
15WITH SOLUTIONS THAT BUILD BRAND AND DRIVE ACTION
TENTPOLES TALENT AS ADVANCED APPLE
INFLUENCERS TARGETING NEWS
STREAMING
& SPORTS
Utilize commercial Educate consumers by Engage your target Target Auto Intenders on
innovation within a creating custom content audiences through their Apple News and drive
tentpole or Sports event with relevant NBCU decision journey across immediate action via tap-
to stand out and get talent using your brand screens leveraging a to dealer maps and
people talking and its suite of surround sound model discovery units
functionality approach
16THANK YOU
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