Total North American auto sales are down 32% from October 2007 to October 2008 with November’s sales forecast not showing much improvement.
As the stock market continues its downward spiral and economic conditions deteriorate, consumers are talking online about holding tight to their wallets and are less likely to make a big purchase such as a vehicle.
The number of consumers that were seeking vehicle information on sites like AOL Autos, MSN Autos and Yahoo Autos began to decline around the June - July timeframe, which is exactly the same time that vehicle sales and the stock market began to fall. The unique audience levels for AOL Autos and MSN Autos have a strong correlation to vehicle sales especially in the last 3-months (1.0; 0.90 respectively); however, Yahoo Autos seems to be quite unique in the sense that over the last 12-months and even more recently there is no correlation between visits and sales (0.01, last 3-months).
The Dow Jones Industrial Average (DJIA) when compared to vehicle sales over the last 12-months is showing a solid correlation (0.75) and an even stronger correlation (0.96) within the last 6-months.
What’s interesting is that MSN Autos and Yahoo Autos witnessed a slight uptick in visitors (unique audience) from September to October, which indicates a renewed interest on the part of vehicle shoppers, perhaps due to recent incentives or falling gas prices. A similar phenomenon is occurring when comparing total online automotive ad impressions to vehicle sales as there is a strong rolling 6-month correlation up until the September and October timeframe when auto sales go down but ad impressions remain constant.
Regardless, the increase in shopping behavior and automotive online ad exposure may be a good sign for automakers as we close out the year. Many automakers and dealers are counting on this behavior translating to sales just in time for the holidays.
*Source: Nielsen Online Services: NetView, US Home & Work; AdRelevance; BuzzMetrics.
Tags: aol, auto, msn, yahoo
Social media continues to grow at a rapid pace. Facebook, for example, enjoyed a 115% increase in unique audience from September 2007 to September 2008 and a 66% increase in online discussion from December 2007 to October 2008.
As some of the largest advertisers in the world, it is important for the automotive manufacturers to understand the growth in this area. When looking at these audiences - and whether they are appropriate for an ad campaign or social media group - it is also interesting to understand what types of vehicles these visitors are more or less likely to own.
Facebook visitors are more likely to own a VW, Audi or Subaru, while myspace visitors are more likely to own a Mitsubishi or Pontiac. Facebook and myspace visitors are less likely than the average Internet user to own a Saab, Lexus, Cadillac or Lincoln .
*Source: Nielsen Online Services: @Plan Fall 2008, NetView US Home & Work; and BuzzMetrics.
Tags: auto, car, facebook, myspace
We have a perfect storm at the moment with historically high gas prices (though on their way down), a plunging stock market, tight credit, and a growing demand for more fuel-efficient vehicles, but a lack of fuel-efficient vehicles on dealers’ lots.
How will the “Big 3″ that we know today fare in the future, given this environment? Online, consumers discuss how GM, Chrysler and Ford rely heavily on trucks and SUVs, and how they themselves are struggling with how to off-load their current vehicles in order to purchase smaller, more fuel-efficient ones. The recent $25 billion government auto loan has spurred a heated online debate with most hypothesizing how Detroit would look if a potential merger were to occur between GM & Chrysler and what vehicles would survive.
GM has a lot riding on their much-anticipated electric car, the Volt, which Bob Lutz has promised will be available in 2010. The Volt is only one of many topics swirling around GM lately, while mergers, government loans, plant closures, the UAW, GMAC, and their 100th anniversary also drive buzz.
What are your thoughts on a GM & Chrysler merger?
Tags: chrysler, detroit, gas prices, GM, volt
During June 2008, the top 5 automotive sites remain the same with regards to total unique visitors, while the order has changed slightly as indicated in the graph below. Yahoo! Autos witnessed a significant increase in unique visitors from May to June (+24.2%), while AOL Auto has the most loyal repeat visitors from May to June (36.88%).
Interest in Autoblog, a highly-influential CGM site, continues to witness an upward trend over the last 13 months with an increase of roughly 50% in unique visitors from June ‘07 to June ‘08. Autoblog has moved from 11th most visited auto site in May, to 9th in June, surpassing Automotive.com. The growing interest in Autoblog is yet another confirmation of how important CGM is in today’s fast-paced world.
Note: Number in parentheses indicates May ranking in auto sites category.
Tags: auto, autoblog, cgm
The majority of consumers are feeling the pinch at the pump with gas prices rising above $4 a gallon. Auto manufacturers and dealers are scrambling to offer incentives that address the sharp increase in gas prices while enticing shoppers to purchase a new vehicle.
Suzuki began offering a free summer gas incentive on May 1, 2008. Online discussion for this campaign is garnering minimal buzz online, but those that are talking feel that this campaign is a “gimmick” that could backfire on the auto manufacturer. On May 7, 2008, Chrysler followed suit with a similar gas incentive called “Let’s Refuel America.” Conversation online is rather robust for this program, but unfortunately most consumers view this as a “gimmick,” as well, and a way to off-load a current line-up of vehicles that aren’t fuel efficient.
In consumers’ eyes, the $2.99 gas incentive is a good deal when considering a diesel from Chrysler since the cost of diesel is higher than regular gas. However, others suggest that simply buying a vehicle that is slightly more fuel efficient would more than make up the gas savings versus this offer.
On Tuesday, June 24th, at 2:00 p.m. EST, we will uncover how consumers are reacting to high gas prices relative to their driving habits and automotive purchase considerations. If you are interested in joining this free online Webinar, please click here to register.
Tags: chrysler, gas prices, incentive
