Online Video Drives New Car Purchases

globeandmailrecently published an interview with Bonita Stewart, Director of U.S. Sales, Google where she elaborated on recent research undertaken by Google and Polk (leading online auto info player) which highlighted the importance of online video in car purchasing decisions.

Key findings included comment that 83 per cent of new-vehicle buyers visited video-focused websites prior to purchase. Unsuprisingly nearly every buyer today uses a manufacturer’s or a third-party site during the purchasing process, however 55 per cent of new-car buyers actually switched brands after doing research online. Read the full interview .

Here in New Zealand many of the car manufacturer sites are now including upfront video and using video within their online advertising creatives, which is encouraging. From our small business perspective we have created a number of online video solutions for car dealers to drive conversions and new buyers and purchasing. See IndyCars and MotoGB videos  Another good example of car video (used, new and news) can be seen on Auto Trader where many  ‘cars for sale videos and dealer videos’ can be seen.

Kiwi Car Dealers Embracing Video

Over 600 online video’s of New Zealand cars have been produced by Silverlinemedia.tv over since July 1 and now we are seeing car dealers embracing video to present their dealerships benefits and offers.  Several video ads can be seen live on the autotrader.co.nz website from the likes of Pinnacle Cars, Kepplers Cars and Ebbetts.

This wave of embracement in New Zealand quickly follows on from a US report by the Kelsley Group earlier in the year which showed in the US a third off all dealers were already taking advantage of video.  The survey reported 59% of dealers planned to use video on their own websites within the next 12 months

The rational for this explosion. Is simple. Our view that video increases conversions for websites is supported by Larry Pryg, the National Marketing Manager for GM’s certified-used auto business has stated that “Video is exploding,” and that when it comes to used cars, dealer websites that have video are 2X more likely to generate phone calls or emails from prospective shoppers vs. websites just using still pictures.