Tremor Video, Inc. (NYSE: TRMR), a leading provider of technology-driven video advertising solutions, today released the findings of a recent research study conducted to explore the role of online video advertising in the shopping process across three verticals, with the first installment focusing on automotive. As consumers’ behaviors change, they are doing more research and have become smarter, savvier, and much more informed when it comes to their purchasing decisions. This influx of available information creates more consumer choice and a challenging landscape for marketers.
“With the explosion of video, marketers can expand from text and image to sight, sound and motion to bring the emotion out,” said Ryan Van Fleet, Director of Insights and Analytics at Tremor Video. “This study aimed to understand the powerful shift occurring in the way that consumers engage with brands through online video, especially around the automotive shopping process.”
The study, a comprehensive analysis of behavioral and attitudinal data, was completed between May and September of 2013. The behavioral analysis, conducted by MillwardBrown Digital, identified video viewing patterns of potential auto shoppers within its clickstream data. The attitudinal phase, conducted by Frank N. Magid Associates, expanded upon the behavioral analysis with an in depth focus group, which was then validated using a nationally representative survey of 900 adults, 18-54 years old who watch online video one or more times per week.
Among the findings:
- 66% of auto shoppers stated that online video was important to their research process.
- 58% consumers start their digital research process directly on manufacturers’ site, and over half engage in an online research process of 3-6 months.
- Additionally, the longer the process, the more auto video is consumed. An average shopper consumes 5 auto videos over the course of the purchase process, 1/3 of which are video ads.
- 46% of auto shoppers said that video ads, across screens, were important in their discovery phase – equal to automotive TV commercials (45%) and the dealership experience (46%).
- Video ads, across devices, ranked second compared to visiting the dealership for forming opinions and making the final decision
- Online video’s role in the marketing mix is critical.
- As more automotive companies have a wider range of segments of competing nameplates, gone are the days of going to a particular brand for a certain segment. The concept of loyal-for-life consumers is shrinking fast and marketers need to produce more relevant, quality content with emotional storylines to gain consumers’ attention and keep them engaged.
- Consumers use video as a resource in every stage of the shopping process, including post-purchase. It is important for manufactures to provide easily accessible video content to guide consumers throughout.