By David Toscano, Trade Content Editor, carsales.com.au
It was an Easter long weekend like no other in living memory, with Australians across the country heeding government appeals and restrictions, and staying home. Despite the measures, housebound online car shopping on carsales remained solid in mid-April, and signs of greater market optimism began to emerge.
In the week to April 16, 2020, carsales served 5.2 million sessions, an increase of 4% over the previous week. Over 61.4m searches were conducted, an increase of 11.4% over the previous week, while buyers executed over 13.2m detailed views, up 11.1% on the previous week.1
In an onsite carsales survey of 1816 people on April 16, 2020, 53.4% of respondents indicated that they were looking to buy within the next month, (up 14% since the same survey conducted between April 1-2), with 18.6% looking to buy right now.2
“The results from our onsite consumer survey show that purchase intention remains strong and this is reflected in improved search, view and lead volumes, particularly post Easter,” explains Kellie Cordner, Chief Marketing Officer at carsales.
“Traffic to site is now almost on par with the same time in 2019.
“It’s early days, but these audience and engagement metrics may indicate a gradual improvement in consumer sentiment,” she added.
According to the survey, chief among consumer concerns related to car buying were the COVID related travel restrictions.
“Our study suggests clarity over whether buyers can test drive cars and or visit dealerships will have a positive effect on the Australian auto marketplace,” carsales Executive Director Dealer, Michael Holmes stated.
Aftersales traffic presents dealers with sales opportunities
“There’s also clear evidence that dealers that have been able to be more flexible in their processes and pivot to take advantage of virtual showroom tools such as video, SMS and the new carsales listing badges, video inspections and phone deposits, are meeting customer needs and still shifting inventory,” continues Holmes.
“We’ve also heard from dealers across the country that aftersales traffic remains strong and even bolstered by increased marketing in above-the-line channels and contextual auto environments such as carsales.com.au,” he added.
“This presents dealers with a great opportunity to develop stronger relationships, update customer databases and re-engage vehicle owners with marketing and retail offers – now and into the future.
“Many of these owners will discover the need for a new car in the coming months, as movement restrictions loosen and needs and lifestyles re-evaluated,” says Holmes.
‘Aspirational mainstream’ makes bounce back
Australia is rediscovering ‘aspirational’ mainstream brands.
Between April 10-16, 2020, 91% of makes listed on carsales recorded an increase in total view volume (week on week). The big winners included Volvo, with the Swedish brand up 12,000 views or 52% week-on-week.3
During this period, it was Mazda and Volkswagen, with increases of 16,000 and 13,000 views respectively that highlighted the return of buyer attention to Top 10 makes. Czech brand Skoda also registered an increase of over 30% in its view volume, compared to the previous week. 3
“These results are positive signs of broader market optimism and a return of more ‘normal’ buyer behaviour” explains Jeremy Moger, Head of Insights at carsales.
“Views of well-known prestige makes such as Mercedes-Benz and BMW have remained strong in the COVID-19 period, increasing their share at the expense of mainstream makes. But, it’s the dramatic performance improvement of Mazda, Volkswagen and Skoda over the past week that suggests that wider market confidence is on the comeback,” Moger adds.
The positive trends in inventory views is also mirrored by an uptick in ad engagement on carsales, according to Vanya Mariani, General Manager – Auto OEM & Media at carsales.
“We saw from the recent carsales.com.au consumer surveys that purchase intent remains strong in the short to medium term, and that housebound in-market buyers are still taking their time to understand the lay of the land, form a shortlist and evaluate the options that best meet their needs,” Mariani adds.
“In-market buyers are very interested in what brands have to say right now.
“And with inventory views on the rebound, there’s tremendous opportunity for brands to influence buyers with engaging, entertaining and cost-effective placements, such as video and content amplification seeded within search results,” concludes Mariani.
Record editorial engagement
March was a great month for content on carsales. Despite the COVID-19 downturn impacting the audience of many auto publishers, carsales editorial sessions increased 21% on February 2020, to a new record total. Unique audience on carsales editorial content also increased 27% compared to February 2020 – delivering another record.4
“Engagement with carsales news, reviews and advice was very strong in March and our editorial base is growing,” says Mike Sinclair, Editor in Chief at carsales.
“Housebound consumers are utilizing carsales editorial content to better understand the merits of different models, makes and segments. Our written and video reviews continue to inspire, entertain and educate a broad range of Australian car buyers.
“Whether they’re mums and dads or first time buyers on the car buying journey with limited auto understanding, or knowledgeable enthusiasts searching for their next upgrade, consumers are coming to carsales as the trusted source,” Sinclair stated.
“The increase in carsales Editorial engagement speaks for itself – quality content wins every time and there has been no letup in this period.
The proximity of our editorial content to dealer inventory cements its increasing importance and influence in the car buying journey. With just one click, buyers can transition from an editorial article to a dealer’s virtual showroom, and make an informed decision – all from the comfort of home,” concluded Sinclair.
Source:
1. carsales internal data, April 3-9, 2020 compared to April 10-16, 2020
2. carsales.com.au onsite pop up survey, April 16, 2020 (n=1,816)
3. carsales internal data, April 3-9, 2020 compared to April 10-16, 2020
4. Nielsen monthly tagged DCR, February 2020 compared to March 2020