Yahoo! and Compete, Inc. Find Internet Search Plays Key Role in Automotive Research and Purchase Decisions

Business Wire, Sept 8, 2005

PASADENA, Calif. -- Yahoo! Inc., a leading global Internet company, and Compete, Inc., a company that extends online market research to transform the way consumers and brands communicate, today announced key findings from a new study entitled, "Search, A Critical Component in the Auto Purchase Process." The study, which tracked Internet search and transaction activity over a 12-month period, found that search plays a key role in the research and purchase decision making process of consumers in the market for a new or used vehicle.

For the study, Compete analyzed the online behavior of its panel of two million Internet users and conducted a survey of over 840 Internet users that used search to research a recent automotive purchase or lease of a new or used vehicle. The study observed both Web search and sponsored search activity across Yahoo!, Google, Ask Jeeves, MSN, Lycos and Hotbot. Purchase behavior was tracked on 17 leading OEM (Original Equipment Manufacturer) sites as well as nine third-party automotive research Web sites such as autos.yahoo.com and AutoTrader.com.

Key findings from the study include:

--One in five unique automotive visitors arrives at automotive Web sites through search. Between July 2004 and June 2005, an average of 25 million people per month sought automotive information on one or more of 26 automotive sites tracked in the study. Within that period, search was responsible for delivering 19.1% of visitors to automotive Web sites.

--Automotive purchasers depend on search as a valuable research tool. Nearly 70% of automotive researchers who purchased a vehicle said search was the first place they turned to for research. The majority also noted search results were instrumental in helping them find useful information regarding their vehicle purchase.

--Search results influence consumers during the vehicle purchase process. Among automotive researchers who purchased a vehicle, search was considered the most credible source in helping with their auto purchase process. Close to 70% said they used search throughout the entire research and purchase process and half of all buyers stated search helped them narrow down the list of vehicles they were considering before purchase.

--Consumers who use search to research vehicle purchases are more engaged. Vehicle researchers who arrived at automotive Web sites via search engines view more than twice the number of pages per session and spend twice as much time on online automotive content.

"Auto buyers are increasingly leveraging search to simplify their auto shopping process," said Don Aydon, Automotive Category Director for Yahoo! Search Marketing. "We believe this research will help auto marketers better understand how search can help them reach actively engaged auto shoppers and influence their purchase decisions even earlier in their shopping process than initially expected."

"The Internet is a critical resource for consumers while researching their next vehicle purchase. Search plays an integral role in this online research process. Automotive marketers who embrace and leverage online consumer shopping behavior benefit from greater sales, market share and profitability," said Frank Hanenberger, a Director with Compete's automotive practice.

About Yahoo!

Yahoo! Inc. is the No. 1 Internet brand globally and the most trafficked Internet destination. Headquartered in Sunnyvale, Calif., Yahoo!'s mission is to provide online products and services essential to consumers' lives and offer a full range of marketing solutions to enable businesses to connect with Yahoo!'s hundreds of millions of users worldwide.

About Compete

Compete, Inc. extends online market research to transform the way consumers and brands communicate. By combining permission marketing, predictive analytics and the industry's largest consumer behavior database, Compete helps marketers identify and reach their target consumers. Compete delivers conversant marketing solutions that increase profitability and customer loyalty and result in measurable and effective marketing programs. Compete delivers these solutions to leading brands such as Carlson Hotels Worldwide, DaimlerChrysler, Hyundai Motor America, Toyota Financial Services and UPromise(R), among others. Compete is headquartered in Boston, Massachusetts, with offices throughout the US. For more information, please visit http://www.compete.com.