MARKET INSIGHTS DECEMBER 2020 - COX AUTOMOTIVE AUSTRALIA RETAIL SOLUTIONS - Dealer Solutions Storage!
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MARKET INSIGHTS COX AUTOMOTIVE AUSTRALIA RETAIL SOLUTIONS DECEMBER 2020
2.
CONTENTS
CONTENTS
A • AUTOMOTIVE MARKET INSIGHTS
A snapshot of used vehicle market performance from March to May 2020 providing
insights into buyers’ behaviours during the peak of the COVID-19 crisis
B • WEBSITES
Insights of consumer activity and behaviour from our 700+ websites across our dealer
platform
C • DIGITAL ADVERTISING
Understanding the correlation and impacts between online marketing spend by dealers
and campaign performance across Google and Facebook
• DEFINITIONS
DELISTED VEHICLES: Delisted Vehicles is an indicator on the volume of vehicles being sold in a given month. While some
vehicles are re-listed, the number is not statistically significant to impact this definition.
ACTIVE VEHICLES: Active vehicles is an indicator on the volume of vehicles listed for sale online via our platform in a given
month.
AVERAGE DAYS IN STOCK: The average days in stock is an indicator of how long active vehicles are listed for sale in the market.
3.
INTRO
HI THERE!
800
+
Well it’s been quite a year of lows and highs which thankfully seems to be ironing out to a steady
trajectory and hopefully a more positive 2021. Used car sales are now tracking at where they were DE
HOS ALER W
TED
this time last year after peaking in July and August and seem to have stabilised. With additional OEM & M EBSITE
O U R A N AG S
TEA ED B
stock arriving in the new year, we expect the volumes to continue in this trend however gross margin M Y
108K
to compress slightly.
+
November 2020 reported a 3.7% increase in used car sales compared to October 2020. Compared to
the same period last year the number sales increased 1.1% from November 2019 to November 2020, an USE
UNIQ D | D E M
indication market confidence is back. UE A O|N
IN O CTIVE EW
UR P VE
LATF HICLES
Dealership enquiry and leads are up and market sentiment continues to be strong. Your dealership ORM
website is proving to be a great source of quality traffic converting at a much more effective cost per
lead.
The year finishes with Australia out of technical recession which is fantastic news and may it long
remain that way.
I hope you enjoy reading our insights report and please do not hesitate to provide any feedback.
32M
AD I
+
445
MPR
ES S
IONS
WEB K+
SITE
S
C R E ES S I O N
AT E
MICHAEL SOMMERTON D S
Chief Executive Officer
Cox Automotive Australia Retail Solutions
4.
ABOUT
COX AUTOMOTIVE AUSTRALIA RETAIL SOLUTIONS
Digipurple is our automotive retail agency We are Australia’s largest independent Bringing almost 90 years of experience in
focused on leveraging all our Dealer data aggregator. We specialise in creating vehicle valuations to consumers
Solutions products to provide industry inventory distribution providing unbiased in the U.S., Kelley Blue Book is now in
leading and digital marketing solutions for data management for market-leading Australia and is a key player of the Cox
dealers. destinations. Automotive Australia Retail Solutions
portfolio.
Our team of digital marketing experts From inventory management, the
provide automotive dealers and OEMs latest on websites, a fully functional With unparalleled abilities for evaluating
with customised digital marketing dealer management system (DMS) and, market data into one of the industry's
solutions to boost dealers website professional photography, we power most reliable and relevant resources for
sessions, engagement with customers our customers to take control of their the Australian Automotive Industry, Kelley
and sales through their websites. business. Blue Book can help you make valuation
decisions with confidence.
5.
SUMMARY
What we are learning!
USED CARS WEBSITE PERFORMANCE
Our data indicates that active listings in Dealers using Facebook Marketplace
November 2020 (68,081 cars) decreased by and Inventory Ads at the same time saw
17.8% compared the same period last year. consistent and better website traffic,
incrased website leads and received more
In November 2019, the average number of phone calls from customers, compared to
active listings was 89,829 cars. dealears that do not use Facebook.
ONLINE AD COSTS
DAYS IN STOCK
On average, it took 19 days for dealers to sell
The cost to get a from submission or a
vehicles in November 2020 compared to 17
phone call directly from a dealer website
days during the same period last year.
during Sep-Nov 2020 was 27% cheaper
than in the same period last year.
6.
INSIGHTS
AUTOMOTIVE
MARKET INSIGHTS
A snapshot of used vehicle market performance
providing insights into buyer behaviour during and after
the peak of the COVID-19 crisis.
NEW
Optimise your used car
profitability with AutoRadar
Take control of the destiny of your used car
operations, gain a deeper understanding
of the metrics that drive them and
maximise gross profit by stocking the cars
that consumers want with the power of
AutoRadar.
Use AutoRadar to answer key
questions:
What has been happening with that
exact vehicle in the last 45+ plus days?
How long have the cars taken to move
off the market?
How many pricing changes were my
competitors making and did those
prices fluctuate?
DISCOVER AUTORADAR
8.
MARKET SENTIMENT
“
AutoRadar has been a great tool for us with
being able to value trade-ins and also prepare
for purchasing. The valuations are accurate What our
and the best thing is they keep on developing customers are
and adding new features, which gives us great telling us
confidence that we are paying for a quality
product.”
- Abdullah Mahmud
Managing Director at National Vehicles
9.
INSIGHTS
Trending ahead of pre-Covid average
The delisted vehicles day-on-day variance (fig A) shows positive growth in day on day
sales volumes (fig B) but it is seeing resistance at 0.5% and possibly starting a downward
trend to 0% which indicates a likely stabilisation of sales volumes in December around
the 1,850 mark which is still ahead of the pre-COVID average of 1,757 vehicles per day.
FIGURE A | DELISTED DAY ON DAY VARIANCE FIGURE B | DELISTED 30 DAY ROLLING AVERAGE AUSTRALIA
10.
INSIGHTS
Delisted used vehicles
November 2020 reported a 3.7% increase
in delisted vehicles compared to October
55,449 56,083
2020.
NOV
54,069
NOV
2019 2020 Compared to the same period last year
OCT the number of delisted used vehicles
2020
increased 1.1% from November 2019 to
November 2020.
Definition: Delisted Vehicles is an indicator on the volume of vehicles being sold
in a given month. While some vehicles are re-listed, the number is not statistically
significant to impact this definition.11.
INSIGHTS
Active used vehicles
There was a 0.4% decline in active
listings in November 2020 compared to
82,829 its previous month.
68,337 68,081
Compared to Novemer last year, the
number of active listings in November
2020 decreased by 17.8%.
NOV 2019 OCT 2020 NOV 2020
Definition: Active vehicles is an indicator on the volume of vehicles listed for sale
online via our platform in a given month.12.
INSIGHTS
Average days in stock for
used vehicles
On average, active vehicles were listed
in the market for 19 days in November
21 DAYS 2020.
19 DAYS
17 DAYS
In November 2019, active vehicles were
listed for 17 days.
NOV 2019 OCT 2020 NOV 2020
Definition: The average days in stock is an indicator of how long active vehicles
are listed for sale in the market.13.
WEBSITES
AUTOMOTIVE
WEBSITES
Insights of consumer activity and
behaviour from our 800+ websites
across our dealer website platform.14.
MARKET SENTIMENT
“Hi Vlad...just like to say that I'm
very happy with all the effort.
What our
It is the best thing Gold Coast Car customers are
Sales did by changing our website telling us
with Dealer Solutions."
PAUL MURRAY • OWNER
GOLD COAST CAR SALES15.
WEBSITES
Unique users
9%
4.1% The number of unique visitors to our
website platform increased 9% in
November 2020 compared to October.
November has been the second highest
month of 2020, after June, for visits to
our website platform.
SEP 2020 OCT 2020 NOV 202016.
WEBSITES
Average leads
7.5%
After trending down since June, the
-6.6%
average leads per dealership website
have started to rise again with a 7.5%
increase from October to November
2020.
SEP 2020 OCT 2020 NOV 2020
Definition: Average leads measures the average number of leads received
across individual websites hosted on our Modular platform.17.
WEBSITES
Total leads
Tracking in line with the increased users
4.3% in November, a rise in consumer activity
0.3%
has been evident with a 4.3% increase in
total leads from October to November
2020.
SEP 2020 OCT 2020 NOV 202018.
WEBSITES
Conversion rates
The conversion rate across our website
platform continues to trend down slightly
into November which aligns to the large
3.95%
SEP2020 increase in unique users delivering a
3.81%
OCT 2020 3.28% lower conversion rate.
NOV 202019.
WEBSITES
Lead types
After seeing a spike in inventory lead
6.8% types in October, November saw a
reversal on this trend with inventory
leads down 9.3% while form leads were
up 4% and phone leads up 6.8%.
4.0%
The decrease on inventory leads seems
-9.3%
to correlate with the stock challenges
the industry is currently experiencing.
OCTOBER 2020 NOVEMBER 2020
Definition: The breakdown in lead types shows that vehicle lead volumes were the
INVENTORY FORM PHONE least impacted and are now experiencing the strongest surge.
LEADS* LEADS* LEADS*
*Percentage change month on month.20.
MARKET SENTIMENT
“We are super proud to be able to
launch our new mobile and desktop
website. Mobile for ease of use and
desktop for full experience. With our
new modular platform, we are able What our
to provide updates to our clients customers are
instantly. A big shout out to Julia and
Nandini from Dealer Solutions for telling us
putting up with our change requests
over the last month."
CARS OF MELBOURNE21.
DIGITAL ADVERTISING
DIGITAL
ADVERTISING
Automotive digital advertising trends have mirrored a challenging
2020 with a roller coaster of a ride. Dealers across the country have
paused and restarted advertising campaigns all year long with the
ever-changing market conditions of supply and demand.
One trend that has been clear throughout the year is that those
dealers, who have remained consistent and disciplined in their
approach to digital marketing, have seen strong results. Dealers
with a foundational digital strategy have benefited with increased
quality in traffic, page views, leads and phone calls.
Here are some key facts and figures to review and keep in mind
while planning for 2021.
CHRIS SMITH
General Manager | Digipurple & Dealer Solutions
Cox Automotive Australia Retail Solutions22.
MARKET SENTIMENT
“Working with Brad and Sam from
Digipurple has been seamless!
We have been able to put in place a
strategy that is open and transparent
What our
to better promote our sales campaigns
customers are
through paid search and display.
Going through Digipurple has enabled telling us
us to work with an amazing team that
provide us with remarkable high quality
leads and reports ”
WESTERN TOYOTA23.
DIGITAL ADVERTISING
Ad & website performance
with Facebook ads and Dealers who distributed their vehicles to
Facebook Marketplace and ran paid Facebook
Facebook Marketplace Automotive Inventory Ads at the same time
15,925 with a strong agency partner, saw consistent
and better website traffic, vehicle page views,
14,937
form leads and calls from customers.
80 78
3,777
32
2,630 WITHOUT
19 FBMP & FBAIA
1,419 1,086
3 5
WITH
MARKETPLACE
MONTHLY AVERAGE MONTHLY AVERAGE MONTHLY AVERAGE MONTHLY AVERAGE
WEBSITE SESSIONS VDP VIEWS WEBSITE CALLS FORM SUBMISSIONS WITH
MARKETPLACE & AIA
Monthly average during the 3-month period between 1 July-30 September 2020 for dealer accounts across our Dealer Solutions
website platform publishing their inventory on Facebook Marketplace and running Facebook Automated Inventory Ads and
those that do not.24.
DIGITAL ADVERTISING
Ad cost performance
Cost $ per click Cost $ per lead
Digital marketing ads performed better and
at lower costs during the 3-month period
between September and November 2020
28% 27% vs. the same period last year.
The cost to get a form
The cost to get a customer to
submission or phone call
click on a dealer ad was 28%
directly from a dealer website
lower during Sep-Nov 2020
during Sep-Nov 2020 was
compared to same period in
27% cheaper than in the same
2019.
period last year.25.
MARKET SENTIMENT
“We began advertising our stock through
Facebook Marketplace and Facebook AIA
with Sam and the Digipurple team earlier
this year and have seen excellent results.
Not only have we halved our bill that
was spent advertising through Carsales, What our
we now have the freedom to advertise
customers are
our dealership without restrictions on
photographs and branding, and send all telling us
clicks to our website which makes for wider
exposure and a higher quality of leads.
Sales are still going strong and we’re simply
saving more money and time."
MICHAEL CAIRNS • MANAGER
ALLCAR WHOLESALE26.
THANKS
COX AUTOMOTIVE AUSTRALIA RETAIL SOLUTIONS
1300 66 11 33 | digipurple.com.au | dealersolutions.com.au | kbb.com.au
digital@dealersolutions.com.au
Copyright © 2020 Dealer Solutions
No reproduction, distribution or transmission of the copyright materials contained in the Market Insights report in whole or in part is permitted without the prior permission of the Cox Automotive Australia Retail Solutions and or Dealer Solutions.
The information contained in this report is preliminary and current as at the time of publication. Cox Automotive Australia Retail Solutions and or Dealer Solutions does not make any warranty as to the accuracy, completeness and reliability of the
information in the report or its suitability for any purpose, and Cox Automotive Australia Retail Solutions and or Dealer Solutions does not accept any liability arising in any way from any omissions or errors in the report.
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