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Automotive Industry Online Report February 2003

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Automotive Industry Online Report February 2003 Automotive Industry Online February 2003 www.emarketer.com This report is the property of eMarketer, Inc. and is protected under both the United States Copyright Act and by contract. Section 106 of the Copyright Act gives copyright owners the exclusive rights of reproduction, adaptation, publication, performance and display of protected works. Accordingly, any use, copying, distribution, modification, or republishing of this report beyond that expressly permitted by your license agreement is prohibited. Violations of the Copyright Act can be both civilly and criminally prosecuted and eMarketer will take all steps necessary to protect its rights under both the Copyright Act and your contract. If you are outside of the United States: copyrighted United States works, including the attached report, are protected under international treaties. Additionally, by contract, you have agreed to be bound by United States law. Automotive Industry Online Table of Contents 3 Table of Contents 4 Methodology 7 The eMarketer Difference 8 The Benefits of eMarketer’s Aggregation Approach 9 “Benchmarking” and Projections 9 I The Automotive Industry Online: Overview 11 A. Globalization, Consolidation and E-Business 12 B. Production and Sales Trends 17 US 20 Europe 25 Asia-Pacific 28 II IT and E-Business Spending 29 A. Introduction 30 B. IT Spending and Strategy 31 C. B2B E-Commerce Trade 38 Dollars and Cents 42 D. Buy-Side E-Business Initiatives 44 E. Sell-Side E-Business Initiatives 47 III Online Advertising and Marketing 49 A. Online Advertising Spending 51 B. Leading Ad Formats 63 Rich Media Favored by Automakers 63 Nobody Likes the Pop-Up 68 Use of Classified Ads on the Rise 69 Product Tie-Ins 72 C. Interactive Marketing 73 BMW Films – Taking Online Marketingto the Next Level 77 Wallpaper,Screensaver and TV Commercial Downloads 78 D. Managing Customer Contactand Relationships 81 3 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Automotive Industry Online IV Consumers and Consumer-Oriented Automotive Websites 85 A. Consumer Activities 86 First Steps: The Research Phase 86 Financing and Insurance Information 91 B. Consumer Preferences 96 C. Leading Automotive Websites 101 US 101 Europe 102 V Automotive Dealers and the Web 105 A. Impact of the Internet on Dealers and Sales Process 109 B. Dealer Website and IT Capabilities 117 Emphasis on Expanding Website Features 117 IT Capabilities Provide Competitive Edge 119 VI Online Sales and B2C E-Commerce 121 A. Online Retail Sales by Product Category 122 B. Online Purchasing 127 Experiments in Latin America 129 C. Consumer Preferences 132 VII In-Vehicle Information Systems (IVIS) 139 A. Market Size and Growth Potential 140 Other Applications and Gadgets: Bluetooth and Vehicle Location Devices 146 B. Consumer Adoption and Preferences 148 C. Issues for OEMs and Telematics Service Providers (TSPs) 154 Index of Charts 161 4 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Automotive Industry Online February 2003 Welcome to eMarketer Dear Reader: Noah Elkin Senior Analyst, eMarketer Welcome to eMarketer’s coverage of the state of e-business in the automotive industry. eMarketer’s [email protected] Automotive Industry OnlineTM report examines how the internet is reshaping the ways in which vehicles eMarketer, inc. 821 Broadway are manufactured, marketed and sold to customers. New York, NY 10003 The report begins with an overview of the automotive industry and is subsequently broken down into T: 212.677.6300 F: 212.777.1172 six main sections, each of which looks at different e-business practices and the impact they have been having on firms along the automotive value chain, from original equipment manufacturers (OEMs) and parts suppliers to web-based content and e-commerce companies to dealers and consumer end-users: IT and e-business spending Online advertising Consumer-oriented websites and consumer usage preferences Automotive dealers and the internet Selling online to consumers In-vehicle information systems With data aggregated from a broad range of research firms, government agencies and industry associations, including Allied Business Intelligence, the Center for Automotive Research, EDS, GartnerG2, Giga Information Group, Jupiter Research, J. D. Power and Associates, KPMG, META Group, the National Automobile Dealers Association, Nielsen Media Research, Nielsen//NetRatings AdRelevance, Taylor Nelson Sofres, Telematics Research Group and the US Census Bureau, eMarketer’s Automotive Industry OnlineTM report provides automotive manufacturers, dealers and marketers with a sense of how their e-business strategies compare with those of their competitors. The report will also be of interest to those companies that work closely with the automotive industry, such as parts manufacturers, advertising agencies, consultants, logistics firms and technology vendors. In addition, readers may wish to consult eMarketer’s eStat Database, which contains thousands of additional statistics on virtually every aspect of the global automotive industry, in order to get the most complete picture of vehicle production and sales trends as well as consumer preferences in the leading automotive markets around the world. If you have any questions or comments concerning eMarketer or any of the material in this report, please call, fax or e-mail us. Noah Elkin Senior Analyst Written by Noah Elkin Also contributing to this report: Reuse of information in this document, without prior authorization, Yael Marmon, director of research is prohibited. If you would like to license this report for your David Berkowitz, senior editor organization, please contact David Iankelevich at Allison Smith, senior editor [email protected], or 212.763.6037. Dana Hill, production artist Kwanza Osajyefo Johnson, data entry associate 5 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Automotive Industry Online Methodology 7 The eMarketer Difference 8 The Benefits of eMarketer’s Aggregation Approach 9 “Benchmarking” and Projections 9 I The Automotive Industry Online: Overview 11 II IT and E-Business Spending 29 III Online Advertising and Marketing 49 IV Consumers and Consumer-Oriented Automotive Websites 85 V Automotive Dealers and the Web 105 VI Online Sales and B2C E-Commerce 121 VII In-Vehicle Information Systems (IVIS) 139 Index of Charts 161 7 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Automotive Industry Online Methodology eMarketer’s approach to market research is founded on a philosophy of The Automotive Industry Online: Overview aggregating data from as many different sources as possible. Why? Because IT and E-Business Spending there is no such thing as a perfect research study and no single research Online Advertising and Marketing source can have all the answers. Moreover, a careful evaluation and Consumers and weighting of multiple sources will inevitably yield a more accurate picture Consumer-Oriented Automotive Websites than any single source could possibly provide. Automotive Dealers and the Web Online Sales and B2C E-Commerce The eMarketer Difference In-Vehicle Information Systems (IVIS) eMarketer does not conduct primary research. Neither a research firm nor a Index of Charts consultancy, eMarketer has no testing technique to defend, no research bias and no client contracts to protect. eMarketer prepares each market report using a four-step process of aggregating, filtering, organizing and analyzing data from leading research sources worldwide. Aggregate Analyze Filter Organize ©2001 eMarketer, Inc. www.eMarketer.com Using the internet and accessing a library of electronically-filed research reports and studies, the eMarketer research team first aggregates publicly available e-business data from hundreds of global research and consultancy firms. This comparative source information is then filtered and organized into tables, charts and graphs. Finally, eMarketer analysts provide concise and insightful analysis of the facts and figures along with their own estimates and projections. As a result, each set of findings reflects the collected wisdom of numerous research firms and industry analysts. “I think eMarketer reports are extremely useful and set the highest standards for high quality, objective compilation of often wildly disparate sources of data. I rely on eMarketer’s research reports as a solid and trusted source.” — Professor Donna L. Hoffman, Co-Director, eLab, Vanderbilt University 8 ©2003 eMarketer, Inc. Reproduction of information sourced as eMarketer is prohibited without prior, written permission. Note: all data in this report (other than that sourced as eMarketer) was obtained from published, publicly available information. Automotive Industry Online Methodology The Benefits of eMarketer’s Aggregation The Automotive Industry Online:
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