• by Karl Greenberg , May 4, 2007

At yesterday's online automotive parts and services marketing conference at Google's New York headquarters, one theme rang out again and again: Consumers looking for parts and services are looking online more and more. And they are using search as the first line of action in wending their way to retailers, local or otherwise.

At the conference, Google revealed new research, commissioned by research firm Compete, that compared click-stream traffic through search sites by destination: retail Web sites like Napaonline.com, Pepboys.com, or Autozone.com; Tire Stores like Discounttire.com; or OEM operations from the major car manufacturers, like GMGoodwrench.com and Mopar.

Per Google, 51 million Internet users searched online for parts last year, with tires and accessories the most popular search items. And automotive parts and services shoppers spend as much money online as off.

Bonita Stewart, the former Chrysler Group marketing executive who left last year to run Google's automotive channel, says there has been a big increase in the amount of search-based auto parts and services shopping, but that automakers are missing in action when it comes to online parts and services marketing to consumers.

Noting the Compete data, she says that in the past two years search traffic to leading OEM parts sites has declined 23%, while search referrals to retailers and tire stores has increased 34% to parts retailers, and 10% to tire sellers. She says, for example, that Autoparts Warehouse saw a 79% increase in search referrals over the past two years; Tire Rack has seen a 144% increase and Discount Tire a 200% increase in Internet search referrals.

"Automakers need to invest in their parts and services sectors." Stewart says 60% of dealership sales involve new vehicles, but 60% of profit is parts and services. "They are losing Web traffic to retailers partly because they aren't investing in search referral."

She says that 36% of Internet users have shopped for parts online, with--in this order--tires, accessories, car care, filters batteries and brakes being the most popular items sought online.

Stewart says automakers might be missing an opportunity to pitch vehicles to consumers shopping for parts and services online. "These consumers may be also looking for new vehicles," she says, adding that 64% of Internet traffic last August involved visits to auto sites, versus 32% the previous year, based on Google research last year.

In terms of consumers seeking service on their vehicles, 30% of Internet users shopped for service online last year, principally for tire and brake work.