• by Tameka Kee , June 30, 2008

Despite slumping sales and increasingly high gas prices, consumer interest in new car info--particularly on the Web--has not waned.

According to new research from Google and Compete, car shoppers are actively searching for online video to get vehicle spec information and expert reviews to help influence their purchase decisions.

In March, the search giant commissioned Compete (a division of TNS) to study consumer online video viewing behavior across YouTube and a number of third-party auto research sites. The study also included a survey of nearly 800 in-market shoppers and recent car buyers, adding qualitative data (including the reasons why they were searching for online video) to the numbers.

Consumers are increasingly finding out about new makes and models through online video. Nearly half (49%) of all in-market shoppers and about a third (31%) of recent buyers surveyed had been exposed to new vehicle choices for the first time through online video, highlighting the medium's branding capabilities.

According to the study, consumers conducted 240,000 searches across the major search engines for queries that contained an automotive branded keyword and the word video (i.e., Camry hybrid video, BMW convertible video) in March. That's up 237% year-over-year. Meanwhile, 41% of in-market car shoppers visited YouTube in the same month--not surprising, given the fact that brands including Chrysler, Ford, Honda and Toyota have all launched campaigns on the video aggregator.

Ford, for example, tapped YouTube to give consumers a behind-the-scenes view of its launch of the 2009 Lincoln MKS at the 2007 LA Auto Show. And in early 2008, Chrysler launched a YouTube contest, inviting Chrysler 300 owners to submit clips of themselves and their customized ride for a chance to have their vehicle featured at a future auto show.

These initiatives come despite a recent Standard & Poor's (S&P) industry forecast, which pegged U.S. auto sales to contract by more than a million units this year. In the first quarter of 2008, auto companies decreased their offline ad spending by 12%, according to Nielsen Monitor-Plus. But eMarketer is forecasting online ad spending by the automotive industry to surge by 22% to hit $3 billion this year.

"With sales down year-over-year, OEMs (original equipment manufacturers) are looking for creative ways to extend their brand and increase product consideration," said Bonita Stewart, director of the automotive vertical at Google. "And using online video makes sense, given the auto industry's affinity for TV. It allows them to address the in-market shopper on their laptop, at the office or even on their iPhone."

While the spike in searches for online video came as no surprise, Stewart said the reasons that in-market shoppers sought out the clips were not what one might typically expect from YouTube viewers.

"The top reasons why vehicle videos were being pursued were so that consumers could see the car, learn more about the specs, or to get a third-party review," Stewart said. "Shoppers aren't going to YouTube for entertainment--that was low on the list. They want to learn about the vehicle on their own time."