MANCHESTER, Conn. – As Next-Gen consumers come of age, video as a motivational and purchasing tool is on the rise. What is the current impact of video for automotive dealers as they look more and more to online platforms to market and sell their vehicles and what should they be doing to engage more customers? LESA, the nation’s largest dealer vehicle video merchandising provider, in conjunction with Vistadash, the premier online automotive data aggregator, conducted a joint study to analyze the metric effects of video usage by consumers on dealer websites and determine factors related to consumer efficacy of walk-around videos via dealership VDPs (Vehicle Details Page).
Data from 100 dealerships across the country with a wide cross section of makes and models – foreign and domestic – utilizing LESA videos were examined. VDPs were analyzed before and after video utilization for comparison and determination of impact. Vistadash Enterprise dashboard aggregated LESA data over 3-month period for dealerships with at least 65% video coverage.
“Consumers researching and shopping for cars online is here to stay,” said Phillip Ly, Founder & Chief Executive Officer, LESA Automotive. “This study confirms vehicle videos engages consumers in a significant way that can no longer be ignored by dealers.”
Key Determination of Study: Video Drives Sales
Video plays an important role in engaging consumers to shop dealer inventories. According to Google, 60% of car shoppers (up from 49% just three years ago) are more likely to either visit a dealership or a its website to check out cars after viewing a video of a model they’re interested in purchasing on Youtube – and that number is rising every year.
Key Findings of Study:
- Average Time Spent on Site
- Without video: 4 ½ minutes.
- With video: 6 ½ minutes.
- Consumers spent 44% more time on a dealer website where vehicle videos were available.
- Consumer Engagement Rankings
- LESA Video “events” (visits/views) rank, on average, in the Top Three events for dealerships.
- These consumer viewing video events rank only behind scrolling down pages and photo gallery swipe events and ahead of: Windows Sticker, Search Inventory and CarFax.
- However, when raw comparing viewers and events, the number of consumers viewing dealership vehicle videos equals those viewing photos.
- Video plays a key role in consumer attraction, emotional connection, and site engagement
- Video provides car shoppers with a more complete “picture” of a vehicle, complementing photo viewing and further engaging a potential customer.
- Bounce Rates
- Bounce rates decrease by 20% as site video coverage increases.
- Video helps retain consumers on dealer websites.
- Average Time Spent on Videos
- Consumers watch, on average, 8 videos before leaving a dealer website.
- For a typical 2 minute video:
- Consumers watch either the first 25-30 seconds -or- 1 ½ to 2 minutes
- Compelling videos can engage customers for significantly longer periods of time.
The study found that LESA’s combination of walk-around videos and sales tools, with Vistadash and Google Analytics delivered on a monthly basis, help drive sales, provides BDC teams with resources for success – driving and sustaining maximum consumer engagement and retention on websites and in showrooms.
“I was excited to partner with the LESA Team on validating the power of video and the role it plays in increasing consumer engagement,” said Dan Moore, President Vistadash. “Dealers spend a lot of effort to attract consumers so why not invest in keeping them engaged by using video.”
For more information regarding this study, visit: https://lesautomotive.com/casestudy/