Google Confidential and Proprietary 1
Understanding Media ROI for SEAT Ibiza Spain – June 2013
Media influence on Seat Car Dealer Visits
Google Confidential and Proprietary 2
About this project
SEAT S.A. wanted to identify the key marketing drivers and quantify the effect
and efficiency in driving car dealer visits, focused on Seat Ibiza model, with
special focus on:
• Direct and indirect effects
• The role of online and offline advertising
Google Confidential and Proprietary
Methodology
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Prim
eros
Cont
acto
s Ibi
za T
otal
Medios largo plazo Plan E Publicidad TV
Ecomotive Nuevas motorizaciones Número de días laborables
Visitas Web Total IBIZA Tercera semana del mes Post San José 2011
Tasa de paro Primera semana del mes Agosto 2010
Agosto 2011 Semana Santa Nochebuena sin 2011
Semana 11/07/2010 Salida vacaciones 2011 Semana 11/03/2012
Reyes 2012 Post Semana Santa 2012
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
04/07
/2010
25/07
/2010
15/08
/2010
05/09
/2010
26/09
/2010
17/10
/2010
07/11
/2010
28/11
/2010
19/12
/2010
09/01
/2011
30/01
/2011
20/02
/2011
13/03
/2011
03/04
/2011
24/04
/2011
15/05
/2011
05/06
/2011
26/06
/2011
17/07
/2011
07/08
/2011
28/08
/2011
18/09
/2011
09/10
/2011
30/10
/2011
20/11
/2011
11/12
/2011
01/01
/2012
22/01
/2012
12/02
/2012
04/03
/2012
25/03
/2012
15/04
/2012
06/05
/2012
27/05
/2012
17/06
/2012
Prime
ros Co
ntacto
s Ibiza
total
Primeros Contactos Ibiza total Ajuste
R2 95.2
An analytical DB was generated,
comprising more than 500 variables
likely to have an effect on visits from
28/06/10 to 01/07/12.
Eight econometric models were
developed to identify the drivers and
understand their significance.
Finally, we identified and measured
all the variables that affect the traffic
to the dealer.
Google Confidential and Proprietary 4
Sources of information
• All the analysis was performed by Conento in December 2012
• Internal data used, owned by SEAT S.A. (June 2010 - July 2012)
• Car Dealer visits (daily)
• Visits to SEAT Ibiza website (weekly)
• Purchase Orders (daily)
• Transaction price (monthly)
• Investment in offline and online advertising (weekly)
• Launch dates / restyling and News
• Advertising creativities (qualitative)
• Mentions in social networks *
• Data from other internal and external sources have also been tested
(including search volume data in Google.es).
• Unemployment rate. Source: INE
• Internet Penetration Source: EGM
• Tax hike Source: Banco de España (Spain National Bank)
• Oil price Source: Ministry of Industry, Energy and Tourism
• Holidays Source: Official State Bulletin (BOE)
* Sources: http://www.seat-mediacenter.com/es-content/proc, Sources SEAT Buzz Monitor of MediaCom and Nurun Monitoring
Google Confidential and Proprietary 5
The process for Car Dealer Visit was identified and quantified
8 econometric models were constructed to understand and quantify the effect of SEAT
Ibiza's marketing actions in contributing visits to dealers, with a particular focus on the
synergy between online and offline media activity.
Car Dealer Visit= Person visiting the dealer and opening a budget order form
Indirect effect: the model does not show a direct influence, but an indirect one by influencing intermediate variables
Setting an optimal level of investment for each media
Dealer
Visits (*) Web traffic
Web
Visits SEM
Display
SEO Offline Media
Web traffic Visit to SEAT
Ibiza website SEM Purchase
Order
Display
SEO Offline Media
Car Dealer
Visit
Google Confidential and Proprietary
1. Drivers of Car Dealer Visit
6
Google Confidential and Proprietary
Unemploym ent
25.8%
Visits to SEAT Ibiza
web site
19.6%
*Dealers number of
opening days
25.7%
Positive seasonality 0.7%
Negative sesonality 2.8%
Long-term on and off
advertising
23.4%
Short-term TV 1.4%
Plan E campaign 0.6%
7
Understanding the Car Dealer Visit
Car Dealer Visit Web visits
Paid Search
Purchase Order Organic Search
Offline media
Display
Other 9.0%
Transaction price
15.5%
Visit to
dealer 28.1%
Purchase Order Direct Drivers
* Dealers number of
opening days
47.4%
* Dealers’ number of opening days, it shows the evolution of the number of operational dealers opened
Dealer visits are key drivers to generate orders:
advertising and web visits are key drivers for generating traffic to the dealer
Car Dealer Direct Drivers
Google Confidential and Proprietary 8
Understanding the Car Dealer Visit
0.7% - Positive seasonality
19.6% - Visits to SEAT Ibiza's web
23.4% - Long-term on and off advertising
2.8% - Negative seasonality
25.8% - Unemployment
25.7% - Dealers’ number of opening
days
1.4% - Short-term TV
Media accounts for 45% of
total traffic to the dealer
0.6% - Plan E (Multimedia campaign)
Web visits have a 19.6% weight in visits to dealers.
Long-term advertising also has a significant 25.3% weight.
Car Dealer Visit Web visits
Paid Search
Purchase Order Organic Search
Offline media
Display
25.8%
25.7% 2.8% 0.7% 0.6% 1.4%
19.6%
23.4%
Unemployment Dealers’
number of
opening days
Negative
seasonality
Positive
seasonality
Plan E
multimedia
campaign
Short-term
TV
Visits to
SEAT Ibiza’s
web
Long-term
on and off
advertising
9
Understanding the Car Dealer Visit
Plan E
0.6%
Short-term TV
1.4%
Visits to SEAT Ibiza’s web
19.6%
Long-term on and off advertising
23.4%
Car Dealer Visit Web visits
Paid Search
Purchase Order Organic Search
Offline media
Display
45% of visits to the dealer are
influenced by media
Web visits generate a large proportion of the car dealer visits influenced by media.
Google Confidential and Proprietary
Understanding Visits to SEAT Ibiza website
10
SEM is the main driver of traffic to the website:
33.3% of web visits are due to SEM clicks
Car Dealer Visit Web visits
Paid Search
Purchase Order Organic Search
Offline media
Display
Unemploym 25.8%
Visits to SEAT
Ibiza’s web
19.6%
*Dealers’ number of
opening days
25.7%
Seasonality + 0.7% Seasonality – 2.8%
Long-term on and
off advertising
23.3%
Car Dealer Direct Drivers Visits to Seat Ibiza website
Estacionalidad positiva
0,3%
TV 1,6%
Estacionalidad
negativa 1,6%
New Ibiza + Salón G.
2.3%
Display 3.2%
SEM clicks 33.3%
Baseline 57.8%
Seasonality –
1.6%
Seasonality + 0.3%
11
Understanding Visits to SEAT Ibiza website
33.3% of web traffic is due to paid search (SEM)
The change of SEM strategy in October 2011, led to a 56% visits increase in Ibiza's
car world.
SEM Strategy change
Display: 3.2%
Presentation of the new
SEAT Ibiza
Baseline : 57.8% (Direct traffic/SEO/Other webs, etc.)
SEM: 33.3%
Negative seasonality 1.6%
Vis
its
to
SE
AT
Ib
iza
’s w
eb
sit
e
TV :1.6%
Geneva Motor Show
Car Dealer Visit Web visits
Paid Search
Purchase Order Organic Search
Offline media
Display
Average
position
% Lost
clicks
1 +3.5%
1.4 -
1.9 -5.4%
2.5 -11.4%
12
SEAT Ibiza
# SEAT Ibiza’s
keywords 294 384 366 159
2009 2010 2011 2012 Fewer
keywords
Better
position
Better quality
clicks
The change in SEM strategy to focus on quality means fewer keywords, better
positions and more quality clicks.
Optimizing SEM
0
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6.000
CW
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CW
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35
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39
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47
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51
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31
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35
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19
/12
CW
23
/12
Ave
rage
po
siti
on
Seat
Ibiz
a D
efe
nd
Cli
cKs
Se
at Ib
iza
Def
en
d
Clicks Seat Ibiza Defend Average position Seat Ibiza Defend
0
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0,8
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/10
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2
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/12
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15
/12
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19
/12
CW
23
/12
Ave
rage
po
siti
on
Seat
Ibiz
a D
efe
nd
Cli
cKs
Se
at Ib
iza
Def
en
d
Clicks Seat Ibiza Defend Average position Seat Ibiza Defend
Clic
s S
EA
T I
biz
a D
efe
nd
Google Confidential and Proprietary 13
2. ROI and Media Optimization
Google Confidential and Proprietary
SEM is the most efficient
Monetary value of an application and actual returns are not shown due to client confidentiality – ROI data indexed 14
Offline ROI
Online ROI ROI data indexed: dealer visits
considering both direct and indirect
contributions
SEM, TV and Display, are the most efficient media to generate car dealer visits
100.00
18.05 17.88 6.27 5.98 5.74 5.26 3.96 1.70 0.72 0.53
Paid Search
Ibiza
Brand
Paid Search
TV IBIZA RADIO Magazines DISPLAY PRESS/SUPL. OOH TV Plan E TV Gama TV León
Google Confidential and Proprietary
We know how to optimize our budget…
1. We have identified the optimal and historical contribution of each media
2 We have calculated the ROI of each media
Historical spend by week
Optimal spend not shown for confidentiality
15
TV DAYLY NEWS. MAG
OOH RADIO DISPLAY
RO
I
Inversión €
ROI Exterior 500 ROI SEM 500 ROI TV 500
ROI Revistas 500 ROI Display 500
Investment €
TV DAYLY NEWS. MAG
OOH RADIO DISPLAY
TV PRENSA REVISTAS EXTERIOR
RADIO DISPLAY SEM
Investment €
Vis
it t
o d
eale
r
Google Confidential and Proprietary
… to achieve an improved Media Mix
16
3.0%
- 58.1%
6.0%
24.3%
- 5.6%
13.6%
93.2%
TV Ibiza Press Magazines Radio OOH Display Paid Search
% increase / decrease recommended % de Incremento o Decremento recomendado
Google Confidential and Proprietary 17
3. The importance of media in Google Search
Google Confidential and Proprietary
Advertising is the main driver for Google searches
TV advertizing
also drives clicks,
but to a lesser
extend
Searches drivers SEM clicks drivers
Ibiza: 1,8%
León 1,25%
Automóviles 0,7%
18
LongTerm advertising
57.3%
TV
9.6%
Internet Usage
30.7%
OOH
0.1%
Radio
0.2%
News and Social Media
2.1%
Baselevel (Impressions
+ Queries ) 84,9%
Average Position
7.6% TV, advertising
3.4%
Otros 1.2%
Clicks drop
2.9%
Advertising generates 67% of Seat Ibiza’s Google searches (57.3% + 9.6%).
“S
EA
T IB
IZA
” s
ea
rch
es
Restyling prices
SEAT Ibiza January
2012
Mentions in relation to
Geneva Motor Show
0
50
100
150
200
250
300
Qu
ery
Se
at
Ibiz
a
Internet penetration Advertising Long T. TV Seat León Copa TV SEAT Brand
TV Ibiza OOH Radio
TV biza Copa Restyling & News TV Plan E0
50
100
150
200
250
300
Qu
ery
Se
at
Ibiz
a
Internet penetration Advertising Long T. TV Seat León Copa TV SEAT Brand
TV Ibiza OOH Radio
TV biza Copa Restyling & News TV Plan E
OOH
SEM improves its performance (clicks) during the TV weeks and the following ones (halo effect)
1 The econometric models show that TV
advertising increases searches and paid
seach clicks:
2 And through the models we know both the duration of
TV effectiveness and its contribution in searches and
clicks.
week 1 week 2 week 3 week 4 week 5 week 6 week 7 week 8 week 9 week 10
Optimal TV Spend minimum to get visit to dealer Effectiveness TVInversion SEM
3 Additional Clicks achieved thanks to the synergy between TV and SEM
19
33.1% 48% 54.7%
24.6% 11.1%
1st week 2nd week 3rd week 4th week 5th week
TV investm. % Extra clicks through TV
SEM investm.
Google Confidential and Proprietary
4. The importance of position in SEM
20
Google Confidential and Proprietary 21
R2 92.3
Average
position
% Lost
clicks
1 +3.5%
1.4 -
1.9 -5.4%
2.5 -11.4%
Average position
Position is key to increase clicks C
lic
s p
aid
Se
arc
h S
EA
T Ib
iza
QUERIES
TV SEAT Ibiza TV SEAT Ibiza
Face lift January 2012
TV much more than an Ibiza
Impressions
TV SEAT León TV SEAT Ibiza
TV SEAT Ibiza
Week 24/10/2010 Week 25/09/2011 Epiphany 2011
Christmas Week
Baseline
(Impressions
+ Queries) 79.3%
Average position 9.4%
TV advertising 4.4%
Other 1.5%
Negative
seasonality 5.4%
Google Confidential and Proprietary
Conclusions and Recommendations
22
Google Confidential and Proprietary 23
Conclusions
1
2
3
4
5
Paid Search, with a 33%, is the main source of traffic to the website
Advertising directly explains 25.9% of car dealer visits (23.4% in the long-term
and 1.9% in the short-term).
SEM, TV and Display, are the most efficient media to generate visits to the
dealer.
Using econometric models we have been able to identify and quantify the
drivers car dealer visits for SEAT Ibiza.
Web visits, with a 19.6% weight, are one of the main drivers of car dealer
visits:
The change of SEM strategy in October 2011, in favor of improving the
position of words with better conversion, increased Paid Search effectiveness
The buying process in the automotive industry has changed dramatically in recent years
due to the Internet. Now people do not go to dealers in search of a special offer, this
research process is now conducted online.
In the case of SEAT Ibiza, we have seen that without our website we would have had 20%
fewer dealer visits.
We have also seen that following the strategic change we made in October 2011, the
weight of SEM in web visits accounts for one-third of the overall visits, also becoming the
source of traffic to the dealer with the best ROI.
24
Txema Garitano
Digital Marketing
Social Media, Search and Analytics
SEAT, S.A.
Google Confidential and Proprietary 25
Appendix
Google Confidential and Proprietary 26
Models and settings
92,26% 89,84%
Fit Fit
Clicks paid search SEAT Ibiza Defend Ajuste
Visitas a la Web de SEAT IBIZA Ajuste Visitas a concesionarios SEAT Ibiza Ajuste
96,69% 95,17%
Clicks paid search SEAT Brand Defend AjusteFit Fit
Google Confidential and Proprietary
Opening days, car dealer visits and price are the main drivers for purchase orders
The baseline is composed by the first contacts of the previous week and the number of working days
In the last week of the month, and in the week of New Year’s Eve,
Orders increase
In the first week of the month, as well as in
Easter and Epiphany, orders drop
Extra: Previous face lift
2012
TRANSACTION PRICE 15,5%
Dealer visits: 28,2%
Number of working days: 47.4%
Last week of the month 3%
First week of the month - 1,7%
Car Dealer Visit Web visits
Paid Search
Purchase Order Organic Search
Offline Media
Display
27
Google Confidential and Proprietary 28
R2 89,8
Average position
Average
position
% Lost
clicks
1 +2,9%
1.5 -
2 -3,7%
2.5 -7,4%
What accounts for the clicks in “SEAT”? C
lic
ks p
aid
Se
arc
h S
EA
T (
Bra
nd
)
SEAT automobiles TV
TV SEAT León TV SEAT Ibiza
Facelift January2012 TV SEAT Ibiza
“SEAT” Paid Search impressions
Other SEAT car queries
SEAT brand queries
SEAT dealers queries
Ibiza: 1,8%
León 1,25%
Automóviles 0,7%
Baseline (Impressions
+ Queries )
84,9%
Average Position
7,6% TV advertising,
3,4%
Other 1,2%
Clicks drop, 2,9%