Tremor Video Finds Two-Thirds of Auto Shoppers Say Video is Important in the Auto Shopping Process
Study Concludes Video is an Important Resource at Every Stage
New York, October 16, 2013 – Tremor Video, Inc. (NYSE: TRMR), a leading provider of technology-driven video advertising solutions, today released the findings of a recent research study conducted to explore the role of online video advertising in the shopping process across three verticals, with the first installment focusing on automotive. As consumers’ behaviors change, they are doing more research and have become smarter, savvier, and much more informed when it comes to their purchasing decisions. This influx of available information creates more consumer choice and a challenging landscape for marketers.
“With the explosion of video, marketers can expand from text and image to sight, sound and motion to bring the emotion out,” said Ryan Van Fleet, Director of Insights and Analytics at Tremor Video. “This study aimed to understand the powerful shift occurring in the way that consumers engage with brands through online video, especially around the automotive shopping process.”
The study, a comprehensive analysis of behavioral and attitudinal data, was completed between May and September of 2013. The behavioral analysis, conducted by Millward Brown Digital, identified video viewing patterns of potential auto shoppers within its clickstream data. The attitudinal phase, conducted by Frank N. Magid Associates, expanded upon the behavioral analysis with an in depth focus group, which was then validated using a nationally representative survey of 900 adults, 18-54 years old who watch online video one or more times per week.
Among the findings:
- 66% of auto shoppers stated that online video was important to their research process.
- 58% consumers start their digital research process directly on manufacturers’ site, and over half engage in an online research process of 3-6 months.
Additionally, the longer the process, the more auto video is consumed. An average shopper consumes 5 auto videos over the course of the purchase process, 1/3 of which are video ads.
- 46% of auto shoppers said that video ads, across screens, were important in their discovery phase – equal to automotive TV commercials (45%) and the dealership experience (46%).
- Video ads, across devices, ranked second compared to visiting the dealership for forming opinions and making the final decision
Key Take-aways for marketers:
- Online video’s role in the marketing mix is critical.
- As more automotive companies have a wider range of segments of competing nameplates, gone are the days of going to a particular brand for a certain segment. The concept of loyal-for-life consumers is shrinking fast and marketers need to produce more relevant, quality content with emotional storylines to gain consumers’ attention and keep them engaged.
- Consumers use video as a resource in every stage of the shopping process, including post-purchase. It is important for manufactures to provide easily accessible video content to guide consumers throughout.
The full research study will be presented later today at the J.D. Power 2013 Automotive Marketing Roundtable in Las Vegas.
About Tremor Video, Inc.
Tremor Video, Inc. is a leading provider of technology-driven video advertising solutions enabling brand advertisers to engage consumers across multiple internet-connected devices including computers, smartphones, tablets and connected TVs. Our clients include some of the largest brand advertisers and agencies in the world. These relationships have helped us create a robust online video ecosystem that includes more than 500 premium websites and mobile applications, over 200 of which partner with us on an exclusive basis. Our proprietary technology, VideoHub, analyzes in-stream video content, detects viewer and system attributes, and leverages our large repository of stored data to optimize video ad campaigns for brand-centric metrics. Through our VHA enterprise solution, VideoHub also provides advertisers and agencies with advanced analytics and measurement tools enabling them to understand why, when and where viewers engage with their video ads.
Tremor Video is based in New York and has offices in Atlanta, Boston, Chicago, Dallas, Detroit, Los Angeles, and San Francisco, with international offices in London, Singapore, and Toronto. For more information, visit tremorvideo.com and find Tremor Video on Twitter, Facebook and LinkedIn.
This press release contains forward-looking statements that involve risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from those set forth in or implied by such forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, any statements concerning the findings of any research study or any insights or recommendations drawn from such findings. Important factors that could cause actual results to differ materially include: the impact of technological development and competition; market acceptance of Tremor Video’s products or services; design, manufacturing or software defects; changes in client and consumer preferences or demands; changes in industry standards and interfaces; global economic conditions; as well as other factors detailed from time to time in the reports Tremor Video files with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance or events and investors are cautioned not to place undue reliance on any forward-looking statement. Furthermore, forward-looking statements speak only as of the date on which they are made, and, except as required by law, Tremor Video disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
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