Auto Trader is backing its final transition to a digital-only business by allocating its biggest ever marketing budget, launching transactional mobile products, and mining data to drive conversions and inform its activity.
The 36-year old title, which will terminate its print editions next month, is upping its marketing budget by 25 per cent year on year taking the total to £15m – the largest in its history – spanning on and offline channels, according to group consumer marketing director Jonathan Williams.
He told The Drum its move to a digital-only proposition marks a “momentous” occasion, having spent years monitoring the gradual decline of print circulation and the surge in digital audiences. Shifting from a business model entirely centred around its print magazines to one which can thrive using digital channels has been an ongoing process, according to Williams.
"For every print reader we lost we gained 10 online. We had to develop tools which could articulate the value of digital to dealers", he said. The result is that it now handles website design and build and SEO and data management for is 5,000-strong dealer network.
It has been mining data for years, with the result that it now has a single customer view across all its properties, which include 5,000 dealer websites. Integrating marketing and digital departments within the business has been vital to adapting its business culturally and strategically, according to Williams.
“There is a lot of hype around big data but it is all about what kind of data you can extract. It is important to view customers in a dynamic way and ensure your communications with are relevant to those individuals, he added.
Last year Auto Trader undertook one of its biggest ever data initiatives, taking 1bn rows of data from its sites, including every action taken across a sample set over one year.
It monitored the behaviour of those unique users and then mapped that with post code data, provided by site visitors, to provide insight into those motorists behaviours and preferences.
It used this insight to then shape and change strategy, its ad creative and overall messaging with the result that conversions shot up over 60 per cent, according to Williams.
The overarching theme for its strategy this year will be to move away from its historical image as a functional brand towards one which evokes an emotional connection with consumers and sustains engagement beyond the temporary window of buying and selling.
“We realise motorists are holding onto their cars longer because of the recession. We want to build more entrenched relationships with customers which sustain and trigger an emotional response.
“We have essentially put our 11m monthly unique users their first and second cars and people have a lot of memories about their first cars. Our strategies will bring those stories to light and introduce products that can create that dialogue,” he said.
It is preparing to launch a mobile-optimised platform through which motorists can buy and sell their vehicles – a first for the digital publisher.
“Mobile is a massive priority for us. If we were starting out the company today we would be mobile first,” said Williams.
Mobile has extended Auto Trader’s reach into new territories including the forecourt of its dealer network. Around 40 per cent of its 3.5m mobile users access Auto Trader on their mobiles while in a dealer’s forecourt, checking prices and using it as a companion tool when considering purchases in the show rooms, according to Williams.
“We have never had permission to play in that environment before and the opportunities are huge,” he said.
However, he warned that brands must be careful to not “replicate” their desktop experiences on mobile given the different consumer behaviours.
Autotrader.co.uk, now regarded as the go-to online marketplace in the UK for buying and selling new and used vehicles has 380,000 new and used vehicles available on the site.
Print circulation of Auto Trader dropped by 341,000 during the last 13 years, with the total resting at 27,000 in March 2013. Whereas demand for its digital platforms has seen website and mobile traffic soar for the Auto Trader brand in particular.
Mobile traffic has spiked 67 per cent, while tablet traffic has risen 130 per cent year on year, reaching a total of more than 3.5m mobile visitors each month, according to TMG. Autotrader website traffic has also grown 13 per cent year on year, generating 11m monthly unique visitors.