Defining the Purchase Funnel

Every automotive advertiser has their own semantics when describing the different stages of the purchase funnel, but regardless, 3rd party automotive research sites can target a consumer at some point shortly after they have made the conscious decision that they need to purchase a new vehicle, through the consideration process of which vehicles to consider and ultimately through the final research phase right up to the actual close of the sale.

Jumpstart Automotive Media refers to the phases of the purchase funnel as follows:

Upper Funnel: This is the top of the funnel. The goal for automotive advertisers strategically targeting this part of the funnel is to influence the brand needle. This means increasing awareness as broadly as possible among the determined demographic and psychographic of the target audience, establishing a positive brand perception and ultimately influencing consideration of and purchase intent of the vehicle when the target audience enters the market for a vehicle.

Tactically this is likely to represent TV commercials, radio spots, billboards, event sponsorships and advertising on lifestyle websites based on demographic and psychographic composition.

Mid Funnel: This is the point when a car shopper first enters the market. They can easily be identified by behaviors they have demonstrated online such as general queries on search engines such as "buy new car" or by finding them on 3rd party automotive research sites.

The goal of advertising at the mid-funnel level is to both create an extension of the national and often costly brand campaign as well as to serve as a friendly reminder of your product or service to an audience who is 100% in-market.

Tactically, this could represent home page sponsorships on 3rd party research sites, behavioral targeting to an audience segment who has been anywhere on a 3rd party research site and search marketing against broad terms such as "buy new car" or "Find auto insurance."  

Lower-Mid Funnel: This is a point where car shoppers have been identified as being in-market, however they have not likely defined their consideration set of vehicles. In this placement automotive advertisers have the ability focus their messaging to vehicle intenders of the category their product is competing.

Tactically, this is likely to represent category placements such as a luxury sponsorship on a 3rd party automotive research site, behavioral targeting based on behaviors exhibited by car shoppers within a particular category or queries on search engines such as "Best Luxury Sedans."

Lower Funnel: This is the bottom of the purchase funnel and the point where a car shopper has likely narrowed down their consideration set of potential vehicles. In this placement, automotive advertisers have the opportunity to re-assure a car shopper that the respective vehicle is the right choice, increase awareness of a special offer or to simply block out a competitor from trying to steal a customer who is likely to be a hot prospect.

Tactically, this may be executed through targeting ads make/model pages respective of the franchise, either contextually on 3rd party research sites, behaviorally on lifestyle websites to car shoppers who have been on make/model pages, specific queries on search engines such as "Buy Honda Accord" or to even purchase completed 3rd party leads of car shoppers looking to speak with a dealer.