Baidu Marketing Strategy 2020: Full-link Marketing in the Online Used Car Industry

Baidu Marketing Strategy 2020: Full-link Marketing in the Online Used Car Industry
2019 is a year full of uncertainty. The global economy has been swinging between "optimism" and "pessimism" this year. The future of the economy may be uncertain, but this anxiety is certain. People have begun to adjust their consumption habits under this anxiety about the future.

Spending money is a "zero-sum game". If you spend money on a car, you can't spend money on a bag. In the context of an uncertain economy, everyone is re-evaluating their large consumption budgets. As an industry that undertakes travel needs, used cars have also faced new difficulties and challenges in 2019 when users adjusted their consumption strategies.

The growth rate is slowing down, and it is still early to reach a trillion-level market

The used car market, which has been highly sought after by capital, has been gradually cooling down since 2018, and the estimated transaction volume growth rate in 2019 has dropped to around 5%. The estimated market size is 900 billion, which is still 100 billion away from the trillion-level market that was once expected.

It is worth noting that this 5% growth rate also benefited from the policy change of implementing the National VI Standard in July 2019. The policy change made June, which was originally a low season, a new peak for used car transactions.

The overall wait-and-see sentiment in the used car market has risen sharply

The search needs of used car users are mainly divided into three categories: the first is clear words for buying cars , the second is clear words for selling cars , and the third is fuzzy words that are difficult to judge from the words. In 2019, the search needs of used car users have changed greatly. The proportion of searches by people selling cars has dropped by 3 percentage points, while fuzzy needs have increased by 4 percentage points. More users with fuzzy needs use searches to observe the used car market and collect information.

Car buyers have less desire to spend money and are in a wait-and-see mood

Among those who want to buy cars in 2019, the proportion of people who pay attention to car information such as car series and car products has increased. Many users who pay attention to this information are in the stage of making preliminary car purchase plans or waiting to see the price trend and price changes. However, the attention to the most important key factors when buying a car, such as price, transfer process, financial policies, etc., has decreased, which shows that the number of users who really want to buy used cars is further decreasing. As an industry that undertakes travel demand, the demand for travel and car purchases may be further suppressed in the case of a bad economic environment.

Among those who have clear car purchase needs, changes in car series have produced a sonic effect. In 2013, there was a wave of "larger trend" in the new car market, that is, buying larger cars. This trend was reflected in the used car market six years later in 2019. The search demand for mid-sized cars, medium and large SUVs, MPVs and other car series increased in 2019.

Car sales are delayed, we need more and faster

Most of the cars on the used car market are 3-6 years old. Since 2016, the proportion of used cars with a 3-6 year old has dropped from 51% to 42%, while the proportion of used cars with a 6-10 year old has increased from 19% to 22%. With the increasing instability of the overall economy in recent years, people have begun to passively extend the life of their cars. In the past, many people were troubled by the need for annual inspections for cars over 6 years old. Now, these troubles have been defeated by "poverty".

In addition to the increase in the number of years of use, the group of people who sell cars has also changed greatly. Because they need to realize cash faster, they pay more attention to the car selling process. At the same time, they also pay attention to the channels of selling cars. The same car is listed in multiple channels, and it is sold in the place where the price is higher. This fully reflects the car selling guidelines of "cash is king" and "quick cash realization".

New opportunities in trading, region and price

In 2019, Baidu discovered some new changes in the used car market, which may become market opportunities in 2020:

1. The peak of transactions is often the rush for low-priced cars: In 2019, the average transaction price was basically inversely proportional to the transaction volume. The average transaction price in September, when the transaction peaked, was the lowest in the whole year.

2. East China and North China are the major markets for the used car market and will continue to be so in the future.

In terms of car country, German, Japanese and domestic brands are still the most popular among users. The first-tier cities and new first-tier cities have a greater demand for other countries and niche brands. In comparison, the attention paid to German, Japanese and domestic brands in third- to fifth-tier cities has reached 90%.

3. In terms of price, the attention to the 90,000-120,000 yuan models has increased the most. But what is interesting is that when it comes to the clear demand of "region + second-hand car price", there is a clear trend of low prices, and second-hand cars below 50,000 yuan account for a very high proportion in third- to fifth-tier cities.

NEXT Used Car Industry Solutions

In 2019, users in the used car industry were "wait-and-see" for a year, and this wait-and-see sentiment is likely to continue into 2020. How to deal with this wait-and-see attitude and find new opportunities in the industry during the wait-and-see attitude is a difficult problem faced by advertisers in the used car industry. In response to this, Baidu proposed NEXT full-chain AI marketing in the used car industry.

New entry pool: As the "wait-and-see" sentiment in the industry becomes more serious, stimulating the hesitant and wait-and-see crowd is an opportunity point for the industry. For potential car buyers, advertisers can use the second-hand car model flash solution, use the query that has searched for a certain second-hand car, and accurately use native ads to deliver model materials and matching preferential prices to influence the decision-making of hesitant users. For potential car sellers, map data, aftermarket terms that have been searched, etc. can be used to locate users, and information such as "more money" and "fast payment" can be highlighted on the materials to guide customers from the stimulation pool to the experience pool.

eXperience pool: For users who have clicked on the ad and entered the ad experience, differentiate between car buying and selling needs, and respond to the landing page by demand type. For car buyers, especially potential car buyers who are waiting and watching, highlight preferential prices and models with better conditions in the same price range, and use the flash product recommendation function on the landing page to recommend 3-5 other suitable car models to customers, increase the probability of customer conversion, and encourage customers to enter the asset pool for conversion. For car sellers, use "test" materials to stimulate users' demand for selling cars, improve user experience through games and tests, and further increase the possibility of entering the asset pool.

Equity pool: Due to the low frequency and high difficulty of decision-making in the used car industry, users who enter the equity pool can cooperate with the offline sales process to carry out "order promotion" operations. For example, when users are hesitant about whether to list their cars on the used car platform, they can use the native retargeting method to reach out to the equity users again and highlight the information that the users are concerned about, so as to assist the offline sales process and increase the order conversion rate of asset pool users.

Due to the different clarity of user needs, users can be generally divided into users with strong needs and users with vague needs and wait-and-see users. NEXT provides different full-link marketing solutions for these two types of users.

Strong demand users

Targeting people with clear demand for buying a car and people with clear demand for selling a car, Baidu NEXT's full-chain solution starts with actively responding to users' search needs, further completes users' deep perception, and then achieves transaction conversion. It opens up the entire marketing chain from user "demand stimulation" to "transaction conversion".

Users search for a variety of questions. Advertisers can use flash advertising and other technologies to answer users' search questions (such as car model + price, region + used cars, etc.), and actively respond to user needs with higher information matching and content. At the same time, for information that users are more concerned about, such as quotations, valuations, and process understanding, use Jimuyu dynamic landing pages to undertake content, improve user experience, and enhance brand favorability. Finally, the retained users are transferred into the asset pool for further conversion and remarketing.

Wait and see users

For the increasing number of people who are on the sidelines in the used car market, we need to focus on stimulating user demand. Through Baidu's data insight capabilities, we can accurately identify users' potential needs (valuation, price comparison, car loan needs, etc.), and provide corresponding content to respond to user needs. In the native information flow environment, we can accurately identify users who need to sell cars, stimulate the needs of users with weak conversion intentions, and achieve further perception of the brand through deep interactive experience. After retaining funds, they will enter the asset pool for further transaction conversion.

Baidu NEXT industry solution provides technical and data support for advertisers from responding to user questions (flash delivery solutions for used car models, oCPC), providing solutions (Jimuyu dynamic landing page provides a car model list page) to user conversion records (oCPC, effective calls/listings and other deep conversions), helping the industry move towards a trillion-level market.

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