SEMA News -- April 2009
RESEARCH

By Ty Michael and Zack Krelle

Pitting Performance Against Appearance: Which Is More Important Now?

Nissan’s 240SX, Honda’s Civic and Mitsubishi’s EVO topped the list of vehicles owned by enthusiasts that have an affinity for the compact-performance market.

Over the years, quite a bit of attention has been paid to both the compact-performance and urban-lifestyle markets. At their respective roots, each market is very different: Compact performance has involved enthusiasts looking to enhance the performance (hence, the name) of small economy and sports cars and the urban market had a completely opposite makeup of enthusiasts who were more concerned about vehicle appearance, typically involving large sedans and SUVs. Today, these differences still exist in many ways. However, both compact-performance and urban enthusiasts now share enough similarities to bring these segments of consumers closer together.

Urban-lifestyle enthusiasts have one very prominent trait that carries over from the early days of lowriding to the heyday of oversized wheels on pickups and SUVs to today’s more moderate mixture of each: Style and being different is of utmost importance. Add to that the need to infuse interests in music, sports, entertainment and vehicle performance (since big wheels need big power in order to at least make up for the extra weight). One distinctive crossover sub-niche, the Americanized VIP market, employs styles similar to the urban market (i.e., body kits, expensive wheels, lowered profile) with a twist. Even the pure compact-performance market shares some vehicles and lifestyle behaviors with those in the urban-lifestyle market.

Knowledge of enthusiast lifestyles plays an important role when specialty-equipment companies plan their marketing strategies for one main reason: successfully capturing and attracting the attention of potential customers to the company’s brand.

 

 

Vehicles, such as this Dodge Charger underscore the recent stray from the traditional formula for urban enthusiasts and illustrate the dominance of performance and style.

Speaking the language of a particular target market (i.e., understanding the values that potential customers hold) increases the chance that finicky consumers tuning in to a company’s brand eventually make a purchase. Urban-lifestyle enthusiasts, for example, are very much involved with branding—three out of four surveyed via the Automotive Lifestyles Study said that brand name was important when making a purchase. Nearly the same percentage of compact-performance enthusiasts said the same thing.

Creating and maintaining a particular brand image is important, especially among the younger urban and compact-performance segments of consumers. However, branding embodies different meanings for the two crowds.

Urban-lifestyle enthusiasts seek labels with an established reputation for style. These companies are known for their attention to lifestyle elements (music, fashion, etc). In contrast, compact-performance enthusiasts set their sights on brands that have an established distinction for performance.

Automotive Lifestyles and Specialty Equipment

Table 1 Ford Mustangs have a mainstream appeal while the Nissan 240SX is more specific to the compact-performance market.

Automotive enthusiasts are surveyed by SEMA every year through the Automotive Lifestyles Study in order to learn about their accessorization trends and buying behaviors. When sufficient numbers of enthusiasts who identify with a particular market segment are surveyed, their specific personalization habits are profiled. Both compact-performance and urban-lifestyle enthusiasts were looked at in this case, and the results showed, for example, that 37% of all enthusiasts surveyed indicated that they were interested in compact performance and 25% stated interest in urban-styled vehicles. In each case, these enthusiasts also subscribed to the respective market segment magazines and engaged in lifestyle and social activities generally indicative of each particular market segment of enthusiasts—i.e., racing, attending car shows, going to concerts, etc. For the sake of comparison, urban-lifestyle and compact-performance enthusiast data are shown side by side with that of the entire sample of automotive enthusiasts (i.e., hot rodders and off-roaders, musclecar enthusiasts, restoration-vehicle enthusiasts and those into light trucks, in general).The most recent Automotive Lifestyles Survey was administered in August and September of 2008, with a total of 3,037 complete responses. Enthusiasts surveyed included subscribers to 21 different automotive magazines as well as visitors to popular automotive forums and websites. The average age and household income of those surveyed was 40 years old and $91,000, respectively. Had the survey been conducted using a random sample of enthusiasts, the confidence interval (i.e., the estimated value range in which the survey results could lie) would have been ±1.78%.

Let’s start with the vehicles. Enthusiasts claiming to be part of the urban-lifestyle segment of consumers own a diverse array of cars and light trucks. Topping the list of vehicles driven by urban enthusiasts were Ford Mustangs, Chevrolet Corvettes, Ford F-Series pickups and Honda Civics (see table 1). Other more notable “urban” vehicles, such as the Chrysler 300 and Cadillac Escalade, have more presence at urban-lifestyle targeted car shows; however, actual enthusiasts sporting an “urban” look often drive vehicles characteristic of a multitude of market niches. Urban enthusiasts also have an eye for luxury (shown by the two Lexus models also making the list of most-owned vehicles) as do those involved in the compact-performance scene, where the Nissan 240SX, Honda Civic and Mitsubishi EVO topped the list.

Another significant point where compact-performance and urban enthusiasts share similarities is in the products they purchased. When the enthusiasts were asked what performance parts and accessories they purchased over the last year, it became apparent that both performance and appearance products play an important role to these two

Table 2 Similar products top the lists for both segments, however, urban enthusiasts favor milder performance upgrades and aesthetics. Window tinting and alarm systems are some of the exceptions.

groups (see table 2 and 3). Performance parts, such as cold-air intakes and exhaust kits, were purchased by large percentages of those surveyed; however, those within the compact-performance market purchased to a greater degree. While both products arguably provide marginal performance gains compared to more advanced engine and drivetrain upgrades, enthusiasts are attracted to the relatively low price, appearance under the hood, noticeable sound and performance improvements provided by these products. Also, appearance products and mobile-electronics upgrades (such as body kits and stereo head units, respectively) are more popular among compact-performance and urban-lifestyle enthusiasts compared to all the automotive enthusiasts surveyed.

Differences Among Automotive Enthusiasts

Table 3 Compact-performance enthusiasts, on the other hand, lean heavily on performance. Tires are standouts, and suspension upgrades signal a preference for handling.

The last piece of the enthusiast puzzle is how urban-lifestyle and compact-performance enthusiasts actually differ. Besides vehicles owned, compact-performance enthusiasts are heavily geared toward performance, while urban-lifestyle enthusiasts lean more toward appearance. Around 95% of enthusiasts within the compact-performance niche said that they specifically customize their vehicle to increase performance, while 87% of urban-lifestyle enthusiasts gave the same response (8% is a significant difference). In contrast, 36% of the same enthusiasts said that they prefer to modify the appearance of their vehicles over performance, and while this is a relatively small percentage, it is more than double the 16% of compact-performance enthusiasts who prefer appearance over performance. Another significant difference involves place of purchase among these two groups of enthusiasts. Both groups indicated that they purchased the largest percentage of their specialty equipment at online retail stores, but 39% of compact-performance enthusiasts indicated so compared to 24% of urban-lifestyle enthusiasts (see table 4, left).

Table 4 Catalog mail-order purchases are lower for both groups than for the general enthusiast. Internet venues are the most cited, especially for compact-performance consumers.

Compact-performance and urban-lifestyle enthusiasts also differ with respect to demographics. The urban group tended to be a bit older while earning a substantially larger household income compared to enthusiasts within the compact-performance market. On average, urban-lifestyle enthusiasts surveyed were 33 years old, whereas compact-performance enthusiasts were six years younger. Also, the average income of enthusiasts within the urban-lifestyle market was nearly $17,000 more than their compact-performance counterparts.

The data presented in this article is quite comprehensive, but one thing to keep in mind is that automotive enthusiasts of all forms have similarities and differences but are all potentially profitable customers if correctly targeted. This means that a thorough understanding of compact-performance and urban-lifestyle enthusiasts will significantly improve the chances of getting a company’s products into the hands of its desired consumers.

SEMA News -- April 2009
RESEARCH

By Ty Michael and Zack Krelle

Pitting Performance Against Appearance: Which Is More Important Now?

Nissan’s 240SX, Honda’s Civic and Mitsubishi’s EVO topped the list of vehicles owned by enthusiasts that have an affinity for the compact-performance market.

Over the years, quite a bit of attention has been paid to both the compact-performance and urban-lifestyle markets. At their respective roots, each market is very different: Compact performance has involved enthusiasts looking to enhance the performance (hence, the name) of small economy and sports cars and the urban market had a completely opposite makeup of enthusiasts who were more concerned about vehicle appearance, typically involving large sedans and SUVs. Today, these differences still exist in many ways. However, both compact-performance and urban enthusiasts now share enough similarities to bring these segments of consumers closer together.

Urban-lifestyle enthusiasts have one very prominent trait that carries over from the early days of lowriding to the heyday of oversized wheels on pickups and SUVs to today’s more moderate mixture of each: Style and being different is of utmost importance. Add to that the need to infuse interests in music, sports, entertainment and vehicle performance (since big wheels need big power in order to at least make up for the extra weight). One distinctive crossover sub-niche, the Americanized VIP market, employs styles similar to the urban market (i.e., body kits, expensive wheels, lowered profile) with a twist. Even the pure compact-performance market shares some vehicles and lifestyle behaviors with those in the urban-lifestyle market.

Knowledge of enthusiast lifestyles plays an important role when specialty-equipment companies plan their marketing strategies for one main reason: successfully capturing and attracting the attention of potential customers to the company’s brand.

 

 

Vehicles, such as this Dodge Charger underscore the recent stray from the traditional formula for urban enthusiasts and illustrate the dominance of performance and style.

Speaking the language of a particular target market (i.e., understanding the values that potential customers hold) increases the chance that finicky consumers tuning in to a company’s brand eventually make a purchase. Urban-lifestyle enthusiasts, for example, are very much involved with branding—three out of four surveyed via the Automotive Lifestyles Study said that brand name was important when making a purchase. Nearly the same percentage of compact-performance enthusiasts said the same thing.

Creating and maintaining a particular brand image is important, especially among the younger urban and compact-performance segments of consumers. However, branding embodies different meanings for the two crowds.

Urban-lifestyle enthusiasts seek labels with an established reputation for style. These companies are known for their attention to lifestyle elements (music, fashion, etc). In contrast, compact-performance enthusiasts set their sights on brands that have an established distinction for performance.

Automotive Lifestyles and Specialty Equipment

Table 1 Ford Mustangs have a mainstream appeal while the Nissan 240SX is more specific to the compact-performance market.

Automotive enthusiasts are surveyed by SEMA every year through the Automotive Lifestyles Study in order to learn about their accessorization trends and buying behaviors. When sufficient numbers of enthusiasts who identify with a particular market segment are surveyed, their specific personalization habits are profiled. Both compact-performance and urban-lifestyle enthusiasts were looked at in this case, and the results showed, for example, that 37% of all enthusiasts surveyed indicated that they were interested in compact performance and 25% stated interest in urban-styled vehicles. In each case, these enthusiasts also subscribed to the respective market segment magazines and engaged in lifestyle and social activities generally indicative of each particular market segment of enthusiasts—i.e., racing, attending car shows, going to concerts, etc. For the sake of comparison, urban-lifestyle and compact-performance enthusiast data are shown side by side with that of the entire sample of automotive enthusiasts (i.e., hot rodders and off-roaders, musclecar enthusiasts, restoration-vehicle enthusiasts and those into light trucks, in general).The most recent Automotive Lifestyles Survey was administered in August and September of 2008, with a total of 3,037 complete responses. Enthusiasts surveyed included subscribers to 21 different automotive magazines as well as visitors to popular automotive forums and websites. The average age and household income of those surveyed was 40 years old and $91,000, respectively. Had the survey been conducted using a random sample of enthusiasts, the confidence interval (i.e., the estimated value range in which the survey results could lie) would have been ±1.78%.

Let’s start with the vehicles. Enthusiasts claiming to be part of the urban-lifestyle segment of consumers own a diverse array of cars and light trucks. Topping the list of vehicles driven by urban enthusiasts were Ford Mustangs, Chevrolet Corvettes, Ford F-Series pickups and Honda Civics (see table 1). Other more notable “urban” vehicles, such as the Chrysler 300 and Cadillac Escalade, have more presence at urban-lifestyle targeted car shows; however, actual enthusiasts sporting an “urban” look often drive vehicles characteristic of a multitude of market niches. Urban enthusiasts also have an eye for luxury (shown by the two Lexus models also making the list of most-owned vehicles) as do those involved in the compact-performance scene, where the Nissan 240SX, Honda Civic and Mitsubishi EVO topped the list.

Another significant point where compact-performance and urban enthusiasts share similarities is in the products they purchased. When the enthusiasts were asked what performance parts and accessories they purchased over the last year, it became apparent that both performance and appearance products play an important role to these two

Table 2 Similar products top the lists for both segments, however, urban enthusiasts favor milder performance upgrades and aesthetics. Window tinting and alarm systems are some of the exceptions.

groups (see table 2 and 3). Performance parts, such as cold-air intakes and exhaust kits, were purchased by large percentages of those surveyed; however, those within the compact-performance market purchased to a greater degree. While both products arguably provide marginal performance gains compared to more advanced engine and drivetrain upgrades, enthusiasts are attracted to the relatively low price, appearance under the hood, noticeable sound and performance improvements provided by these products. Also, appearance products and mobile-electronics upgrades (such as body kits and stereo head units, respectively) are more popular among compact-performance and urban-lifestyle enthusiasts compared to all the automotive enthusiasts surveyed.

Differences Among Automotive Enthusiasts

Table 3 Compact-performance enthusiasts, on the other hand, lean heavily on performance. Tires are standouts, and suspension upgrades signal a preference for handling.

The last piece of the enthusiast puzzle is how urban-lifestyle and compact-performance enthusiasts actually differ. Besides vehicles owned, compact-performance enthusiasts are heavily geared toward performance, while urban-lifestyle enthusiasts lean more toward appearance. Around 95% of enthusiasts within the compact-performance niche said that they specifically customize their vehicle to increase performance, while 87% of urban-lifestyle enthusiasts gave the same response (8% is a significant difference). In contrast, 36% of the same enthusiasts said that they prefer to modify the appearance of their vehicles over performance, and while this is a relatively small percentage, it is more than double the 16% of compact-performance enthusiasts who prefer appearance over performance. Another significant difference involves place of purchase among these two groups of enthusiasts. Both groups indicated that they purchased the largest percentage of their specialty equipment at online retail stores, but 39% of compact-performance enthusiasts indicated so compared to 24% of urban-lifestyle enthusiasts (see table 4, left).

Table 4 Catalog mail-order purchases are lower for both groups than for the general enthusiast. Internet venues are the most cited, especially for compact-performance consumers.

Compact-performance and urban-lifestyle enthusiasts also differ with respect to demographics. The urban group tended to be a bit older while earning a substantially larger household income compared to enthusiasts within the compact-performance market. On average, urban-lifestyle enthusiasts surveyed were 33 years old, whereas compact-performance enthusiasts were six years younger. Also, the average income of enthusiasts within the urban-lifestyle market was nearly $17,000 more than their compact-performance counterparts.

The data presented in this article is quite comprehensive, but one thing to keep in mind is that automotive enthusiasts of all forms have similarities and differences but are all potentially profitable customers if correctly targeted. This means that a thorough understanding of compact-performance and urban-lifestyle enthusiasts will significantly improve the chances of getting a company’s products into the hands of its desired consumers.

SEMA News -- April 2009
RESEARCH

By Ty Michael and Zack Krelle

Pitting Performance Against Appearance: Which Is More Important Now?

Nissan’s 240SX, Honda’s Civic and Mitsubishi’s EVO topped the list of vehicles owned by enthusiasts that have an affinity for the compact-performance market.

Over the years, quite a bit of attention has been paid to both the compact-performance and urban-lifestyle markets. At their respective roots, each market is very different: Compact performance has involved enthusiasts looking to enhance the performance (hence, the name) of small economy and sports cars and the urban market had a completely opposite makeup of enthusiasts who were more concerned about vehicle appearance, typically involving large sedans and SUVs. Today, these differences still exist in many ways. However, both compact-performance and urban enthusiasts now share enough similarities to bring these segments of consumers closer together.

Urban-lifestyle enthusiasts have one very prominent trait that carries over from the early days of lowriding to the heyday of oversized wheels on pickups and SUVs to today’s more moderate mixture of each: Style and being different is of utmost importance. Add to that the need to infuse interests in music, sports, entertainment and vehicle performance (since big wheels need big power in order to at least make up for the extra weight). One distinctive crossover sub-niche, the Americanized VIP market, employs styles similar to the urban market (i.e., body kits, expensive wheels, lowered profile) with a twist. Even the pure compact-performance market shares some vehicles and lifestyle behaviors with those in the urban-lifestyle market.

Knowledge of enthusiast lifestyles plays an important role when specialty-equipment companies plan their marketing strategies for one main reason: successfully capturing and attracting the attention of potential customers to the company’s brand.

 

 

Vehicles, such as this Dodge Charger underscore the recent stray from the traditional formula for urban enthusiasts and illustrate the dominance of performance and style.

Speaking the language of a particular target market (i.e., understanding the values that potential customers hold) increases the chance that finicky consumers tuning in to a company’s brand eventually make a purchase. Urban-lifestyle enthusiasts, for example, are very much involved with branding—three out of four surveyed via the Automotive Lifestyles Study said that brand name was important when making a purchase. Nearly the same percentage of compact-performance enthusiasts said the same thing.

Creating and maintaining a particular brand image is important, especially among the younger urban and compact-performance segments of consumers. However, branding embodies different meanings for the two crowds.

Urban-lifestyle enthusiasts seek labels with an established reputation for style. These companies are known for their attention to lifestyle elements (music, fashion, etc). In contrast, compact-performance enthusiasts set their sights on brands that have an established distinction for performance.

Automotive Lifestyles and Specialty Equipment

Table 1 Ford Mustangs have a mainstream appeal while the Nissan 240SX is more specific to the compact-performance market.

Automotive enthusiasts are surveyed by SEMA every year through the Automotive Lifestyles Study in order to learn about their accessorization trends and buying behaviors. When sufficient numbers of enthusiasts who identify with a particular market segment are surveyed, their specific personalization habits are profiled. Both compact-performance and urban-lifestyle enthusiasts were looked at in this case, and the results showed, for example, that 37% of all enthusiasts surveyed indicated that they were interested in compact performance and 25% stated interest in urban-styled vehicles. In each case, these enthusiasts also subscribed to the respective market segment magazines and engaged in lifestyle and social activities generally indicative of each particular market segment of enthusiasts—i.e., racing, attending car shows, going to concerts, etc. For the sake of comparison, urban-lifestyle and compact-performance enthusiast data are shown side by side with that of the entire sample of automotive enthusiasts (i.e., hot rodders and off-roaders, musclecar enthusiasts, restoration-vehicle enthusiasts and those into light trucks, in general).The most recent Automotive Lifestyles Survey was administered in August and September of 2008, with a total of 3,037 complete responses. Enthusiasts surveyed included subscribers to 21 different automotive magazines as well as visitors to popular automotive forums and websites. The average age and household income of those surveyed was 40 years old and $91,000, respectively. Had the survey been conducted using a random sample of enthusiasts, the confidence interval (i.e., the estimated value range in which the survey results could lie) would have been ±1.78%.

Let’s start with the vehicles. Enthusiasts claiming to be part of the urban-lifestyle segment of consumers own a diverse array of cars and light trucks. Topping the list of vehicles driven by urban enthusiasts were Ford Mustangs, Chevrolet Corvettes, Ford F-Series pickups and Honda Civics (see table 1). Other more notable “urban” vehicles, such as the Chrysler 300 and Cadillac Escalade, have more presence at urban-lifestyle targeted car shows; however, actual enthusiasts sporting an “urban” look often drive vehicles characteristic of a multitude of market niches. Urban enthusiasts also have an eye for luxury (shown by the two Lexus models also making the list of most-owned vehicles) as do those involved in the compact-performance scene, where the Nissan 240SX, Honda Civic and Mitsubishi EVO topped the list.

Another significant point where compact-performance and urban enthusiasts share similarities is in the products they purchased. When the enthusiasts were asked what performance parts and accessories they purchased over the last year, it became apparent that both performance and appearance products play an important role to these two

Table 2 Similar products top the lists for both segments, however, urban enthusiasts favor milder performance upgrades and aesthetics. Window tinting and alarm systems are some of the exceptions.

groups (see table 2 and 3). Performance parts, such as cold-air intakes and exhaust kits, were purchased by large percentages of those surveyed; however, those within the compact-performance market purchased to a greater degree. While both products arguably provide marginal performance gains compared to more advanced engine and drivetrain upgrades, enthusiasts are attracted to the relatively low price, appearance under the hood, noticeable sound and performance improvements provided by these products. Also, appearance products and mobile-electronics upgrades (such as body kits and stereo head units, respectively) are more popular among compact-performance and urban-lifestyle enthusiasts compared to all the automotive enthusiasts surveyed.

Differences Among Automotive Enthusiasts

Table 3 Compact-performance enthusiasts, on the other hand, lean heavily on performance. Tires are standouts, and suspension upgrades signal a preference for handling.

The last piece of the enthusiast puzzle is how urban-lifestyle and compact-performance enthusiasts actually differ. Besides vehicles owned, compact-performance enthusiasts are heavily geared toward performance, while urban-lifestyle enthusiasts lean more toward appearance. Around 95% of enthusiasts within the compact-performance niche said that they specifically customize their vehicle to increase performance, while 87% of urban-lifestyle enthusiasts gave the same response (8% is a significant difference). In contrast, 36% of the same enthusiasts said that they prefer to modify the appearance of their vehicles over performance, and while this is a relatively small percentage, it is more than double the 16% of compact-performance enthusiasts who prefer appearance over performance. Another significant difference involves place of purchase among these two groups of enthusiasts. Both groups indicated that they purchased the largest percentage of their specialty equipment at online retail stores, but 39% of compact-performance enthusiasts indicated so compared to 24% of urban-lifestyle enthusiasts (see table 4, left).

Table 4 Catalog mail-order purchases are lower for both groups than for the general enthusiast. Internet venues are the most cited, especially for compact-performance consumers.

Compact-performance and urban-lifestyle enthusiasts also differ with respect to demographics. The urban group tended to be a bit older while earning a substantially larger household income compared to enthusiasts within the compact-performance market. On average, urban-lifestyle enthusiasts surveyed were 33 years old, whereas compact-performance enthusiasts were six years younger. Also, the average income of enthusiasts within the urban-lifestyle market was nearly $17,000 more than their compact-performance counterparts.

The data presented in this article is quite comprehensive, but one thing to keep in mind is that automotive enthusiasts of all forms have similarities and differences but are all potentially profitable customers if correctly targeted. This means that a thorough understanding of compact-performance and urban-lifestyle enthusiasts will significantly improve the chances of getting a company’s products into the hands of its desired consumers.

SEMA News -- April 2009
FROM THE HILL
 

By Brian Duggan

Congress Rejects Wasteful Spending Program That Costs American Jobs

Cash for Clunkers programs accelerate the normal retirement of vehicles through the purchase of older cars that are then typically crushed into blocks of scrap metal.

Earlier this year, SEMA launched the largest grassroots effort in its 46-year history to prevent inclusion of a national “Cash for Clunkers” program within the economic stimulus bill.

From late December through mid-February, SEMA members and the SEMA Action Network (SAN)* enthusiasts made phone calls and sent thousands of e-mails and faxes to members of Congress urging lawmakers to oppose a vehicle scrappage program. The campaign was successful.

The legislation passed by the U.S. House of Representatives and Senate and signed into law by President Obama was “clunker-free.”

Cash for Clunkers programs accelerate the normal retirement of vehicles through the purchase of older cars that are then typically crushed into blocks of scrap metal. Two proposals were put forth and then withdrawn during the congressional debate. The first was an $8 billion program targeting SUVs and pickups of any year that make less than 18 mpg, such as Chevy Silverados, Dodge Rams, Ford F-Series and Jeep Wranglers. The second would have provided $16 billion worth of cash vouchers to individuals making less than $50,000 a year ($75,000 for families) who allowed their turned-in cars to be destroyed.

“SEMA continues to believe that a Cash for Clunkers program would, for no proven gain, hurt thousands of independent repair shops, auto restorers, customizers and their customers across the country who depend on the used-car market,” said SEMA Vice President of Government Affairs Steve McDonald. “Instead, we are working with the House and Senate and all stakeholders on sound economic solutions to the current recession that will help drive product sales for the entire auto industry, including the vast automotive aftermarket and its specialty-equipment segment.”

The economic stimulus law includes a SEMA-supported amendment that allows taxpayers to claim a federal tax deduction on state sales/excise taxes when buying a new car in 2009. The new law also contains several business tax credits to help spur capital investments and new hires.

Lawmakers recognize that SEMA members and SAN enthusiasts were the first to step forward last year in vocal opposition to a federal Cash for Clunkers program. The message resonated. SEMA staff also knocked on hundreds of doors across Capitol Hill, outlining how the program would cut into the business of thousands of SEMA-member companies and make it more difficult and expensive for enthusiasts to pursue their love of cars.

Looking to the future, Cash for Clunkers still has loyal advocates in Washington, D.C. Another clunkers proposal may reemerge later this year. SEMA will remain vigilant in educating legislators on the need to oppose programs that do not spur car sales, reduce emissions or raise fuel economy. Meanwhile, SEMA takes this opportunity to thank its member companies and SAN enthusiasts for a job well done. Your voice helps protect our industry and hobby.

For more information about SEMA’s work with the U.S. Congress, contact Brian Duggan, SEMA’s director of congressional affairs, at briand@sema.org.

*The SEMA Action Network (SAN) is a nationwide partnership of car clubs and individual enthusiasts who work together to impact legislation that affects car and truck enthusiasts of all kinds. Through the SAN, SEMA is in direct communication with nearly 3 million individuals. For more information, contact SEMA or visit www.semasan.com.

SEMA News -- April 2009
FROM THE HILL
 

By Brian Duggan

Congress Rejects Wasteful Spending Program That Costs American Jobs

Cash for Clunkers programs accelerate the normal retirement of vehicles through the purchase of older cars that are then typically crushed into blocks of scrap metal.

Earlier this year, SEMA launched the largest grassroots effort in its 46-year history to prevent inclusion of a national “Cash for Clunkers” program within the economic stimulus bill.

From late December through mid-February, SEMA members and the SEMA Action Network (SAN)* enthusiasts made phone calls and sent thousands of e-mails and faxes to members of Congress urging lawmakers to oppose a vehicle scrappage program. The campaign was successful.

The legislation passed by the U.S. House of Representatives and Senate and signed into law by President Obama was “clunker-free.”

Cash for Clunkers programs accelerate the normal retirement of vehicles through the purchase of older cars that are then typically crushed into blocks of scrap metal. Two proposals were put forth and then withdrawn during the congressional debate. The first was an $8 billion program targeting SUVs and pickups of any year that make less than 18 mpg, such as Chevy Silverados, Dodge Rams, Ford F-Series and Jeep Wranglers. The second would have provided $16 billion worth of cash vouchers to individuals making less than $50,000 a year ($75,000 for families) who allowed their turned-in cars to be destroyed.

“SEMA continues to believe that a Cash for Clunkers program would, for no proven gain, hurt thousands of independent repair shops, auto restorers, customizers and their customers across the country who depend on the used-car market,” said SEMA Vice President of Government Affairs Steve McDonald. “Instead, we are working with the House and Senate and all stakeholders on sound economic solutions to the current recession that will help drive product sales for the entire auto industry, including the vast automotive aftermarket and its specialty-equipment segment.”

The economic stimulus law includes a SEMA-supported amendment that allows taxpayers to claim a federal tax deduction on state sales/excise taxes when buying a new car in 2009. The new law also contains several business tax credits to help spur capital investments and new hires.

Lawmakers recognize that SEMA members and SAN enthusiasts were the first to step forward last year in vocal opposition to a federal Cash for Clunkers program. The message resonated. SEMA staff also knocked on hundreds of doors across Capitol Hill, outlining how the program would cut into the business of thousands of SEMA-member companies and make it more difficult and expensive for enthusiasts to pursue their love of cars.

Looking to the future, Cash for Clunkers still has loyal advocates in Washington, D.C. Another clunkers proposal may reemerge later this year. SEMA will remain vigilant in educating legislators on the need to oppose programs that do not spur car sales, reduce emissions or raise fuel economy. Meanwhile, SEMA takes this opportunity to thank its member companies and SAN enthusiasts for a job well done. Your voice helps protect our industry and hobby.

For more information about SEMA’s work with the U.S. Congress, contact Brian Duggan, SEMA’s director of congressional affairs, at briand@sema.org.

*The SEMA Action Network (SAN) is a nationwide partnership of car clubs and individual enthusiasts who work together to impact legislation that affects car and truck enthusiasts of all kinds. Through the SAN, SEMA is in direct communication with nearly 3 million individuals. For more information, contact SEMA or visit www.semasan.com.

SEMA News -- April 2009
RESEARCH

By Megan McKernan

A Chance for SEMA Members to Compete

At the start of the challenge, each vehicle was tested three times in order to establish baseline miles per gallon as well as baseline emissions, including non-methane hydrocarbons, carbon monoxide, oxides of nitrogen and carbon dioxide.

In the spring of 2008, SEMA’s market research department teamed up with the Automobile Club of Southern California’s Automotive Research Center to develop the first-ever Fuel-Economy Challenge. The idea was to create a competition of sorts to find member-company products that would help improve the fuel efficiency of vehicles. This first challenge was open to powertrain-related products, such as exhaust systems, air filters, cold-air intakes and turbochargers. An invitation was sent to all SEMA manufacturer members in early August 2008. The response was so great that we had to turn away some applicants because of the short timeframe in which to complete the testing. Three vehicles were chosen to represent a range of vehicle segments as well as powertrains. Top-selling models were chosen in order to include vehicles with a large presence on the highway.

The three vehicles used in the Challenge were a 2008 Ford F-150 powered by a 5.4L V8 with an automatic transmission and LEV2 emissions certification; a 2008 Chevrolet Tahoe powered by a Flex Fuel 5.3L V8 mated to an automatic transmission and ULEV2 emissions certification; and a 2008 Dodge Charger powered by a 3.5L V6 with an automatic transmission and ULEV2 emissions certification. All of the vehicles were provided by Enterprise Rent-A-Car.

Submissions for more than 20 products were accepted. Many of the products were not originally manufactured for fuel-efficiency purposes. Rather, the manufacturers wanted to determine whether or not their products might have an additional benefit of improved fuel economy. The US06 test was chosen as the test procedure used for this competition. This test is used by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) for new-car and light-truck emissions certification for all 2003 and later models. It is also used by the EPA as the main part of the matrix of tests that determines the city and highway fuel-economy ratings of 2008 and newer vehicles.

At the start of the challenge, each vehicle was tested three times in order to establish baseline miles per gallon as well as baseline emissions, including non-methane hydrocarbons, carbon monoxide, oxides of nitrogen and carbon dioxide. After the installation of the upgrade components, one US06 test consisting of two cycles was performed on the vehicle to measure any changes in emissions or fuel economy. Any product that showed an improvement in fuel economy was declared a winner for the Fuel-Economy Challenge. The manufacturers supplied the parts and detailed installation instructions and, in some cases, participated in the installation of their products. For exhaust systems, an exterior noise test based on SAE Recommended Practice J1169 was performed to ensure that the noise levels met the 95db threshold for on-road use in California.

The winners of the 2008 SEMA/Automobile Club of Southern California Fuel Economy Challenge were Edge Products, Gibson Performance Exhaust, SLP Performance and STS Turbo. The winning products were featured in the Making Green Cool Zone at the 2008 SEMA Show. The complete list of products and companies is not available, as participation in the Fuel Economy Challenge was anonymous. Only the winners were announced.

Acceleration tests for each vehicle were conducted at Auto Club Speedway in Fontana, California. Only the winning products were subjected to these acceleration tests, which merely served as an added benefit for the participants. The SLP Performance package resulted in a 7% improvement of the 0–60-mph elapsed time (e.t.) of the Tahoe. The STS Turbo system improved the 0–60 mph e.t. of the F-150 by 24%.

The Fuel-Economy Challenge was a great success. All of the participants, as well as member companies that were not eligible for the competition due to the type of products they manufacture, were pleased that SEMA and the Auto Club had taken the initiative to help SEMA-member companies and the industry in this way. Here is what our winners had to say about the competition:

Edge Products Edge Evolution Vehicle: 2008 Ford F-150 Fuel-Economy Improvement: 1% 888/360-EDGE http://www.edgeproducts.com/

“The Fuel-Economy Challenge was a great way to scientifically demonstrate to our dealers how Edge products can improve fuel economy,” said Jared Venz of Edge Products. “The test results allow our dealers to promote the fuel-economy benefits of our products with confidence. SEMA provided an excellent platform on which to compare competitive products with an apples-to-apples test. This was a great opportunity for Edge Products to showcase the benefits of its products, and we look forward to future opportunities to work with SEMA.”

STS Turbo Ford F-150 2004–2008 Turbo System Vehicle: 2008 Ford F-150 Fuel-Economy Improvement 4.6% 866/WE-TURBO http://www.ststurbo.com/

"STS Turbo Inc. was excited when we found out about the SEMA Fuel-Economy Challenge,” said Rick Squires of STS Turbo. We had been discussing doing that type of third-party testing on our own to validate the results that we have been consistently getting with our product. SEMA has done a great job of taking a ‘global’ problem and letting the experts in the industry lead the way and present real solutions that have been tested and been proven to really work.”

SLP Performance Performance Pac, Harmonic Balancer, Underdrive Pulley, Rocker Arms and Valve Springs Vehicle: 2008 Chevy Tahoe Fuel-Economy Improvement: 4.1% 732/349-2109 http://www.slponline.com/

“I think the concept was a great one and shows everyone in our industry, as well as the media and performance enthusiasts, that aftermarket companies have the ability to develop performance products and packages of bundled performance products that can improve fuel economy and performance while not negatively impacting emissions,” said Ed Hamburger of SLP Performance.

Gibson Performance Exhaust Ford F-150 Cat-Back Exhaust System Vehicle: 2008 Ford F-150 Fuel-Economy Improvement: 2.6% 800/528-3044 http://www.gibsonperformance.com/

“Gibson Performance is proud to be a winner in the SEMA/Auto Club Fuel-Economy Challenge,” said Coral Gibson of Gibson Performance. “This has been a great marketing tool for our business and has helped attract customers who want fuel-economy gains as well as increased power. SEMA should do these competitions every year to give companies a chance to prove that their parts work as described.”

Although auto manufacturers work very hard to get the best possible fuel economy out of the vehicles they produce, SEMA-member companies have the ability to improve on current technologies as well as to develop new technologies. The combined knowledge, experience and expertise of SEMA manufacturing members just might lead to the development of the fuel-efficient innovation of the future.

For more information about the 2008 SEMA/Automobile Club of Southern California Fuel-Economy Challenge, contact Megan McKernan at 909/396-0289 or meganm@sema.org, or Steve Mazor, Auto Club at 909/612-2564 or Mazor.Steve@aaa-calif.com.

SEMA News -- April 2009
RESEARCH

By Megan McKernan

A Chance for SEMA Members to Compete

At the start of the challenge, each vehicle was tested three times in order to establish baseline miles per gallon as well as baseline emissions, including non-methane hydrocarbons, carbon monoxide, oxides of nitrogen and carbon dioxide.

In the spring of 2008, SEMA’s market research department teamed up with the Automobile Club of Southern California’s Automotive Research Center to develop the first-ever Fuel-Economy Challenge. The idea was to create a competition of sorts to find member-company products that would help improve the fuel efficiency of vehicles. This first challenge was open to powertrain-related products, such as exhaust systems, air filters, cold-air intakes and turbochargers. An invitation was sent to all SEMA manufacturer members in early August 2008. The response was so great that we had to turn away some applicants because of the short timeframe in which to complete the testing. Three vehicles were chosen to represent a range of vehicle segments as well as powertrains. Top-selling models were chosen in order to include vehicles with a large presence on the highway.

The three vehicles used in the Challenge were a 2008 Ford F-150 powered by a 5.4L V8 with an automatic transmission and LEV2 emissions certification; a 2008 Chevrolet Tahoe powered by a Flex Fuel 5.3L V8 mated to an automatic transmission and ULEV2 emissions certification; and a 2008 Dodge Charger powered by a 3.5L V6 with an automatic transmission and ULEV2 emissions certification. All of the vehicles were provided by Enterprise Rent-A-Car.

Submissions for more than 20 products were accepted. Many of the products were not originally manufactured for fuel-efficiency purposes. Rather, the manufacturers wanted to determine whether or not their products might have an additional benefit of improved fuel economy. The US06 test was chosen as the test procedure used for this competition. This test is used by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) for new-car and light-truck emissions certification for all 2003 and later models. It is also used by the EPA as the main part of the matrix of tests that determines the city and highway fuel-economy ratings of 2008 and newer vehicles.

At the start of the challenge, each vehicle was tested three times in order to establish baseline miles per gallon as well as baseline emissions, including non-methane hydrocarbons, carbon monoxide, oxides of nitrogen and carbon dioxide. After the installation of the upgrade components, one US06 test consisting of two cycles was performed on the vehicle to measure any changes in emissions or fuel economy. Any product that showed an improvement in fuel economy was declared a winner for the Fuel-Economy Challenge. The manufacturers supplied the parts and detailed installation instructions and, in some cases, participated in the installation of their products. For exhaust systems, an exterior noise test based on SAE Recommended Practice J1169 was performed to ensure that the noise levels met the 95db threshold for on-road use in California.

The winners of the 2008 SEMA/Automobile Club of Southern California Fuel Economy Challenge were Edge Products, Gibson Performance Exhaust, SLP Performance and STS Turbo. The winning products were featured in the Making Green Cool Zone at the 2008 SEMA Show. The complete list of products and companies is not available, as participation in the Fuel Economy Challenge was anonymous. Only the winners were announced.

Acceleration tests for each vehicle were conducted at Auto Club Speedway in Fontana, California. Only the winning products were subjected to these acceleration tests, which merely served as an added benefit for the participants. The SLP Performance package resulted in a 7% improvement of the 0–60-mph elapsed time (e.t.) of the Tahoe. The STS Turbo system improved the 0–60 mph e.t. of the F-150 by 24%.

The Fuel-Economy Challenge was a great success. All of the participants, as well as member companies that were not eligible for the competition due to the type of products they manufacture, were pleased that SEMA and the Auto Club had taken the initiative to help SEMA-member companies and the industry in this way. Here is what our winners had to say about the competition:

Edge Products Edge Evolution Vehicle: 2008 Ford F-150 Fuel-Economy Improvement: 1% 888/360-EDGE http://www.edgeproducts.com/

“The Fuel-Economy Challenge was a great way to scientifically demonstrate to our dealers how Edge products can improve fuel economy,” said Jared Venz of Edge Products. “The test results allow our dealers to promote the fuel-economy benefits of our products with confidence. SEMA provided an excellent platform on which to compare competitive products with an apples-to-apples test. This was a great opportunity for Edge Products to showcase the benefits of its products, and we look forward to future opportunities to work with SEMA.”

STS Turbo Ford F-150 2004–2008 Turbo System Vehicle: 2008 Ford F-150 Fuel-Economy Improvement 4.6% 866/WE-TURBO http://www.ststurbo.com/

"STS Turbo Inc. was excited when we found out about the SEMA Fuel-Economy Challenge,” said Rick Squires of STS Turbo. We had been discussing doing that type of third-party testing on our own to validate the results that we have been consistently getting with our product. SEMA has done a great job of taking a ‘global’ problem and letting the experts in the industry lead the way and present real solutions that have been tested and been proven to really work.”

SLP Performance Performance Pac, Harmonic Balancer, Underdrive Pulley, Rocker Arms and Valve Springs Vehicle: 2008 Chevy Tahoe Fuel-Economy Improvement: 4.1% 732/349-2109 http://www.slponline.com/

“I think the concept was a great one and shows everyone in our industry, as well as the media and performance enthusiasts, that aftermarket companies have the ability to develop performance products and packages of bundled performance products that can improve fuel economy and performance while not negatively impacting emissions,” said Ed Hamburger of SLP Performance.

Gibson Performance Exhaust Ford F-150 Cat-Back Exhaust System Vehicle: 2008 Ford F-150 Fuel-Economy Improvement: 2.6% 800/528-3044 http://www.gibsonperformance.com/

“Gibson Performance is proud to be a winner in the SEMA/Auto Club Fuel-Economy Challenge,” said Coral Gibson of Gibson Performance. “This has been a great marketing tool for our business and has helped attract customers who want fuel-economy gains as well as increased power. SEMA should do these competitions every year to give companies a chance to prove that their parts work as described.”

Although auto manufacturers work very hard to get the best possible fuel economy out of the vehicles they produce, SEMA-member companies have the ability to improve on current technologies as well as to develop new technologies. The combined knowledge, experience and expertise of SEMA manufacturing members just might lead to the development of the fuel-efficient innovation of the future.

For more information about the 2008 SEMA/Automobile Club of Southern California Fuel-Economy Challenge, contact Megan McKernan at 909/396-0289 or meganm@sema.org, or Steve Mazor, Auto Club at 909/612-2564 or Mazor.Steve@aaa-calif.com.

SEMA News -- April 2009
SEMA Internet

By Joe Dysart

See and Study the Paths Visitors Take DAVID

Google offers a number of free videos to acquaint users with how its web analytics works.

While web software has been around nearly as long as the web itself, the latest crop of upgrades make it easier than ever to precisely study what’s working best on your site and ensure that those best practices are replicated on every page. Indeed, as too many businesses learned the hard way in the early days of the web, a site that often seems easy to navigate in the eyes of company creators can actually represent a major challenge to visitors. Too often, this results in visitors clicking away in frustration—and often logging on to a competitor’s site.

Web analytics software packages solve this problem by enabling web designers and marketers to see and study the paths visitors take through a website, precisely determine where those visitors are having trouble and then make necessary fixes.

Plus, the programs enable companies to see which website pages are most popular; which media on a site are most popular; which search engines send the site the most business; and gather myriad other insights into design elements on the site that are working well—or not working at all.

Simply put, web analytics make it easy “…for businesses to really get inside their customers’ heads—either by analyzing macro trends or by drilling deep into individual behavior,” said John Squire, chief strategy officer for Coremetrics (www.coremetrics.com), a leading software solution. “Then we take it to the next level by helping marketers gauge their business performance against their competition.”

While there are dozens of analytics solutions on the market, the packages most often recommended by analysts include Coremetrics, WebTrends (www.webtrends.com), Omniture (www.omniture.com) and Google Analytics (www.googleanalytics.com).

Like the web itself, these solutions are continually evolving and continually offer users deeper insights into how to achieve the best in web design. All have also received major upgrades during the past year.

The phenomenal growth of social networking on the web, for example, recently spurred web analytics solutions provider Omniture to add a social networking analysis module to its package, which studies how a website discussion forum, blog and similar features can trigger other behaviors on the site. One application of the tool, for example, enables a company to determine how participation in a company’s discussion forum can result in longer customer relationships and increased revenue.

Many of the solutions providers also now enable companies to study how reviews posted on their sites impact their overall company images. Generally, these providers partner with BazzarVoice (www.bazzarvoice.com) —a firm that helps organizations build, maintain and optimize customer feedback forums on their products or services—for help in developing the module.

Meanwhile, responding to the YouTube craze, WebTrends has beefed up its analysis of how visitors interact with video on a website and has won an award for the effort from StreamingMedia.com, which singled out WebTrends as the best tool for analyzing audio and video use on the web for 2008. The module allows a company to track the use of all major video formats on a site, including Flash, FLEX, Microsoft Silverlight, Windows Media, Real Media and Apple Quicktime. Plus, users can determine where web visitors go and what they do after viewing a video as well as follow overall daily viewing trends and statistics.

Solutions providers have also been working hard to enable non-technical company users to generate more reports and delve deeper into website activity with their solutions without being forced to rely on the IT department for help. Coremetric’s latest upgrade, for example, enables company web designers and marketers to independently create custom reports on the fly and retrieve that analysis immediately rather than being forced to wait for results that often take weeks from often overworked IT departments.

Many of the retreaded solutions have also added a mobile analytics module that enables companies to determine if a significant percentage of visitors are accessing the company website with iPhones, smart phones and other handheld wireless devices. Indeed, such insights have inspired some companies to design entirely new, mobile-friendly portions of their websites—or create a separate website that is especially designed for mobile users.

The latest crop of analytics software enables firms to get a more granular look at website activity. The new version of Google Analytics, for example, not only allows companies to determine which visitors requested a white paper or a quote while visiting a site, but can also analyze which of those requests came from paid search links and which came from visitors who clicked in via unpaid links. Google’s latest solution also shows companies how visitors are searching through their websites, what they’re looking for in those searches and which pages they ultimately end up at.

Meanwhile, Coremetric’s focus on added granularity enables a company to track and keep in memory every visit a specific person makes to a website, enabling firms to easily unearth the user trends and patterns associated with those visits.

Bottom line: Before investing in any web analytics solution, you’ll probably want to give Google Analytics a try, since the online service is free and is considered fairly sophisticated for the price. Google also offers a number of informative videos online that illustrate how various features of its solution work (www.google.com/analytics/features.html). These videos give a decent introduction to how web analytics works in general. There are also a number of market research firms, including Forrester (www.forrester.com), IDC (www.idc.com) and Gartner (www.gartner.com), that regularly issue in-depth reports on the state of the web analytics market.

For one of the most comprehensive looks at web analytics, definitely check out CMS Watch (www.cmswatch.com/analytics/report). It’s most recent report, “The Web Analytics Report 2008,” runs 340 pages and slices and dices virtually every major solution on the market today with a take-no-prisoners, no-stone-left-unturned approach.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: (http://www.joedysart.com/)

SEMA News -- April 2009
SEMA Internet

By Joe Dysart

See and Study the Paths Visitors Take DAVID

Google offers a number of free videos to acquaint users with how its web analytics works.

While web software has been around nearly as long as the web itself, the latest crop of upgrades make it easier than ever to precisely study what’s working best on your site and ensure that those best practices are replicated on every page. Indeed, as too many businesses learned the hard way in the early days of the web, a site that often seems easy to navigate in the eyes of company creators can actually represent a major challenge to visitors. Too often, this results in visitors clicking away in frustration—and often logging on to a competitor’s site.

Web analytics software packages solve this problem by enabling web designers and marketers to see and study the paths visitors take through a website, precisely determine where those visitors are having trouble and then make necessary fixes.

Plus, the programs enable companies to see which website pages are most popular; which media on a site are most popular; which search engines send the site the most business; and gather myriad other insights into design elements on the site that are working well—or not working at all.

Simply put, web analytics make it easy “…for businesses to really get inside their customers’ heads—either by analyzing macro trends or by drilling deep into individual behavior,” said John Squire, chief strategy officer for Coremetrics (www.coremetrics.com), a leading software solution. “Then we take it to the next level by helping marketers gauge their business performance against their competition.”

While there are dozens of analytics solutions on the market, the packages most often recommended by analysts include Coremetrics, WebTrends (www.webtrends.com), Omniture (www.omniture.com) and Google Analytics (www.googleanalytics.com).

Like the web itself, these solutions are continually evolving and continually offer users deeper insights into how to achieve the best in web design. All have also received major upgrades during the past year.

The phenomenal growth of social networking on the web, for example, recently spurred web analytics solutions provider Omniture to add a social networking analysis module to its package, which studies how a website discussion forum, blog and similar features can trigger other behaviors on the site. One application of the tool, for example, enables a company to determine how participation in a company’s discussion forum can result in longer customer relationships and increased revenue.

Many of the solutions providers also now enable companies to study how reviews posted on their sites impact their overall company images. Generally, these providers partner with BazzarVoice (www.bazzarvoice.com) —a firm that helps organizations build, maintain and optimize customer feedback forums on their products or services—for help in developing the module.

Meanwhile, responding to the YouTube craze, WebTrends has beefed up its analysis of how visitors interact with video on a website and has won an award for the effort from StreamingMedia.com, which singled out WebTrends as the best tool for analyzing audio and video use on the web for 2008. The module allows a company to track the use of all major video formats on a site, including Flash, FLEX, Microsoft Silverlight, Windows Media, Real Media and Apple Quicktime. Plus, users can determine where web visitors go and what they do after viewing a video as well as follow overall daily viewing trends and statistics.

Solutions providers have also been working hard to enable non-technical company users to generate more reports and delve deeper into website activity with their solutions without being forced to rely on the IT department for help. Coremetric’s latest upgrade, for example, enables company web designers and marketers to independently create custom reports on the fly and retrieve that analysis immediately rather than being forced to wait for results that often take weeks from often overworked IT departments.

Many of the retreaded solutions have also added a mobile analytics module that enables companies to determine if a significant percentage of visitors are accessing the company website with iPhones, smart phones and other handheld wireless devices. Indeed, such insights have inspired some companies to design entirely new, mobile-friendly portions of their websites—or create a separate website that is especially designed for mobile users.

The latest crop of analytics software enables firms to get a more granular look at website activity. The new version of Google Analytics, for example, not only allows companies to determine which visitors requested a white paper or a quote while visiting a site, but can also analyze which of those requests came from paid search links and which came from visitors who clicked in via unpaid links. Google’s latest solution also shows companies how visitors are searching through their websites, what they’re looking for in those searches and which pages they ultimately end up at.

Meanwhile, Coremetric’s focus on added granularity enables a company to track and keep in memory every visit a specific person makes to a website, enabling firms to easily unearth the user trends and patterns associated with those visits.

Bottom line: Before investing in any web analytics solution, you’ll probably want to give Google Analytics a try, since the online service is free and is considered fairly sophisticated for the price. Google also offers a number of informative videos online that illustrate how various features of its solution work (www.google.com/analytics/features.html). These videos give a decent introduction to how web analytics works in general. There are also a number of market research firms, including Forrester (www.forrester.com), IDC (www.idc.com) and Gartner (www.gartner.com), that regularly issue in-depth reports on the state of the web analytics market.

For one of the most comprehensive looks at web analytics, definitely check out CMS Watch (www.cmswatch.com/analytics/report). It’s most recent report, “The Web Analytics Report 2008,” runs 340 pages and slices and dices virtually every major solution on the market today with a take-no-prisoners, no-stone-left-unturned approach.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: (http://www.joedysart.com/)

SEMA News -- April 2009
SEMA Internet

By Joe Dysart

See and Study the Paths Visitors Take DAVID

Google offers a number of free videos to acquaint users with how its web analytics works.

While web software has been around nearly as long as the web itself, the latest crop of upgrades make it easier than ever to precisely study what’s working best on your site and ensure that those best practices are replicated on every page. Indeed, as too many businesses learned the hard way in the early days of the web, a site that often seems easy to navigate in the eyes of company creators can actually represent a major challenge to visitors. Too often, this results in visitors clicking away in frustration—and often logging on to a competitor’s site.

Web analytics software packages solve this problem by enabling web designers and marketers to see and study the paths visitors take through a website, precisely determine where those visitors are having trouble and then make necessary fixes.

Plus, the programs enable companies to see which website pages are most popular; which media on a site are most popular; which search engines send the site the most business; and gather myriad other insights into design elements on the site that are working well—or not working at all.

Simply put, web analytics make it easy “…for businesses to really get inside their customers’ heads—either by analyzing macro trends or by drilling deep into individual behavior,” said John Squire, chief strategy officer for Coremetrics (www.coremetrics.com), a leading software solution. “Then we take it to the next level by helping marketers gauge their business performance against their competition.”

While there are dozens of analytics solutions on the market, the packages most often recommended by analysts include Coremetrics, WebTrends (www.webtrends.com), Omniture (www.omniture.com) and Google Analytics (www.googleanalytics.com).

Like the web itself, these solutions are continually evolving and continually offer users deeper insights into how to achieve the best in web design. All have also received major upgrades during the past year.

The phenomenal growth of social networking on the web, for example, recently spurred web analytics solutions provider Omniture to add a social networking analysis module to its package, which studies how a website discussion forum, blog and similar features can trigger other behaviors on the site. One application of the tool, for example, enables a company to determine how participation in a company’s discussion forum can result in longer customer relationships and increased revenue.

Many of the solutions providers also now enable companies to study how reviews posted on their sites impact their overall company images. Generally, these providers partner with BazzarVoice (www.bazzarvoice.com) —a firm that helps organizations build, maintain and optimize customer feedback forums on their products or services—for help in developing the module.

Meanwhile, responding to the YouTube craze, WebTrends has beefed up its analysis of how visitors interact with video on a website and has won an award for the effort from StreamingMedia.com, which singled out WebTrends as the best tool for analyzing audio and video use on the web for 2008. The module allows a company to track the use of all major video formats on a site, including Flash, FLEX, Microsoft Silverlight, Windows Media, Real Media and Apple Quicktime. Plus, users can determine where web visitors go and what they do after viewing a video as well as follow overall daily viewing trends and statistics.

Solutions providers have also been working hard to enable non-technical company users to generate more reports and delve deeper into website activity with their solutions without being forced to rely on the IT department for help. Coremetric’s latest upgrade, for example, enables company web designers and marketers to independently create custom reports on the fly and retrieve that analysis immediately rather than being forced to wait for results that often take weeks from often overworked IT departments.

Many of the retreaded solutions have also added a mobile analytics module that enables companies to determine if a significant percentage of visitors are accessing the company website with iPhones, smart phones and other handheld wireless devices. Indeed, such insights have inspired some companies to design entirely new, mobile-friendly portions of their websites—or create a separate website that is especially designed for mobile users.

The latest crop of analytics software enables firms to get a more granular look at website activity. The new version of Google Analytics, for example, not only allows companies to determine which visitors requested a white paper or a quote while visiting a site, but can also analyze which of those requests came from paid search links and which came from visitors who clicked in via unpaid links. Google’s latest solution also shows companies how visitors are searching through their websites, what they’re looking for in those searches and which pages they ultimately end up at.

Meanwhile, Coremetric’s focus on added granularity enables a company to track and keep in memory every visit a specific person makes to a website, enabling firms to easily unearth the user trends and patterns associated with those visits.

Bottom line: Before investing in any web analytics solution, you’ll probably want to give Google Analytics a try, since the online service is free and is considered fairly sophisticated for the price. Google also offers a number of informative videos online that illustrate how various features of its solution work (www.google.com/analytics/features.html). These videos give a decent introduction to how web analytics works in general. There are also a number of market research firms, including Forrester (www.forrester.com), IDC (www.idc.com) and Gartner (www.gartner.com), that regularly issue in-depth reports on the state of the web analytics market.

For one of the most comprehensive looks at web analytics, definitely check out CMS Watch (www.cmswatch.com/analytics/report). It’s most recent report, “The Web Analytics Report 2008,” runs 340 pages and slices and dices virtually every major solution on the market today with a take-no-prisoners, no-stone-left-unturned approach.

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: (http://www.joedysart.com/)