Alex and All Commenters:
This is perhaps one of the best overall articles/threads I've read regarding automotive in a while. Great job, all.
With that said, I would like to sum up some of the points made as well as add some others.
Search numbers are down because:
1) Social media and apps eliminate/replace the need for many, many searches. Things that we once searched for are now presented to us through other means. I ate sushi last night in Santa Monica that we found on Yelp. On my Droid X, I get movie listings and reviews, directions/GPS, local information, etc.
2) It is the search engines' goal to make us search LESS. The whole reason for having an algorithm is to present the most relevant data possible on the first try. This is why they use quality score or a variation to help rank PPC advertising. Otherwise, they would go with the higher bidder. For organic listings, to optimize a site is to make it as relevant to particular searches as possible. Is it being corrupted? Of course! All data is corrupted at some level. Even in social media, entire companies are built around making clients more attractive on Web 2.0. More on this later...
3) I would not underestimate the experience of the searcher. The more we search, the better we get at it, and the last 2 years have been a real tipping point for improved "search skills" by those using the search engines.
None of these things, however, point to any change in the need for solid Automotive SEO and SEM. Social media is a luxury (this coming from the guy who preaches social media every day). Automotive SEO is a necessity and is showing now signs of dying.
Let's look at the above reasons for a decline in searches through the lens of how it affects car dealers.
1) Social Media/Apps - The influence of social media on car-buying decisions is there, but not even close to the influence it has on other reduced searches such as restaurants or entertainment. There are no popular "Where do I buy my next car" apps out there. Where social media DOES influence searches is at the brand level. People are more likely to have their decision influenced by social media when deciding which brands to consider. Once they make that determination, they hit the search engines to find the right dealer.
2) As Pasch, Miltsch, and others indicated, most of the old school factors that once manipulated the search engines have been reduced in strength. Content and authoritative links are still greatly trusted by the search engines because they yield results that normally make search listings more relevant. One important factor that search engines look at is bounce back. If enough people click on the #1 listing, click back, then click on the #2 listing and stay on the site without going back to further searches, #2 will eventually be #1. This is the "corruption-beater" that search engines use. They know there is corruption. They know how to fight that corruption - by watching how searchers respond to results.
3) For car dealers, keyword selection is HUGE. I often get yelled at (not literally) for the number of hours we spend with dealers simply getting the right keyword lists going and maintaining those lists over time. People are better searchers than they've ever been and that is going to be more pronounced in coming years as the tech-savvy kids of today become the car buyers of tomorrow.
Alex, this was a wonderful, thought provoking discussion. I cannot wait for a followup!