8/2/16

Digital Advertising Dealer

Summit

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Welcome

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Digital Dealer Speak

Play 2/3 min video

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What is Automotive Digital

Marketing?

OEM (1), Ad Association (2) and Dealer Websites (3)

Inventory Aggregation Portals
Lead Producers and Resell Aggregators
Specialized Microsites and Landing Pages
URL and domain management portfolios
CRM and Lead Management Tools
Automated Email Marketing and Communication systems
Assigned Resources and Business Processes
Search Engine Optimization
Social Networking and Reputation Management
Digital Advertising

Search Engine Advertising

Content and Demographic Network Ad Placements
Behavioral Targeting Campaigns
Retargeting Campaigns
Site, Services and Event Sponsorship Campaigns

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Automotive Ad Spend
Shift to Internet

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Digital Media Spending Growth

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*Source:6 IAB.net

Digital Spend % - TIER I / TIER II

Tier I and Tier II spend has increased as Internet shopping activity has grown

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Source: Ad Activity, SEM/Display

Digital Growth - Retail Sales

Internet Sales as a % of Retail sales continue to grow in importance

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Source: CKS Sales Match

% of Ford buyers research on-line

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70+
%
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All Car Buyers are Internet Customers

Majority of Vehicle Research is Being Done Online

Car shopper are

qualifying dealers by
researching online
with the vast
majority using search

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Moving beyond Why Digital

80.0%
70.0%
60.0%

60.0% 60.0%
54.0%

50.0%
40.0%
40.0%
30.0%

64.0% 64.0%

70.0%
67.0% 68.0%

54.0% 53.0%
43.0%

59.0% 61.0%

47.0% 47.0%

33.0%

26.0%
20.0%
10.0%
1999

2000

2001

2002

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2003

11

2004

2005

2006

2007

Why doesnt Auto advertising have

the same impact?
Percent of Advertising Spend 2

Weekly Hourly Media Consumption 1

(Total time spent using all media was 70.6 hours)

Direct Mail/Radio/Other
28.30%

Newspaper
27.30%

Other
Internet

Newspapers

Television

19.50%

Television
Internet
1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007
2. 2006 National Automobile Dealers Association Data

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11.50%

Only travel is more influenced by

Online media

Source: DoubleClick Touchpoints III

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Which one of these information sources was most

important when making decisions about buying your
vehicle?
40.0%

35.3%

35.0%
30.0%

24.9%

25.0%
20.0%
15.0%
10.0%

13.4%
8.2%
4.4% 3.6%

5.0%
0.0%

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1.1%

Todays Biggest Dealer Advertising Challenge

Overspending on Newspaper, Radio, Outdoor & Mail Relative to Usage

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Dealer Ad
Budget
Efciency Gap

The Average Car Dealers Advertising Spend Does Not Match

The Car Buying Consumers Media Consumption Behaviors
Average Dealer Advertising Spend vs. Consumer Media
Consumption

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Dealer Advertising Budgets Not

Aligned
1/10
RADIO

TV &

3/10

PRINT

FEW LEADS

DILUTED
OPPORTUNIT
Y

8/10
INTERNET
PRODUCIN
G LESS
THAN
DESIRABLE
RESULTS

92% of Ad Budget
30% of Customers
8% of Ad Budget
70% of Customers

focused at

Where Do You
Find
focused at
WHY?
This Sales Opportunity?
Dealers are relying on
3rd Party Lead Providers for Digital
who send same lead to your dealership and others

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Dealer Ad Budgets Realigned

STRATEGY
1/10
RADIO

TV &

3/10

PRINT

2008 AUTO BUYER

HIGHER
CLOSING %
HIGHER
GROSS
LOWER
COST PER
LEAD

8/10
INTERNET

STRATEGY

MORE
LEADS ON
OWN
HIGHER
QUALITY

25% of Ad Budget
focused at
70% of
Customers
Dealer
becomes
regional buying service
Dealer generates more high quality leads on
own
Dealer quickly captures higher share of
online market

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Objective Analysis
Where are Dealers shifting money from, so that Digital Marketing
does not increase overall advertising budgets or Costs PVR?

Includes auto manufactures, national dealer associations, individual

dealerships and other market vendors, excludes auto insurance and
retail companies.

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Source: eMarketer

Newspaper spending is declining

$5.5
$4.9
$5.0

$5.2 $5.2

$5.0

$4.5

$4.6
$4.3

$4.0

$3.9

$3.7
$3.3 $3.2

$3.5
$3.0

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$4.1

Spend
(Billions)

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Its not all about the lead

80%

60%

64%

71%

68%

67%

40%

20%

0%

20%

2004

21%

2005

21%

2006

22%

2007

Online New Car Shopper as % of Total Buyers

Email Lead Requestors as % of Total Buyers

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Only 22% of dealer website visitors

submit a lead
Submit an Online
Request for Quote

Visit Dealer Based on Online Information

No; 61%

Yes; 20%
No; 80%

Yes; 39%

39% visit a dealer based on information

found online

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The vehicle shopping process takes

about three months for the average AIU
Decide it was
time to purchase

Shop vehicles
on the Internet

10.4

11.7
14.7

Decide on
model

11.0

Purchase
new vehicle

6.3
7.6

0
Start visiting
dealers

Decide on type
of vehicle
Start actively
researching vehicles

Source: 2007 J.D. Power and Associates New Autoshopper.com Study

Based to AIUs

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One-third of new-vehicle buyers purchase within

one month of deciding they need a new vehicle
Shopping Timeline of AIU's
25%

22%

20%

18%
15%

15%
10%

34% Shopping
Process
One Month or less
13%
13%

10%

8%

5%
2%

27% Shopping
Process
0%
Over
Months
53 or more25 to 52
21Five
to 24
9 to 20

Decide time to buy

5 to 8

Weeks Before Purchase

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3 to 2

1 week

Ecommerce Elite

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Most Improved

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Lead Volume

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Lead Response Time

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Percent of Retail

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Why Digital? Current Marketplace

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Why Digital? Current Marketplace

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Why Digital? Current Marketplace

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Why Digital? Current Marketplace

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Why Digital? Current Marketplace

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Ford Lincoln Mercury Co-Op

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Ford Lincoln Mercury Digital

Advertising Program

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Ford Lincoln Mercury Digital

Advertising Program
Do it yourself
Need some assistance
Turn Key - Complete

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Check Current Process

Showroom
Phones
Lead Response

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MC
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Resources

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Resources
Home Portal

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Resources
DMC

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MC
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Bulk Email

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Bulk Email
Most cost effective, highest ROI

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WebSite

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Standard DealerConnection

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Premier Customization
DealerConnection

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Promoting Your Dealership

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Online and Offline

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ADP Speaker Bio / Introduction

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Video

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Google Ad Words
Page 12

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Common Pitfalls
Buyer beware

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What to Measure

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Search Defined
SEO
(Search Engine
Optimization)

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SEM
(Search Engine
Marketing)

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Digital Advertising Myths

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MC
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15 Minute Break

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Welcome Back

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Turn Key Solution

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Turn Key Solution

How much is it?

How does it work?
Who does the work?
Why would I use it?

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Turn Key Solution

Pricing
$495.00 a month
Spend only as much as you like with a
20% markup added
Month to month contract

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Turn Key Solution

How does it work

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Turn Key Solution

Who does the work
Virtual Marketing Representative (VMR)

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Turn Key Solution

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Turn Key Solution

Metrics
KBA

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Turn Key Solution

Tier I and II Negotiated Pricing cascaded to
Tier III

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Case Studies

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Relationships

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Specific Media

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Question and Answer Panel

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