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Digital Advertising: What is It and How Should We Measure It?

Yes Virginia, the world isn’t flat and there is no such

thing as a $20 lead!

As more money gets shifted from traditional offline advertising media into

online interactive media, the ability to create a wide variety of consumer

experiences around receiving a dealer’s message brings new possibilities.

What are a few of these new ways for dealers to engage car buyers and how

do we measure what messages are more effective than others? This session

will explore online advertising from the perspective of generating consumer

engagement and creating a positive perception of the dealership, while

debunking the myth of the $20 lead. Paglia will present the concept of Key

Buying Activities (KBA) from a dealer perspective and how to track and

measure them. The session will showcase actual dealership case studies

and provide access to spreadsheets and document templates that attendees

can repurpose for their own use.

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What’s Hot vs What’s Not - Automotive Digital Marketing 2009

Getting Hotter 2009 Cooling Down

Digital Marketing Versus Buying Leads

Digital Advertising Versus Newspaper Advertising

Multiple Websites Versus Single Dealer Website

Multiple URL’s Versus A Single “Branded” URL

Transactional Websites Versus Online Billboards

Targeted Email Marketing Versus Bulk Broadcast Email

Online CTP Video Ads Versus Static Banner Ads

Online Advertising Versus PPC Search Advertising

User Generated Content (UGC) Versus One-Way Communication

1. Online Display Advertising

– Ad Networks

• Automotive Websites

• Local Media Websites

• National Websites

– Behavioral Targeting

– Geotargeting

– Contextual Targeting

2. Search Engine Advertising

– CPC/PPC/Sponsored Links

3. Offline Ad Buying Efficiency– Google Audio (radio)

– Google Print (newspaper)

– Google TV

Digital Advertising Advantages

MEASURABLE RESULTS

QUALITY TRAFFIC

HIGHLY TARGETABLE

COST EFFECTIVE ROI

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Other17.6 hours

Newspaper,3.9 hours

Television16.4 hours

Internet 32.7 hours

Weekly Hourly Media Consumption 1

(Total time spent using all media was 70.6 hours)

Column1, Internet, 11.

50%

Column1, Television, 19.50%

Column1, Newspaper, 27.30%

Column1, Direc

t Mail/Radio/Other, 28.3

0%

Percent of Advertising Spend 2

Why doesn’t local dealer advertising have the same

impact on showroom traffic as it did 10 years ago?

1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007

2. 2007 National Automobile Dealers Association Data

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Different media channels are more effective

at distinct stages of the automotive shopping funnel

Consideration

Purchase

Awareness

Familiarity

Visit Dealer

Advertising Media Channels

TV

Ad

s

Ra

dio

Ad

s

Dig

ital A

dvertis

ing

New

sp

ap

ers

Ou

tdo

or

Source: DoubleClick Touchpoints III

#1 Source, Internet,

35.3%

#1 Source, Family,

24.9%

#1 Source, Friends,

13.4%#1

Source, TV, 8.2% #1

Source, Magazine, 4.4%

#1 Source, Newspa

per, 3.6%#1

Source, Radio, 1.1%

“Which one of these information

sources was most important

when making decisions about

buying your vehicle?”

R.L. Polk 2007

Digital

Advertising

Results?

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Digital Advertising

Measurement

&

Analysis

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This campaign ran for new pickup trucks across multiple states in the

Southeastern USA. Conversion to a “Key Buying Activity” (KBA) is defined

as “printing out a test-drive certificate.” As Figure 4 shows (next

slide), Careers & Education generated the best blend of

performance, including click-through and conversion rates… Dating

& Social Networking was the highest-performing conversion

category. Autos & Transportation had a conversion rate dramatically

lower than the average of the campaign while the click-through rate was

only slightly higher than the average. Here’s the point; guessing where

in-market auto buyers can be found and sticking to that without

looking at any campaign data will not lead to campaign success.The true benefit of this data for the dealer and his digital marketer is not

only in understanding this campaign’s performance, but also in being able

to use the data to more accurately target their online advertising

investments going forward – both within the current campaign and future

ones…

By removing low performing categories, performance will increase.

Campaign Example #1 – Southeast USA; Pickup Trucks

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Regional Truck Campaign #1 Click-Through &

Conversion Rates by Site Category and Traffic

The size of the

bubbles show the

volume in terms of

impressions served

for each category…

The placement of

the bubbles

represents

performance in

terms of click-

through and

conversion rates…

The vertical dashed

line represents the

average click-

through rate for the

campaign.

The horizontal dash

line represents the

average conversion

rate for the

campaign

Figure 4

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Campaign ran for a full sized pickup truck in Texas. KBA Conversion defined

as providing personal information to a dealer (Lead), or “watching the one

minute and thirty second video in its entirety.” Figure 5 on next slide shows

that Science and Nature performed better than other categories in clicks while

Money & Finance outperformed all categories in conversions. This is

interesting because Money & Finance is traditionally thought to be a fit for

luxury vehicles, not full-size pickup trucks. Second, traditional thinking tells us

that consumers within Money & Finance sites are “time-challenged”. Yet this

group spent more time than any other group watching the video.

Clearly, stereotypes continue to be challenged. Autos & Transportation

sites performed below the campaign average both in terms of click-

through and conversion rate. The assumption that a category consisting

of automotive enthusiasts is the best way to reach consumers who are

ready to buy a car within the next four or six weeks proves to be

incorrect. These types of auto sites are sometimes even referred to as “in-

market” sites when real campaign data continues to suggest that in-market

buyers can be more successfully found on other sites in other categories.

Campaign Example #2 – Texas; Full-Size Pickups

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The size of the

bubbles represents

the volume in terms

of impressions

served for each

category. The

placement of the

bubbles represents

the performance in

terms of clicks and

post-click conversion

rates…

The vertical dashed

line represents the

average click-through

rate for the

campaign.

The horizontal

dashed line

represents the

average conversion

rate for the campaign

Click-Through and Conversion Rates by

Category and Associated Volume

Figure 5

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It’s not ONLY about generating leads, it’s also about

the majority that shop online and buy offline!

Online New Car Shopper as % of Total Buyers

Email Lead Requestors as % of Total Buyers

64%

20%

67%

21%

68%

21%

71%

22%

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16,266 Online Car

Shoppers driven

to Dealer’s Sites

in 4 months.

$1.90 Cost per Online Car

Shopper that actually clicked

through to Dealer’s web site

$1.51 Cost per 1,000 Online

Car Shoppers that saw the

Dealer’s advertisements

Online Car Shoppers

saw Dealer’s Ads over

20 Million times in

the same 4 months.

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Impressions Generated How many times the ad was seen

Click Through Rate (CTR)# of Visitors to the dealer’s web sites,

divided by Impressions Generated

Leads GeneratedLeads, Phone Calls & Showroom Visits

attributed to ad campaign

Vehicles Sold Units Sold to Leads Generated

Campaign CostTotal dollars spent buying placements or

clicks for Ad Campaign

Cost per 1,000 Impressions (CPM)Campaign Cost divided by Impressions

Generated multiplied by 1,000

Average Cost per Unique Visitor Campaign Cost divided by Unique

Visitors as tracked by referring URL

Average Cost per Lead GeneratedCampaign Cost divided by Leads

Generated

Advertising Cost PVR Campaign Cost divided by Vehicles Sold

What to Look at when measuring a

Digital Advertising Campaign

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Digital Ad Campaign Metrics Analysis Example (4 Month PPC & Display Ads)

• 33,257,657 Impressions Generated – How many times the ad was seen

• 29,528 Click Throughs - Visits to the dealers web sites, landing pages and micro sites

• 2,248 Leads Generated -Electronic Leads and Phone Calls Generated

• 174 Vehicles Sold – You know what this means! Counts Phone & Internet, but NOT showroom

• $71,801.30 Campaign Cost – How much spent on Digital Advertising Campaign

• $2.16 Cost per Thousand (CPM) - How much to get 1,000 Impressions

• $2.43 Average Cost per Visitor to dealer’s site

• $31.94 Average Cost per Lead Generated

• $412.65 Average Cost PVR (compares to $610 YTD)

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Average monthly total vehicle sales for year prior to starting digital advertising was 144. Since starting with digital

advertising sales have averaged 178 units per month. 24% growth in sales volume attributed to increased

showroom traffic, phone calls and Internet leads from digital ad campaigns. Dealer’s CRM tool shows a 22%

average increase in showroom traffic. Toll Free Ad Tracking reports show 24% increase in phone calls, with

increased call volumes coming in from dealer web site. Dealer web site Internet leads have increased 33% since

starting digital advertising campaigns. Dealer invoicing from ADP Digital Advertising Program using campaign

examples above is:

Digital Advertising Media Purchases……..……..………..$ 5,495.21

Media Management Services…...………...………………..$ 1,099.04

Account Services……………………………………………..$ 495.00

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Total Digital Ad Invoice………………………………………$ 7,089.25

Net Cost Per Site Visit Generated…………………………..$ 1.80

Net Cost Per Thousand Ad Impressions…………………..$ 0.78

REPORT:

ACCOUNT:

DATE RANGE:

Campaign Impressions Clicks CTR

Avg

CPC

Avg

CPM Cost

Avg

Position

Ford - San Diego +75 miles Keyword 213,362 243 0.11% $1.88 $2.14 $456.23 2.90

ABC Motors Ford - National Keyword 48,800 116 0.24% $0.51 $1.21 $58.86 4.30

Site Category Targeted Ads - SoCal 298,946 89 0.03% $1.12 $0.33 $100.05 1.00

Display Ads - SD Site Targeted 627,813 163 0.03% $1.23 $0.32 $200.14 1.10

ABC Motors Ford - SD Keyword 73,034 125 0.17% $2.06 $3.52 $256.94 3.00

Ford Price Quotes - SD Keyword 5,270 1 0.02% $0.00 $0.00 $0.00 4.90

ABC Motors - San Diego Keyword 366,616 884 0.24% $1.45 $3.49 $1,279.29 2.50

Ford Price Quotes - SoCal Keyword 12,950 16 0.12% $1.10 $1.36 $17.61 3.00

ABC Motors - San Diego Site Targeted 5,995,252 1,954 0.03% $1.14 $0.37 $2,229.96 1.00

Ford Models - SD Keyword 27,632 56 0.20% $1.85 $3.76 $103.79 2.50

Referral Bonuses - SoCal Site Targeted 730,581 98 0.01% $1.59 $0.21 $155.33 1.00

Video Ads - SD Site Targeted 34,859 2 0.01% $26.30 $1.51 $52.60 1.10

Southern CA Geo - Keyword 30,209 153 0.51% $2.96 $14.97 $452.14 3.10

Video Ads SD - Keyword Contextual 103 0 0.00% $0.00 $0.00 $0.00 1.30

0% APR 60 Months - CPC Site Targeted 613,971 47 0.01% $2.81 $0.22 $132.27 2.10

Totals and Overall Averages: 9,079,398 3,947 0.04% $1.39 $0.61 $5,495.21 2.32

Monthly Combined Digital Ad Campaign Summary

Digital Advertising Example Case Study #2 - Actual Results

November, 2007

Case Study #4: Dealer name and URL’s changed to protect confidential marketing strategy.

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ACCOUNT:

DATE RANGE:

CAMPAIGNS:

Campaign Ad Group Impressions Clicks CTR

Avg

CPC

Avg

CPM CostAvg

Position

National Search - ABC Ford ABC Ford Since 1965 373,651 94 0.03% $0.73 $0.18 $69.01 3.4

National Search - ABC Ford Ford-USA.com 216,607 423 0.20% $0.45 $0.89 $192.30 4.3

ABC Motors Ford - SD ABCFordSanDiego.com 41,010 255 0.62% $2.31 $14.34 $588.07 3.9

ABC Motors Ford - SD SanDiegoFordFocus.com 4,420 3 0.07% $0.68 $0.46 $2.05 4.6

ABC Motors Ford - SD SDFordExplorer.com 3,918 1 0.03% $0.79 $0.20 $0.79 2.7

ABC Motors Ford - SD SDFordMustang.com 89,405 124 0.14% $2.91 $4.04 $361.24 2.5

ABC Motors Ford - SD SDFordExpedition.com 10,822 6 0.06% $2.54 $1.41 $15.26 2.6

ABC Motors Ford - SD SanDiegoFordF150.com 30,012 36 0.12% $2.14 $2.57 $77.17 3.4

ABC Motors Ford - SD SDFordEscape.com 29,296 30 0.10% $2.19 $2.24 $65.58 3.8

ABC Motors Ford - SD SanDiegoFordFusion.com 35,120 73 0.21% $2.15 $4.46 $156.72 2.4

ABC Motors Ford - SD SanDiegoFordF250.com 6,782 22 0.32% $3.01 $9.77 $66.26 3.2

ABC Motors - SD+75 miles SD-Ford.com 14,014 27 0.19% $1.24 $2.38 $33.35 3.5

ABC Motors - SD+75 miles Pick a Ford - FordDirect 43,510 45 0.10% $1.09 $1.13 $49.07 2.6

ABC Motors - SD+75 miles GetPreapprovedInSeconds 42,331 97 0.23% $0.79 $1.80 $76.17 2.6

ABC Motors - SD+75 miles Ford.com RequestAQuote 39,958 216 0.54% $1.86 $10.07 $402.48 2.8

ABC Motors - SD+75 miles San-Diego-Ford.com 19,727 60 0.30% $1.51 $4.58 $90.31 3.9

ABC Motors - SD+75 miles SDWheels-Ford.com 95,448 156 0.16% $1.65 $2.70 $257.34 2.8

ABC Motors - SD+75 miles SoCal-Ford.com 154,110 124 0.08% $1.83 $1.47 $226.80 3

ABC Motors - SD+75 miles SD-Ford-Mustang 44,762 144 0.32% $2.22 $7.14 $319.41 1.9

ABC Motors - SD+75 miles SDFordExpedition.com 22,491 42 0.19% $2.27 $4.24 $95.31 2.5

Ford Price Quotes ABC Ford Price Quote 16,530 7 0.04% $0.00 $0.00 $0.00 3.7

1,333,924 1,985 0.15% $1.58 $2.36 $3,144.69 3.3Overall Online Totals and Averages:

ABC Motors Case Study - Actual Numbers - Name, Location and URL's Changed

Oct-07

All Keyword and Site Targeted Campaigns by Ad Group

Average monthly sales prior to starting digital advertising was 62. Since starting digital advertising, sales have averaged 75 units per month. 21% growth in sales volume attributed to increased showroom traffic, phone calls and Internet leads from digital ad campaigns. Logs show 33% increase in showroom traffic. Phone Tracking reports show 38% increased call volumes coming in from dealer web site. Dealer website leads have increased 50% since starting digital advertising campaigns. Dealer invoicing from the ADP Digital Advertising Program for Dealers using campaign examples shown above is as follows:

Digital Advertising Media Purchases……..……..………$ 3,144.69

Media Management Services…...………...……………..$ 628.94

Account Services…………………………………………..$ 495.00

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Total Digital Ad Invoice……………………………………$ 4,268.63

Net Cost Per Site Visit Generated……………………….$ 2.15

Net Cost Per Thousand Ad Impressions………………..$ 3.20

Case Study #5: Dealer’s name, location and URL’s

changed to protect confidential marketing strategy.

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“Our experience with using Digital Advertising has been nothing short of fantastic. We have used Online Advertising and Radio Campaigns to blanket our market area with great success…

From January 21, 2008 to February 29, 2008, we used Digital Audio Campaigns to run 1,184 radio spots that aired on 24 stations in our market… These radio ads have aired during peak drive times from 6am to 7pm weekdays and cost a fraction of what we usually have to pay.

At the same time we ran an online advertising campaign that produced 2,492 visitors to our website and generated 20,774,648 Impressions. “

- Darin WadeGeneral Manager Rich FordAlbuquerque, NM

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Reaching More Car Buyers with Less Money

Google Audio Traditional Traditional Traditional

Total Spots 4,961 4,961 4,961 4,961

Price per spot $ 2.15 $ 25.00 $ 50.00 $ 75.00

Total Spend $ 10,666 $ 124,025 $ 248,050 $ 372,075

Savings $ 113,359 $ 237,384 $ 361,409

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Digital Advertising Examples:

Search Engine Advertising

Digital Advertising:

Google Search Engine Advertising

Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored

Links”

Digital Advertising:

Yahoo! Search Engine Advertising

Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Yahoo calls their Search Ads:“Sponsored

Results”

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Sponsored Links (paid search

listings) are displayed at top and

right side of search results page…

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Ford Dealer

listings on local

search maps

are shown when

a community

name is used in

search query…

“Local

Business

Results”

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Organic (free) web site Links are

listed in the middle/left/lower section of

the search query results page…

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Display Advertising

on Consumer Facing Websites

Digital Advertising Examples:

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• Types of Online

Advertising Buys:

– Pay for Placement by Time

(fixed monthly fee)

– Pay per Click (PPC or CPC)

– Pay per Thousand

Impressions (CPM)

– Pay per Conversion (CPA)

Leads & Calls Generated

• How to Get it Done:– In-House: Do It Yourself

– 2 Day Digital Advertising

Setup and Training Visit

– ADP Digital Advertising

Program for Dealers

– Other SEM Service

Providers & Ad Agencies

– Tier 2 Dealer Advertising

Association

– OEM Digital Ads

How does buying Digital Advertising work?

Can dealers use online ads to drive Traffic?*

*Traffic = Showroom, phone and visits to your web sites

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Digital

Advertising

Results

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Here In Dallas, TX we used Digital Advertising to drive traffic to CBS’s

DFWvehicles.com to supplement their TV, Radio and Outdoor

advertising campaigns that utilized their own media channels…

Exceptionally high click-through rates reflect the synergies achieved

with Integrated Marketing campaigns that utilize on and offline media

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In less than an hour, we set up Site Targeted Online Display Ads, Search Engine Ads, Radio Ad Campaigns on 24 stations, and a Saturday/Sunday Full Page Newspaper Ad Campaign…

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Digital Ad Media Purchases…………………$ 6,389.72

Media Buying Service.…………...…………..$ 1,277.94

Account Services……………………………..$ 495.00

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Total Digital Ad Invoice…………….……$ 8,162.66

Net Cost Per Thousand Impressions…$ 0.31

Net Cost Per Visitor……………………...$ 2.13

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Digital Advertising Campaigns(Feb 1- Mar 31) = Same Days Tracked

Website 800 Sales Line =

492 total Calls

Rich Ford Results

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Rich Ford 2008 Results:

#1 in sales volume for their region 2008 YTD

February-March 2008 Sales Performance:

– 120 TOTAL NEW CARS 31.9% increase from 2007

– 217 TOTAL NEW TRUCKS2.8% increase from 2007

Digital Marketing Call To Action

Go to www.ADPdigitalAdvertising.com and get a no-charge Search Marketing Analysis sponsored by the ADP Digital Marketing Team… An ADP Digital Advertising Team specialist will review results with you.

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Thank You for Attending!

Three ways that we can help:1. Sell you a a rod and reel2. Teach you how to fish3. Cook dinner for you

ralph_paglia@adp.comCell: 505-301-6369

www.AutoDigitalMarketing.com

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