dealer advertising workshop kelley blue book e networking session v5

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Ralph Paglia; NY Metro Region – November 12, 2008

Ralph PagliaDirector - Digital Marketing ADP Dealer Services

• How to use digital marketing tools to buy Internet, radio, and TV advertising more cost-effectively than ever before

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INTRODUCTIONS: Ralph Paglia ADP Dealer Services Director - Digital Marketing OEM and National Accounts• Recognized industry expert in Automotive

Digital Marketing, Advertising, Lead Management and CRM Process design

• Responsible for driving 144,000+ leads to single-point Phoenix dealer in 2 years and developinga team that sold 4,000+ cars to Internet Leads in 2006.

• Strategic marketing planner and consultant to car companies, dealer groups and national enterprise automotive organizations

• Deep history of developing Digital Marketing strategies and tactical CRM implementation blueprints for dealers and car companies

• Managed first retail automotive pilot program for Google Audio while in beta testing while at Courtesy Chevrolet in 2005, 2006 and 2007

• Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal

Ralph Paglia Cell: 505.301.6369 [email protected]

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What are many ISM’s seeking?•Respect and Relevance within the Dealership•Credibility with DP, GM and Management Team•Recognition of Professionalism and Skill sets acquired

•Logical Allocation of Budget and Resources needed to get results

•Tools Needed and the freedom to use them when appropriate

•Self Actualization from being giventhe control to achieve results

•Respect from Sales ManagersIs this how they seethe ISM in your store?

Is this how they seethe ISM in your store?

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“Many dealers say they are reducing — or even eliminating — their advertising

budgets and shifting ad spending online from print, broadcast and outdoor outlets.”

Poll: Dealers scrounge for cutsRetailers slash costs by cutting staff, inventory, vendors and advertisingDavid Kushma Automotive News April 14, 2008

mailto:[email protected]

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35.3%

24.9%

13.4%

8.2%

4.4%3.6%

1.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Source: Polk Center for Automotive Studies

Why is the Auto Industry shifting billions away from traditional media into online digital advertising strategies and media?

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0%

5%

10%

15%

20%

25%

30%

35%

40%

Newspaper Radio Television Internet Other

Dealer

Consumer

Today’s Biggest Dealer Advertising ChallengeOverspending on Newspaper, Radio, Outdoor & Mail Relative to Usage

Source: NADA

The Average Car Dealer’s Advertising Spend Does Not Match The Car Buying Consumer’s Media Consumption Behaviors…

Average Dealer Advertising Spend vs. Consumer Media Consumption

Dea

ler

Ad

Bu

dg

et

Eff

icie

ncy

Gap

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Marketing & Sales Funnel Still Exists

Consideration

Purchase

Awareness

Familiarity

Visit Dealer

→ Make them aware of your vehiclesand dealership

→ Show them that your model and dealership is for them

→ Convince them to consider your model and dealership

→ Convince them to shop your dealership

→ Convince them to purchase your vehicle

The Goals


“I’m gonna get me one today… Oh Yeah!”

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Different media channels are more effective at distinct stages of the shopping funnel

Consideration

Purchase

Awareness

Familiarity

Visit Dealer

Marketing Channel

TV

Ad

s

Ra

dio

Ad

s

Dig

ital Ad

ve

rtising

Ne

ws

pap

ers

Ou

tdo

or

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Integrated Marketing Use Multiple Media Channels to Communicate the Same Messaging More Effectively

Dealership Marketing Budget Allocation

10%10%

10%

15% 15%

40%Digital

TV

Radio

Print

Outdoor

Other


“Selling a car is just like fishing, Wilbur…”


Digital Marketing and Advertising Examples


Google search query used from a Phoenix location… “phoenix ford dealers”

Google search query used from a Phoenix location… “phoenix ford dealers”


Sponsored Links (paid search listings) are displayed at top and right side of search results page…

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”

Ford Dealer listings on local search maps are shown when a community name is used in

search query…

“Local Business Results”


Organic (free) web site Links are listed in the middle/left/lower section of the search query results page…

Organic (free) web site Links are listed in the middle/left/lower section of the search query results page…


Display Advertising Placed on TargetedWebsites to Appear

when a dealer’sLocal Consumers

Visit Them


Ford Dealer Display Advertisement placed on FordF150.net site

Ford Dealer Display Advertisement placed on FordF150.net site


Ford Dealer Display Advertisement placed on 2009 Ford F-150 section inside FordF150.net

Ford Dealer Display Advertisement placed on 2009 Ford F-150 section inside FordF150.net

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Offline Media Trends… Striving To Become More Like Web Advertising TrendsOffline Media Trends… Striving To Become More Like Web Advertising Trends

“Publisher”

Vie

wer

ship

• Explosion of online content• Advertisers can’t find shoppers• Publishers can’t find advertisers

Emulate Web Advertising Strategies in Selected Areas Emulate Web Advertising Strategies in Selected Areas

Available through Digital Advertising Program from ADP Dealer Services

Available through Digital Advertising Program from ADP Dealer Services

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Do you advertise in San Francisco? Reach more San Francisco customers by advertising in newspapers! We've made it easy to choose from 20 San Francisco area newspapers (from the San Francisco Chronicle to the El Mensajero). Create an ad in minutes, and set a price that's right for you. Learn more | Dismiss this message

https://adwords.google.com/select/printSplash?metro=San+Francisco

https://adwords.google.com/select/dismiss?dismisspromo=-1725339906

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https://adwords.google.com/select/tv/StartNewTvCampaign

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http://www.google.com/adwords/tvads/promotions/acm.html




http://services.google.com/tvads/demos/hpdemo/

http://services.google.com/tvads/demos/hpdemo/

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“Help! Help! This Guy’s trying to rob me…”


Re-activate Google Audio Ads. Since you last advertised with Audio Ads, we've introduced new tracking and targeting features. Now you can track phone calls, website traffic, conversions, revenue, and more metrics generated by your radio campaign. You can access over 1600 FM and AM radio stations, including stations in local regions as well as Top 10 stations in the largest US markets. Get help from an Audio specialist | Dismiss this message

Re-activate Google Audio Ads. Since you last advertised with Audio Ads, we've introduced new tracking and targeting features. Now you can track phone calls, website traffic, conversions, revenue, and more metrics generated by your radio campaign. You can access over 1600 FM and AM radio stations, including stations in local regions as well as Top 10 stations in the largest US markets. Get help from an Audio specialist | Dismiss this message

http://services.google.com/ads_inquiry/audioproposal_splash#subid=US-en-other&sourceid=AWO-audio_react_5_08

https://adwords.google.com/select/dismiss?dismisspromo=1550770722

http://services.google.com/ads_inquiry/audioproposal_splash#subid=US-en-other&sourceid=AWO-audio_react_5_08

https://adwords.google.com/select/dismiss?dismisspromo=1550770722


Radio Advertising is an effective complement to Online Advertising

Why would a Digital Marketing Guy get excited about Google Audio?


Tracking the conversation started by Radio Advertising… to the Web!


Google Audio provides dealers with the ability to make real-time changes, allowing dealers to better manage ad campaigns


Google Audio provides dealers with more control over their use of radio advertising


Google Audio provides dealers with true integrated marketing capabilities…


YouGotGas.com

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Buying Radio Spots in Phoenix, we ran 4,961 Thirty Second commercials at a total cost of $10,635 resulting in a cost per spot at less than $2.15 each… The equivalent average cost per spot buying the same Dayparts and reach through local radio media salespeople would have been over $50 per spot… How can that be?

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When we check on Albuquerque for Rich Ford, we find 24 Radio Stations have provided Google with direct access to On-Air inventory…

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What would be available to Rich Ford if we wanted all the inventory we could get, running Radio Spots 24 hours a day, bidding on a $5.00 CPM listeners basis?

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Running Radio Spots 24 hours a day, we would pay $1.59 on a CPM basis to get 8,042 30 second spots on 24 radio stations at a total campaign cost of $10,611… This comes out to a net cost of $1.32 per Spot

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What if we Ran Rich Ford’s Radio Spots ONLY DURING PRIME DRIVE TIME, Monday through Friday, paying on a CPM basis… On 24 Albuquerque & Santa Fe Radio Stations?

How Many Prime Drive Time Spots can we get, and at What Cost per Spot on Local Radio Stations?

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Running Radio Spots ONLY DURING PRIME DRIVE TIME, on 23 Radio Stations in Albuquerque/Santa Fe market, paying on a $2.13 CPM basis, we estimate that the dealer would get 3,335 spots at a $8,932 total campaign cost, which comes out to $2.68 Average Cost per Prime Drive Time Spot… Dealer currently pays over $85 for equivalent spots through historical sales channels

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New York

Ne

w Y

ork

Met

ro“W

ide

Op

en”

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New York

Ne

w Y

ork

Met

ro“W

ide

Op

en”

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New York Metro“Wide Open”

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Boston

Boston Metro“Wide Open”

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Bo

sto

n M

etro

“Wid

e O

pen

”

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Philadelphia

Ph

ilad

elp

hia

Met

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ide

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en”

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Ph

ilad

elp

hia

Met

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Philadelphia Metro

100%Weekday/Drive

Dayparts

100%Weekday/Drive

Dayparts

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…Back to the Campaign Summary Screen, we see that bidding on local newspaper advertising is also available…

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Digital Marketing Print Ads… Let’s see if we could save Rich Ford any money on buying newspaper display ads.

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In this initial section, we are going to check for any newspapers in Rich Ford’s market area that may have signed up to participate in this program...

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A step-by-step process allows us to select the

section of the newspaper we would like our advertisement

to appear in…

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Next, we select the size of Newspaper Ad we want to run. In this case we know that

Rich Ford likes to own the whole page


We bid on the Saturday editions…

We bid on the Sunday editions…


In this example, $951.85 on Saturday(we “low balled” the newspaper bid)

At $1,324.92 for a Full Page,we low balled the Sunday bid as well.


Just like the Radio campaign, we get a summary description and links to edit the Newspaper campaign later on...

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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…

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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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


DealershipResults?

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Rich Ford Digital Advertising Implementation

Albuquerque - Santa Fe, NM MarketJanuary, February and March 2008Ford Dealer Pilot & Proof Of ConceptDigital Campaigns Managed by:

Ralph PagliaDirector – Digital MarketingFord/ADP Digital Advertising Team

• Digital Audio Campaigns (local radio)• Site Placement Targeted Campaigns• Keyword Search Advertising Campaigns

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ADP Digital Advertising for Dealers Case Study #1 – Paid Search and Web Site Display Advertising

ADP Digital Advertising for Dealers Case Study #1 – Paid Search and Web Site Display Advertising

Digital Ad Media Purchases…………………$ 6,389.72Media Management Services…...…………..$ 1,277.94Account Services……………………………..$ 495.00 ----------------Total Digital Ad Invoice…………….……$ 8,162.66Net Cost Per Thousand Impressions…$ 0.31Net Cost Per Visitor……………………...$ 2.13

Digital Ad Media Purchases…………………$ 6,389.72Media Management Services…...…………..$ 1,277.94Account Services……………………………..$ 495.00 ----------------Total Digital Ad Invoice…………….……$ 8,162.66Net Cost Per Thousand Impressions…$ 0.31Net Cost Per Visitor……………………...$ 2.13

PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!

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ADP Digital Advertising for Dealers Case Study #2 – Digital Audio Campaigns (Local Radio) ADP Digital Advertising for Dealers Case Study #2 – Digital Audio Campaigns (Local Radio)

Local Radio Station Media Purchases………$ 7,453.32

Media Management Services…...……….…..$ 1,490.66Account Services………………………….…..$ 495.00 ----------------Total Digital Ad Invoice…….………$ 9,438.98Net Cost Per Drive Time Spot……..$ 5.80Net Cost Per 1,000 Listeners………$ 3.27

Local Radio Station Media Purchases………$ 7,453.32

Media Management Services…...……….…..$ 1,490.66Account Services………………………….…..$ 495.00 ----------------Total Digital Ad Invoice…….………$ 9,438.98Net Cost Per Drive Time Spot……..$ 5.80Net Cost Per 1,000 Listeners………$ 3.27


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Ralph Paglia; NY Metro Region – November 12, 2008PLEASE NOTE: This Case Study is being used as a real world example, your results will vary from these because no two advertising campaigns generate identical results!

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Previous Month before Digital Ad Campaigns

(Nov 21-Dec 29) = Same Days Tracked

Website 800 Sales Line =

272 Total Calls

Rich Ford Results Rich Ford Results


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Digital Advertising Campaigns (Jan 21-Feb 29) = Same Days Tracked

Website 800 Sales Line = 476 total Calls

Rich Ford Results Rich Ford Results

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Rich Ford 2008 Results: #1 in sales volume for their region in February 2008January-February 2008 Sales Performance:

–120 TOTAL NEW CARS 31.9% increase from 2007

–217 TOTAL NEW TRUCKS2.8% increase from 2007


Ralph Paglia; Chicago, IL – September 9, 2008

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.


http://www.adpdigitaladvertising.com/

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Thank You for Attending the KBB eNetwork Brunch!

Three ways that ADP can help:1. Sell you a a rod and reel (Tools)2. Teach you how to fish (Assistance)3. Cook dinner for you (We do it for you)

www.SEMDealer.com

Ralph [email protected]: 505-301-6369

www.AutoDigitalMarketing.comForum: Presentation File Exchange

http://www.semdealer.com/

http://www.autodigitalmarketing.com/

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dealer advertising workshop kelley blue book e networking session v5

Business

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digital advertising

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