paul accinno – traditional vs digital advertising
TRANSCRIPT
Traditional vs Digital Advertising:Developing A Retail Automotive Multi-Platform Marketing Plan
By: Paul AccinnoPresident/CEO
Traditional MediaAWARENESS
Traditional MediaCONSIDERATION
Traditional MediaPURCHASE
INTENTTraditional Media
Who Are You?
1. Who Do You Want To Be?2. Can You Defend That Position?3. How Will You Go To Market?4. Do You Have A Clear, Concise Deliverables
Statement?
Strengths • Reputation
– Lowest Price– Customer Care– Supports Community
• Longevity – Family Owned– Solid Business
• Awareness– Brand Equity– Household Name
• Size– Large - Biggest Selection/Service Facility – Small – “Treat You Like Family”
Weaknesses• Reputation
– Bad Online Reviews– Employees
• Longevity – Brand New– Slow to Change
• Awareness– Little or None– Overkill
• Size– Large - Hard to Manage– Small - Hard to Compete
Opportunities• Reputation
– Employee Training – Generate Better Reviews– Community Involvement
• Longevity – Hirer Younger Players– New Way of Doing Business
• Awareness– More Advertising– More PR
• Size– Large – Get Help With Process– Small - Set Goals for Growth
Threats• Reputation
– Bad word of mouth– Customers Stop Coming
• Longevity – Adverse to Change/Stall– Resources
• Awareness– Cost to Compete– Keep it Fresh
• Size– Large – Poor Customer Service– Small – Going Out of Business
Bottom Line
• Develop a strong position that promises a benefit (Message) …then deliver on the promise! (Execution)
Location/Size/Brand
• Large Metro Dealers– Can draw customers across the market – Maximize Reach – TV + Expanded GEO Web + Aggressive Digital Marketplaces
• Large Dealers on Fringe– Many Dealers In Market – hard to generate market-wide shopping > “Own
Your Back Yard” (Ford/Chevy/CDJ)– Cable + Select GEO Web + Select Digital Marketplaces– Few Dealers In Market– Brand exclusivity will create larger shopping
patterns (Lexus/Infiniti/Acura)– TV + Expanded GEO Web + Aggressive Digital Marketplaces
Location/Size/Brand
• Large Suburban Dealers– Create Market Awareness– Heavy Up in Major Trading Areas– TV+ Expanded GEO Web + Aggressive Digital Marketplaces
• Small Suburban/Rural Dealers– “Own Your Back Yard”– Choose Areas Where You Can Compete– Cable + Select GEO Web + Select Digital Marketplaces
Marketing Position
1. Deal Drivena) The Best Price. Every Time. All The Time.b) Our Best Price First…No Exceptions!
2. Size Drivena) It’s Gonna Be Huuuuge!b) Over $30 Million in Inventory
3. Customer Drivena) Driven to Serve You Betterb) Exceeding Expectations since 1915
Reach, Frequency, TRP’s• Reach - % of the market (BTV) or zone (CATV) your
commercials “reach”.• Frequency – The number of times on average your target
demo sees your commercial• Effective Reach - % of the market (BTV) or zone (CATV)
your commercials reach at least 3x• Rating Point – The % of the TV Households in the market
or zone watching a program.• TRP – Target Rating Point…a rating point within your
demo (A35-64)
Basic Rules of Buying TV/Cable/Radio
• Don’t buy “Spots” buy rating points!• Always buy Target Rating Points not HH Rating Points• Reach & Frequency are key• Know what your Effective Reach is.
Prog Name Rtg CPP $$ Rch % Freq GRP Pr
Rtg CPP $$ Rch % Freq GRP
1.3 $41 46.0% 2.3 102.8 0.9 $55 33.8% 2.2 76.6
1.3 $41 46.0% 2.3 102.8 0.9 $55 33.8% 2.2 76.6
Wk 1 - Wk 2
Households Adults 35-64
Household Ratings vs Demo Rating
Top Digital Options
1. Advanced SEO– Blogs/Backlinks/Landing Pages/Video
2. Marketplaces– Autotrader/Cars.com/TrueCar
3. PPC/SEM– Conversion Based Optimization (CBO)
4. Email– Targeted Conquest + Data Base
5. Site Retargeting/Behavioral Retargeting– Impressions + Attribution
Backlinks and Keywords
Google's description of their PageRank system, for instance, notes that Google interprets a link from page A to page B as a vote, by page A, for page B
Marketplaces
• 68% used a search engine to access the dealer site after visiting AutoTrader.com.
• As a result, indirect referrals that third-party sites provide to the dealership website via a search engine may erroneously be attributed to the direct referral from the search engine.
• The implication is that third-party sites connect buyers and sellers at the shopper level
• Car shoppers learn about a dealership while on third-party sites and then use a search engine to locate the dealership website to conduct further shopping and research.
2013 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG
Exposure (SRPi)* 63,431 67,144 78,150 62,263 53,182 55,881 84,574 71,898 80,290 59,657 71,015 86,744 69,519Opportunity (VDP Views)* 1,278 1,628 1,691 1,422 1,338 1,235 1,984 1,809 2,167 1,541 1,385 2,009 1,624Specials Impressions 0 0 0 0 0 0 0 0 0 0 0 0 0Used Merchandising Factor (VDP/SRP)* 2.0% 2.4% 2.2% 2.3% 2.5% 2.2% 2.3% 2.5% 2.7% 2.6% 2.0% 2.3% 2.3%
Phone Calls 8 4 0 0 0 0 0 0 0 0 0 0 1Emails* 5 2 7 5 4 4 4 3 4 6 1 5 4Maps* 28 23 18 21 13 15 17 20 23 17 21 25 20Printables 7 11 6 8 35 9 11 16 7 14 3 5 11Chat Prospects 0 11 8 8 1 1 2 1 0 0 0 0 3TIM Prospects 0 0 0 0 0 0 0 0 0 0 0 0 0Total Trackable* 48 51 39 42 53 29 34 40 34 37 25 35 39
Used Vehicles 35 34 36 37 36 37 39 39 45 41 43 49 39% Vehicles Priced 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%% Vehicles Photos 69% 70% 65% 61% 77% 67% 69% 68% 78% 80% 64% 77% 70%% Vehicles Comments 85% 81% 87% 80% 81% 64% 68% 61% 82% 95% 97% 98% 82%Activity Per Vehicle 33 43 37 30 28 26 39 33 36 28 24 29 32% Vehicles Specials 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%% Vehicles Videos 64% 100% 100% 100% 100% 100% 100% 99% 100% 100% 99% 100% 97%Used Merchandising Factor (VDP/SRP)* 2.0% 2.4% 2.2% 2.3% 2.5% 2.2% 2.3% 2.5% 2.7% 2.6% 2.0% 2.3% 2.3%
ADVERTISING (USED)
TRACKABLES (USED)
MERCHANDISING (USED)
Autotrader Tracking
While text messaging is gainingpopularity as the preferred method of communication….EMAIL is still the overwhelming choice for permission-based promotions or opt-in advertising.
22033 648 13.3100% 2.1600%22031 579 12.20667% 1.9300%22030 689 13.72333% 2.29667%21746 674 13.28667% 2.24667%21386 611 11.8500% 2.03667%21352 483 10.8300% 1.6100%21351 510 10.99333% 1.7000%21350 569 11.69667% 1.89667%21157 619 12.2400% 2.06333%23286 650 13.01333% 2.16667%23269 619 12.7800% 2.06333%23173 469 10.7500% 1.56333%23172 500 10.58667% 1.66667%23171 556 11.90333% 1.85333%22887 719 9.9840% 1.4380%22647 577 11.45333% 1.92333%22632 542 11.2400% 1.80667%22626 438 10.3400% 1.4600%22619 601 11.39333% 2.00333%22375 1061 11.5940% 2.1220%22359 894 11.5380% 1.7880%
TOTALS 72,606 11.7734% 2.3585%Kelly Automotive Group 12/5/2013 50000 5769
Kelly Automotive Group Re Blast 12/6/2013 50000 5797Kelly Mitsubishi 12/12/2013 30000 3418Kelly Buick GMC 12/12/2013 30000 3102
30000 3372Kelly Nissan 12/13/2013 30000 3436
Kelly Automotive Group 12/19/2013 50000 4992
3,570,057 406,553
Kelly Chrysler Dodge Jeep 12/12/2013
Kelly Mitsubishi 12/26/2013 30000 3571
Kelly Nissan 12/26/2013 30000 3225Kelly Buick GMC 12/26/2013 30000 3176
Kelly Chrysler Dodge Jeep 12/27/2013 30000 3834Kelly Automotive Group Hand Rasiers 12/30/2013 30000 3904
Kelly Automotive Group 11/7/2013 30000 3672
Kelly Chrysler Dodge Jeep 11/14/2013 30000 3298Kelly Buick GMC 11/14/2013 30000 3509
Kelly Mitsubishi 11/14/2013 30000 3249Kelly Nissan 11/14/2013 30000 3555
Kelly Automotive Group 11/21/2013 30000 3986Kelly Mitsubishi 11/27/2013 30000 4117Kelly Buick GMC 11/27/2013 30000 3662
Kelly Nissan 11/27/2013 30000 3993
Case Study: 12 months/3.6 million emails 11.8% Open Rate – 2.4% Click Thru Rates
For Conquest Email you might expect high bounce/low time spend…but results compare very favorable to normal site traffic.
Behavioral Retargeting
54
Web Surfer Looks at an Auto related site (could be Service or KBB)
User Leaves
Dealer Brand & Website
Popular Site
By the Numbers - Composite
• PNVR - $500• PVR - $300• % of Sales – 1.06%• % of Gross – 7.75%
• Larger dealers – lowest costs
• Larger markets – higher costs
• Averages can range as much as 50%
Source: NADA Industry Analysis Division
Average Monthly Budget/Dealership
$7.2 Billion Total Advertising 17,635 Total Dealerships
= $408,278/Dealer or $34,000/Month
Source: NADA Industry Analysis Division
Impact Budgeting
• $10,000 – TV or Cable (50% Effective Reach/3x Freq.)• $7,000 – Targeting Mail2Web• $17,000 – Total Traditional (50% of Budget)• $1,500 – Website• $1,500 – Advanced SEO/VSEO• $4,000 – Marketplace (i.e. AT/Cars.com)• $4,000 – SEM/Mobile Search• $2,000 – 2 Vendors OEM/3rd party leads ($20 x 50 x 2)• $3,000 – 30,000 Conquest/DB E-Blasts 2x/mo. • $1,000 – Social Media/Reputation Management• $17,000 - Total Digital (50% of Budget)