2007 JD Power Auto Shopper Analysis - Stevewitten

8/2/16
Digital Advertising Dealer

Summit
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LeadManagement DIGITAL
DIGITAL TEAM
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Digital Dealer Speak

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Welcome
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Ralph Paglia
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 developing
a 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 BBSs in SoCal
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Doug Mitchell
Doug Mitchell started his automotive career in 1984 in the Detroit
Region, working at two Top 100 Ford Dealerships. Doug started off in
sales and worked his way into a variety of different management roles
including: Lease Renewal Manager, Internet Sales Manager, F & I
Manager, Truck Sales Manager and New Vehicle Sales Manager
In October 1999 Doug had the opportunity to join the Half a Car group
as a leasing consultant. It was at the same time Cyber Car
(Automotive sales training for eCommerce) was being launched. Doug
was given the ability to change his focus to assist a major automotive
manufacture and their dealers with the Suite of e-tools and Internet
sales process training. Throughout the years Doug has had the
pleasure of working with, and presenting to thousands of dealers. He
has been able to pass along what is and what is not working to sell
more vehicles on-line. Currently Dougs role with Ford Lincoln Mercury
Digital Team is onsite working side by side with the manufacture and
their Dealers improving Internet close rates around the country.
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Specific Media
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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:
10 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
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Digital Growth - Retail Sales

Internet Sales as a % of Retail sales continue to grow in importance
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Source: CKS Sales Match
12
% of Ford buyers research on-line
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70+%
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Lead Volume / Sales
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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
16
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%
10%
34% Shopping
Process
One Month or
13%
less 13%
8%
5%
2%
27% Shopping
Process
0%
Over
53 or more25 to 52
21 Five
to 24 Months
9 to 20
Decide time to buy
5 to 8
3 to 2
1 week
Weeks Before Purchase Source: 2007 J.D. Power and Associates New
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Autoshopper.com Study - Based to AIUs
28
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Ralph Paglia
ADP Dealer Services
Director - Digital Marketing
OEM and National Accounts
29
Digital Marketing
Digital Marketing Consultants
Digital Advertising Guide
Three-Pronged Approach
Do it Yourself
Help You do it
Do it for You
Prenegotiated DA Pricing
Special Incentives
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Digital Marketing - Approach

1. Do It Yourself Digital Advertising
(you do it)
Although it may seem complex, many forms of digital

advertising can be done without extensive training. We
share with you some of the latest ways you can get
started- many of them are even Free!
2. Digital Advertising Setup & Training
(we help you)

We are pleased to introduce an industry first; a training solution
designed specifically by Ford and ADP Dealer Services to train
your dealerships how to advertise online. See the attached
Appendix B for details.
3. Full Service Digital Advertising Solution
(we do it for
you)
Ford has partnered with ADP to offer your dealerships some of the
most advanced advertising solutions that are available today. If
you would like to get started, but do not have the time to train
your team
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Action Plan
What will you do when you return to your stores?
Check List Items

Relationship Management
Download Advertising Guide
Must have Step One complete before moving
on
What are we missing?

Google Adwords certified / Set up account
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Digital Advertising Networks

Google Advertising Network:
http://adwords.google.com
Site examples: CNN, MySpace, New York Post, Macworld,
HowStuffWorks, Univision, AutomotiveForums, Swapalease, Kudzu and
thousands more.
Yahoo! Advertising Network

http://advertising.yahoo.com/central/solutions/auto/
Site examples: Ebay Motors, Yahoo! Autos, Yahoo! News, Yahoo! Email,
Comcast, AT&T, Cars.com, WebMD, Forbes and thousands more.
Specific Media Advertising Network

http://www.specificmedia.com/why-specific-media.php
ABC and affiliate stations, CBS Sportsline, Disney Internet Group, E!
Online, MLB.com, Food Network and hundreds more.
Jumpstart Automotive Media Network

http://www.jumpstartautomotive.com/advertisers/dealers/lo
cal.php
Site examples: Consumer Guide Automotive, J. D. Power & Associates,

NADA Guides, Vehix.com,
Shopping.com,
Motortrend, Car and Driver
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and many more.
Digital Advertising:
Google Search Engine Advertising
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Also called
Cost-Per-Click
(CPC), PayPer-Click
(PPC) or
Sponsored
Links
34
Digital Advertising:
Yahoo! Search Engine Advertising
Also called
Cost-PerClick (CPC),
Pay-PerClick (PPC)
or
Sponsored
Links
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Online Digital Display Advertising:

Geotargeted Dealer Advertising on National Site
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Ford Dealer Display Advertisement placed on

2009 Ford F-150 section inside FordF150.net
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Side Banner
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Top Banner
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Tier III Co-op Program

Launched April 1, 2008
Objective: Generate incremental Tier III
advertising by reimbursing 50% of qualifying
dealer advertising each month
Eligible Media:
TV & Cable
Digital, Magazines
Direct Mail/Circulars
Outdoor & Transit
Newspaper, Radio
Alliances, Sponsorships & Events
Internet Advertising
Search Engine Marketing (SEM)
Banner & rich media
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Notable Co-op Program Enhancements

Sept. 2008
Through Oct. 31st:
If total ad space of a newspaper, magazine,

direct mail circular, outdoor/transit, radio, &
TV/Cable ad features 50%+ Flex the ad will be
reimbursed dollar for dollar
if the total ad space of an internet ad or
sponsorship/alliance/special event features
100% Flex the ad will be reimbursed dollar for
dollar
Through 12/31/08, Clearance can be

used outside of the traditional Model Year
Clearance or Year-End Event campaigns
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Tier III Co-op: Getting

Started
Program info available via website
Program binders shipped to all FLM
dealers in July
Co-op HQ:
Web www.flmcoop.com
Phone
866-969-2667
E-mail
flmcoop@nsi1919.com
Hours
8:30am 5:30pm CST
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Ford and Lincoln Mercury Dealer

Advertising Co-op Program
National advertising, FDAF and LMDA advertising, and your local advertising all play a
critical role in moving consumers toward the purchase of a new Ford or Lincoln Mercury
vehicle. Through clear, consistent, brand complementary advertising, we can continue to
build a powerful marketing presence that enhances our base of satisfied, loyal customers
and drives sales growth. To help you create brand-enhancing new-vehicle advertising that
keeps current customers coming back, Ford Motor Company (FMC) and the Ford and
Lincoln Mercury Dealer Councils are pleased to launch the Ford and Lincoln Mercury
(FLM) Dealer Advertising Co-op Program. All FLM dealers are automatically enrolled
in this program.
Media available in the near future

from the Ford Digital Advertising
Program
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Media available today from the

Ford Digital Advertising Program for
Dealers
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Pre-Selection Filters
Car Buying Now Starts on the Internet
Search is the
primary tool for
filtering
dealerships
Website is a key
extension of the
dealers showroom
Online advertising
grows dealers
sphere of influence
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Consumers Compare Brands Online

Dealers are More Likely to Compete with Other Makes
Consumers visit an
average of 6
dealerships, but
they visit only one
dealership per
brand
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Car Buyers Use RFQs as Engagement Filters

Dealer Lead response determines buyer consideration
Lost opportunity is
high because lead
handling is poor
Poor lead handling
can also cause
brand defection
Dealers can turn the
tide through highlytrained sales staff
and transparent
communication
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Auto Industry Takes a Digital Turn

The best auto retailers are shifting their budgets into Digital
Marketing.
"Automakers and dealers pulled dollars out

of television, newspaper and magazine
media buys and redirected them to digital
media in 2006 and 2007,"
Lisa Phillips, eMarketer senior analyst
eMarketer data shows the automotive

category accounted for $2.69 billion, or
nearly 14%, of the $19.5 billion that was
spent on Internet advertising and
marketing in 2007.
Are you planning your shift for maximum effectiveness?
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Dealerships Using Search Engine Marketing

2007 / 2006
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Which Dealers Use SEM Today? Do

They Sell More Cars?
SEM deployment by dealers is rapidly expanding, many of the

SEM service providers used by dealers have opaque fee and
service charge policies that result in highly diluted returns on
dealer SEM investments. The most successful dealers are
managing their SEM campaigns in-house or using SEM service
providers with fully disclosed fee structures.
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What online advertising can dealers

use to drive Traffic*
How to Get it Done:
Types of Online
Advertising Buys:
Dealer Managed Do It
Yourself
Ford DMC 2 Day Digital
Advertising Visit
FLM Digital Advertising
Program for Dealers
SEM Service Providers
& Ad Agencies
Ford Dealer Advertising
Fund (FDAF)
Association
Pay for Placement

by Time (fixed
monthly fee)
Pay per Click (PPC or
CPC)
Pay per Thousand
Impressions (CPM)
Pay per Conversion
(Leads and/or Calls
Generated)
*
Traffic: Showrooms, phones and visitors to your web sites?
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Available through Digital Advertising

Program from ADP Dealer Services
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If You MUST Have Newspaper

Google Print
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First radio, Then Newspaper Now

TV?
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$150 a Day to be on Cable TV?
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Google Pays to Produce Your Spots?
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Other Campaign Types
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eNewsletter Marketing to Dealer

Lead Database
Gets Through ISP
Spam Filters to Drive
Traffic into Dealer
Websites
Local Content
ADP Provided
Professionally Written
Articles
Segmented &
Targeted Database by
vehicle brand
CAN-SPAM Compliant
Re-engages Dealer Websites visitors and gets them back to Dealer Websites
59
Recycled Sales Opportunities!
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Dealership Results?
60
Rich Ford Digital Advertising Pilot

Digital Audio Campaigns (local radio)
Site Placement Targeted Campaigns
Keyword Search Advertising Campaigns
Albuquerque - Santa Fe, NM Market
January, February and March 2008
Ford Dealer Pilot & Proof Of Concept
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Digital Advertising for Dealers

Case Study #1 Paid Search and Web Site Display
Advertising
$
Digital Ad Media Purchases 6,389.72
$
Media Management Services 1,277.94
$
Account Services 495.00
$
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical
Total Digital Ad Invoice 8,162.66
results!
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Net Cost Per Thousand $
Digital Advertising for Dealers

Case Study #2 Digital Audio Campaigns (Local Radio)
Local Radio Station Media $

Purchases 7,453.32
$
Media Management Services 1,490.66
$
Account Services 495.00
$
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical
Total Digital Ad Invoice 9,438.98
results!
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Rich Ford BEFORE
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Previous Month before

Digital Ad Campaigns
(Nov 21-Dec 29) = Same Days
Tracked
Website 800 Sales Line = 272
64
Total Calls
Rich Ford AFTER
%
5
7 ase in
e
Incr Calls
s
Sale Dealer
From Site
Web
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Digital Advertising Campaigns

(Jan 21-Feb 29) = Same Days Tracked
Website 800 Sales Line = 476
total
Calls
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Rich Ford 2008 Results:

#1 in sales volume for their region in
February 2008
January-February 2008 Sales Performance:
120 TOTAL NEW CARS
31.9% increase from 2007
217 TOTAL NEW TRUCKS
2.8% increase from 2007
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Digital Marketing Call To Action

Go to www.FLMDigital.com and get a
no-charge Search Engine Analysis
sponsored by Fords Digital Marketing
Team
An ADP Digital Advertising specialist will
review results with you.
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Common Pitfalls
Buyer beware
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Value Spending?
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Value Spending
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What to Measure
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Thank You for Your Consideration!
Questions?
Three ways that we can help:
Give you a rod and reel (you do it)
Teach you how to fish (we help you)
Cook dinner for you (We do it for you)
www.FLMDigital.com
Ralph Paglia
rpaglia@flmdmc.com
Cell: 505-301-6369
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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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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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Resources
87
Resources
Home Portal
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Resources
DMC
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Bulk Email
90
Bulk Email
Most cost effective, highest ROI
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WebSite
92
Standard DealerConnection
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Premier Customization
DealerConnection
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Promoting Your Dealership
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Online and Offline

95
ADP Speaker Bio / Introduction
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Video
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Google Ad Words
Page 12
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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)
100
Digital Advertising Myths
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15 Minute Break
102
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Welcome Back
103
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Turn Key Solution
104
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
114
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Question and Answer Panel
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Digital Advertising Dealer

Digital Dealer Speak

What is Automotive Digital

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

Search Engine Advertising

Digital Media Spending Growth

Digital Spend % - TIER I / TIER II

Source: Ad Activity, SEM/Display

Digital Growth - Retail Sales

Source: CKS Sales Match

% of Ford buyers research on-line

Lead Volume / Sales

All Car Buyers are Internet Customers

Car shopper are

Moving beyond Why Digital

Why doesnt Auto advertising have

Weekly Hourly Media Consumption 1

Only travel is more influenced by

Source: DoubleClick Touchpoints III

Which one of these information sources was most

Todays Biggest Dealer Advertising Challenge

The Average Car Dealers Advertising Spend Does Not Match

Dealer Advertising Budgets Not

Dealer Ad Budgets Realigned

2008 AUTO BUYER

Includes auto manufactures, national dealer associations, individual

Newspaper spending is declining

Its not all about the lead

Online New Car Shopper as % of Total Buyers

Only 22% of dealer website visitors

Visit Dealer Based on Online Information

39% visit a dealer based on information

The vehicle shopping process takes

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

One-third of new-vehicle buyers purchase within

Decide time to buy

Autoshopper.com Study - Based to AIUs

Digital Marketing - Approach

Although it may seem complex, many forms of digital

2. Digital Advertising Setup & Training

(we help you)

3. Full Service Digital Advertising Solution

Check List Items

What are we missing?

Digital Advertising Networks

Yahoo! Advertising Network

Specific Media Advertising Network

Jumpstart Automotive Media Network

Site examples: Consumer Guide Automotive, J. D. Power & Associates,

Online Digital Display Advertising:

Ford Dealer Display Advertisement placed on

Tier III Co-op Program

Notable Co-op Program Enhancements

If total ad space of a newspaper, magazine,

Through 12/31/08, Clearance can be

Tier III Co-op: Getting

Ford and Lincoln Mercury Dealer

Media available in the near future

Media available today from the

Consumers Compare Brands Online

Car Buyers Use RFQs as Engagement Filters

Auto Industry Takes a Digital Turn