Automotive Digital Advertising Strategy Workshop for Kenny Ross Auto Group
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Transcript of Automotive Digital Advertising Strategy Workshop for Kenny Ross Auto Group
1
Kenny Ross Auto Group – June 3, 20091
Digital Advertising
What is It? How does it work? Why should
dealers use it? How should we measure it? 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. We will introduce the concept of Key Buying Activities (KBA) from a
dealer perspective and how to track and measure them. The session will showcase
live web based presentations, URL’s and Passwords to access them so that
participant can use these resources for meetings with their dealership teams, or
simply take a second look at the information presented.
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Kenny Ross Auto Group – June 3, 20092
ADP Dealer Services
Director - Digital Marketing
• Recognized industry expert in Automotive Digital
Marketing, Advertising, Lead Management Processes
• Responsible for driving 144,000+ leads to single-point
Chevy dealer in 2 years and developing a team that
sold 4,000+ Vehicles to Internet Leads in 2006.
• Strategic marketing planner and consultant to car
companies, dealer groups and industry associations
• Deep history of developing Digital Marketing strategies and tactical
CRM implementation blueprints for dealers and car companies
• Started generating Internet leads in 1988 using CompuServe ISP
access and vehicle listings on defense contractor BBS’s in SoCal
Cell: 505.301.6369 [email protected]
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Kenny Ross Auto Group – June 3, 20093
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
Behavioral Targeting Versus PPC Search Advertising
User Generated Content (UGC) Versus One-Way Communication
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Kenny Ross Auto Group – June 3, 20094
1. Online Display Advertising
– Publishers & Ad Networks
• Automotive Websites
• Local Media Websites
• National Websites
– Behavioral Targeting
– Geotargeting
– Contextual Targeting
2. Search Engine Advertising
– CPC/PPC/Sponsored Links
3. Other Digital Advertising Media– Mobile Phone Ads
– Social Media
– Video Advertising *Return On Marketing Investment
Types of Digital Advertising
MEASURABLE
QUALIFIED TRAFFIC
EFFECTIVE TARGETING
COST EFFECTIVE ROMI*
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Kenny Ross Auto Group – June 3, 20095
Other17.6 hours
Newspaper,3.9 hours
Television16.4 hours
Internet 32.7 hours
Weekly Media Consumption Hours1
(Total time spent using all media was 70.6 hours)
11.50%
19.50%
27.30%
28.30%
Internet
Television
Newspaper
Direct Mail/Radio/Other
Percent of Advertising Spend2
Why does dealer advertising have less impact
on showroom traffic in 2009 as it did in 1999?
1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007 2. 2008 National Automobile Dealers Association Data
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Kenny Ross Auto Group – June 3, 20097
Base: Total Respondents (550)
Q8 About how long did you research vehicles on your own before you started visiting dealerships?
12%
23%
34%
19%
8%4%
None
A week or less
More than a week but less than a month
1-2 months
3-6 months
Over 6 months
How long did you research before you
started dealership visits?
The majority of consumers spend more than a week pre-
shopping for dealerships before they step foot on your lot
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Kenny Ross Auto Group – June 3, 20098Media types vary in effectiveness at each
stage of the automotive sales funnel…
Consideration
Purchase
Awareness
Familiarity
Visit Dealer
Advertising Media Channels
TV
Ad
s
Ra
dio
Ad
s
Dig
ital A
dvertis
ing
Ne
wsp
ap
ers
Ou
tdo
or
9
Kenny Ross Auto Group – June 3, 20099
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%35.3%
24.9%
13.4%
8.2%
4.4% 3.6%1.1%
“Which one of these information
sources was most important
when making decisions about
buying your vehicle?”
R.L. Polk 2008
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Kenny Ross Auto Group – June 3, 200910
Digital Advertising Results
What expectations should dealers and managers
have… Can Digital Advertising REALLY cure
world hunger and stop the current recession???
Digital Advertising Measurement and Analysis
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Kenny Ross Auto Group – June 3, 200911
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
Regional Truck Campaign #1 Click-Through &
Conversion Rates by Site Category and TrafficThe 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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Kenny Ross Auto Group – June 3, 200913
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
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 KBA Conversion Rates
by Category and Associated Volume
Figure 5
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Kenny Ross Auto Group – June 3, 200915
What about the 80%? Primary ROMI is NOT from generating
leads, it’s about the customers who shop online, and then buy
offline!
0%
20%
40%
60%
80%
2004 2005 2006 2007
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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Kenny Ross Auto Group – June 3, 200916
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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Kenny Ross Auto Group – June 3, 200917
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 / Unique Visitors (or
clicks) by referring URL (Omniture)
Average Cost per KBA Campaign Cost / KBA’s Generated
Advertising Cost PVR Campaign Cost / Vehicles Sold
What to measure with Digital Advertising Campaigns
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Kenny Ross Auto Group – June 3, 200918
Example: Digital Ad Campaign Metrics & Analysis
•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 Ad Campaign
•$2.16 Cost per Thousand (CPM)
- How much to get 1,000 Impressions
•$2.43 Average Cost per Site Visitor
•$31.94 Average Cost per KBA/Lead
•$412.65 Average Cost PVR
(compares to $610 YTD)
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Kenny Ross Auto Group – June 3, 200919
Average monthly total vehicle sales for year prior to starting digital advertising was 144. Since starting with digital
advertising sales have averaged 178 units per month. 24% growth in sales volume attributed to increased
showroom traffic, phone calls and Internet leads from digital ad campaigns. Dealer’s CRM tool shows a 22%
average increase in showroom traffic. Toll Free Ad Tracking reports show 24% increase in phone calls, with
increased call volumes coming in from dealer web site. Dealer web site Internet leads have increased 33% since
starting digital advertising campaigns. Dealer invoicing from ADP Digital Advertising Program using campaign
examples above is:
Digital Advertising Media Purchases……..……..………..$ 5,495.21
Media Management Services…...………...………………..$ 1,099.04
Account Services……………………………………………..$ 495.00
----------------
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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Kenny Ross Auto Group – June 3, 200920
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
----------------
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.
21
Kenny Ross Auto Group – June 3, 200921
“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 Ford - Albuquerque, NM
23
Kenny Ross Auto Group – June 3, 200923
Google Search Engine Advertising
Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored
Links”
24
Kenny Ross Auto Group – June 3, 200924
Yahoo! Search Engine Advertising
Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Yahoo calls their Search Ads:“Sponsored
Results”
25
Kenny Ross Auto Group – June 3, 200925
Sponsored Links (paid search
listings) are displayed at top and
right side of search results page…
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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Kenny Ross Auto Group – June 3, 200927
Organic (free) web site Links are
listed in the middle/left/lower section of
the search query results page…
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Kenny Ross Auto Group – June 3, 200928
Display Advertising
on Consumer Facing Websites
Digital Advertising Examples:
33
Kenny Ross Auto Group – June 3, 200933
• 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
35
Kenny Ross Auto Group – June 3, 200935
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
36
Kenny Ross Auto Group – June 3, 200936In 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…
37
Kenny Ross Auto Group – June 3, 200937
Digital Ad Media Purchases…………………$ 6,389.72
Media Buying Service.…………...…………..$ 1,277.94
Account Services……………………………..$ 495.00
----------------
Total Digital Ad Invoice…………….……$ 8,162.66
Net Cost Per Thousand Impressions…$ 0.31
Net Cost Per Visitor……………………...$ 2.13
38
Kenny Ross Auto Group – June 3, 200938
Digital Advertising Campaigns(Feb 1- Mar 31) = Same Days Tracked
Website 800 Sales Line =
492 total Calls
39
Kenny Ross Auto Group – June 3, 200939
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
Cell: 505-301-6369
www.AutoDigitalMarketing.com
Forum: Presentation File Exchange