Digital dealerapril2008 advertising-v2

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Ralph Paglia; Orlando, FL – April 23, 2008

Using digital marketing tools to buy Internet, radio, Using digital marketing tools to buy Internet, radio, newspaper and TV advertising more cost effectively newspaper and TV advertising more cost effectively than ever before…than ever before…

Learn how to buy $125 prime drive time radio spots for less than $10 each! Enterprising dealers in all areas of the country are discovering that multiple web-based services allow them to bid and buy conventional radio, TV and newspaper advertising in their local market at a fraction of the cost when purchased through conventional methods. Discover how you can regain or expand your competitive advantage by learning how to use the web to buy both online advertising and conventional media at far lower costs than ever before available to car dealers.

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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 dealer in 2 years and developinga team that sold 4,000+ Vehicles 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

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 dealer in 2 years and developinga team that sold 4,000+ Vehicles 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] 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 Managers Is this how they seeIs this how they seethe ISM in your store?the ISM in your store?Is this how they seeIs this how they seethe ISM in your store?the 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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Digital Marketing and Advertising Relevance

Information Source Most Important to Vehicle PurchaseInformation Source Most Important to Vehicle Purchase

Influencers

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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

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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

vertis

ing

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

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…

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 Towards Web Advertising TrendsOffline Media Trends… Striving Towards 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

Digital channels emerging that provide cost efficient access to local media buying for car dealers… Providing opportunity for innovative dealers to gain a competitive advantage.

Digital channels emerging that provide cost efficient access to local media buying for car dealers… Providing opportunity for innovative dealers to gain a competitive advantage.

Available through Digital Advertising Program from ADP Dealer Services

Available through Digital Advertising Program from ADP Dealer Services

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Buying Radio Spots in Phoenix, we ran Buying Radio Spots in Phoenix, we ran 4,9614,961 Thirty Second Thirty Second commercials at a total cost ocommercials at a total cost of f $10,635$10,635 resulting in a cost per spot at resulting in a cost per spot at less than less than $2.15 each$2.15 each… The equivalent average cost per spot buying … The equivalent average cost per spot buying the same Dayparts and reach through local radio media salespeople the same Dayparts and reach through local radio media salespeople would have been over $50 per spot… would have been over $50 per spot… How can that be? How can that be?

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When we When we check on check on Albuquerque Albuquerque ffor or Rich Ford, Rich Ford, we find we find 24 24 Radio StationsRadio Stations have provided have provided Google with Google with direct access direct access to On-Air to On-Air inventoryinventory……

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

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

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

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

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

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Normally we would check the box “I already have an ad” and then upload our Normally we would check the box “I already have an ad” and then upload our 30 second radio spots to be pushed directly into each stations rotation 30 second radio spots to be pushed directly into each stations rotation software and then broadcast… But, when I first prepared these slides, I still software and then broadcast… But, when I first prepared these slides, I still needed to get the spots (and permission) from Dennis Snyder at Rich Ford!needed to get the spots (and permission) from Dennis Snyder at Rich Ford!

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We saved the We saved the campaign and went campaign and went to Dennis Snyder to to Dennis Snyder to supply the 30 second supply the 30 second spots he wanted to spots he wanted to run so we can upload run so we can upload them into the ADP them into the ADP Digital Advertising Digital Advertising system and pull the system and pull the trigger…trigger…

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100%100%Drive TimeDrive TimeDaypartsDayparts

100%100%Drive TimeDrive TimeDaypartsDayparts

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

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

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In this initial section, we are going to In this initial section, we are going to check for any newspapers in Rich Ford’s check for any newspapers in Rich Ford’s market area that may have signed up to market area that may have signed up to participate in this program...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 Next, we select the size of Newspaper Ad we want to run. In this case we know that we want to run. In this case we know that

Rich Ford likes to own the whole pageRich Ford likes to own the whole page

We bid on the Saturday editions…We bid on the Saturday editions…

We bid on the Sunday editions…We bid on the Sunday editions…

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

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

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Next, we enter a short description, Next, we enter a short description, then save the Newspaper campaign..then save the Newspaper campaign....

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

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51In 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 traIn Dallas, TX we used Digital Advertising to drive traffic to CBS’s ffic to CBS’s DFWvehicles.com to supplement their TV, Radio and Outdoor DFWvehicles.com to supplement their TV, Radio and Outdoor advertising campaigns that utilized their own media channelsadvertising campaigns that utilized their own media channels… … Exceptionally high click-through rates reflect the synergies achieved Exceptionally high click-through rates reflect the synergies achieved with Integrated Marketing campaigns that utilize on and owith Integrated Marketing campaigns that utilize on and offffline medialine media

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DealershipResults?

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Rich Rich Ford Digital Marketing ImplementationFord Digital Marketing ImplementationRich Rich Ford Digital Marketing ImplementationFord Digital Marketing 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)Digital Audio Campaigns (local radio)• Site Placement Targeted CampaignsSite Placement Targeted Campaigns• Keyword Search Advertising CampaignsKeyword 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: 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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56ADP 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

PLEASE 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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Ralph Paglia; Orlando, FL – April 23, 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 Rich Ford Results Ford Results Rich Rich Ford Results Ford Results

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

Website 800 Sales Line = 476 total Calls

Rich Rich Ford Results Ford Results Rich Rich Ford Results Ford Results

75% Increase in Sales CallsFrom Dealer Web Site

75% Increase in Sales CallsFrom Dealer Web Site

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Rich Ford 2008 Results: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

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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The ADP Digital Advertising Program is designed to leverage each dealer’s existing search engine rankings by researching the “organic” or natural listings that dealers do not pay for, before buying any paid search listings. By first testing the most important search words and phrases, the relevant keywords used by local in-market car buyers that already show the dealer prominently listed, can be excluded from those that the dealer pays for. This strategy allows ADP to bid on only the most effective keywords that the dealer is not already getting for free, then shift the remaining budget to display advertising on web sites used by the dealer’s local customers. Eliminating the practice of bidding on the wrong keywords or Geotargeting outside the dealer’s effective market area allows ADP to provide dealers with a blended online advertising approach that maximizes the showroom, phone and dealer website sales opportunities generated.

Why do we ask dealers to register at SEMdealer.com before we recommend any digital advertising?Why do we ask dealers to register at SEMdealer.com before we recommend any digital advertising?

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Thank You for Attending!Thank You for Attending!Ralph PagliaRalph Paglia

Three ways that we can help:Three ways that we can help:1.1. Sell you a a rod and reelSell you a a rod and reel2.2. Teach you how to fishTeach you how to fish3.3. Cook dinner for youCook dinner for you

[email protected][email protected]: 505-301-6369Cell: 505-301-6369

www.AutoDigitalMarketing.comForum: Forum: Presentation File ExchangePresentation File Exchange

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