adp digital advertising program management for car companies (oem) and enterprise class retail...

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Car Companies and Car Companies and their Dealer Network their Dealer Network Marketing StructuresMarketing Structures

Total Marketing and Total Marketing and Advertising Impact in Advertising Impact in the Marketplacethe Marketplace

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Source: DoubleClick Touchpoints III

Why does automotive advertising have less impact Why does automotive advertising have less impact on showroom traffic in 2009 as it did in 1999?on showroom traffic in 2009 as it did in 1999?

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““Which one of these information Which one of these information sources was most important sources was most important when making decisions about when making decisions about buying your vehicle?”buying your vehicle?”

R.L. Polk 2008


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¹IDC Study, U.S. Consumer Online Behavior Survey Results 2007 ² 2008 National Automobile Dealers Association Data


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OEM’s each face considerable challenges in an automotive marketplace where their consumers now turn to the web when gathering information used to decide what brand and model vehicle to buy… …and where they will buy it!

Dealers do not currently have the skills and know-how needed to advertise effectively online, but they continue to be masters at using advertising media that is no longer cost effective.

Tier 3 Advertising spend dwarfs Tier 2 and even Tier 1, so Car Companies that educate their dealers the best, will win market share.

Why do car dealers continue to Why do car dealers continue to spend over 85% of their advertising spend over 85% of their advertising budgets on offline media? budgets on offline media? - NADA- NADA

2009 Car Company Marketing Dilemma 2009 Car Company Marketing Dilemma

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1. Online Display AdvertisingADP Publisher & Network Consortium

Automotive Websites

Local Media Websites

National Websites

2. Targeting TechnologyBehavioral Targeting

Geotargeting

Contextual Targeting

3. Search Engine AdvertisingCPC/PPC/Sponsored Links

4. Other Digital Advertising MediaMobile Phone Ads

Google TV

Video Advertising

Interactive Email Marketing

¹Return On Marketing Investment

ADP is only Tier 1 qualified supplier of ADP is only Tier 1 qualified supplier of these Types of Tier 3 Digital Advertising these Types of Tier 3 Digital Advertising

Solutions in a Managed Program that Solutions in a Managed Program that Meets OEM Branding and Distribution Meets OEM Branding and Distribution

Standards Standards

MEASURABLE RESULTS

QUALIFIED TRAFFIC

EFFECTIVE TARGETING

COST EFFECTIVE ROMI*

MEASURABLE RESULTS

QUALIFIED TRAFFIC

EFFECTIVE TARGETING

COST EFFECTIVE ROMI*

ADP Ad Network Provides Scalable Tier 3 - National Reach with Local Geotargeting delivers Lower Costs

ADP Places Dealer Ads on Thousands of Relevant Sites when Local Car Buyers visit them…

ADP uses Behavioral Targeting and Retargeting to show Dealer Ads to Car Buyers… On Automotive Sites and when they Visit Non-Auto Sites.

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Google Search Engine Advertising

Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored Links”

ADP Managed Tier 3 Search Engine Advertising- Dealer Campaigns Integrated with OEM Tier 1 and Association Tier 2

Search AdvertisingSearch Advertising• Impressions

• Impression Share

• Clicks

• Click through rate (CTR)

• Cost per click (CPC)

• Average Position

•Tier 3 – 2 – 1 Keyword & Geotargeting Optimization

• Bid Strategy excludes keywords that dealers already have SEO rank

• ROI Enhanced by Display Adverting

• Impressions

• Impression Share

• Clicks

• Click through rate (CTR)

• Cost per click (CPC)

• Average Position

•Tier 3 – 2 – 1 Keyword & Geotargeting Optimization

• Bid Strategy excludes keywords that dealers already have SEO rank

• ROI Enhanced by Display Adverting

Dealers/Suppliers Competing with OEM’s and Regional Ad Associations for Keyword Bids used in

Search Advertising

Dealers/Suppliers Competing with OEM’s and Regional Ad Associations for Keyword Bids used in

Search Advertising

Search Campaign Tracking & Reporting- Sent to Dealers and OEM Stakeholders

Search Placement / Keyword Report- Dealers and OEM Stakeholders

Omniture Post-Click Reporting Dashboards- Tracking code can be installed within any site, regardless of supplier

Organic to Paid Keywords Report- Allows Optimization of Dealer Spend by Eliminating Redundant Bids

Competitive Analysis

Compare Competitive Set– Benchmark growth– Visitor Length– Demographics– Competitor Keywords– Advertising Opportunities– Upstream traffic– Downstream traffic

HitWise Competitive Analysis: Clickstream

HitWise Competitive Analysis: Search Terms

Compete, Inc. – Unique Visitors

Google AdPlanner and Keywords by Site Trends- Extends Search Effectiveness to Display Advertising on Websites

Communicating Reports – VMAR and Analysts- Best Tier 3 Account Management in the Industry

Roles & Responsibilities: – PLAN– EXECUTE– MEASURE/REPORT

This equates to:– Evaluate dealership current marketing

and advertising activities– Develop annual, quarterly and monthly

advertising calendars– Work with dealer on budget

development and spend– Execute marketing campaigns– Report and assess results to improve

dealer ROI – Benchmark results and recommend

best practices– Coordinate campaigns

Dealer Dashboard – Tying it all together- Aggregated by Nation, Region and Zone for OEM

Subject: Revised Nissan Dealer Website Guidelines - Effective Monday March 9, 2009BULLETIN TYPE: ACTION (CASCADE AS APPROPRIATE) REGIONS: ALL

We are pleased to announce that effective Monday, March 9, 2009, the existing 46 page dealer website guideline document adopted by the company in September 2002 is being superseded by the attached 2-pager. The http://www.nissanguidelines.com and Nissan Artwork websites are being updated to reflect this change.

Concurrent with this change, Nissan Division is announcing that as part of future Internet Quality Index reviews (IQi), dealers found to no longer be in compliance with these guidelines will be de-linked from NissanUSA.com’s dealer locator. This aspect will be communicated later this summer nearer to the implementation date, although the new guidelines should be made available to your dealers and followed effective next week so de-links in the future are minimized.

These new guidelines accomplish several key aims:establishing consistent, actionable, and targeted brand-amplification standards for Tier III website display of Nissan product and imageryboosting flexibility for the dealer (grid pattern and other requirements more challenging to easily implement have been eliminated)giving initial linking standards more staying power, so dealers know what to do and keep doing itproviding dealer web site providers an easier play book to support dealer messaging while protecting key Nissan brand amplification needsfacilitating the ease with which dealers will know whether they are compliant (all elements of the guidelines will now be a sub-set of IQi Dealer Website Reporting)

Concurrent with this announcement, we are providing these dealer website guidelines directly to key website providers such as BZ/ADP, Reynolds, Dealer.com, Cobalt, and izmoCars, although a dealer may use (until such time as we may elect to announce otherwise) any dealer website provider they wish. Please cascade this information as appropriate. Please let me know if you have any questions. As always, dealer questions can be directed to Internet Certification Program Headquarters at [email protected].

Cory R. CoxNissan North America, Inc.Manager, Retail [email protected]: +1 615.725.3143

ADP Managed Tier 3 DA Programs work with one or many Website Suppliers

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OEM Digital Advertising Program Revenue ShareOEM Digital Advertising Program Revenue Share

Cost Recovery Synopsis: Cost Recovery Synopsis:

1. ADP will provide online Digital Advertising hosting and distribution services to facilitate Internet based Advertising campaigns for OEM’s dealers located in the 70 Tier 2 regions assigned to ADP.

2. ADP will invoice participating dealers a $495 per month Account Management fee in addition to the costs of buying media on both Display advertising and keyword based search campaigns.

3. In exchange for OEM’s active participation, endorsement and pro-active support of the ADP-OEM Digital Advertising program, ADP will provide OEM with revenue sharing participation (earnback) at a rate of 10% of actual collected media costs paid by OEM dealers participating in the ADP-OEM digital advertising program.

4. The revenue sharing agreement does not include the monthly account management fees.

25Cost Recovery Analysis of an OEM Digital Advertising Program Revenue Share

Scenario 1 - ADP Projections for Year 1 of the OEM Dealer Advertising Program: 20% Dealer Participation (no Risk-Gain)$2,000 Average Monthly Digital Ad Media Budget

Dealers ParticipationNet Dealer

Count Mo. Budget Mo. TotalMo. OEM Credits

Annual OEM Credits

1000 20% 200 $2,000 $400,000 $40,000 $480,000

Scenario 2 - ADP Projections for Year 2 of the OEM Dealer Advertising Program: 30% Dealer Participation (no Risk-Gain)$2,000 Average Monthly Digital Ad Media Budget



Annual OEM Credits

1000 30% 300 $2,000 $600,000 $60,000 $720,000

Scenario 3 - ADP Projections for Year 3 of the OEM Dealer Advertising Program: 30% Dealer Participation$3,000 Average Monthly Digital Ad Media Budget



Annual OEM Credits

1000 30% 300 $3,000 $900,000 $90,000 $1,080,000

Scenario 4 - ADP Stretch Projection for OEM Dealer Advertising Program: 50% Dealer Participation (no Risk-Gain)$2,000 Average Monthly Digital Ad Media Budget



Annual OEM Credits

1000 50% 500 $2,000 $1,000,000 $100,000 $1,200,000

Scenario 5 - ADP Stretch Projection for OEM Dealer Advertising Program: 40% Dealer Participation (no Risk-Gain)$2,500 Average Monthly Digital Ad Media Budget



Annual OEM Credits

1000 40% 400 $2,500 $1,000,000 $100,000 $1,200,000