dealer advertising workshop kelley blue book e networking session v5
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Ralph Paglia; NY Metro Region – November 12, 2008
Ralph PagliaDirector - Digital Marketing ADP Dealer Services
• How to use digital marketing tools to buy Internet, radio, and TV advertising more cost-effectively than ever before
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Ralph Paglia; NY Metro Region – November 12, 2008
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 Phoenix dealer in 2 years and developinga 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 BBS’s in SoCal
Ralph Paglia Cell: 505.301.6369 [email protected]
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Ralph Paglia; NY Metro Region – November 12, 2008
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 ManagersIs this how they seethe ISM in your store?
Is this how they seethe ISM in your store?
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Ralph Paglia; NY Metro Region – November 12, 2008
“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
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Ralph Paglia; NY Metro Region – November 12, 2008
35.3%
24.9%
13.4%
8.2%
4.4%3.6%
1.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Source: Polk Center for Automotive Studies
Why is the Auto Industry shifting billions away from traditional media into online digital advertising strategies and media?
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Ralph Paglia; NY Metro Region – November 12, 2008
0%
5%
10%
15%
20%
25%
30%
35%
40%
Newspaper Radio Television Internet Other
Dealer
Consumer
Today’s Biggest Dealer Advertising ChallengeOverspending on Newspaper, Radio, Outdoor & Mail Relative to Usage
Source: NADA
The Average Car Dealer’s Advertising Spend Does Not Match The Car Buying Consumer’s Media Consumption Behaviors…
Average Dealer Advertising Spend vs. Consumer Media Consumption
Dea
ler
Ad
Bu
dg
et
Eff
icie
ncy
Gap
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Ralph Paglia; NY Metro Region – November 12, 2008
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
Ralph Paglia; NY Metro Region – November 12, 2008
“I’m gonna get me one today… Oh Yeah!”
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Ralph Paglia; NY Metro Region – November 12, 2008
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
ve
rtising
Ne
ws
pap
ers
Ou
tdo
or
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Ralph Paglia; NY Metro Region – November 12, 2008
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
Outdoor
Other
Ralph Paglia; NY Metro Region – November 12, 2008
“Selling a car is just like fishing, Wilbur…”
Ralph Paglia; NY Metro Region – November 12, 2008
Digital Marketing and Advertising Examples
Ralph Paglia; NY Metro Region – November 12, 2008
Google search query used from a Phoenix location… “phoenix ford dealers”
Google search query used from a Phoenix location… “phoenix ford dealers”
Ralph Paglia; NY Metro Region – November 12, 2008
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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Ralph Paglia; NY Metro Region – November 12, 2008
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”
Ralph Paglia; NY Metro Region – November 12, 2008
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…
Ralph Paglia; NY Metro Region – November 12, 2008
Display Advertising Placed on TargetedWebsites to Appear
when a dealer’sLocal Consumers
Visit Them
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ford Dealer Display Advertisement placed on FordF150.net site
Ford Dealer Display Advertisement placed on FordF150.net site
Ralph Paglia; NY Metro Region – November 12, 2008
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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Ralph Paglia; NY Metro Region – November 12, 2008
Offline Media Trends… Striving To Become More Like Web Advertising TrendsOffline Media Trends… Striving To Become More Like 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
Available through Digital Advertising Program from ADP Dealer Services
Available through Digital Advertising Program from ADP Dealer Services
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Ralph Paglia; NY Metro Region – November 12, 2008
Do you advertise in San Francisco? Reach more San Francisco customers by advertising in newspapers! We've made it easy to choose from 20 San Francisco area newspapers (from the San Francisco Chronicle to the El Mensajero). Create an ad in minutes, and set a price that's right for you. Learn more | Dismiss this message
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Ralph Paglia; NY Metro Region – November 12, 2008
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http://www.google.com/adwords/tvads/promotions/acm.html
Ralph Paglia; NY Metro Region – November 12, 2008
http://services.google.com/tvads/demos/hpdemo/
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Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
“Help! Help! This Guy’s trying to rob me…”
Ralph Paglia; NY Metro Region – November 12, 2008
Re-activate Google Audio Ads. Since you last advertised with Audio Ads, we've introduced new tracking and targeting features. Now you can track phone calls, website traffic, conversions, revenue, and more metrics generated by your radio campaign. You can access over 1600 FM and AM radio stations, including stations in local regions as well as Top 10 stations in the largest US markets. Get help from an Audio specialist | Dismiss this message
Re-activate Google Audio Ads. Since you last advertised with Audio Ads, we've introduced new tracking and targeting features. Now you can track phone calls, website traffic, conversions, revenue, and more metrics generated by your radio campaign. You can access over 1600 FM and AM radio stations, including stations in local regions as well as Top 10 stations in the largest US markets. Get help from an Audio specialist | Dismiss this message
Ralph Paglia; NY Metro Region – November 12, 2008
Radio Advertising is an effective complement to Online Advertising
Why would a Digital Marketing Guy get excited about Google Audio?
Ralph Paglia; NY Metro Region – November 12, 2008
Tracking the conversation started by Radio Advertising… to the Web!
Ralph Paglia; NY Metro Region – November 12, 2008
Google Audio provides dealers with the ability to make real-time changes, allowing dealers to better manage ad campaigns
Ralph Paglia; NY Metro Region – November 12, 2008
Google Audio provides dealers with more control over their use of radio advertising
Ralph Paglia; NY Metro Region – November 12, 2008
Google Audio provides dealers with true integrated marketing capabilities…
Ralph Paglia; NY Metro Region – November 12, 2008
YouGotGas.com
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
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Ralph Paglia; NY Metro Region – November 12, 2008
Buying Radio Spots in Phoenix, we ran 4,961 Thirty Second commercials at a total cost of $10,635 resulting in a cost per spot at less than $2.15 each… The equivalent average cost per spot buying the same Dayparts and reach through local radio media salespeople would have been over $50 per spot… How can that be?
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Ralph Paglia; NY Metro Region – November 12, 2008
When we check on Albuquerque for Rich Ford, we find 24 Radio Stations have provided Google with direct access to On-Air inventory…
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Ralph Paglia; NY Metro Region – November 12, 2008
What would be available to Rich Ford if we wanted all the inventory we could get, running Radio Spots 24 hours a day, bidding on a $5.00 CPM listeners basis?
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Ralph Paglia; NY Metro Region – November 12, 2008
Running Radio Spots 24 hours a day, we would pay $1.59 on a CPM basis to get 8,042 30 second spots on 24 radio stations at a total campaign cost of $10,611… This comes out to a net cost of $1.32 per Spot
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Ralph Paglia; NY Metro Region – November 12, 2008
What if we Ran Rich Ford’s Radio Spots ONLY DURING PRIME DRIVE TIME, Monday through Friday, paying on a CPM basis… On 24 Albuquerque & Santa Fe Radio Stations?
How Many Prime Drive Time Spots can we get, and at What Cost per Spot on Local Radio Stations?
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Ralph Paglia; NY Metro Region – November 12, 2008
Running Radio Spots ONLY DURING PRIME DRIVE TIME, on 23 Radio Stations in Albuquerque/Santa Fe market, paying on a $2.13 CPM basis, we estimate that the dealer would get 3,335 spots at a $8,932 total campaign cost, which comes out to $2.68 Average Cost per Prime Drive Time Spot… Dealer currently pays over $85 for equivalent spots through historical sales channels
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
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New York
Ne
w Y
ork
Met
ro“W
ide
Op
en”
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Ralph Paglia; NY Metro Region – November 12, 2008
New York
Ne
w Y
ork
Met
ro“W
ide
Op
en”
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Ralph Paglia; NY Metro Region – November 12, 2008
New York Metro“Wide Open”
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Ralph Paglia; NY Metro Region – November 12, 2008
Boston
Boston Metro“Wide Open”
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Bo
sto
n M
etro
“Wid
e O
pen
”
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Ralph Paglia; NY Metro Region – November 12, 2008
Philadelphia
Ph
ilad
elp
hia
Met
ro“W
ide
Op
en”
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Ralph Paglia; NY Metro Region – November 12, 2008
Ph
ilad
elp
hia
Met
ro“W
ide
Op
en”
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Ralph Paglia; NY Metro Region – November 12, 2008
Philadelphia Metro
100%Weekday/Drive
Dayparts
100%Weekday/Drive
Dayparts
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Ralph Paglia; NY Metro Region – November 12, 2008
…Back to the Campaign Summary Screen, we see that bidding on local newspaper advertising is also available…
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Ralph Paglia; NY Metro Region – November 12, 2008
Digital Marketing Print Ads… Let’s see if we could save Rich Ford any money on buying newspaper display ads.
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In this initial section, we are going to check for any newspapers in Rich Ford’s market area that may have signed up to 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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Ralph Paglia; NY Metro Region – November 12, 2008
Next, we select the size of Newspaper Ad we want to run. In this case we know that
Rich Ford likes to own the whole page
Ralph Paglia; NY Metro Region – November 12, 2008
We bid on the Saturday editions…
We bid on the Sunday editions…
Ralph Paglia; NY Metro Region – November 12, 2008
In this example, $951.85 on Saturday(we “low balled” the newspaper bid)
At $1,324.92 for a Full Page,we low balled the Sunday bid as well.
Ralph Paglia; NY Metro Region – November 12, 2008
Ralph Paglia; NY Metro Region – November 12, 2008
Just like the Radio campaign, we get a summary description and links to edit the Newspaper campaign later on...
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Ralph Paglia; NY Metro Region – November 12, 2008
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…
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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Ralph Paglia; NY Metro Region – November 12, 2008
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
Ralph Paglia; NY Metro Region – November 12, 2008
DealershipResults?
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Ralph Paglia; NY Metro Region – November 12, 2008
Rich Ford Digital Advertising 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)• Site Placement Targeted Campaigns• Keyword Search Advertising Campaigns
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Ralph Paglia; NY Metro Region – November 12, 2008
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: Case Study, your results will vary because no two advertising campaigns generate identical results!
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Ralph Paglia; NY Metro Region – November 12, 2008
ADP 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: Case Study, your results will vary because no two advertising campaigns generate identical results!
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Ralph Paglia; NY Metro Region – November 12, 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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Ralph Paglia; NY Metro Region – November 12, 2008
Previous Month before Digital Ad Campaigns
(Nov 21-Dec 29) = Same Days Tracked
Website 800 Sales Line =
272 Total Calls
Rich Ford Results Rich Ford Results
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
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Ralph Paglia; NY Metro Region – November 12, 2008
Digital Advertising Campaigns (Jan 21-Feb 29) = Same Days Tracked
Website 800 Sales Line = 476 total Calls
Rich Ford Results Rich Ford Results
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Ralph Paglia; NY Metro Region – November 12, 2008
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
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
Ralph Paglia; Chicago, IL – September 9, 2008
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.
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
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Ralph Paglia; NY Metro Region – November 12, 2008
Thank You for Attending the KBB eNetwork Brunch!
Three ways that ADP can help:1. Sell you a a rod and reel (Tools)2. Teach you how to fish (Assistance)3. Cook dinner for you (We do it for you)
www.SEMDealer.com
Ralph [email protected]: 505-301-6369
www.AutoDigitalMarketing.comForum: Presentation File Exchange
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Ralph Paglia; NY Metro Region – November 12, 2008