. Cobalt’s “Breakfast of Champions” Building an Online Marketing Strategy Association of Automotive Internet Sales Professionals AAISP National Conference – Nashville, TN March 13 – 15, 2007 Dean Evans Vice President Field Marketing The Cobalt Group, Inc.
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Cobalt’s “Breakfast of Champions” Building an Online Marketing Strategy
Association of Automotive Internet Sales ProfessionalsAAISP National Conference – Nashville, TN
March 13 – 15, 2007 Dean Evans
Vice President Field Marketing The Cobalt Group, Inc.
Breakfast of ChampionsWhy are you here?
To Learn:
• Why it is critical as a general manager to modify your advertising spend to create additional, lower cost “opportunities” for your dealership
• Why it is critical as an Internet director or manager to understand how to secure more advertising budget for Internet marketing activities
• Leverage Internet marketing areas to drive more vehicle sales from the industry’s top dealers
• Discover ways to close more leads
Breakfast of ChampionsToday’s Topics
• Are You Off-Target? Your Customers Are Online. Why isn’t Your Advertising?
- Dramatic changes taking place in automotive advertising and marketing
- Implications for dealers
• Ingredients to a Successful Online Marketing Strategy
• Putting it all Together: Lead Management that Drives Success
Are You Off-Target?Your Customers Are Online. Why Isn’t Your Advertising?
Newspaper
Radio
Television
Yellow Pages
Online Marketing
Consumers spend more time online than just about anywhere else ...
Weekly Consumer Media Consumption
• Going Online, 14 hours
• Watching TV, 14 hours
• Listening to Radio, 5 hours
• Reading Books, 3 hours
• Reading Newspapers, 2 hours
• Reading Magazines, 1 hours
Average Dealership Media Spend
• 33.0% Newspaper & Yellow Pages
• 19.5% Television
• 17.7% Radio
• 10.0% Direct Response
• 9.9% Internet
• 9.9% Other
Source: Jupiter Research (January 2006), NADA 2006 Industry Analysis Division
CPVR = $457
Yet dealers spend <10% of their budget on online advertising!
How Much are YOU Spending on Online Advertising?
Average Dealership Spends $64,000 per Month in Advertising
► $21K – Newspaper
► $12K – TV
► $11K – Radio
• What’s YOUR Advertising Spend & Mix?
► $12K – Direct Mail / Other
► $6K – Online
Source: IAB, NADA 2006 Industry Analysis Division
• How Do You Know It’s Working?
Dealer Website
3rd Party Website
OEM Website
The Internet Is the Starting-Point for Most Vehicle Buyers
► 67% of auto buyers research online*.
► 89% use search engines for research**.
► 70% start at a search engine***.
* JD Power 2005 Autoshopper.com Study**JD Power 2005 Autoshopper.com Study***Yahoo! Compete 2005 auto study
Auto Buyers
Dealer
You Need to Rethink Your Entire Advertising Strategy…
Dealer Website
TelevisionDirect Mail
Billboard Newspaper
RadioInternet Search
Breakfast of ChampionsToday’s Topics
• Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
• Ingredients to a Successful Online Marketing Strategy
- Creating the cornerstone of your marketing strategy
- Spend less, make more. An introduction to Internet search
- Creating opportunities through effective 3rd party lead sources
- Increasing customer retention and dealership profits through Owner Marketing
• Putting it All Together: Lead Management that Drives Success
How Does Your Advertising Strategy Compare to Top-Performing Dealers?
Today’s Top Performers …
Make the website the focal point of their advertising.
Align online advertising with print / radio / TV.
Continually tune their website for higher organic Internet search engine ranking.
Drive more leads through Internet search advertising.
Acquire valuable customers via high performing 3rd-party leads.
Build long term, profitable relationships with existing customers via owner marketing.
Dealership WebsiteThe Cornerstone of your Marketing Strategy
Elements of a Top-Performing Website
• Ever increasing visitor-to-“customer action” ratio
• Generates first page SEO placement / flexible to handle paid search campaigns
• Integrates with your OEM’s advertising and merchandizing
• Synchronizes your offline and online advertising - fast!
• Is consumer-tested NOT “what the dealer likes visually”
• Answers the consumers’ question FAST: “Why should I buy from your dealership?”
Breakfast of ChampionsToday’s Topics
• Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
• Ingredients to a Successful Online Marketing Strategy
- Creating the cornerstone of your marketing strategy
- Spend less, make more. An introduction to Internet search
- Creating opportunities through effective 3rd party lead sources
- Increasing customer retention and dealership profits through Owner Marketing
• Putting it All Together: Lead Management that Drives Success
Internet Search Is Like Buying a Home It’s about Location, Location, Location
=Organic Search
=Paid Search
• Original Search Page• Algorithmic
• 12 – 14 Links• Advertising• Pay Per Click
Top Things to Know about Organic Search (a.k.a. search engine optimization (SEO), natural & free listings)
1. All search engines “crawl” the Web to establish organic rankings of websites based on their content and links.
2. Page one, “above the fold” is the best real estate.3. Organic search is like “PR” (not advertising) – influence, not control.4. Organic Search is Step 1 in a smart search strategy.
Top Things to Know about Paid Search a.k.a. pay-per-click, search engine marketing (SEM) & paid placement
1. Paid search is advertising, and it’s how search engines make money.
2. Paid search success is based on > Keywords / bidding strategy
> Ad copy and campaign quality
> Dealer website quality / ability to convert traffic into leads
3. Google, Yahoo!, & MSN’s networks account for 95% of all Internet search traffic. (Source: CNN / Money.com 5/06.)
Smart Dealers Already Profiting from Internet Search
Leading Acura Dealer (WA)Email / Phone Lead Volume
Before Internet Search
With Internet Search
>550
200
Before Internet Search
With Internet Search
70+
~30
Leading Hyundai Dealer (NJ)
Internet Sales / Month
30
~5
Leading Subaru Dealer (OR)Internet Suzuki Sales / Month
Before Internet Search
With Internet Search
The “Magic” of Search
Key Benefits
• Measurable ROI for search advertising
• It’s where your customers are.
• It’s targeted: you connect with
- The right buyers
- The right ads & offers
- The right time
Key Success Factors
• Integrate with your overall ad budget
- Best leverage of your spending
• Organic + paid search delivers best results.
• Integrate with conversion-oriented website
• Work with a trusted provider
- It’s too complex to do it yourself
Breakfast of ChampionsToday’s Topics
• Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
• Ingredients to a Successful Online Marketing Strategy
- Creating the cornerstone of your marketing strategy
- Spend less, make more. An introduction to Internet search
- Creating opportunities through effective 3rd-party lead sources
- Increasing customer retention and dealership profits through Owner Marketing
• Putting it All Together: Lead Management that Drives Success
Search and 3rd Party Leads
• While Internet search is exploding, the proportion of consumers visiting 3rd-party sites is actually increasing.
• Don’t get caught up in the “you can drive all your customers to your site” mentality.
• Nationally, we see lead to close rates decline on dealer site leads when search campaigns are started.
• Smartest Internet lead strategy includes a mix of
- Internet search marketing
- 3rd party leads
- OEM leads
Dealer Sites34%
OEM Sites10%
Third Party Sites56%
Source: Ward’s Dealer Business, April 2006.
3rd Party Leads and Classified Ads An Efficient and Effective Lead Source
• New Car
• Aggregators today are not all alike. Some specialize in selling. Others specialize in helping you sell more vehicles.
• Can fine tune your sales DMA alignment to source the best customer for your business … and do it as often as you like to test and re-test.
• Used Car
• Know that there are both subscription-based and pay-for-performance models. Know your cost per customer action.
• Video, professional photos, pricing data/knowledge and copy expertise are needed today to top performing ad units.
Putting it all TogetherPeople & Process: Developing the Skills for Success
Hi [Customer Name], Why Me? Why Make? Why Model?
Hyundai Sonata Dethrones Camry and Accord
Thank you for your request for additional information on the exciting new 2006 Hyundai Sonata. My name is Tony Bell, I am the Internet Director and it is my job to ensure that you get all of the information you need to make a good buying decision. We are extremely pleased with the new 2006 Sonata as well as all of our customers that already have a new Sonata in their driveway. When you look at the long list of standard features and read what the “experts” have written about this car, you will understand why Toyota and Honda Dealers are worried. I, or one of my staff will be contacting you to gather some additional information, answer any questions, schedule a test drive or arrange a home delivery.
I have included in this email links to various sources for reviews, comparisons, and pricing guidelines. I have included a link to Edmunds.com, they have a very accurate pricing guide to follow. They publish a TMV price to give the customer a figure that they should expect to pay for a vehicle. Edmunds.com is constantly surveying dealers as well as customers to arrive at these prices. Please keep in mind that every car deal is as unique as every customer and you may qualify for additional rebates and incentives.