Paul Accinno – Traditional vs Digital Advertising

Traditional vs Digital Advertising:Developing A Retail Automotive Multi-Platform Marketing Plan

By: Paul AccinnoPresident/CEO

Traditional MediaAWARENESS

Traditional MediaCONSIDERATION

Traditional MediaPURCHASE

INTENTTraditional Media

Where Do I start?

Agenda

1. Marketing & Media Strategy2. Media Attributes & Evaluation3. Impact Budgeting

Who Are You?

Who Are You?

1. Who Do You Want To Be?2. Can You Defend That Position?3. How Will You Go To Market?4. Do You Have A Clear, Concise Deliverables

Statement?

Strengths • Reputation

– Lowest Price– Customer Care– Supports Community

• Longevity – Family Owned– Solid Business

• Awareness– Brand Equity– Household Name

• Size– Large - Biggest Selection/Service Facility – Small – “Treat You Like Family”

Weaknesses• Reputation

– Bad Online Reviews– Employees

• Longevity – Brand New– Slow to Change

• Awareness– Little or None– Overkill

• Size– Large - Hard to Manage– Small - Hard to Compete

Opportunities• Reputation

– Employee Training – Generate Better Reviews– Community Involvement

• Longevity – Hirer Younger Players– New Way of Doing Business

• Awareness– More Advertising– More PR

• Size– Large – Get Help With Process– Small - Set Goals for Growth

Threats• Reputation

– Bad word of mouth– Customers Stop Coming

• Longevity – Adverse to Change/Stall– Resources

• Awareness– Cost to Compete– Keep it Fresh

• Size– Large – Poor Customer Service– Small – Going Out of Business

Bottom Line

• Develop a strong position that promises a benefit (Message) …then deliver on the promise! (Execution)

Location/Size/Brand

• Large Metro Dealers– Can draw customers across the market – Maximize Reach – TV + Expanded GEO Web + Aggressive Digital Marketplaces

• Large Dealers on Fringe– Many Dealers In Market – hard to generate market-wide shopping > “Own

Your Back Yard” (Ford/Chevy/CDJ)– Cable + Select GEO Web + Select Digital Marketplaces– Few Dealers In Market– Brand exclusivity will create larger shopping

patterns (Lexus/Infiniti/Acura)– TV + Expanded GEO Web + Aggressive Digital Marketplaces

Location/Size/Brand

• Large Suburban Dealers– Create Market Awareness– Heavy Up in Major Trading Areas– TV+ Expanded GEO Web + Aggressive Digital Marketplaces

• Small Suburban/Rural Dealers– “Own Your Back Yard”– Choose Areas Where You Can Compete– Cable + Select GEO Web + Select Digital Marketplaces

Marketing Position

1. Deal Drivena) The Best Price. Every Time. All The Time.b) Our Best Price First…No Exceptions!

2. Size Drivena) It’s Gonna Be Huuuuge!b) Over $30 Million in Inventory

3. Customer Drivena) Driven to Serve You Betterb) Exceeding Expectations since 1915

Media Attributes & Measurement

Reach, Frequency, TRP’s• Reach - % of the market (BTV) or zone (CATV) your

commercials “reach”.• Frequency – The number of times on average your target

demo sees your commercial• Effective Reach - % of the market (BTV) or zone (CATV)

your commercials reach at least 3x• Rating Point – The % of the TV Households in the market

or zone watching a program.• TRP – Target Rating Point…a rating point within your

demo (A35-64)

Basic Rules of Buying TV/Cable/Radio

• Don’t buy “Spots” buy rating points!• Always buy Target Rating Points not HH Rating Points• Reach & Frequency are key• Know what your Effective Reach is.

Prog Name Rtg CPP $$ Rch % Freq GRP Pr

Rtg CPP $$ Rch % Freq GRP

1.3 $41 46.0% 2.3 102.8 0.9 $55 33.8% 2.2 76.6

1.3 $41 46.0% 2.3 102.8 0.9 $55 33.8% 2.2 76.6

Wk 1 - Wk 2

Households Adults 35-64

Household Ratings vs Demo Rating

Reach + Frequency53.6% Reach

4.8x Frequency

Reach + Frequency Distribution47.4% Reach

3.0 x Frequency

Effective Reach

Average69.6% Reach

5.0x Frequency

Effective49.2% Reach

3.0x Frequency

Top Digital Options

1. Advanced SEO– Blogs/Backlinks/Landing Pages/Video

2. Marketplaces– Autotrader/Cars.com/TrueCar

3. PPC/SEM– Conversion Based Optimization (CBO)

4. Email– Targeted Conquest + Data Base

5. Site Retargeting/Behavioral Retargeting– Impressions + Attribution

Advanced SEO

Backlinks and Keywords

Google's description of their PageRank system, for instance, notes that Google interprets a link from page A to page B as a vote, by page A, for page B

• Starting to see improvements for• Honda + Pittsburgh• Wexford + Model

• Starting to Conquest Cranberry area

• Can track keyword conversions

Marketplaces

• 68% used a search engine to access the dealer site after visiting AutoTrader.com.

• As a result, indirect referrals that third-party sites provide to the dealership website via a search engine may erroneously be attributed to the direct referral from the search engine.

• The implication is that third-party sites connect buyers and sellers at the shopper level

• Car shoppers learn about a dealership while on third-party sites and then use a search engine to locate the dealership website to conduct further shopping and research.

2013 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG

Exposure (SRPi)* 63,431 67,144 78,150 62,263 53,182 55,881 84,574 71,898 80,290 59,657 71,015 86,744 69,519Opportunity (VDP Views)* 1,278 1,628 1,691 1,422 1,338 1,235 1,984 1,809 2,167 1,541 1,385 2,009 1,624Specials Impressions 0 0 0 0 0 0 0 0 0 0 0 0 0Used Merchandising Factor (VDP/SRP)* 2.0% 2.4% 2.2% 2.3% 2.5% 2.2% 2.3% 2.5% 2.7% 2.6% 2.0% 2.3% 2.3%

Phone Calls 8 4 0 0 0 0 0 0 0 0 0 0 1Emails* 5 2 7 5 4 4 4 3 4 6 1 5 4Maps* 28 23 18 21 13 15 17 20 23 17 21 25 20Printables 7 11 6 8 35 9 11 16 7 14 3 5 11Chat Prospects 0 11 8 8 1 1 2 1 0 0 0 0 3TIM Prospects 0 0 0 0 0 0 0 0 0 0 0 0 0Total Trackable* 48 51 39 42 53 29 34 40 34 37 25 35 39

Used Vehicles 35 34 36 37 36 37 39 39 45 41 43 49 39% Vehicles Priced 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%% Vehicles Photos 69% 70% 65% 61% 77% 67% 69% 68% 78% 80% 64% 77% 70%% Vehicles Comments 85% 81% 87% 80% 81% 64% 68% 61% 82% 95% 97% 98% 82%Activity Per Vehicle 33 43 37 30 28 26 39 33 36 28 24 29 32% Vehicles Specials 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%% Vehicles Videos 64% 100% 100% 100% 100% 100% 100% 99% 100% 100% 99% 100% 97%Used Merchandising Factor (VDP/SRP)* 2.0% 2.4% 2.2% 2.3% 2.5% 2.2% 2.3% 2.5% 2.7% 2.6% 2.0% 2.3% 2.3%

ADVERTISING (USED)

TRACKABLES (USED)

MERCHANDISING (USED)

Autotrader Tracking

While text messaging is gainingpopularity as the preferred method of communication….EMAIL is still the overwhelming choice for permission-based promotions or opt-in advertising.

22033 648 13.3100% 2.1600%22031 579 12.20667% 1.9300%22030 689 13.72333% 2.29667%21746 674 13.28667% 2.24667%21386 611 11.8500% 2.03667%21352 483 10.8300% 1.6100%21351 510 10.99333% 1.7000%21350 569 11.69667% 1.89667%21157 619 12.2400% 2.06333%23286 650 13.01333% 2.16667%23269 619 12.7800% 2.06333%23173 469 10.7500% 1.56333%23172 500 10.58667% 1.66667%23171 556 11.90333% 1.85333%22887 719 9.9840% 1.4380%22647 577 11.45333% 1.92333%22632 542 11.2400% 1.80667%22626 438 10.3400% 1.4600%22619 601 11.39333% 2.00333%22375 1061 11.5940% 2.1220%22359 894 11.5380% 1.7880%

TOTALS 72,606 11.7734% 2.3585%Kelly Automotive Group 12/5/2013 50000 5769

Kelly Automotive Group Re Blast 12/6/2013 50000 5797Kelly Mitsubishi 12/12/2013 30000 3418Kelly Buick GMC 12/12/2013 30000 3102

30000 3372Kelly Nissan 12/13/2013 30000 3436

Kelly Automotive Group 12/19/2013 50000 4992

3,570,057 406,553

Kelly Chrysler Dodge Jeep 12/12/2013

Kelly Mitsubishi 12/26/2013 30000 3571

Kelly Nissan 12/26/2013 30000 3225Kelly Buick GMC 12/26/2013 30000 3176

Kelly Chrysler Dodge Jeep 12/27/2013 30000 3834Kelly Automotive Group Hand Rasiers 12/30/2013 30000 3904

Kelly Automotive Group 11/7/2013 30000 3672

Kelly Chrysler Dodge Jeep 11/14/2013 30000 3298Kelly Buick GMC 11/14/2013 30000 3509

Kelly Mitsubishi 11/14/2013 30000 3249Kelly Nissan 11/14/2013 30000 3555

Kelly Automotive Group 11/21/2013 30000 3986Kelly Mitsubishi 11/27/2013 30000 4117Kelly Buick GMC 11/27/2013 30000 3662

Kelly Nissan 11/27/2013 30000 3993

Case Study: 12 months/3.6 million emails 11.8% Open Rate – 2.4% Click Thru Rates

For Conquest Email you might expect high bounce/low time spend…but results compare very favorable to normal site traffic.

A 60 Day Sales “match back” shows sales of 36 units for $166 PNVR!

Retargeting

53

Web Surfer Dealer’s Website User Leaves

Dealer’s Brand & Website

Popular Site

Behavioral Retargeting

54

Web Surfer Looks at an Auto related site (could be Service or KBB)

User Leaves

Dealer Brand & Website

Popular Site

Site & Behavioral Retargeting

Developing A Budget & Creating Impact

By the Numbers - Composite

• PNVR - $500• PVR - $300• % of Sales – 1.06%• % of Gross – 7.75%

• Larger dealers – lowest costs

• Larger markets – higher costs

• Averages can range as much as 50%

Source: NADA Industry Analysis Division

• 26.5% Digital - 63.9% Traditional - 9.6% Other

Source: NADA Industry Analysis Division

Average Monthly Budget/Dealership

$7.2 Billion Total Advertising 17,635 Total Dealerships

= $408,278/Dealer or $34,000/Month

Source: NADA Industry Analysis Division

Fill The Glasses One at a Time!

50%

50%

Impact Budgeting

• $10,000 – TV or Cable (50% Effective Reach/3x Freq.)• $7,000 – Targeting Mail2Web• $17,000 – Total Traditional (50% of Budget)• $1,500 – Website• $1,500 – Advanced SEO/VSEO• $4,000 – Marketplace (i.e. AT/Cars.com)• $4,000 – SEM/Mobile Search• $2,000 – 2 Vendors OEM/3rd party leads ($20 x 50 x 2)• $3,000 – 30,000 Conquest/DB E-Blasts 2x/mo. • $1,000 – Social Media/Reputation Management• $17,000 - Total Digital (50% of Budget)

Thank YouFREE Marketing Plan Evaluation

Paul Accinno [email protected]