When people talk about the funnel being dead they are talking about the idea that every consumer goes through the same process when shopping for a vehicle. The concept of the purchase funnel was first developed as a marketing model. And that model still stands true today. Even though there are a thousand different paths that consumers take through the shopping process these five things still have to occur in order to get a customer to buy your product. The reason why it is important to recognize the purchase funnel is…
If you look at all the different marketing channels available to manufacturers, each channel has its unique strength in marketing against the purchase funnel. Event marketing is used to build a relationship with consumers to improve awareness and familiarity. Television provides broad reach at the top of the funnel. Some magazines can help build awareness, increase familiarity, while others can be used to get your model on the consideration list. Newspaper ads, on the other hand, are more focused at the bottom of the funnel, pitching price, incentives and displaying used inventory. The Internet is really the only medium out there that can be very successful across the entire funnel. People visit the internet every day. Awareness and familiarity can be increased before consumers even begin shopping. People use the internet to help build their consideration list. They discover what dealers they should visit and purchase from. I talked earlier about the manufacturer sites catching up with the independent sites. That wasn’t to imply that independent site will be going away. There will always be a role for them. But the 3 rd -party sites that embrace the idea that they can provide dealers and manufactures with marketing solutions, not just leads, are the ones that are going to be the most successful.
Digital dealerapril2008 advertising-v2
Using digital marketing tools to buy Internet, radio, newspaper and TV advertising more cost effectively 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.
INTRODUCTIONS: Ralph Paglia <ul><li>ADP Dealer Services </li></ul><ul><li>Director - Digital Marketing </li></ul><ul><li>OEM and National Accounts </li></ul><ul><li>Recognized industry expert in Automotive Digital Marketing, Advertising, Lead Management and CRM Process design </li></ul><ul><li>Responsible for driving 144,000+ leads to single-point dealer in 2 years and developing a team that sold 4,000+ Vehicles to Internet Leads in 2006. </li></ul><ul><li>Strategic marketing planner and consultant to car companies, dealer groups and national enterprise automotive organizations </li></ul><ul><li>Deep history of developing Digital Marketing strategies and tactical CRM implementation blueprints for dealers and car companies </li></ul><ul><li>Managed first retail automotive pilot program for Google Audio while in beta testing while at Courtesy Chevrolet in 2005, 2006 and 2007 </li></ul><ul><li>Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal </li></ul>Ralph Paglia Cell: 505.301.6369 email@example.com
What are many ISM’s seeking? <ul><li>Respect and Relevance within the Dealership </li></ul><ul><li>Credibility with DP, GM and Management Team </li></ul><ul><li>Recognition of Professionalism and Skill sets acquired </li></ul><ul><li>Logical Allocation of Budget and Resources needed to get results </li></ul><ul><li>Tools Needed and the freedom to use them when appropriate </li></ul><ul><li>Self Actualization from being given the control to achieve results </li></ul><ul><li>Respect f rom Sales Managers </li></ul>Is this how they see the ISM in your store?
“ 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 cuts Retailers slash costs by cutting staff, inventory, vendors and advertising David Kushma Automotive News April 14, 2008
Digital Marketing and Advertising Relevance Information Source Most Important to Vehicle Purchase Influencers
Marketing & Sales Funnel Still Exists Consideration Purchase Awareness Familiarity Visit Dealer <ul><li>Make them aware of your vehicles and dealership </li></ul><ul><li>Show them that your model and dealership is for them </li></ul><ul><li>Convince them to consider your model and dealership </li></ul><ul><li>Convince them to shop your dealership </li></ul><ul><li>Convince them to purchase your vehicle </li></ul>The Goals
Different media channels are more effective at distinct stages of the shopping funnel Consideration Purchase Awareness Familiarity Visit Dealer Marketing Channel TV Ads Radio Ads Digital Advertising Newspapers Outdoor
Integrated Marketing Use Multiple Media Channels to Communicate the Same Messaging More Effectively
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…
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…
Ford Dealer Display Advertisement placed on FordF150.net site
Ford Dealer Display Advertisement placed on 2009 Ford F-150 section inside FordF150.net
Offline Media Trends… Striving Towards Web Advertising Trends “ Publisher” Viewership <ul><li>Explosion of online content </li></ul><ul><li>Advertisers can’t find shoppers </li></ul><ul><li>Publishers can’t find advertisers </li></ul> 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.
Available through Digital Advertising Program from ADP Dealer Services
<ul><li>Buying Radio Spots in Phoenix, we ran 4,961 Thirty Second commercials at a total cost o f $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? </li></ul>
When we check on Albuquerque f or Rich Ford, we find 24 Radio Stations have provided Google with direct access to On-Air inventory …
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?
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 o f $10,611 … This comes out to a net cost o f $1.32 per Spot
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?
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
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 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!
We saved the campaign and went to Dennis Snyder to supply the 30 second spots he wanted to run so we can upload them into the ADP Digital Advertising system and pull the trigger…
Back to the Campaign Summary Screen, we see that bidding on local newspaper advertising is also available…
Digital Marketing Print Ads… Let’s see if we could save Rich Ford any money on buying newspaper display ads.
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...
A step-by-step process allows us to select the section o f the newspaper we would like our advertisement to appear in…
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
We bid on the Saturday editions… We bid on the Sunday editions…
In this example, $951.85 on Saturday (we “low balled” the newspaper bid) At $1,324.92 for a Full Page, we low balled the Sunday bid as well.
Next, we enter a short description, then save the Newspaper campaign.. .
Just like the Radio campaign, we get a summary description and links to edit the Newspaper campaign later on.. .
In less than an hour, we set up Site Targeted Online Display Ads, Search Engine Ads, Radio Ad Campaigns on 24 stations, and a Saturday/Sunday F ull Page Newspaper Ad Campaign…
In Dallas, TX we used Digital Advertising to drive tra ffic to CBS’s DFWvehicles.com to supplement their TV, Radio and Outdoor advertising campaigns that utilized their own media channels … Exceptionally high click-through rates reflect the synergies achieved with Integrated Marketing campaigns that utilize on and o ff line media
Rich Ford Digital Marketing Implementation <ul><li>Albuquerque - Santa Fe , NM Market January, F ebruary and March 2008 </li></ul><ul><li>Ford Dealer Pilot & Proo f O f Concept </li></ul><ul><li>Digital Campaigns Managed by: </li></ul><ul><ul><li>Ralph Paglia </li></ul></ul><ul><ul><li>Director – Digital Marketing </li></ul></ul><ul><ul><li>Ford/ADP Digital Advertising Team </li></ul></ul><ul><li>Digital Audio Campaigns (local radio) </li></ul><ul><li>Site Placement Targeted Campaigns </li></ul><ul><li>Keyword Search Advertising Campaigns </li></ul>
ADP Digital Advertising for Dealers Case Study #1 – Paid Search and Web Site Display Advertising Digital Ad Media Purchases…………………$ 6,389.72 Media Management Services…...…………..$ 1,277.94 Account Services……………………………..$ 495.00 ---------------- Total Digital Ad Invoice…………….……$ 8,162.66 Net Cost Per Thousand Impressions…$ 0.31 Net 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!
ADP Digital Advertising for Dealers Case Study #2 – Digital Audio Campaigns (Local Radio) Local Radio Station Media Purchases………$ 7,453.32 Media Management Services…...……….…..$ 1,490.66 Account Services………………………….…..$ 495.00 ---------------- Total Digital Ad Invoice…….………$ 9,438.98 Net Cost Per Drive Time Spot……..$ 5.80 Net 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!
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!
<ul><li>Previous Month before Digital Ad Campaigns (Nov 21-Dec 29) = Same Days Tracked </li></ul><ul><li>Website 800 Sales Line = </li></ul><ul><li>272 Total Calls </li></ul>Rich Ford Results
<ul><li>Digital Advertising Campaigns (Jan 21-Feb 29) = Same Days Tracked </li></ul><ul><li>Website 800 Sales Line = </li></ul><ul><li>476 total Calls </li></ul>Rich Ford Results 75% Increase in Sales Calls From Dealer Web Site
<ul><li>Rich Ford 2008 Results: </li></ul><ul><li>#1 in sales volume for their region in February 2008 </li></ul><ul><li>January-February 2008 Sales Performance: </li></ul><ul><ul><li>120 TOTAL NEW CARS 31.9% increase from 2007 </li></ul></ul><ul><ul><li>217 TOTAL NEW TRUCKS 2.8% increase from 2007 </li></ul></ul>
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.
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 ?
Thank You for Attending! Ralph Paglia <ul><li>Three ways that we can help: </li></ul><ul><ul><li>Sell you a a rod and reel </li></ul></ul><ul><ul><li>Teach you how to fish </li></ul></ul><ul><ul><li>Cook dinner for you </li></ul></ul>[email_address] Cell: 505-301-6369 www.AutoDigitalMarketing.com Forum: Presentation File Exchange