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BOC Partners — The Scientific Approach

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Your advertising is an investment to deliver a message to a target audience. (people / population) …

Your advertising is an investment to deliver a message to a target audience. (people / population)

Not everyone is properly pre-qualified.

Rather then delivering a message to a target audience, choose instead to deliver to a target household.

Published in: Automotive, Business
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  • 1. Investing Advertising Budgets for Automotive Accounts The Scientific Approach
  • 2. To Determine how best to allocate any advertising budget … first identify any waste. “50% of my advertising budget is wasted – Trouble is- I don’t know which half.” -John Wannamaker Truth is your waste % maybe between 50% and 80%. YOUR BUDGET % OF WASTE EVAPORATES
  • 3. Problem One Every Medium has a different way of measuring their audience Newspaper & Magazines........(ABC) Audit Bureau of Circulation Radio / TV ................................................................................Nielsen Outdoor ..........................................................................Out of Home Direct Mail ..........................................................“Return to Sender” Internet ..........................................................................Impressions Every medium and its respective audience suffer from not being effectively pre-qualified. How the audience receives their information and geography isn’t enough.
  • 4. Theory Your advertising is an investment to deliver a message to a target audience. (people/population) Not everyone is properly pre-qualified. Rather then delivering a message to a target audience, choose instead to deliver to a target household.
  • 5. You can get critical household counts for the following: Any Zip Code Any Area of Interest Anywhere in the Country This can be compared to any geographic map presented by any medium. Print—Circulation Radio—Listenership TV/Cable—Viewership Outdoor—Traffic Count Internet—Impressions
  • 6. You are now able to compare all media investments to each other. Household count is the common denominator. Then compare media household(s) to Automotive Sale(s) households for any geography.
  • 7. 2011 Census NJ Population 8,800,000 2011 Census NJ Household Count 3,500,000 (Driveways) 2012 NJ Car NJ Dealerships 474 Auto Outlook New Car Sales 440,000 Used Car Sales 210,000 Total Sales 650,000 Ratio of Households to Dealership Sales New 1:8 Used 1:16 Total 1:5 Math on NJ Dealer Sales
  • 8. Statistical Probability of any Medium’s audience (household count) to purchase a car thru a Dealership in New Jersey in 2013. 1:16*+ One in Sixteen Households will purchase a Used Car this year. 1:5* One in Five Households will purchase a Car this year. 1:8* One in Eight Households will purchase a New Car this year. *Thru a Dealership **Plus approx 200,000 thru private sales & 200,000 thru used car lots.
  • 9. Math on Traditional Media (A) Media Audience Budget # of Web Assets Star Ledger 70,000 $2,800 1 nj.com Trenton Times 37,000 $4,200 Princeton Packet 19,600 $1,200 Comcast Princeton Zone 59,000 $7,000 1 comcast.net Plus Middlesex Zone 49,000 Billboard 15,900 $7,000 250,000 $20,000 ($80 cpm) 2 1/5 the households 50,000 (A) $20,000 ($400 cpm) Vehicles per month 4,175 Divided by 15% Est. Honda Mkt. Sales 626
  • 10. Math on Online Media (B) Medium Audience Budget # of Web Assets Video SEO N/A $400 1 (Google) Auto Digital Inventory N/A $1200 30 Websites 300 Directories BullsEye SEM 15,000 $4000 1 (Google/Bing/Yahoo) Auto Digital Network 250,000 $4500 Up to 150 Websites Certified Response 45,800 $6000 Network Marketing (Database Marketing) 310,000 $16,000($51 cpm) +340 Web assets Divided by 2 150,000 (B) $16,000($162 cpm) +340 Web Assets (For any reason) Aggressively pursue pre-qualified prospects thru their desktop computers, laptops, tablets, smart phones using geo-targeting, behavioral targeting and retargeting. Desktop Laptop Tablet Smart Phone
  • 11. Traditional vs. Online Out of the market place Traditional (A) (B) $20,000 per month $400 CPM 50,100 auto prospects Web assets 2 Online $16,000 per month (20% less) $51 CPM (87% less) +310,000 auto prospects (500% MORE) +340 Web assets > 40 auto relevant > +300 local geography > conquest keywords > shop inventory Research Shop Buy Sold Interest in Traditional Declining #1 medium for research GrowingAnd Declining
  • 12. Position of Dealerships (2 Generations Ago) If I make this investment...how many vehicles will I sell? Position of Dealership (Renews Generation) If I make this investment... • How much floor traffic will I log on my up sheets? • How many phones calls can I track? • How many coupons were redeemed? • How many TV’s did we give away? Position of Dealership (moving forward) -I want to make an investment to the most pre-qualified prospects one solution at a time, (pending budget still exists) then adding a 2nd, 3rd, and so on until diversity is achieved and the budget is reached. -The more pre-qualified the prospect (media solution audience) the better walk-in variable, phone call volume, website traffic, page views, time spent, new visit rate, bounce rate, goals completed, booked service appointments, parts ordered, coupons downloaded, request a quotes, visits to map/direction/hours page.

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