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ADP Dealer Services Digital Advertising Solutions for Car Dealers Presented To NADA 20 Group


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ADP Dealer Services Digital Advertising Solutions for Car Dealers Presented To NADA 20 Group

ADP Dealer Services Digital Advertising Solutions for Car Dealers Presented To NADA 20 Group

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  • 1. Digital Advertising
    What is It? How does it work? Why should dealers use it? How should we measure it?
    As more money gets shifted from traditional offline advertising media into online interactive media, the ability to create a wide variety of consumer experiences around receiving a dealer’s message brings new possibilities. What are a few of these new ways for dealers to engage car buyers and how do we measure what messages are more effective than others?  This session will explore online advertising from the perspective of generating consumer engagement and creating a positive perception of the dealership. We will introduce the concept of Key Buying Activities (KBA) from a dealer perspective and how to track and measure them.  The session will showcase live web based presentations, URL’s and Passwords to access them so that participant can use these resources for meetings with their dealership teams, or simply take a second look at the information presented.
  • 2. ADP Dealer Services
    Director - Digital Marketing
    • Recognized industry expert in Automotive Digital Marketing, Advertising, Lead Management Processes
    • 3. Responsible for driving 144,000+ leads to single-point Chevy dealer in 2 years and developing a team that sold 4,000+ Vehicles to Internet Leads in 2006.
    • 4. Strategic marketing planner and consultant to car companies, dealer groups and industry associations
    • 5. Deep history of developing Digital Marketing strategies and tactical CRM implementation blueprints for dealers and car companies
    • 6. Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal
    Cell: 505.301.6369
  • 7.
  • 8. Types of Digital Advertising
    1. Online Display Advertising
    Publishers & Ad Networks
    Automotive Websites
    Local Media Websites
    National Websites
    Behavioral Targeting
    Contextual Targeting
    2. Search Engine Advertising
    CPC/PPC/Sponsored Links
    3. Other Digital Advertising Media
    Mobile Phone Ads
    Social Media
    Video Advertising *Return On Marketing Investment
  • 9. Why does dealer advertising have less impact on showroom traffic in 2009 as it did in 1999?
    1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007 2. 2008 National Automobile Dealers Association Data
  • 10. Source: DoubleClickTouchpoints III
  • 11. How long did you research before you started dealership visits?
    The majority of consumers spend more than a week pre-shopping for dealerships before they step foot on your lot
    Base: Total Respondents (550)
    Q8 About how long did you research vehicles on your own before you started visiting dealerships?
  • 12. Media types vary in effectiveness at each stage of the automotive sales funnel…
    Advertising Media Channels
    TV Ads
    Radio Ads
    Digital Advertising
    Visit Dealer
  • 13. “Which one of these information sources was most important when making decisions about buying your vehicle?”
    R.L. Polk 2008
  • 14. Digital Advertising Results
    What expectations should dealers and managers have… Can Digital Advertising REALLY cure world hunger and stop the current recession???
    Digital Advertising Measurement and Analysis
  • 15. Campaign Example #1 – Southeast USA; Pickup Trucks
    This campaign ran for new pickup trucks across multiple states in the Southeastern USA. Conversion to a “Key Buying Activity” (KBA) is defined as “printing out a test-drive certificate.” As Figure 4 shows (next slide),Careers & Education generated the best blend of performance, including click-through and conversion rates… Dating & Social Networking was the highest-performing conversion category. Autos & Transportation had a conversion rate dramatically lower than the average of the campaign while the click-through rate was only slightly higher than the average. Here’s the point;guessing where in-market auto buyers can be found and sticking to that without looking at any campaign data will not lead to campaign success. The true benefit of this data for the dealer and his digital marketer is not only in understanding this campaign’s performance, but also in being able to use the data to more accurately target their online advertising investments going forward – both within the current campaign and future ones… By removing low performing categories, performance will increase.
  • 16. The size of the bubbles show the volume in terms of impressions served for each category… The placement of the bubbles represents performance in terms of click-through and conversion rates…
    The vertical dashed line represents the average click-through rate for the campaign.
    The horizontal dash line represents the average conversion
    rate for the campaign
    Regional Truck Campaign #1 Click-Through & Conversion Rates by Site Category and Traffic
    Figure 4
  • 17. Campaign Example #2 – Texas; Full-Size Pickups
    Campaign ran for a full sized pickup truck in Texas. KBA Conversion defined as providing personal information to a dealer (Lead), or “watching the one minute and thirty second video in its entirety.” Figure 5 on next slide shows that Science and Nature performed better than other categories in clicks while Money & Finance outperformed all categories in conversions. This is interesting because Money & Finance is traditionally thought to be a fit for luxury vehicles, not full-size pickup trucks. Second, traditional thinking tells us that consumers within Money & Finance sites are “time-challenged”. Yet this group spent more time than any other group watching the video. Clearly, stereotypes continue to be challenged. Autos & Transportation sites performed below the campaign average both in terms of click-through and conversion rate.The assumption that a category consisting of automotive enthusiasts is the best way to reach consumers who are ready to buy a car within the next four or six weeks proves to be incorrect. These types of auto sites are sometimes even referred to as “in-market” sites when real campaign data continues to suggest that in-market buyers can be more successfully found on other sites in other categories.
  • 18. The size of the bubbles represents
    the volume in terms of impressions served for each category. The placement of the bubbles represents the performance in terms of clicks and post-click conversion rates…
    The vertical dashed line represents the average click-through rate for the campaign.
    The horizontal dashed line represents the average conversion rate for the campaign
    Click-Through and KBA Conversion Rates by Category and Associated Volume
    Figure 5
  • 19. 71%
    What about the 80%? Primary ROMI is NOT from generating leads, it’s about the customers who shop online, and then buy offline!
  • 20. $1.90 Cost per Online Car Shopper that actually clicked through to Dealer’s web site
    16,266 Online Car Shoppers driven to Dealer’s Sites in 4 months.
    $1.51 Cost per 1,000 Online Car Shoppers that saw the Dealer’s advertisements
    Online Car Shoppers saw Dealer’s Ads over 20 Million times in the same 4 months.
  • 21. What to measure with Digital Advertising Campaigns
  • 22. Example: Digital Ad Campaign Metrics & Analysis
    $71,801.30 Campaign Cost – How much spent on Ad Campaign
    $2.16 Cost per Thousand (CPM) - How much to get 1,000 Impressions
    $2.43 Average Cost per Site Visitor
    $31.94 Average Cost per KBA/Lead
    $412.65 Average Cost PVR (compares to $610 YTD)
    33,257,657 Impressions Generated – How many times the ad was seen
    29,528 Click Throughs- Visits to the dealers web sites, landing pages and micro sites
    2,248 Leads Generated - Electronic Leads and Phone Calls Generated
    174 Vehicles Sold – You know what this means! Counts Phone & Internet, but NOT showroom
  • 23. Average monthly total vehicle sales for year prior to starting digital advertising was 144. Since starting with digital advertising sales have averaged 178 units per month. 24% growth in sales volume attributed to increased showroom traffic, phone calls and Internet leads from digital ad campaigns. Dealer’s CRM tool shows a 22% average increase in showroom traffic. Toll Free Ad Tracking reports show 24% increase in phone calls, with increased call volumes coming in from dealer web site. Dealer web site Internet leads have increased 33% since starting digital advertising campaigns. Dealer invoicing from ADP Digital Advertising Program using campaign examples above is:
    Digital Advertising Media Purchases……..……..………..$ 5,495.21
    Media Management Services…...………...………………..$ 1,099.04
    Account Services……………………………………………..$ 495.00
    Total Digital Ad Invoice………………………………………$ 7,089.25
    Net Cost Per Site Visit Generated…………………………..$ 1.80
    Net Cost Per Thousand Ad Impressions…………………..$ 0.78
    Case Study #4: Dealer name and URL’s changed to protect confidential marketing strategy.
  • 24. Average monthly sales prior to starting digital advertising was 62. Since starting digital advertising, sales have averaged 75 units per month. 21% growth in sales volume attributed to increased showroom traffic, phone calls and Internet leads from digital ad campaigns. Logs show 33% increase in showroom traffic. Phone Tracking reports show 38% increased call volumes coming in from dealer web site. Dealer website leads have increased 50% since starting digital advertising campaigns. Dealer invoicing from the ADP Digital Advertising Program for Dealers using campaign examples shown above is as follows:
    Digital Advertising Media Purchases……..……..………$ 3,144.69
    Media Management Services…...………...……………..$ 628.94
    Account Services…………………………………………..$ 495.00
    Total Digital Ad Invoice……………………………………$ 4,268.63
    Net Cost Per Site Visit Generated……………………….$ 2.15
    Net Cost Per Thousand Ad Impressions………………..$ 3.20
    Case Study #5: Dealer’s name, location and URL’s changed to protect confidential marketing strategy.
  • 25. “Our experience with using Digital Advertising has been nothing short of fantastic. We have used Online Advertising and Radio Campaigns to blanket our market area with great success…
    From January 21, 2008 to February 29, 2008, we used Digital Audio Campaigns to run 1,184 radio spots that aired on 24 stations in our market… These radio ads have aired during peak drive times from 6am to 7pm weekdays and cost a fraction of what we usually have to pay.
    At the same time we ran an online advertising campaign that produced 2,492 visitors to our website and generated 20,774,648 Impressions. “
    - Darin WadeGeneral Manager Rich Ford - Albuquerque, NM
  • 26. Digital Advertising Examples:
    Search Engine Advertising
  • 27. Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored Links”
    Google Search Engine Advertising
  • 28. Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Yahoo calls their Search Ads:
    “Sponsored Results”
    Yahoo! Search Engine Advertising
  • 29. SponsoredLinks (paid search listings) are displayed at top and right side of search results page…
  • 30. Ford Dealer listings on local search maps are shown when a community name is used in search query…“Local Business Results”
  • 31. Organic (free) web site Links are listed in the middle/left/lower section of the search query results page…
  • 32. Digital Advertising Examples:
    Display Advertising on Consumer Facing Websites
  • 33.
  • 34.
  • 35.
  • 36.
  • 37. How does buying Digital Advertising work?Can dealers use online ads to drive Traffic?*
    How to Get it Done:
    In-House: Do It Yourself
    2 Day Digital Advertising Setup and Training Visit
    ADP Digital Advertising Program for Dealers
    Other SEM Service Providers & Ad Agencies
    Tier 2 Dealer Advertising Association
    OEM Digital Ads
    Types of Online Advertising Buys:
    Pay for Placement by Time (fixed monthly fee)
    Pay per Click (PPC or CPC)
    Pay per Thousand Impressions (CPM)
    Pay per Conversion (CPA) Leads & Calls Generated
    *Traffic = Showroom, phone and visits to your web sites
  • 38. Digital
  • 39. In Dallas, TX we used Digital Advertising to drive traffic to CBS’s 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
  • 40. 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…
  • 41. Digital Ad Media Purchases…………………$ 6,389.72
    Media Buying Service.…………...…………..$ 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
  • 42. 75%
    Increase in Sales Calls
    From Dealer Web Site
    Digital Advertising Campaigns(Feb 1- Mar 31) = Same Days Tracked
    Website 800 Sales Line =
    492 total Calls
  • 43. Thank You for Attending!
    Cell: 505-301-6369
    Three ways that we can help:
    Sell you a a rod and reel
    Teach you how to fish
    Cook dinner for you
    www.AutoDigitalMarketing.comForum: Presentation File Exchange