ADP Digital Advertising Solutions V6


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ADP Digital Advertising Solutions V6

  1. 1. ADP Digital Marketing Team<br />Online<br />Advertising Solutions<br />Ralph Paglia<br />Director - Digital Marketing<br />OEM & National Accounts<br />Cell: (505) 301-6369<br /><br />
  2. 2. Digital Advertising Solutionsfrom ADP Dealer Services<br />Online Advertising Campaign Development & Management Solutions for Car Dealers<br />Expanding the portfolio of business development tools that Dealers have available to them from the ADP Digital Marketing team. Designed for Dealers who want to promote their business using proven, powerful, measurable and interactive web based advertising strategies and delivery tactics…<br />
  3. 3. What types of online advertising can dealers use to drive traffic into showrooms, make phones ring and send visitors to their web sites?<br />Buying Online Advertising:<br />Pay for Placement by Time (fixed monthly fee –<br />Pay per Click (PPC or CPC)<br />Pay per Thousand Impressions (CPM)<br />Pay per Conversion (Leads and/or Calls Generated)<br />How to Get it Done:<br />Dealer Managed – Do It Yourself (DIY) <br />Interactive Advertising Agencies ($$$) <br />Search Engine Marketing Services Providers (risky business)<br />Dealer Advertising Cooperative Associations (good luck!)<br />ADP Digital Advertising Campaign Management<br />
  4. 4. Digital Advertising Solutions that Provide the Missing Pieces of the Puzzle<br /><ul><li> Text based sponsored link ads
  5. 5. Image Ad design, production & hosting
  6. 6. Dynamic media enriched ads
  7. 7. Conversion Optimized Landing Pages
  8. 8. Specialized Micro-Sites
  9. 9. Deep-Linked URL Management
  10. 10. Campaign Management Services
  11. 11. Keyword Bid Management (PPC)
  12. 12. Site Targeting Bid Management (CPM)
  13. 13. Behavioral Targeting
  14. 14. Retargeting Campaigns to display your digital ads to your site’s visitors
  15. 15. Monthly budget and results reporting</li></ul>ADP Digital Advertising provides a full range of online advertising products and services ranging from creating click-grabbing ads with corresponding landing pages, all the way to pre-built campaigns that are proven producers.<br />
  16. 16. ADP Digital Advertising Creative SpecificationsOur Digital Marketing Ads conform to industry standards:<br />Description of Online Ad Creative Units<br />Green indicates ads can be placed on web site using CPM Bid, Direct Placement or Behavioral Targeting campaigns<br />Blue indicates ads can be placed on web sites using CPM Bid Campaigns or Direct Placement<br />*30k limit for Behavioral Targeting Campaigns, 50k limit for Site Targeted Campaigns<br />
  17. 17. Flash-Based Online Ad Creative SpecificationsMedia enriched ads created by BZ Results will conform to the following specifications:<br />
  18. 18. Our Designers create attractive and dynamic multimedia ads that drive traffic to campaign specific Micro-Sites & Landing Pages<br />ADP Digital Advertising uses a combination of multiple page micro-sites and specialized landing pages to maximize the conversion of click-throughs from online search engine sponsored links, brokered display ads and web site targeted Banners, Leaderboards, Skyscrapers, Square and other image based online ads. The following is a list of sizes that are industry standards for online display ads that are linked to the dealer’s URL’s:<br />Banner Ads; 468 pixels wide x 60 pixels tall<br />Leaderboard; 728 pixels wide x 90 pixels tall<br />Inline (box ads); 300 pixels x 250 pixels & 338 x 292<br />Small Squares;200 pixels x 200 pixels & 250 x 250<br />Skyscraper; 120 pixels wide x 600 pixels tall<br />Wide Skyscraper; 160 pixels wide x 600 pixels tall<br />Inline<br />Skyscraper<br />Leaderboard<br />
  19. 19. Successful Dealers use text based Sponsored Links, Image and Media Rich Ads that appear in search results and within thousands of web sites<br />Our Digital Campaign Managers work with dealers to develop Keyword and Content Targeted Search Campaigns, along with Media Enriched Web Site Targeted Campaigns<br />Keyword Targeted<br />Site Targeted<br />We use Google’s AdWords network for each dealer to reach online car buyers at the moment when they&apos;re looking for a new or used car. Using a combination of text based sponsored links, image and rich media ads, the Google Network reaches more than 80% of online car buyers.* ADP digital designers create dealership ads, then use either key search words or designated web sites to target which people see specific ads. For site targeted display ads we manage a dealer’s bids for Cost per Thousand (CPM) impressions for each of the third party web sites we target…<br />
  20. 20. What are Pay-Per-Click (PPC) Digital Advertising Campaigns? Why would PPC be used in a dealer’s overall Digital Marketing Strategy?<br />Pay for ads on a Cost Per Click (CPC) basis when car shoppers click through to specified Landing Pages…<br />Benefits:<br />• Control<br />• Feedback<br />• Relevancy<br />• Measurable Results<br />Keyword and Content Network Advertising:matches consumer intentions, based on search words used to text based ads that appear in search results (Keyword Bids), or text and image based ads that appear within Google Content Network web sites visited as a result of relevant keyword searches (Content Bids).<br />
  21. 21. Where do car buyers see ads? A: Search Engines & Web Sites<br />CPM: A few examples of the 900+ sites we target for Ads… <br />CPC: Search Engine Marketing<br />
  22. 22. What is the “ADP Digital Advertising Network”?<br />ADP’s Digital Advertising Campaign Managers place your dealership’s ads more effectively than SEM alone…<br />A Few Examples of ADP’s Content Network sites:<br /><ul><li>
  23. 23. Lycos
  24. 24. InfoSpace
  25. 25. HowStuffWorks
  26. 26. Food Network
  27. 27.
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  33. 33.</li></ul>ADP Search Network:<br />• Google<br />• Yahoo<br />• MSN<br />• AOL<br />•<br />• AT&T Worldnet<br />• CompuServe<br />•<br />• Netscape NetCenter<br />
  34. 34. Digital Marketing Division<br />Site Targeting can produce more and better convertingtraffic at a lower cost per visitor in highlyCompetitive SEM Markets…<br />Campaign Case Study: Site Targeted Campaigns in Phoenix produced 1,018 car shoppers clicking on the dealer’s ads at a $1.41 Effective Cost Per Click and generated over 2.4 Million Ad Impressions at less than $.60 per thousand people!<br />
  35. 35. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />1<br />
  36. 36. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />2<br />
  37. 37. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />3<br />
  38. 38. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />4<br />
  39. 39. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />5<br />
  40. 40. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />6<br />
  41. 41. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />7<br />
  42. 42. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />8<br />
  43. 43. What is a “Google AdWords” Account?<br />Google AdWords is an online digital advertising management tool that allows dealers to place Ads into Google search results and revenue sharing web sites<br />Basic Terminology<br />• Ad Position<br />• Clickthrough Rate (CTR)<br />• Conversion Rate<br />• Impression<br />• Keyword<br />• Landing Page<br />• Quality Score<br />
  44. 44. Digital Marketing Division<br />What determines if a dealer’s Pay-Per-Click bids are successful in showing the dealership’s ads to car buyers?<br />The higher a Dealer’s Ad Goup Quality Score, the lower the minimum bid per click.<br />ADP Digital Campaign Managers monitor:<br /><ul><li> CTR (Clickthrough Rate)
  45. 45. Relevance of ad text
  46. 46. Relevance of URL text to Keywords
  47. 47. Historical keyword performance
  48. 48. Content and layout of dealer’s landing page
  49. 49. Other relevancy factors</li></ul>New!<br />
  50. 50. Quality Score is the basis for measuring the quality of your keyword based Ad and determining your minimum bid<br /> ADP Digital Campaign Management uses the following Steps To Increase each Dealer’s Ad Quality Scores*:<br />Review Keywords<br /><ul><li>Inactive for search
  51. 51. Adding negatives and relevant keywords</li></ul>Review and Improve Ad text<br />Review and Research available URL text improvements<br />Create New, Focused Ad Groups<br />Review Landing Pages<br />Landing Page Optimization (In a Nutshell):<br /><ul><li>Provide relevant and substantial content
  52. 52. Treat a user’s personal information responsibly
  53. 53. Develop an easily navigable site</li></li></ul><li>ADP Digital Campaign Managers administer each dealer’s Google account creating both “Keyword-Targeted” OR “Site-Targeted” campaigns<br />
  54. 54. ADP Digital Campaign Manager are experts at using proprietary Google AdWords applications for generating and managing Keywords…<br />
  55. 55. ADP Digital Campaign Managers use Google AdWords “Site-Related Keywords” application to integrate dealer campaigns with OEM sites<br />ADP Digital Campaign Managers use the Site-Related Keywords online application from Google to find and include Keywords from highly relevant web sites such as 3rd Party Lead Providers, Car Companies and popular local sites such as<br />
  56. 56. ADP Digital Campaign Managers use AdWords to supply dealers with a variety of online ad formats, using content created by BZ Designers<br />
  57. 57. ADP Campaign Managers use a variety of online ad formats, including media-rich Flash content and OEM Co-Op compliant logos and branding<br />• Ads appear on sites participating in Google’s Network<br />• Matched to consumer search keywords and/or page content<br />• Show up on participating sites using both Keyword-Targeted and Site-Targeted dealer Digital Advertising Campaigns<br />
  58. 58. ADP Digital Campaign Services offers Video and Flash Ads to dealers which are used to provide Content & Targeted Site campaign flexibility<br />• Flash is a plug-in that allows animation, used by car companies for their automotive web site ads<br />• Allowed for all AdWords dealer campaigns<br />• Content and Targeted Site Placement is same for Flash based ads as for any other image ads<br />• Designed to comply with OEM Co-Op guidelines<br />• Video Ads first appear as static image. Once clicked, (image or play button) plays within ad space.<br />• Clicking URL or on ad while playing will link to the targeted landing page, website or deep link.<br />
  59. 59. ADP Campaign Managers create AdWords Business Listing Ads for dealers to provide mapping and dealership locator links in search results<br />Local Business Ads<br />• Add through Google’s Local Business Center<br />• Appear in keyword-targeted campaigns opted into search network<br />
  60. 60. ADP Digital Advertising provides dealers with CPM based Site Targeted Ads designed to drive traffic to showrooms and Landing Pages<br />CPM Bidding (cost per thousand impressions)<br />ADP Campaign Managers monitor each dealer’s bids per Geo-Targeted 1,000 Ad Impressions. Impression count when a Web page serves an ad, whether consumers click on it or not.<br />How Do ADP Digital Campaign Managers compare CPC and CPM Ads for effectiveness in achieving dealer objectives?<br /><ul><li>Effective CPC for Site-Targeted vs. Reported CPC for Keyword ads
  61. 61. Effective CPM for Keyword Ads vs. Reported CPM for Site-Targeted
  62. 62. Consider CPC, CTR, and relevance factors across 1,000 impressions
  63. 63. Result = eCPM and eCPC for all Digital Advertising Campaigns
  64. 64. Highest ranking ad per dealer objectives wins, bids are adjusted</li></li></ul><li>Why Site Targeting? ADP Digital Advertising offers CPM based targeted web site Ads to dealers on a cost-per-thousand impressions bid basis…<br />
  65. 65. ADP Digital Advertising Campaign Managers use Site Targeting to find web sites visited by a dealer’s local car buyers based on several criteria<br />Site Targeting<br />• ADP Campaign Managers choose individual sites within network <br />• CPM (cost per thousand impressions) model<br />• Minimum bid: 25 cents per Thousand Impressions<br />• Find sites by URL, category, topic or demographics<br />Click to<br />zoom in<br />+<br />
  66. 66. What is Site Targeting? AdWords offers you the ability to select web sites based on multiple criteria<br />Google Site Tool Skill Sets used by our Digital Campaign Managers are Included in ADP Digital Advertising Seminars for Dealers and their Internet or Marketing Managers…<br />
  67. 67. ADP Digital Campaign Managers use the “Describe Topics” site tool to select sites based on topics that a dealer selects for their local market<br />Click on the “Add Selected Sites” to go back to the Summary Section<br />
  68. 68. “List URLs” – We enter a targeted web site URL, and the tool checks site availability, and shows all similar subject matter sites in the network<br />When you enter a URL that is not part of the Google Ad Network, or has blocked you from placing ads Site Tool looks at what Google has indexed for that URL and serves up similar sites<br />
  69. 69. “Select Demographics” – Let’s us use Google’s Site Tool to find sites by that site’s average visitor age, sex, income & more (Advanced)<br />Add Selected Sites puts your choices into the Ad Group and brings you back to the summary<br />Click to<br />zoom in<br />+<br />
  70. 70. “Select Demographics” – Let’s you use Site Tool to find sites by age, sex, income & more (Advanced)<br />
  71. 71. Bidding Strategies and Ad Scheduling are not available from most SEM providers… They are included with ADP Digital Campaign Services<br />Digital Campaign Bidding Strategies<br />• How Do I Know What My Competitors Are Bidding?<br />• Bidding Wars raise costs and dealers lose, Google and Yahoo win<br />• Decide what a keyword and an ad position is truly worth to the dealership<br />• A-B Testing, continuously adjust ads to improve position<br />Ad Scheduling (Dayparting)<br />By default ads run 24 hours a day. <br />Ad scheduling allows campaigns to run during certain hours or days.<br />
  72. 72. When Dealers ask “Why Can’t I See My Ad?”<br />Campaign Daily budget too low<br />Ad Group Keyword deleted or inactive<br />Ad has been disapproved<br />GeoTargeting: IP unknown or outside target area<br />Dealer’s Ad is not placed on first page<br />Dealer’s browser page not refreshing (clear cache)<br />The max CPC higher than daily budget<br />Missing ad text or keywords<br />Campaign has expired (check end date in settings)<br /> Campaign/Ad Group paused or deleted<br /> Missing or expired credit card information<br />
  73. 73. ADP Digital Advertising Campaign Managers use Google’s preview tool to show dealers how their ads will look online<br />Ad Preview Tool:<br />
  74. 74. ADP Digital Advertising Campaign Managers administer each dealer’s Google AdWords account and review the data with the dealer or ISM<br />
  75. 75. Internet Sales Managers are taught how to understand the analytics in order to judge each campaigns results for the dealership as a whole<br />
  76. 76. ADP Digital Advertising Campaign Managers work closely with dealers to monitor where and when campaign results are showing up as sales<br />We coach dealership managers on how to review eBusiness campaigns and opportunities by categorizing the leads generated, then looking at volume, invalids and tracking all sales.<br />
  77. 77. Text Ads can be sponsored links which appear as search results, or appear on web pages based on Content and CPM Site Targeted bids <br />
  78. 78. Image Ads appear on web pages based on Search Content CPC bids, CPM based Site Targeted bids, or fixed CPM per direct site placement <br />
  79. 79. Click-to-Play Video Ads appear on Google network web pages based on Search Content CPC bids or CPM based Site Targeted bids<br />
  80. 80. ADP Digital Campaign Managers use rich media Ads on targeted sites to drive traffic into Deep Links that deliver relevant content to shoppers<br />
  81. 81. ADP creates Deep-Links connected to Advertised URL’s that point to Inventory Pre-Sorts for model specific campaigns that our Campaign Managers set up<br />Keyword, Content and Site Targeted Digital Advertising Campaigns drive traffic to “Deep Links” that go directly into specialized content within full featured web sites that are set up o be specifically and directly relevant to the Ad’s message that captured the customer’s attention.<br /><br />
  82. 82. ADP Digital Advertising Image Ad Campaign Examples<br />Courtesy Chevrolet Campaign Specific Display Ads Placed within selected and targeted 3rd Party Web Sites Using the ADP Digital Advertising Campaign Management Services<br />
  83. 83.
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  90. 90. Digital Advertising Campaign Examples<br />Courtesy Chevrolet Digital Advertising Campaign Specific Display and Text Ads that use both Targeted Sites and Key Words to link click throughs to very specific Micro-Sites, Landing Pages and Deep Links<br />
  91. 91.
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  94. 94. Use of Deep-Links in Online Advertising<br /><br />Deep-link into GM PowerShift web site online credit application<br />
  95. 95. ADP Digital Advertising Campaign Advantages<br />ADP Digital Advertising Campaign Services has developed a portfolio of URL’s that offer higher ad quality scores for dealers<br />
  96. 96. URL that displays in Ad is only the beginning portion of the full URL string which the Ad clicks through to… <br />
  97. 97. URL that displays in Ad is only the beginning portion of the full URL string which the Ad clicks through to… <br />
  98. 98. URL that displays in Ad is only the portion of the full URL string that we want customers to see… <br />
  99. 99. ADP Digital Advertising URL Portfolio<br /> is used regionally as:<br /><br /><br /><br /> is used regionally as:<br /><br /><br /><br /> is used regionally as:<br /><br /><br /><br />
  100. 100. ADP Digital Marketing Team Competitive Advantage and Unique Value to Dealers<br />URL that displays in Ad is standardized… The regional Ad uses a dealer-specific Destination URL that goes to that dealer’s Landing Page.<br />
  101. 101. Current Toyota URL Portfolio Examples:<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><ul><li>
  102. 102.
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  107. 107.
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  109. 109.
  110. 110.
  111. 111.
  112. 112.</li></li></ul><li>Current Ford & GM URL Portfolio Examples:<br /><br /><br /> <br /><br /><br /><br /><br /><br /><br /><ul><li>
  113. 113.
  114. 114.
  115. 115.
  116. 116.
  117. 117.
  118. 118.
  119. 119.
  120. 120.
  121. 121.</li></li></ul><li>Current Honda URL Portfolio Examples:<br /><ul><li>
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  123. 123.</li></ul><br /> <br /><br /><br /><br /><br /><br /><br /><br /><br />
  124. 124. Thank you for considering ADP Digital Campaign Services as a partner in your strategy to find, sell and keep more customers<br />Key Executables with Digital Advertising Campaigns:<br />Build campaigns for strategic cohesiveness with dealership’s general market advertising and integrate with other media for management team “buy-in”<br />Clearly defined Keyword and Site Targeted advertising budgets and commit your management team to sustain that Online Advertising budget for at least 6 months<br />Your Lead Management Process (LMP) and the team that executes it must be staffed and trained to convert increased lead volume into incremental sales<br />Use Deep Links, Landing Pages and Micro-Sites that can be tracked<br />Avoid sending click-throughs to your dealership’s “home page” where both the customer and your ability to track results gets lost<br />Measure all traffic generated, along with phone calls and eLeads received… <br />Review results and online Advertising metrics at weekly manager meetings… Provide handouts to all Managers showing Impressions, CPM, CPC, Money spent and supplement with lead and sales counts as accurate as you are able<br />When first starting, give digital campaign budgets and metrics the benefit of the doubt. Increased leads can come from primary web sites through links on landing pages and deep links into relevant content within your primary sites. <br />Check your primary site referring URL’s for Form Views in Omniture Site Catalyst<br />
  125. 125. Rich Media Enhanced Online Advertising<br />ADP Digital Ad Services can build digitally enriched media online ad content<br />Rich media applications such as video or DHTML will be designed by BZ Results to occur within the standard ad pixel space specifications. Our expanding ads that “grow” bigger than the purchased pixel space are designed to be user initiated when their cursor crosses over the ad space, but before they actually click on the ad. When the user clicks on the ad their browser is redirected to the specified landing page URL. The following list shows some of the vendors that we can use for rich media technology*:<br /><ul><li> DART Motif
  126. 126. Atlas Rich Media
  127. 127. Eyeblaster
  128. 128. PointRoll
  129. 129. Klipmart
  130. 130. EyeWonder
  131. 131. Unicast
  132. 132. Interpolls
  133. 133. Shoshkeles/United Virtualities</li></ul>*Subject to change without notice<br />
  134. 134. DART Motif<br />In-Page Banners<br />Expandable Banners<br />
  135. 135. Eyeblaster<br />Polite Banner<br />Expandable / Videostrip Banners<br />
  136. 136. PointRoll<br />Tomboy Banners<br />FatBoy Expandable<br />* Video ads can automatically play at initial download with sound off. Implementation lead-time for all approved forms of rich media is 4 business days.<br />
  137. 137. Third Party Ad Servers<br />The following ad servers may be used by BZ to host enriched media online content<br />Campaigns served from streaming media ad servers below may be CPM invoiced directly to dealers according to IAB/AAAA Terms & Conditions V2.0:<br /><ul><li> Doubleclick/DART
  138. 138. Mediaplex
  139. 139. Avenue A/ Atlas DMT
  140. 140. Bluestreak
  141. 141.
  142. 142. AdDynamix
  143. 143. Enliven
  144. 144. Eyeblaster
  145. 145. Ad4Ever
  146. 146. Shoshkeles/United Virtualities
  147. 147. Real Media
  148. 148. Bell Sympatico / Cossette Communications
  149. 149. Unicast
  150. 150. Poindexter
  151. 151. Fast Click (aka Adserver)
  152. 152. Centrport</li></ul>Any third-party ad servers NOT listed here must be tested prior to campaign start date. Ad tags should be provided fourteen (14) days in advance of the campaign start date for testing. During the initial campaign period for any new or proprietary ad server, if discrepancy of impressions served is above 10% for more than three individual days, invoices shall be invoiced based off of each web site’s statistics.<br />
  153. 153. Online Advertising Reliability<br />The IAB (Interactive Advertising Bureau) recommends a process audit for all ad serving organizations and complex sites. ADP Digital Marketing only places Dealership and Enterprise digital advertising on BPA certified web sites and server networks. BPA Worldwide verifies the accuracy of each participating network’s ad serving and tracking processes. ADP Digital Marketing uses ad serving data centers in Boston, San Jose, and Amsterdam guaranteeing redundancy and efficiency. <br />Creative Requests<br />Please send all creative requests to<br />Insertion orders are due at least four (4) full business day prior to launch campaign date.<br />OPA Advertising Policy<br />All advertisements created by ADP Digital Marketing are subject to review and approval by ADP Dealer Services for compliance with business ethics standards. BZ Results and ADP reserves the right to refuse any ad creation requests which do not meet the requirements specified above, or is deemed otherwise inappropriate, distracting, or harmful to the online Internet user experience for visitors to web sites where the ads will be placed. For more information about creative capabilities and services from:<br />ADP Digital Advertising Results<br />please contact:<br />
  154. 154. Automotive Advertising in Flux<br /> Automotive advertising, long a cash cow for print and broadcast media, is in a state of flux and compression that poses a severe threat to these channels over the next five years. It has swollen to a $31 billion advertising category this year - second only to the amount spent by general merchandisers - but now faces contraction. Among the causes:<br />People are holding onto their cars longer. &quot;Scrappage,&quot; or the number of cars that go the junkyard each year, has declined steadily in the past five years, from 14 million in 2001 to fewer than 10 million last year.&apos;<br />New-vehicle sales are stagnant. The number of new cars on the road each year has remained flat, at roughly 17 million per year, since 2001. This year it will hit a six-year low of 16.2 million units.<br />The Internet&apos;s ability to cut out the middle-man allows dealers and manufacturers to give consumers information on features, reviews and pricing without having to buy space in third-party media to find them. Automotive advertisers have seen the light and are plowing $2.8 billion into online advertising this year.<br />
  155. 155. Automotive Advertising in Flux<br /> That third point in the previous slide represents a sobering truth for traditional media. Three factors illustrate the trend toward online advertising: <br />Last year, new-vehicle buyers were more likely to visit an OEM&apos;s Web site than a third-party automotive site. <br />Local dealers are becoming media hubs – Dealer web sites now feature a full list of inventory, sales and financing information… With transactional capabilities on the near horizon! <br />The rush is on to meet both new and used car buyers on the Internet, where they spend an average of five hours researching vehicles before they make a purchase.<br />
  156. 156. Lead-Generation and Paid Search<br />The disintermediating nature of the Internet is enabling dealers to go directly to consumers. Many dealers pack their sites with details on inventory, features, pricing and financing options. In effect, dealers have developed their own media sites. All they need now is traffic.<br />A popular way to attract and manage that traffic has been through lead-generation systems like those offered by Dealix, Autobytel and others. But there is weakness in these models. Autobytel, which derives 80 percent of its income from lead-generation fees, has seen its losses increase over the years and is trying to expand its reliance on display advertising as a remedy. Dealix, one of the largest lead-sellers, is likewise trying to diversify its offerings by helping dealers manage their paid search advertising and search engine optimization and by uploading their listings to Google Base.<br />
  157. 157. Lead Response by Dealers<br />According to an R.L. Polk study of 1.1 million leads involving 1,329 dealerships, dealers failed to respond to nearly 30 percent of online-generated leads, compared with 40 percent a year earlier. It took the average dealer 6.5 hours to respond to a lead, compared with 9.5 hours a year earlier. That shows improvement, but there is obviously a long way to go.<br />One finding touted by the study&apos;s sponsor, the Cobalt Group (which operates Dealix) was that 56 percent of leads resulted in a sale. Sound impressive? Consider this: Only eight percent of those leads resulted in a sale at the dealership where the lead was submitted; the rest of the leads that went on to buy a vehicle did it elsewhere. Doing the math, then, a dealer would have to purchase 12 leads to close a single sale. At the going rate of $20 per lead, a dealer would pay $240 per closed sale, making Internet leads no more efficient than the typical marketing expenditure for a new vehicle and significantly less efficient than that for a used-vehicle (See Fig. 2.4 in Chapter 2.) Some hope for improving these odds lies in the dealers&apos; efforts to bring their lead-response times down.<br />
  158. 158. The Tornado in the World of Automotive Advertising<br />What&apos;s at play is a small tornado inside the much-touted consumer sales funnel. (See Fig. 1.3.) At the broad end of that funnel, vehicle buyers look at an array of media as they consider their options six months from the point of making a purchase. At the narrow end of the funnel, they are down to using one or two media - typically newspapers, magazines or directories - in the final weeks before purchase. The Internet has disrupted the choices at the tail end of the buying process, where consumers get serious about the purchase and look for features, availability and price. In short, instead of getting that information from a local newspaper, auto magazine or Yellow Pages book, they are turning to the Web.<br />2001 through 2011<br />Overall Auto Advertising by Media Channel<br />
  159. 159. Winners and Losers in the World of Automotive Advertising<br />2006 through 2011<br />Overall Auto Advertising by Media Channel<br />($ Millions)<br />
  160. 160. Digital Disruption of the Traditional Car Buying Funnel!<br />
  161. 161. Automotive Online Future: Video & Search<br />Until now, the way to connect local auto dealers with potential buyers online has been through paid listings and banner ads. These two formats have comprised the majority of online advertising since the inception of the Internet. The proliferation of free-listing sites like Craigslist, Google Base and MySpace and the rising popularity of paid search - helping dealers drive traffic to listings on their own sites - clearly threatens the dominance of traditional online advertising formats for car dealers.<br />Two formats in particular have recently captured the interest of auto dealers: online video and paid search. We see these formats surpassing all other forms of local online advertising by 2012.<br />Click to Enlarge<br />
  162. 162. Video & Paid Search Dominate Local Online Ads by 2012<br />
  163. 163. Vehicle Advertising Devoted to Online Media in 2006<br />
  164. 164. Used & Private Party Vehicle Advertising Lead the Transition<br />2006 Online Advertising Spend by 3 Primary Categories<br />
  165. 165. Digital Marketing Division<br />Value of Actual vs. Stock Inventory Photos<br />
  166. 166.
  167. 167.
  168. 168.
  169. 169. Tier 1, 2 and 3 New Vehicle Advertising<br />
  170. 170. Online Advertising Conquers Used Car Marketing<br />
  171. 171. Used Car Advertising by Media Channel 2001-2011<br />
  172. 172. Used Car Advertising by Media Channel 2001-2011<br />
  173. 173. Used Vehicle Online Advertising Publishers<br />There is a big opportunity for those online advertising publishers who can master used-vehicle marketing, and in particular private-party sales. The number of used vehicles on the road continues to swell, and dealers and individuals alike will need new ways to connect with buyers.<br />
  174. 174. Other local-level fights indicate that the race to win the used-vehicle space online is a marathon sprint. For example:<br />Newspapers have redoubled their efforts to preserve automotive ad revenue in the face of heavy print losses and won&apos;t go down easily. Will their new alliance last year with Yahoo on another classified vertical - employment advertising - be parlayed into an alliance on automotive?<br />Cable companies and local broadcast TV stations have entered the used-vehicle fray as well. Some - like WITN-TV in Greenville, N.C., are using the Web to offer lower-priced on-demand video commercials to independent dealers who typically cannot afford broadcast TV rates.<br />Dealix is an Internet marketing company that works with dealers to help them find ways to market directly to consumers. Dealix not only sells lead-generation software, but also recently began offering to manage dealers&apos; Search Engine Optimization and paid-search campaigns and even upload their inventory to Google Ad Base.<br />eBay Motors is working hard to accumulate dealer inventory and private-party ads and expose them to its massive base of 10 million monthly shoppers. eBay boasts that it sells one vehicle every 60 seconds. Although eBay routinely appears at the top of the list for automotive traffic reported by comScore MediaMetrix, the numbers are skewed by unique visitors to eBay&apos;s parts and accessories inventory. It has fewer than 60,000 vehicle listings, compared to 800,000 on and 3,000,000+ on<br />
  175. 175. Automotive Advertising Conclusions<br />The heyday of newspapers and TV stations swimming in cash from car dealers and dealer groups has ended. A slowdown in new-vehicle sales and a shift in the car-buying audience&apos;s media habits have sent traditional automotive advertising media scrambling.<br />One thing hasn&apos;t changed: The need for dealers to advertise. Dealers have lots full of vehicles and need to move them. That need has only grown. And even though they have spent the past decade improving their Web sites they still need to find ways to drive people to those sites - and onto the lot.<br />
  176. 176. Automotive Advertising Becomes More Competitive<br />The path ahead for online media will be permeated by video screens and traffic-generating programming. The near future looks a lot like an interactive video screen, rather than a text-based search of cars for sale. For most consumers, a vehicle is the second-largest purchase they will ever make. They need to be wooed, informed and convinced before they part with tens of thousands in hard-earned cash.<br />Sites that can deliver video content for dealers and can help them drive measurable traffic to their own sites are the ones that will see the most growth in revenue. And those that are able to master the marketing side of the equation - through their own traditional media channels as well as through maximizing search-engine marketing efforts - should rise to the top of the pack.<br />
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