Kenny Ross Digital Advertising Strategy Proposal

Presented: August 11, 2009

Kenny Ross Auto Group Digital MarketingOnline Advertising Strategy
Ralph Paglia
Director – Digital Marketing
ADP Dealer Services

20+ year automotive industry leader in Digital Marketing, Advertising, Lead Management and dealership CRM process design and execution.
Executed Digital Marketing strategy that generated144,000+ leads to single-point Chevy dealer in 2 years.
Built dealer team that sold 4,000+ Vehicles to Web Leads in 2006.
Worked with Ford in 2007 to develop first Tier 3 Digital Advertising program providing dealers with geotargeted Tier 1 marketing assets
Managed first retail automotive Behavioral Targeting Digital Ad pilot program while at Courtesy Chevrolet in 2005, 2006 and 2007
Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal
Internet Sales & Marketing Consultant to Ford, Mercedes-Benz, GM, Honda, Toyota, Mercedes-Benz, Hyundai and over 200 dealers.
Piloted the ADP Social Marketing & Reputation Management Solution

Cell: 505.301.6369 ralph_paglia@adp.com www.ADMPC.com

Digital Advertising Measurability & Marketing Insights Gained
Display Advertising Impact on Search

REPORT METHODOLOGY
Display Advertising Impact on Search

Research leveraged 12 months of proprietary Specific Media Advertising Effectiveness data backed by comScore
Scientifically Validated – Utilized Control vs. Test Group

REPORT SUMMARY

Study shows a strong correlation between display advertising and search

KEY TAKEAWAYS:
Display advertising has an impact on both paid and organic searches and clicks
Consumers exposed to display advertising were more likely to search for brand and segment terms than unexposed consumers
Consumers exposed to display advertising are more likely to click through on search listings

Display Ads Increase Dealer Name and Branded Search

Rigorously conducted marketing research using scientific methods shows a strong association between display advertising and lifts search activity
Automotive shoppers exposed to website placements of display advertising were more likely to search for brand terms (i.e. automotive manufacturers) and segment terms (i.e. vehicle class)

Display Advertising Impact on Consumer Searches
Consumers exposed to an advertisers’ online display advertising searched more than consumers who were not exposed
BRAND: Although the most significant lifts were seen in Travel, Health and Personal Finance for branded terms, Automotive showed dealer name and brand search lift of 123%... More than double the search volume for display advertising dealer’s name!
SEGMENT: Personal Finance, Travel and Automotive showed the highest lifts for the more general product related search terms. Display ads drove a 137% increase in vehicle related search terms!
Brand Terms: Names and nouns search terms associated with an advertiser (i.e. SandersonFord)
Segment Terms: General terms associated with a product, service or industry (i.e. pickup trucks)

Impact on Search Click Through Rates for Display Advertisers
Consumers exposed to an advertisers’ online display advertising were more likely to click on search results than those who were not exposed
ORGANIC SEARCH: Automotive Consumers exposed to dealership display ads were 180% more likely to click an organic search link to that dealer’s web site.
PAID SEARCH: Automotive Consumers exposed to a dealer’s display ads were 183% more likely to click a paid search link for that Dealer.
Paid: Paid text-based search ads that describe the dealer’s website and products and services offered
Organic: Non-paid text-based listings that describe dealer’s website and products and services offered.
N/A: Insufficient data available

Strategic Action Items for Dealer Advertising
Add targeted display advertising to maximize overall search marketing results and search advertising cost efficiency
Online Display Advertising increases car buyer exposure to your dealership’s paid and organic search listings:
A higher number of automotive shoppers see your search listings
More people click on your search listings, both organic and paid
Online Display Advertising keeps a dealership’s name at the top of each car buyer’s mind when they start searching for information about the makes, models, service and parts you sell.
Display boosts branded term searches because they are advertiser specific
Increase Search click-through rates and quality scores by adding online display advertising to your monthly ad budget.

Higher quality score = Lower CPC

Dealers with large Search Advertising budgets should shift funds from inefficient keyword terms and geos to display. This increases cost effectiveness for dealer’s entire search marketing strategy…

Digital Advertising
One size does not fit all, and the mix is where dealerships get the greatest positive ROI from investment

Total Marketing and Advertising Impact in the Marketplace
Car Companies and their Dealer Network Marketing Structures

Why does automotive advertising have less impact on showroom traffic in 2009 as it did in 1999?
Source: DoubleClickTouchpoints III

“Which one of these information sources was most important when making decisions about buying your vehicle?”
R.L. Polk 2008

¹IDC Study, U.S. Consumer Online Behavior Survey Results 2007 ² 2008 National Automobile Dealers Association Data

2009 Car Company Marketing Dilemma
OEM’s each face considerable challenges in an automotive marketplace where their consumers now turn to the web when gathering information used to decide what brand and model vehicle to buy…
…and where they will buy it!
Dealers do not currently have the skills and know-how needed to advertise effectively online, but they continue to be masters at using advertising media that is no longer cost effective.
Tier 3 Advertising spend dwarfs Tier 2 and even Tier 1, so Car Companies that educate their dealers the best, will win market share.
Why do car dealers continue to spend over 85% of their advertising budgets on offline media? - NADA

1. Online Display Advertising
ADP Publisher & Network Consortium
Automotive Websites
Local Media Websites
National Websites
2. Targeting Technology
Behavioral Targeting
Geotargeting
Contextual Targeting
3. Search Engine Advertising
CPC/PPC/Sponsored Links
4. Other Digital Advertising Media
Mobile Phone Ads
Google TV
Video Advertising
Interactive Email Marketing
¹Return On Marketing Investment
ADP is only Tier 1 qualified supplier of these Types of Tier 3 Digital Advertising Solutions in a Managed Program that Meets OEM Branding and Distribution Standards
MEASURABLE RESULTS
QUALIFIED TRAFFIC
EFFECTIVE TARGETING
COST EFFECTIVE ROMI*

ADP Publisher Network Provides Scalable Tier 3 National Buying Power with Local Geotargeting delivers Lower Costs

Scalable Dealer Display Advertising: High Quality, Animated Flash Display Ads
Targets 9 key “in-market” consumer behaviors
Digital Advertising Campaigns

Get a Quote
Virtual Test Drive
Search Dealer Inventory
Browse Model-Specific Inventory
Offer or Incentive Driven
Maximize Your Trade-in Value
Make Buy-Back Campaigns
Preapproved Finance Solutions
Get Your Payment

ADP AdVantage Compiler Software: Scalable, Automated and Efficient Ad Creative System

ADP AdVantage:OEM Co-Op Preapproved Campaign Asset Manager

ADP Places Dealer Ads on Thousands of Relevant Sites when Local Car Buyers visit them…

ADP uses Behavioral Targeting and Retargeting to show Dealer Ads to Car Buyers… On Automotive Sites and when they Visit Non-Auto Sites.

Campaign Examples at www.FordDigital.com

Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored Links”
Google Search Engine Advertising

ADP Managed Tier 3 Search Engine Advertising- Dealer Campaigns Integrated with OEM Tier 1 and Association Tier 2
Search Advertising

Impressions
Impression Share
Clicks
Click through rate (CTR)
Cost per click (CPC)
Average Position
Tier 3 – 2 – 1 Keyword & Geotargeting Optimization
Bid Strategy excludes keywords that dealers already have SEO rank
ROI Enhanced by Display Adverting

Dealers/Suppliers Competing with OEM’s and Regional Ad Associations for Keyword Bids used in Search Advertising

Search Campaign Tracking & Reporting- Sent to Dealers and OEM Stakeholders

Search Placement / Keyword Report- Dealers and OEM Stakeholders

Omniture Post-Click Reporting Dashboards- Tracking code can be installed within any site, regardless of supplier

Organic to Paid Keywords Report- Allows Optimization of Dealer Spend by Eliminating Redundant Bids

Competitive Analysis
Compare Competitive Set

Benchmark growth
Visitor Length
Demographics
Competitor Keywords
Advertising Opportunities
Upstream traffic
Downstream traffic

HitWise Competitive Analysis: Clickstream

HitWise CompetitiveAnalysis: Search Terms

Compete, Inc. – Unique Visitors

Google AdPlanner and Keywords by Site Trends- Extends Search Effectiveness to Display Advertising on Websites

Communicating Reports – VMAR and Analysts- Best Tier 3 Account Management in the Industry
Roles & Responsibilities:
PLAN
EXECUTE
MEASURE/REPORT
This equates to:
Evaluate dealership current marketing and advertising activities
Develop annual, quarterly and monthly advertising calendars
Work with dealer on budget development and spend
Execute marketing campaigns
Report and assess results to improve dealer ROI
Benchmark results and recommend best practices
Coordinate campaigns

Dealer Dashboard – Tying it all together- Aggregated by Nation, Region and Zone for OEM

Reporting DashboardTying it all together with industry’s first systemthat consolidates data feeds from multiple sources of DA campaign performance reporting, providing relevant reporting for Tier 1, Tier 2 and Tier 3 digital marketing stakeholders

Integrating Online Advertising for the Brand Connecting Tier 3 with OEM to Drive Efficiencies

Using Keyword Enriched Domains for Competitive Advantage

Social Marketing and the Power of 21st Century Word of Mouth
Selecting a Targeted Site for Focus and use with Kenny Ross Strategy

Social Marketing & Reputation Management
Value Proposition Overview:
It’s as Easy as ADP to leverage the overwhelming growth in consumer use of Social Networks and User Generated Content (Web 2.0) to develop your Social Marketing and Reputation Management Strategy that utilizes “Positive Word of Mouth” amplified with the power of the Internet to enhance your good reputation, create top of mind awareness and elevate your dealership’s brand in a more cost effective manner than either CRM or advertising alone.
It’s Easy as ADP to tap into consumer adoption of Social Networking and User Content Creation by creating your own online community of customers, employees and suppliers filled with high quality content such as Videos, Photos, the latest reviews and road tests, interviews and articles supplied by car companies, enthusiast publications and consumers.

Value Proposition Specifics:
ADP will build your dealership sponsored online community using the most powerful social networking platform technology available to make it easy and fun for your customers to participate… Using a combination of OEM and enthusiast publication content , we incorporate highly desirable content which is automatically updated daily to create an engaging and rich experience for people in your local market area. ADP Social Marketers will publish blogs, forum discussions, photos and videos that will stimulate your community members to respond and create their own content, triggering others to join in!
ADP will build and deploy a comprehensive syndication strategy that uses Really Simple Syndication (RSS) and embedded HTML code (Widgets) built into your dealership sponsored community to push content and member activities out to the most popular sites on the web.

Specific Services to Dealer:
Your dealership will achieve a highly positive presence within today’s most popular sites where customers spend hours and hours of their online time. Your community’s content syndication will grab people’s attention and pull them into your online community. ADP will use your online community’s syndication power to connect your dealership to the millions of people using sites such as:

Facebook
Twitter
MySpace
Flickr
LinkedIn
Blogger
Wordpress
Typepad
Digg
And many more…

Why use ADP for Social Marketing and Reputation Management?
ADP has built a staff of Social Marketing Analysts who stay on top of which Social networks and Web 2.0 sites are the most effective. We know where to get and how to use the best auto-updated content that keeps your online community and content syndication fresh and relevant to your customers. ADP will use DMS, Lead Management Tool and CRM application exports to create invitations for your customers to join the community, which is an important part of creating high quality sales opportunities at a nominal cost. ADP will use our access to new OEM tools and independent sources to leverage information feeds, image galleries, and video content updated daily to enrich your online community. ADP knows how to take advantage of powerful social network web site platforms as an online magnet to pull in and engage enthusiasts in your area, along with previous sales and service customers. With your involvement and participation, ADP is the only dealership supplier that know how to guide your community towards reaching critical mass needed to achieve the Web 2.0 alchemy that drives dealership opportunities to do business.

Dealers currently see the Social and UGC Online Landscape as a bewildering array of brands and sites!

Social Marketing/Reputation Management StrategyADP Organizes into Solution Component Categories
Social Networks
Professional Networks
Video Hosting Sites
Photo Hosting Sites
DIY Publishing (Blogs)
Consumer Reviews & Ratings
SMS, Status & Bookmarking
Social Network Platform Tools

SM/RM Solution Components by Category
www.SandersonCommunity.com
Dealer Sponsored Online Community
DigitalRalph says:
“Use a network of Web 2.0 sites connected to your online community as a social marketing strategy”

Social Marketing & RMComponent Integration = Value
ADP connects and manages components to deliver turn-key Social Marketing/Reputation Management …
DigitalRalph says:
“Use your network of connected Web 2.0 sites for push-pull syndication of OEM supplied and User Generated Content assets. Leverage your car company’s daily updates and get your customers to create content that provides most of the updating work needed to keep your site relevant!”

ADP SM/RM Solution Component Deployment Example
www.Ford-Community.com

Google Adsense to be replaced by ADP Ad Network Space
www.Ford-Community.com
Created and Managed by ADP & Dealer

www.Ford-Community.com/video

www.Ford-Community.com/photo

www.Ford-Community.com/members

www.MyJeepCommunity.com

Reputation Management
Selecting a Targeted Site for Focus and use with Kenny Ross Strategy

ADP Social Marketing/Reputation Management Pilots to date have used DealerRater.com as the Customer Review content supplier and partner

ADP Reputation Management:DealerRater.com Filtered Review Integration
DealerRater.com Certification Benefits
Build Your Online Reputation, Get Certified!

ADP Reputation Management Solution: DealerRater.com positive review generation

ADP Reputation Management Solution: Additional DealerRater.com features for dealers

Current pricing levels will be maintained with DealerRater using ADP as a reseller with a negotiated margin… Cost will be included in the price charged to dealers with ADP in control of the accounts

Solutions Summary

Kelley Blue Book Digital Advertising Programs for Ford and Lincoln Mercury Dealers KBB.com is the #1 automotive web site* 53% of KBB.com visitors plan to buy within the next 3 months** Half of online shoppers come to KBB.com† KBB.com is the most visited automotive information web site† Our online advertising packagebased on your individual needs, Kelley Blue Book will create custom advertising packages for ford and Lincoln Mercury dealers leveraging many different ad placements‡ resulting in reaching more lower funnel car shoppers.

Dealer Showcase Package

Reach in-market shoppers in your local area
• Exclusively target local car shoppers by make and territory
• Customize your ad placement based on dealer-defined territory
Prominent placement and special Showcase Dealer recognition
• Be the only advertiser in your market area to showcase on kbb.com
• Maximize brand exposure on new-car pricing report page and 130+ additional premium pages
• Secure top dealer placement on search result pages
• Enhance your marketing message using dynamic, expanding rich-media ads
Drive more traffic to your Web site
• Link your banner ad and listings directly to your dealer Web site
• Generate high quality leads from kbb.com

Auto Intender Package
Reach local car shoppers by advertising on the used-car home page and used-car category pages.
Premium ad placement and branding opportunity
• Reach new-car shoppers researching their trade-in information in the used-car section
• Secure top-of-page positioning to ensure your ad message is seen first and every time
• Maximize ad investment by marketing only to targeted customers
• Target local car shoppers researching any
make and model
• Enhance your marketing message using
available rich-media ads
• Align your brand with the #1 automotive Web site trusted by millions of car shoppers

Run of Used Package – Leaderboard, Skyscraper
Target local car shoppers researching their next vehicle purchase.
Maximize brand impact
• Customize your ad placement based on make and dealer-defined territory
• Effectively shut out your local competition by owning multiple ad units
(leaderboard and skyscraper combined)
• Reach new-car shoppers researching trade-in information in the used-car section
• Premium page takeovers increase brand recognition and purchase consideration
• Maximize brand exposure on make-specific content pages
• Powerful add-on for your Dealer Showcase ad package

Behavioral Targeting Network (BT)
Target local in-market shoppers as they visit other relevant network Web sites.
Dealer Ads are delivered to the following category of niche Web sites:
• Automotive
• Business/Finance
• Career
• Family
• Music
• Photo/Video Sharing
• Sports
• Social Networking
• Technology
• And More!
Premium ad placement on top local Web sites
• Identify your target shoppers while they
research their next vehicle purchase on kbb.com
• Qualify and track those shoppers as they leave kbb.com
• Display your marketing message to the same
kbb.com visitors when they enter other network sites
• Increase purchase consideration by reaching intended
shoppers in the right place, at the right time