Evolution of Automotive Digital Marketing – Where Do Dealers Go From Here?Brief overview of last 10 years, where ‘State of the Art’ for car dealersstands today, and where the most successful dealers will get theircompetitive advantage tomorrow… Ralph Paglia - Starvine 10Ralph Paglia will share insights gained from 20 years of designing, implementing andmanaging digital marketing strategies and tactics for car dealers... provide an overviewof lessons learned that allude to critical mistakes being made by many dealers today.Review dealer best practices specific to selecting software tools, deciding what shouldbe managed in-house versus what and when it is better to outsource… access tomultiple online tools, reporting and tracking systems, as well as multiple free and lowcost resources that they can begin using before they return to their dealerships… learnhow to apply tracking systems to Key Performance Indicator (KPI) measurement pointsthat make managing a dealer’s digital marketing strategy easier and simpler for dealersand general managers. You will also learn how to use these same KPI measurementand reporting techniques to make recommended budget allocation changes that willhelp your dealership realize a stronger ROI from your total marketing investment eachmonth... access to download a proprietary Excel spreadsheet file that they can use tomake media allocation recommendations based on Paglia’s unique “Budget Cascade” automated calculations derived from minimum budget requirements and maximum effectiveness peaks within each digital and offline channel.
Introduction and Background: www.ADMPC.com Ralph Paglia President Automotive Media Partners, LLC• Led build-out and development of Tier10’s Digital Marketing, Advertising and Social Media Strategies, Tactics and client service capabilities• Automotive Digital Marketing Professional Community creator and Editor-in-Chief• Generated 144,000+ leads in 22 months while working for Courtesy Chevrolet…• Managed Courtesy Chevy Internet Sales team that sold 4,000+ Units in 2006…• Worked w/Ford in 2007-2009 to develop first fully integrated Tier 3 Digital Marketing Consulting and Ford Co-Op supported Digital Advertising program for Dealers…• Ran 1st retail automotive Behavioral Targeting Digital Advertising program…• Internet Sales & Marketing Consultant to Ford, Mercedes- Benz, GM, Honda, Toyota, Mercedes-Benz, Hyundai and 250+ dealers & groups…• Pioneered development of “Internet Leads” in 1988 using CompuServe ISP access to post vehicle inventory listings on defense contractor BBS’s…
Ralph Paglia lists cars on BBS – Leads!Timeline1969 to 2007Early History of Internet Marketing T3 Behavioral Targeting
Ford Tier 3 Digital AdvertisingTimeline GM Tier 3 Digital Advertising Now AutoTrader Acquires HomeNet ADP Acquires The Cobalt Group AutoTrader Acquires KBB AutoTrader Acquires VinSolutions 2007 – 2008 – 2009 – 2010 – 2011 – 2012 - Future The “Minority Report” Michael Keranen Effect… History of Internet Marketing 2007 to
1978: The First Computer Bulletin Board System, CBBS, Goes OnlineTwo 8" floppy disks driven by A S-100 board and a 300bps modem.During a meeting of BBS industry folk in 1993 named the 2nd AnnualONE BBSCON, the host had everyone in the room stand up. Then heasked those who did not run a BBS to sit. Then those who didnt havea Board in 1992. Then 1991, 1990, and so forth year by year.When he reached 1978 only one person was still on his feet... As hestood there alone the host said, "Folks, meet Ward Christensen.Ward Christensen and Randy Suess develop the Computerized BulletinBoard System (CBBS) in Chicago. Opened to the public the followingyear, it is the first electronic message-posting network.Christensen, a physicist by education and a mainframe programmer by profession, was an electronics hobbyist in his spare time. By the late1970s he had become expert at programming computers to transfer files from one machine to another via modems and telephone lines.Christensen and Suess lived in Chicago, where winters bring below-freezing temperatures and piles of snow, and in January 1978 there wasplenty of indoor time for programming and fiddling with digital equipment. The idea had been building for awhile, and that winter they decided to 1986devise a simple computer communication system. Christensen developed the software and Suess assembled the hardware.On February 16, 1978, their system is complete; they name it the Computerized Bulletin Board System (CBBS). When it finally goes online to the Lead Generation via Inventorypublic in 1979, Christensen manages the system under the title "system operator" (soon shortened to "sysop"). CBBS operates like a virtualthumb-tack bulletin board. Participants can post messages to a public "board," and others can read and respond to those messages, creating anongoing virtual discussion. listings posted from stock cardsIn November 1978 Christensen and Suess publish an article in Byte magazine, describing CBBS and outlining the technology for devising virtualbulletin boards. The article drums up interest in CBBS and gives others the opportunity to build their own systems. to San Diego DefenseSince the ARPAnet is still restricted to defense-funded institutions, CBBS is the first civilian experiment in creating virtual community (apart fromtime-sharing systems). In 1979 most individuals who own computers and modems -- or have access to and knowledge of computing hardware --are computer hobbyists and scientists. So at first, most topics on CBBS hover within the realm of computers and electronic communication, but Contractor BBS’seventually the talk broadens.CBBS kindles a revolution in electronic communication. Virtual bulletin boards begin popping up around the country; they are given the generic 5053016369@Compuserve.netname BBS, for bulletin board system. Some cover a range of topics, and others are intended for highly specific discussions. By the early 1990smost BBSs are connected to the Internet, and a whole new virtual world is introduced to BBS members, who had previously roamed within thelimited parameters of one system (or in some cases several interconnected systems).
1995Autobytel.com is credited withinventing online car buying in1995 and offers comprehensiveconsumer resources for vehicleresearch, purchasing, ownership, safety and maintenance, as well as unmatcheddealer training, support and technology. Whether buying, owning or selling avehicle, Autobytel.com offers a comprehensive and positive consumer experience.Their stock was trading at $40 in 1999 and is currently trading at $.70.
HistoryCarsDirect was founded in 1998 by Scott Painter, launched from the businessincubator Idealab. It was the first company to sell vehicles online directly toconsumers, rather than referring consumers to brick-and-mortar dealers as all otheronline car buying services did at the time. In 2000, Roger Penske invested in thecompany and joined the Board of Directors.In 2004, the firm began to expand into other "big ticket" consumer categories such ashome mortgage and real estate with the acquisition of web properties includingBestRate.com and LoanApp.com. Reflecting its diversification, the companychanged its name to Internet Brands in 2005, and the company was restructured into several divisions focused on vertical markets. The automotive operations now function as part of the automotive division of InternetBrands.
AutomotiveDigital Marketing The Vision Industry Pioneers had in 1998 1998 - 2004
TIPS 1998 - 2012Automotive Internet Selling Strategy Targeting Technology Web 2.0 Engagement Technology CRM Systems Technology Showroom / Service Drive
Automotive Digital MarketingWhere are the best dealers going to get theircompetitive advantages in 2012 and 2013?
Automotive Marketing Principle #1: Stories Sell! (Yesterday, Today and Tomorrow) Dealer Story, Article or News
Facebook Advertising?1. Set Up a “Profile” for each Dealer/GM/Manager2. Create a “Group” for your Franchise/Brand3. Create a “Fan Page” for your Community4. Post Links to dealer eCommerce site content items5. Remember the 80/20 Rule of Social Content
Ads were seen 7,201,334 times by Facebookmembers who live near the dealership…1,730 of those Facebook members clicked onone of the two Facebook displayadvertisements…$1,595.25 spent for the Facebook AdCampaigns, each customer visit to ourcommunity site or Fan page cost 92 cents(CPC).To show Facebook members our dealership adseach 1,000 times (CPM), cost 22 cents…
Reputation ManagementSocial Media Holds Dealerships Accountablefor their Delivery of the Customer Experience
Why is Reputation Management Important to Car Dealers?
Why is Reputation Management Important to Car Dealers?
Can We Use The Internet To Actually DO BUSINESS? Our industry’s focus has been on bringingpeople into showrooms and service drives… “People won’t buy a car or service online”
What Are The Most SuccessfulDigital Dealers Doing Today… Tomorrow? Resources and budget for a “Complete Digital Marketing Strategy Implementation”
Online Display Advertising Phone Handling Process Search Engine Advertising Customer Traffic Communication Process Social Media Advertising Email (paid placement) & CRM Social Media Marketing (content) Service Drive Comprehensive Process Digital Marketing Strategy Reputation Revenue ManagementRealization Showroom Websites Process Microsites Engagement Apps
Dear Ralph,You can’t improve your digital marketing gameif you don’t know the score. The only way toovercome your competition and increase theROI of your marketing is to view all yourcampaign data holistically.