Honda Dealer Pilot Study


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Honda Dealer Pilot Study

  1. 1. C A S E S T U D I E S Honda Dealer Pilot Study Results with Search Engine Ad Management
  2. 2. Honda Dealer Pilot Study Results...with Search Engine Ad Management Honda Dealer Pilot Study Results with Search Engine Ad Management In this new age of marketing, effectively managing all To gain a more thorough understanding of the program’s lead-generating avenues can be the difference between a benefits, Reynolds also examined a comparable Honda success and struggle. Through industry-leading solutions dealership (Dealer B), located within the same metro area and award-winning support, Reynolds works with dealers and conducting a competitive paid search campaign. to make their business better. Search Engine Ad Management provides paid search ad management for dealerships on search engines, such Clear Definitions as Google™, Yahoo®, and Bing™. As part of the service, Lead submissions are digitally submitted your ads and key advertising terms are constructed and managed by Reynolds, so your Web site sees more traffic. lead forms that consumers actively engage in filling out and submitting. The following categories were not tracked or Web Traffic, Leads, and Opportunity calculated in the lead submission figures Successfully capturing and converting leads is critical displayed in this review: to dealership success. Yet, reaching consumers online requires more than a dynamic company Web site. A Phone Calls – While many paid search fantastic site does little if average Internet users can’t management services track and claim all easily find it. When it comes to being found online, search phone calls as leads in their calculations, engines like Google and Yahoo are the key. In fact, 79% Reynolds feels this is a misleading of car shoppers use search engines to find information, practice. Performance can widely vary making them an increasingly important part of any from dealer to dealer, region of the dealership’s marketing strategy.* country, and manufacturer. In addition, To assess the performance of its comprehensive search many phone calls received by a dealer engine marketing service, Search Engine Ad Management, are from current clients, vendors, and in generating dealership Web traffic and leads, Reynolds other sources. initiated a four-month pilot program. Using a Honda Maps and Directions – Many paid dealership (Dealer A) as the pilot subject, Reynolds’ program specifically included: search management services track when prospects click on a dealership’s • Initial ad spend of less than $500 the first two months, directions or map page and calculate it as with an increase to slightly less than $1,000 the final a lead. two months. • Pay per click ads placed on Google, Yahoo, and While Reynolds considers phone calls MSN Live. and clicks to directions to be positive actions, and something to measure, they • Paid search campaign running from November 1, 2008 do not qualify as leads. through February 28, 2009. Measuring Performance In evaluating the results of Dealer A, Reynolds examined Extraordinary Results: three areas: Comparing Year-Over-Year • Year-over-year Web site performance. Following the completion of the pilot program, Reynolds • Competitive performance comparison. compared metrics from the paid search time frame to the same period over the previous year. Dealer A’s Web • Individual monthly performance. site realized significant increases in total visitors, unique By tracking these different areas, Reynolds took various visitors, and lead submissions while using Reynolds’ elements, such as regional differentiators, industry trends, Search Engine Ad Management. and economic conditions, into consideration when determining perceived value. *Source: R.L. Polk Study 2008 2 © 2009 The Reynolds and Reynolds Company. All rights reserved. 1075648 8/09
  3. 3. Honda Dealer Pilot Study Results...with Search Engine Ad Management Dealer A Dealer B Year-Over-Year Comparison Year-Over-Year Comparison 350 350 15,000 14,441 2008 15,000 2008 -10.2% 302 256 2009 2009 +30.1% 300 +6.3% 230 300 12,000 11,104 11,372 +41.1% 12,000 10,962 250 250 10,316 214 214 +31.6% -4.8% 9,000 8,644 200 9,000 8,478 200 8,082 150 150 6,000 6,000 100 100 3,000 3,000 50 50 0 0 0 0 Total Unique Total Leads Total Unique Total Leads Visits Visitors Submitted Visits Visitors Submitted It is important to note that during this time frame, total searches conducted for Honda vehicles declined at Dealer A and Dealer B both the national and regional levels. While overall 2009 Side-By-Side Comparison Honda searches had declined, Dealer A’s Web site saw significant increases in all measured performance areas. 350 15,000 14,441 Dealer A 23.9% 302 Dealer B Comparing Dealer-to-Dealer Results 24.1% 230 300 In order to ensure a fair comparison, Reynolds also 12,000 10,96211,372 250 reviewed Honda Dealer B, a dealership located in the 28.9% same region and utilizing a competing paid search 9,000 8,082 200 management service. 150 The dealers compete in the same market, where their 6,000 locations do not give either a significant competitive 100 advantage. However, there were some competitive 3,000 advantages for Dealer B, with regard to their aggressive 50 pricing practices. 0 0 Both dealerships conducted similar off-line advertising Total Unique Total Leads Visits Visitors Submitted programs, with the significant differences being that Dealer B emphasized discount pricing and offered price coupons on new vehicles, while Dealer A did not utilize either practice. • Dealer B experienced decreases in two of the three performance areas, most notably lead submissions. Upon observation of the data: • Dealer A continued to experience growth, despite the • In the prior year, performance numbers were similar automotive industry’s downturn. between Dealer A and Dealer B, with the exception being Dealer B received more leads (19.6%). • By the end of the pilot period, Dealer A had seen significant growth in all measured performance areas. 3 © 2009 The Reynolds and Reynolds Company. All rights reserved. 1075648 8/09
  4. 4. Honda Dealer Pilot Study Results...with Search Engine Ad Management Though both dealerships were using a paid search These performance improvements occurred with no management service and operated within the same metro other changes made to Dealer A’s Web site or business area, Dealer A was experiencing considerable success practices. The gains can be attributed to Reynolds’ ability and marked growth using Search Engine Ad Management to dial in and perfect ad title, copy, design, and landing from Reynolds. page messaging. With persistent efforts throughout the Reynolds’ Search Engine Ad Management was able to pilot period, Reynolds’ Search Engine Ad Management deliver significant performance improvements in every continually improved performance for Dealer A. category during the pilot time frame, while the competing Impressions and clicks for the ads placed on Google Honda dealership only saw improved performance in continued to increase through the final month of the pilot. one area. Google Campaigns Date Range: 2/2/09 – 2/28/09 Overall Gains/Losses Comparison 7,000 200 100 3500 3,337 88 Dealer A 6,000 Dealer B 80 160 3000 2,728 5,000 2500 60 120 4,000 2000 40 3,000 80 1500 20 2,000 1000 646 -26 Impressions 40 0 1,000 500 Clicks -396 -20 0 0 0 Feb 2 Feb 9 Feb 16 Feb 23 to to to to -500 -40 Feb 8 Feb 15 Feb 22 Feb 28 Total Unique Total Leads Visits Visitors Submitted Case Review In reviewing the last month of the pilot period, we see an The results of this pilot indicate that Reynolds’ paid even greater disparity in performance between Dealer A search service, Search Engine Ad Management, delivered and Dealer B. Just in the month of February, Dealer A significant and superior results compared to another experienced: paid search service provider. Throughout the pilot period, • 41.8% greater number of visits than Dealer B. Dealer A consistently realized more unique visitors, more interest, and more leads, in spite of the difficult economic • 53.8% more unique visits than Dealer B. conditions and an aggressive competitor pushing low • 98% higher lead submissions than Dealer B. price deals. With these improvements, Dealer A is better positioned to sell more vehicles, generate more return service customers, and see continued operation and success. Dealer A saw performance improvements of up to 41% with no other changes made to their Web site or business practices. 4 © 2009 The Reynolds and Reynolds Company. All rights reserved. 1075648 8/09