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Evolution of Automotive Digital Marketing by Ralph Paglia

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This presentation on the Evolution of Automotive Digital Marketing was presented at the Automotive Boot Camp in Philadelphia on May 16, 2013 by Ralph Paglia

Published in: Automotive, Business, Technology
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Evolution of Automotive Digital Marketing by Ralph Paglia

  1. 1. Evolution of Automotive Digital Marketing – AutomotiveDigitalMarketing.comOverview of last 10 years leading up to where the ‘State of the Art’ for cardealers stands today, and showcasing where the most successfuldealers will get their competitive advantage tomorrow… Ralph Paglia•Insights gained from 5+ years of digital marketing strategies and tactics forcar dealers gleaned from AutomotiveDigitalMarketing.com dealer posts...•Review dealer best practices specific to selecting tools and what should bemanaged in-house versus what and when it is better to outsource…•Multiple free and low cost resources that dealers can begin using beforethey return to their dealerships from Automotive Boot Camp…•Learn how to apply tracking systems to Key Performance Indicator (KPI)measurement points that make managing a dealer’s digital marketingstrategy easier and simpler for dealers and general managers. You will alsolearn how to use these same KPI measurement and reporting techniques tomake recommended budget allocation changes that will help your dealershiprealize a stronger ROI from your total marketing investment each month..."Evolution of Automotive Digital Marketing"
  2. 2. Introduction and Background:Ralph Pagliawww.ADMPC.comPresidentAutomotive Media Partners, LLC• Led build-out and development of Tier10’s DigitalMarketing, Advertising and Social Media Strategies• AutomotiveDigitalMarketing.com 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 MarketingConsulting and Ford Co-Op supported Digital Advertising program for Dealers…• 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 topost vehicle inventory listings on defense contractor BBS’s…
  3. 3. Timeline Early History of Internet Marketing1969 to 2007RalphPaglialistscarsonBBS–Leads!T3BehavioralTargeting
  4. 4. History of Internet 2000 to Future
  5. 5. Timeline History of Internet Marketing 2007 to PresentFordTier3DigitalAdvertising2007 – 2008 – 2009 – 2010 – 2011 – 2012 - FutureGMTier3DigitalAdvertisingADPAcquiresTheCobaltGroupAutoTraderAcquiresKBBAutoTraderAcquiresVinSolutionsAutoTraderAcquiresHomeNetThe “MinorityReport” MichaelKeranen Effect…
  6. 6. 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 todevise 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 thepublic 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.In 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.Since 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, buteventually the talk broadens.CBBS kindles a revolution in electronic communication. Virtual bulletin boards begin popping up around the country; they are given the genericname 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).1986Lead Generation via Inventorylistings posted from stock cardsto San Diego DefenseContractor BBS’s 5053016369@Compuserve.net
  7. 7. 1995Autobytel.com is credited withinventing online car buying in1995 and offers comprehensive consumer resources for vehicleresearch, purchasing, ownership, safety and maintenance, as well asunmatched dealer training, support and technology. Whether buying, owning orselling a vehicle, Autobytel.com offers a comprehensive and positive consumerexperience. Their stock was trading at $40 in 1999 and is currently trading at$.70.Automotive Digital Pioneer:AutoByTel
  8. 8. HistoryCarsDirect was founded in 1998 by Scott Painter, launched from the business incubator Idealab.It was the first company to sell vehicles online directly to consumers, rather than referringconsumers to brick-and-mortar dealers as all other online car buying services did at thetime.[1][2][3] In 2000, Roger Penske invested in the company and joined the Board of Directors.[4]In 2004, the firm began to expand into other "big ticket" consumer categories such as homemortgage and real estate with the acquisition of web properties including BestRate.com andLoanApp.com.[5] Reflecting its diversification, the company changed its name to Internet Brandsin 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 Internet Brands.[6]Automotive Digital Pioneer:CarsDirect
  9. 9. AutomotiveDigital MarketingThe Vision Industry Pioneers had in 19981998 - 2004Automotive Digital Pioneer:CyberCar
  10. 10. TIPSAutomotive Internet Selling Strategy1998 - 2013Targeting TechnologyWeb 2.0 Engagement TechnologyCRM Systems TechnologyShowroom / Service DriveAutomotive Digital:Sales Strategy
  11. 11. Automotive Digital Pioneer:Sales Strategy
  12. 12. AutomotiveDigital MarketingWhere will the best dealers goto get their competitiveadvantage in 2013 and 2014?
  13. 13. Targeting TechnologyAutomotive Digital:Message Delivery
  14. 14. Digital Advertising Server PlatformAudience Targeting MethodsSales Performance Based Results
  15. 15. AutomotiveDigitalMarketing.com
  16. 16. Social Media MarketingandCustomer Relationship Management (CRM)Made Possible by the Advent ofCustomer Engagement on Massive LevelsAutomotive Digital:Competitive Advantage
  17. 17. Social Media MarketingAdvent of Customer Engagementon Massive Levels19
  18. 18. PhoneFlow
  19. 19. DealerStory, Articleor NewsAutomotive Marketing Principle #1: Stories Sell! (Yesterday, Today and Tomorrow)
  20. 20. 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
  21. 21. 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…
  22. 22. Reputation ManagementSocial Media Holds Dealerships Accountablefor their Delivery of the Customer Experience
  23. 23. Why is Reputation Management Important to Car Dealers?
  24. 24. Why is Reputation Management Important to Car Dealers?
  25. 25. www.HerbChambersReviews.com
  26. 26. www.FeldmannReviews.com
  27. 27. www.LouFuszReviews.com
  28. 28. RetargetingODARetargetingODA
  29. 29. Can We Use The Internet ToActually DO BUSINESS?Our industry’s focus has been on bringingpeople into showrooms and service drives…“People won’t buy a car or service online”
  30. 30. What Are The Most SuccessfulDigital Dealers Doing Today…Tomorrow?Resources and budget for a“Complete Digital MarketingStrategy Implementation”
  31. 31. ComprehensiveDigital MarketingStrategyOnline DisplayAdvertisingSearch EngineAdvertisingSocial MediaAdvertising(paid placement)Social MediaMarketing(content)ReputationManagementWebsitesMicrositesAppsShowroomProcessService DriveProcessEmail& CRMCustomerCommunicationProcessPhoneHandlingTrafficEngagementProcessRevenueRealization
  32. 32. TrafficEngagementProcessRevenueRealization
  33. 33. 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 yourmarketing and advertising data holistically.
  34. 34. Slideshare.net/RalphPaglia
  35. 35. http://AutomotiveDigitalMarket.com
  36. 36. Automotive Marketing Links• AutomotiveDigitalMarketing.com• DealerElite.net• Slideshare.net/RalphPaglia• AutomotiveDigitalDealer.org• AutomotiveDigitalDealers.com• Facebook.com/groups/AutomotiveMarketing• Facebook.com/groups/AutoSocial• Twitter.com/ADMcommunity• YouTube.com/autodigitalmarketingDealer Resources
  37. 37. www.ADMPC.com

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