Tracking and measuring media value in online age


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Tracking and measuring media value in online age

  1. 1. Managing for ProfitabilityTracking and Measuring Media Value in the Online AgeRalph EbersoleDirector, Automotive Consulting and Dealer Training
  2. 2. Today’s Presenter • Ralph Ebersole • Director, Automotive Consulting and Dealer Training, • 30 years automotive industry experience • Featured speaker at industry conferences
  3. 3. Tracking and Measuring Media Value in the Online Age
  4. 4. Today’s Objectives • In today’s workshop, we’ll discuss: • Identify what to track and why • Develop a strategy for tracking your investments • Assess and calculate ROI for various marketing channels • Compare value across various online advertising mediums • Determine next steps
  5. 5. Define Your Media Goals • Identify clear goals for each marketing activity • Define the metrics associated with each media channel • Branding • Traffic now
  6. 6. Measure ROI for Different Segments
  7. 7. Great Ads Build on Great Process• Streamline merchandising with an established process for: • Uploading inventory • Taking and posting photos • Pricing vehicles • Writing sell copy
  8. 8. Process Steps to a Sale-Walk-in Steps to an Internet Sale• Greeting • Greet the Customer• Needs Analysis/Manager intro • Open inventory/Needs• Brand Value Story Analyses• Select the right vehicle • Obtain name and contact• Vehicle presentation information• Demo Ride/Trial close • Build Dealership Value• Trade Appraisal • Sell the Appointment• Ask for the sales • Make Appointment• Intro to F&I • Confirm Appointment• Delivery /into to service
  9. 9. Branding • Frequency • Reach • Cost per thousand (CPM) • Effective CPM (ECPM) • Use earnings to compare different types of online ads • Earnings are the great equalizer
  10. 10. Traffic Now • SEM • Cost per sale • Click to site - site to store - close • Cost per click X site conversion rate X close ratio
  11. 11. Traffic Now • Pay per lead • Cost per sale • Quantity and quality • Cost per lead X close ratio
  12. 12. Traffic Now • Virtual Inventory • Listing sites, dealer web site, etc. • Cost/detailed page view • Five links to the store: • Phone • Email • Website transfer • Walk-in • Chat or text
  13. 13. Set Media Expectations • Before you can measure performance, you must define what you want to achieve • Align objectives with expectations • Communicate program goals within the store and with your marketing partners
  14. 14. Objective-Based Measurement • Know what to measure • Traffic, sales, impressions • Quantity, quality • Measure all of what you are getting and all of what you are spending • All forms of traffic • Ad costs, creative costs, management costs
  15. 15. Measurement Benefits • Evaluate marketing channels, vendors • Assess your ability to adjust processes • Optimize advertising budget, campaigns • Achieve greater staff accountability
  16. 16. “You can’t manage what you can’t measure.”
  17. 17. Assess Your Media Mix • Evaluate online, offline media spend • Consider the value each medium delivers
  18. 18. Measurement is Only as Good as the Tracking Behind It
  19. 19. Track Sales Metrics • Vehicle sales • Appointments set / kept • Gross profit • Cost per vehicle sold • Parts traffic / revenue • Service appointments / revenue
  20. 20. Track Campaign Costs• Agency fees• Staff time and resources• Media costs
  21. 21. Compare Costs • Average cost per vehicle sold: $610* • Cost per sale from leads • Sales from electronic leads • Cost per sale from SEM • Cost per click X conversion rate X close ratio • Cost per sale from inventory display • Sales from internet leads, phone, walk-in* NADA Data, May 2008
  22. 22. Lead Source Composite Data
  23. 23. Inventory Composite Data
  24. 24. Tracking Tools • Lead Management / CRM • Phone monitoring, Congratulations! You’ve just purchased a new vehicle! Please take this time to help us better reach our future customers by telling us about yourself: recording, tracking tools Date: _______________________ Did you purchase: New Used 1. Please tell us about yourself: Zip Code • Post-sale surveys City 2. Which Website(s) did you visit/shop online for your vehicle before coming to us? (Check as many as applicable) Manufacturer Site Dealer Website Other Sites Visited: • Ad views, map prints 3. Which radio station(s) do you listen to? 1. 2. 3. 6am-10am 6am-10am 6am-10am 10am-3pm 10am-3pm 10am-3pm 3pm-7pm 3pm-7pm 3pm-7pm 7pm-10pm 7pm-10pm 7pm-10pm 4. Which local new channel(s) do you watch? • Website tracking 1. AM Noon 4pm 5pm 6pm 9pm 2. AM Noon 4pm 5pm 6pm 9pm 3. AM Noon 4pm 5pm 6pm 9pm 5. Did you consult the automotive ads in the newspaper before shopping for your vehicle? Yes • Third-party reports No Which Newspapers? 6. Which cable network(s) do you watch?
  25. 25. Estimating Walk-in Traffic • 1 in 3 shoppers on a used-vehicle site will visit your store versus calling or sending an email** J.D. Power and Associates, Dealer Satisfaction With Online Buying Services Study, August 2008
  26. 26. Track Results Daily 5 2 1 20% $2200 $2200 $750 $20 $120
  27. 27. Tracking Implementation • Who will manage the tracking process? • Internal staff (e.g., GM, SM, BDC, ISM) • External agency • How will metrics be tracked? • How will the information be shared? • Audience, frequency, format
  28. 28. What to Calculate • Sales opportunities created • Cost per vehicle sold • Total and by source • Closing percentage • Dealership total and by traffic source • Sales gross • Dealership, source and individual sales rep
  29. 29. Steps to Improve ROI • Align ad buys with opportunities • Branding • Traffic now • Rank advertising opportunities for cost effectiveness • Determine point where cost of additional traffic exceeds its value
  30. 30. Fine-Tune Your Process • Use measurement data to identify areas in your process that need to be: • Refined • Replaced
  31. 31. Develop Staff • Use measurement data to: • Evaluate salespeople • Motivate team members • Improve sales results • Either change the person—or change the person
  32. 32. Optimize Campaigns • Improve marketing effectiveness by: • Increasing spend with partners and channels that drive business results • Eliminating spend with vendors who repeatedly fall short of expectations • Reallocating spend with partners and channels that allow you to economize without compromising results
  33. 33. Review• “You can’t manage what you can’t measure.”• If it moves track it.• If you track it measure it.• If you measure it—hold your people accountable• Either change the process or change the person
  34. 34. Questions & Answers
  35. 35. Thank You & Good Luck