Are you wasting your time managing your dealership's digital marketing?

1. 16 AUTO DEALER TODAY • APRIL 2016
DIGITAL MARKETING
A
Automotive digital advertising is one of
the most competitive marketplaces on
earth. Millions of dollars are being spent
annually, all in an effort to keep you and
your competitors in the hearts and minds
of in-market car buyers. You have to be a
dedicated student of Google, social media
platforms, industry publications and new
products and services just to stay in the race.
Keeping up to date on digital marketing
trends is an often-laborious process of tun-
ing in to endless webinars, reading lengthy
articles and attending expensive conferenc-
es. And just when you think you have it all
figured out, it all changes.
In smaller-size and single-point deal-
erships, the ecommerce director position
is a relatively new concept. In large dealer
groups, the position has been around for a
while. The ecommerce director’s purpose is
to maximize the dealer’s digital advertising
dollars, increase the number of email, chat
and social media leads and set the tone for
the store’s digital efforts. Those duties can
be performed by an in-house employee or
outsourced to a digital marketing provider.
As advertising budgets continue to shift
toward more digital spending and away
from traditional media, the ecommerce di-
rector position will become increasingly im-
portant. So how do you know when it’s time
to hire one, how do you choose between in-
house and outsource, and what should they
be expected to do?
UNDERSTAND THE ROLE
It’s no secret that many dealers still do not
understand exactly what an ecommerce di-
rector does or why they need one. They hap-
hazardly approach their digital marketing
with a “set it and let go” approach. They may
be happy to rely on the individual efforts of
their salespeople and whatever OEM cam-
paigns happen to be running at the moment.
They may even continually invest in the lat-
est and greatest products or services, wheth-
er or not they provide a return for the store.
This is a significant waste of dollars. The
task of determining the digital ad spend is
passed around from one employee to another
like a hot potato. No one really seems to un-
derstand or want to invest the time necessary
to make informed decisions, and no one ap-
pears willing to step up and take charge.
If any of this sounds familiar, then you
probably are not yielding the results that you
desire for your dealership. That’s where an
ecommerce director steps in.
A dedicated ecommerce director can
increase your exposure and multiply your
sales opportunities by building, managing
and constantly monitoring your presence
online, on social media platforms and on
third-party review sites. They will frequently
collaborate and coordinate with upper man-
agement, sales managers and, if present, the
business development center.
If you think this sounds like a highly
skilled and well-paid position, you’re right,
and that can be a problem for smaller stores.
The National Automobile Dealers Asso-
ciation (NADA) reports that, as recently as
2014, the average dealership employee makes
$55,000 a year. On top of this, a dealer has
to fund employee benefits such as healthcare,
payroll taxes and 401(k). The idea of hiring
yet another person, possibly at a higher-
than-average salary, can be tough to justify.
As a result, an increasing number of
smaller stores and groups have outsourced
the tasks of an ecommerce director to digital
marketing providers. Having served as the
in-house ecommerce director for an auto
group and, now, for a provider, I can tell you
Your Ecommerce Director:
IN-HOUSEVS.
OUTSOURCEWho is in charge of your digital campaigns?
Building an online presence requires
real leadership, and the choice between
hiring an in-store ecommerce director or
outsourcing those duties depends upon the
wants and needs of the individual dealer.
By Matt Childers
©ISTOCKPHOTO.COM/ANNEBAEK
Among other duties, a dedicated
ecommerce director builds and
maintains their dealership’s
presence online, on social media
and on third-party review sites.

2. DEALER SUMMIT
BOOT CAMP
WHAT WILL I LEARN?
The essential state and federal regulations that
govern the F&I processes.
HOW WILL I BENEFIT?
Knowledge of the rules keeps you and your employer
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Professionals typically post higher finance and
aftermarket product penetration numbers.
WHO SHOULD ATTEND?
F&I Personnel and Sales Managers
HOW LONG IS BOOT CAMP?
Two days. To ensure 100% participation, a second
two-day session is normally provided.
WILL I BE A MEMBER OF
A PROFESSION?
Yes. AFIP Certified F&I Professionals receive a
professional designation to be used after their name
and a customer confidence-building framed diploma
for their office.
HOW DO I SIGN UP?
To register, go to www.cvent.com/d/yfqpc2/4W.
Or, for more information, visit www.afip.com/bootcamp
or call 817.428.2434.
WHERE CAN I PARTICIPATE?
Dates: May 2 & May 3, 2016
Location: Held at the Dealer Summit
Sheraton Tampa Riverwalk Hotel
200 N. Ashley Dr.,Tampa, FL 33602
FOR MORE INFORMATION:
Association of Finance & Insurance Professionals
4104 Felps Dr., Suite H
Colleyville, Texas 76034
817.428.2434
info@afip.com • www.afip.com
$695* for study
material — plus
shipping per attendee
*Industry Member discounted
price (retails for $915)
SPECIAL
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DEALER SUMMIT AFIP 2016

3. DIGITAL MARKETING
18 AUTO DEALER TODAY • APRIL 2016
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that the choice between creating an in-house
position or outsourcing that work really
comes down to the individual dealer.
Would moving your digital efforts out-
side the physical walls of your dealership pay
huge dividends to the store and free up time
and resources, or is that work too important
and personal to be left to a third party? I’m
not here to advocate for either choice, but to
help you decide, let’s break down some of the
pros and cons of outsourcing.
THE PROS:
1. Reduce training time and turnover:
Outsourcing the responsibilities of an
ecommerce director means a dealer is not
saddled with the downtime and expense it
takes to train a new employee. They also en-
joy zero turnover in a key position, because
a team of experts is always prepared to con-
tinue the work.
2. Sharpen the Internet sales team’s
focus: Dealers who maintain a separate In-
ternet sales team often charge those staffers
with managing vendors, dealer website and
OEM requirements. That can take their fo-
cus away from selling vehicles. Digital mar-
keting providers can take on those duties so
your team can spend their time focusing on
selling cars instead of managing vendors.
3. Gain access to new products and ideas
sooner: Outsourcing companies are constant-
ly learning and going to digital conventions to
keepuponnewtopicsandproducts.Theyalso
can eliminate the expense of sending people
to industry conferences and advanced train-
ing to stay on top of what is happening.
4. Be part of a group: Most providers
manage dealerships across multiple brands
and, often, multiple states and regions. We
have a clear idea of what is working for
certain OEMs and what can be applied to
other dealers. Following the recall scandal
at Volkswagen, for example, we were able
to make adjustments for some clients based
on what was working for other stores. Out-
sourced ecommerce gives single-point
stores the feeling of being united as a group
and having access to additional resources.
We also offer benchmarking to help de-
termine whether leads, website traffic and
sales are in line with standards established
by our entire clientele. Finally, we provide
another level of expense checks to make
sure the dealer is getting the best price
possible through negotiated group pricing
or knowing what the vendors should be
charging.
5. Have access to real experts: Most ru-
ral dealers find it difficult to find talented
staff who have automotive sales and digi-
tal marketing knowledge. Outsourcing the
work can help dealers who might be unable
to attract or recruit this specialized position.
It allows the dealers to hire staff with years
of industry experience that might not be
readily available otherwise.
THE CONS:
1. Remote collaboration: Some dealers may
not like the idea that a lot of work must be
done over phone and email. Occasional in-

4. APRIL 2016 • AUTODEALERMONTHLY.COM 19
store visits are possible, but the brunt of the
work is done remotely.
2. Confidentiality of customer data:
Outsourcing firms need to have access to the
customer relationship management (CRM)
system to track and monitor the dealership’s
performance and progress in a number of
areas. Although confidentiality agreements
can be put in place, some dealers might not
be comfortable with this arrangement.
3. Lack of individuality: Most digital
marketing providers have a proven process
that they will want to use. If a dealership
wishes to create their own websites and mes-
saging, then it may not be a good fit.
4. Outsourcing does not control the
sales process: Outsourcing can help to in-
crease lead count and make better budget
decisions, but is still up to individual sales-
people at the dealership to convert leads into
appointmentsandsales.Ifsalesassociatesare
unable to handle the additional call and lead
volume, the results will suffer. We recently
worked with a dealership that saw a 60% in-
crease in high-quality email and phone call
leads, which quickly exposed the weaknesses
in their Internet sales process. We are able to
offer advice targeted to a dealer’s online sales
process, such as follow-up and BDC struc-
ture, but we can’t sell their vehicles.
5. One size does not fit all: Because most
outsourcing firms charge by the rooftop, it
may not be advantageous for a large group
to outsource. At some point, a dealer group
might be better off hiring someone to handle
the position internally, particularly if that
will cost less than what an outsourcing firm
would charge.
Today’s world is highly connected, and
that connectivity allows you to engage cus-
tomers and build your business in ways that
were not even possible five or 10 years ago.
In my experience, too many dealers live by
the mantra that “It’s the way it has always
been.” I disagree. Technology is flooding our
industry and creating new opportunities for
those who are willing to embrace it. Wheth-
er in-house or outsourced, your ecommerce
campaigns need a leader to develop, imple-
ment and stand behind them.
Matt Childers is a digital marketing
strategist with Kirin Automotive and
the former general manager and
ecommerce director for the Fremont
Motor Company group.
MChilders@AutoDealerMonthly.com
Outsourcing the duties of an ecommerce
director can allow staff to focus on
sales, but some dealers may prefer
to keep that position in-house.
©ISTOCKPHOTO.COM/OLIVIERLEMOAL