Ralph Paglia AutoCon Evolution of Automotive Digital Marketing Presentation

1. Evolution of Automotive Digital Marketing – Where Do Dealers Go From Here?
Brief overview of last 10 years, where ‘State of the Art’ for car dealers
stands today, and where the most successful dealers will get their
competitive advantage tomorrow… Ralph Paglia - Starvine 10
Ralph Paglia will share insights gained from 20 years of designing, implementing and
managing digital marketing strategies and tactics for car dealers... provide an overview
of lessons learned that allude to critical mistakes being made by many dealers today.
Review dealer best practices specific to selecting software tools, deciding what should
be managed in-house versus what and when it is better to outsource… access to
multiple online tools, reporting and tracking systems, as well as multiple free and low
cost resources that they can begin using before they return to their dealerships… learn
how to apply tracking systems to Key Performance Indicator (KPI) measurement points
that make managing a dealer’s digital marketing strategy easier and simpler for dealers
and general managers. You will also learn how to use these same KPI measurement
and reporting techniques to make recommended budget allocation changes that will
help your dealership realize a stronger ROI from your total marketing investment each
month... access to download a proprietary Excel spreadsheet file that they can use to
make 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.

2. 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…

3. Ralph Paglia lists
cars on BBS – Leads!
Timeline
1969 to 2007
Early History of Internet Marketing
T3 Behavioral Targeting

4. History of Internet 2000 to ?

5. Ford Tier 3 Digital Advertising
Timeline
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

6. 1978: The First Computer Bulletin Board System, CBBS, Goes Online
Two 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 Annual
ONE BBSCON, the host had everyone in the room stand up. Then he
asked those who did not run a BBS to sit. Then those who didn't have
a 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 he
stood there alone the host said, "Folks, meet Ward Christensen.
Ward Christensen and Randy Suess develop the Computerized Bulletin
Board System (CBBS) in Chicago. Opened to the public the following
year, 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 late
1970s 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 was
plenty of indoor time for programming and fiddling with digital equipment. The idea had been building for awhile, and that winter they decided to
1986
devise 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 Inventory
public in 1979, Christensen manages the system under the title "system operator" (soon shortened to "sysop"). CBBS operates like a virtual
thumb-tack bulletin board. Participants can post messages to a public "board," and others can read and respond to those messages, creating an
ongoing virtual discussion.
listings posted from stock cards
In November 1978 Christensen and Suess publish an article in Byte magazine, describing CBBS and outlining the technology for devising virtual
bulletin boards. The article drums up interest in CBBS and gives others the opportunity to build their own systems.
to San Diego Defense
Since the ARPAnet is still restricted to defense-funded institutions, CBBS is the first civilian experiment in creating virtual community (apart from
time-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’s
eventually 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.net
name BBS, for bulletin board system. Some cover a range of topics, and others are intended for highly specific discussions. By the early 1990s
most BBSs are connected to the Internet, and a whole new virtual world is introduced to BBS members, who had previously roamed within the
limited parameters of one system (or in some cases several interconnected systems).

7. 1995
Autobytel.com is credited with
inventing online car buying in
1995 and offers comprehensive
consumer resources for vehicle
research, purchasing, ownership, safety and maintenance, as well as unmatched
dealer training, support and technology. Whether buying, owning or selling a
vehicle, Autobytel.com offers a comprehensive and positive consumer experience.
Their stock was trading at $40 in 1999 and is currently trading at $.70.

8. History
CarsDirect 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 referring consumers to brick-and-mortar dealers as all other
online car buying services did at the time.[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
home mortgage and real estate with the acquisition of web properties including
BestRate.com and LoanApp.com.[5] Reflecting its diversification, the company
changed 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 Internet
Brands.[6]

9. Automotive
Digital Marketing
The Vision Industry Pioneers had in 1998
1998 - 2004

10. TIPS 1998 - 2012
Automotive Internet Selling Strategy
Targeting Technology
Web 2.0 Engagement Technology
CRM Systems Technology
Showroom / Service Drive

13. Automotive
Digital Marketing
Where are the best dealers going to get their
competitive advantages in 2012 and 2013?

14. Targeting Technology

16. AutomotiveDigitalMarketing.com

18. Social Media Marketing
Made Possible by the Advent of
Customer Engagement
on Massive Levels

19. 19
Social Media Marketing
Advent of Customer Engagement
on Massive Levels

22. Phone
Flow

24. Automotive Marketing Principle #1: Stories Sell! (Yesterday, Today and Tomorrow)
Dealer
Story, Article
or News

25. Facebook Advertising?
1. Set Up a “Profile” for each Dealer/GM/Manager
2. Create a “Group” for your Franchise/Brand
3. Create a “Fan Page” for your Community
4. Post Links to dealer eCommerce site content items
5. Remember the 80/20 Rule of Social Content

26. Ads were seen 7,201,334 times by Facebook
members who live near the dealership…
1,730 of those Facebook members clicked on
one of the two Facebook display
advertisements…
$1,595.25 spent for the Facebook Ad
Campaigns, each customer visit to our
community site or Fan page cost 92 cents
(CPC).
To show Facebook members our dealership ads
each 1,000 times (CPM), cost 22 cents…

27. Reputation Management
Social Media Holds Dealerships Accountable
for their Delivery of the Customer Experience

29. Why is Reputation Management Important to Car Dealers?

30. Why is Reputation Management Important to Car Dealers?

32. www.HerbChambersReviews.com

33. www.FeldmannReviews.com

35. www.LouFuszReviews.com

43. Retargeting
ODA
Retargeting
ODA

46. Can We Use The Internet To
Actually DO BUSINESS?
Our industry’s focus has been on bringing
people into showrooms and service drives…
“People won’t buy a car or service online”

49. What Are The Most Successful
Digital Dealers Doing Today…
Tomorrow?
Resources and budget for a
“Complete Digital Marketing
Strategy Implementation”

50. 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 Management
Realization Showroom Websites
Process Microsites
Engagement
Apps

52. Traffic
Process
Revenue Engagement
Realization

53. Dear Ralph,
You can’t improve your digital marketing game
if you don’t know the score. The only way to
overcome your competition and increase the
ROI of your marketing is to view all your
campaign data holistically.

54. www.ADMPC.com

55. Slideshare.net/RalphPaglia

56. http://AutomotiveDigitalDealers.com

57. Automotive Digital Marketing Resources
• AutomotiveDigitalMarketing.com
• DealerElite.net
• Slideshare.net/RalphPaglia
• AutomotiveDigitalDealer.org
• AutomotiveDigitalDealers.com
• Facebook.com/groups/AutomotiveMarketing
• Facebook.com/groups/AutoSocial
• Twitter.com/ADMcommunity
• YouTube.com/autodigitalmarketing