2. The right marketing mix
Are we mixing the right set of messages – and
media – for our dealership customers?
Today we are going to share some perspectives on
how to get there…
3. Car dealership advertising mix
We all know that marketing and advertising mix is changing – with Internet advertising growth coming
largely at the expense of newspaper spend…..
Total Automotive Advertising Expenditures by Segment
2006 2011
TV TV
43% Radio
Radio 46%
10%
10%
$13,242 $3,159
$3,105
$15,554
$2,320 Internet $4,264 Internet
8% 13%
$4,322
$7,538 $4,051
$6,185
Other
14% Other
Newspapers 12%
Newspapers
25%
19%
($Millions)
Source: Borrell Associates, 2007. Includes both new and used car advertising.
What is your marketing mix?
8
4. What consumers are doing is not
what dealers are buying…
Over 68% of consumers spend time and conduct research on the Internet prior to purchasing a new
car(1) yet Internet share of dealer marketing wallet does not even come close to this.
We still have an unhealthy reliance on the newspapers…..
Dealer Media Consumer Media
Spend Consumption
100%
Too Little?
90%
80%
70% Internet
60% TV
50% Radio
Newspaper
40% Other
30%
20% Too Much?
10%
0% Source: Jupiter Research Library 2006, NADA.
More consumers will utilize the Internet as a research source and it only makes sense that
dealerships shift advertising spend to match up…
(1) J.D. Power and Associates. 9
5. Activity in offline channels drives
traffic online
Leading Media that Prompt Online Searches by US Consumers, 2007
(% of respondents)
Note: n=15,439 ages 18+
Source: BIGresearch, “Simultaneous Media Usage Study (SIMM) 10” as cited in press release, August 2, 2007
6. Offline and online will achieve a new
equilibrium of use and marketing spend
Function Traditional Projected Use Balance Online
Media Equivalent
Awareness TV Display Ads,
Outdoor Sponsorships
Consideration Magazines Review Sites,
Word of Mouth Research Sites,
Brand Sites
Research Magazines Review Sites
Word of Mouth Social Networks
Promotions Radio Display Ads,
Social Networks,
In-market Websites
Shopping Newspaper In-market Websites,
Online Classifieds
Leads Yellow Pages Dealer Locator
Dealer Website
Trial Test Drive Virtual Tour
Owner Marketing Direct Mail Email
7. Be Everywhere: Beyond Just Search
A More Complete
Mobile
Advertising Solution
Online is innovating
offline:
•Analytics
•Triggers Print Audio
•Formats
Internet
Television
8. So which media cocktail will work
best?
Dealers are all different
And so are consumers
Different messages and media
will appeal at different points
in the purchase funnel
9. Introducing our cast
> RJ Woodring, General Sales Manager
Woody Buick Pontiac GMC
> Mike Hatfield, Sales Director
Dave Mungenast St. Louis Honda
> Bill Smith, Internet & Advertising Manager
Dave Arbogast Buick Pontiac GMC
10. The perfect media mix
Focus your mix on consumer purchase patterns with your business objectives in mind
Pre-selection filter
• Build your dealership brand online
• Offline alone is too expensive now
Engagement filter
• Drive revenue and results now
Purchase filter
• Take care of your customers…the
internet has made it easy for them to
talk to each other
11. Build your dealership brand online
Why do it?
• Prep consumers to think of you when they
become in market
• Tell them what your dealership stands for
• Develop positive dealership name recognition
• It’s way cheaper than offline advertising…
• No, don’t stop advertising offline, just balance
your spend to bring down your cost per vehicle
sold
12. Build your dealership brand online
What to do… What to keep doing…
• Display advertising • TV - but keep branding
1. Maximum reach messages consistent online
2. Retargeting
3. Remarketing
• Billboard - drive people to your
website - not your URL - think
• Have a relevant website
keywords
Lots of content to drive organic search
• YouTube
13. Engage Consumers: New Ad Formats
InVideo ad InVideo ad
(YouTube) (Google Content Network )
YouTube Brand Channel Gadget Ad
(contest module) (game)
15. Drive results now
Why do it?
• Revenue
• Capacity
• Revenue
• Capture highly-qualified
hand raisers
• Revenue
16. Results now
What to do… What to keep doing…
• Buy 3rd party leads • Radio and Newspaper focused
They work and are still way less expensive and on Specials and Promos – TV’s
measurable than offline too expensive to be effective
• Paid search engine marketing here
• Promos, specials and events - anything to drive
sense of urgency
• Again, a relevant website but now focused on
1. Calls-to-action
2. Simple lead forms
3. Specials to pull consumers into the showroom
17. Drive results now
Your manufacturer is running offline promotions that could drive traffic to your showroom - make sure it does.
20. Multivariate: Test multiple “Sections” of
Your Page
Test a headline
Test an image
?
?
A “section” is any area
of your page where
you’d like to test
alternative copy or
creative
25. Simple Results
Combination 57 is
performing the best
Bars represent relative
improvement
Original is
highlighted here
26. Keep your customers
Why do it?
• You spent all that money to make them
your customer…now leverage them to
improve your gross margin
• Your existing customers will spend the most
money on service, parts and their next car
27. Keep your customers
What to do… What to keep doing…
• Email Marketing to Owners – stop calling them • Community Sponsorships
during dinner
• Cable TV
• Scheduled maintenance and promos to keep
• Radio for Service Offers
them coming back
• Email newsletters - keep them tied to your
dealership through community information and
events
• Offer to install car seats and do safety checks
• Social networks & Service Blogs
• One more time…a relevant website but now
focused on
1. The Entire Dealership
2. Service and parts
3. Info about owning and maintaining their
purchased vehicle
33. Web Utilities: Mobile Ads
Google Search Search Ads on Contextual Targeting
Ads for Mobile Partner Sites for Mobile
Ads on Google Ads on search Google Ad Sense for
mobile search results partner results Mobile Content
41. Need more recipes?
> Join “Maximizing Your Media Spend: Five Strategies that Top-Performing
Dealers Use” next – at 11:45 am – with Ken Pfau, Cobalt’s Director of Training &
Consulting
> Visit us at Booth #79
> For more information on Cobalt’s Industry Research visit www.cobalt.com/research