Don't get owned marketing your Certified Pre-Owned Inventory (CPO) - Presented at Used Car Week in La Quinta, CA - November 2017

Conﬁdential © Copyright Speed Shift Media
BRING YOUR CPO
MARKETING TO THE
NEXT LEVEL
…The Inventory Level

VP of Sales & Marketing, Speed Shift Media
Over 10 years in Marketing and Digital Advertising.
Working with dealers, leading sales teams, consulting on digital disruption,
and as the head of sales and marketing for a social media marketing ﬁrm in
Vancouver, BC.
Masters in Business and IT Management
Regular speaker and Adjunct Professor at the University of British
Columbia Sauder School of Business.
Most of all I love to be outside with my wife and boys in Port Moody, BC.
Ian Cruickshank
Who are we?
2

An automotive
advertising pioneer.
10+
years experience in delivering
online automotive display
advertising 6/10
Top Dealer Groups in the
United States & the largest
dealer group in Canada
4M+
Vehicles
processed
per day 26K+
Dealers
served
per day 3
continents—we deliver automotive
display solutions across North
America, UK, Australia & NZ
Bringing the best enterprise technology to the Dealer

How much effort do you put toward
marketing your certified pre-owned vs
new vehicles?
Survey
We asked Dealers:

PRE-OWNEDSEO
Social
Ads
NEW
Listings
Sites
Offers
Blog
~75% Effort ~25% Effort
Marketing effort: New vs Certified Pre-owned
Listings
Sites
3
CERTIFIED

$0
$4
$8
$12
$16
2014 2015 2016
$7.2M$6.6M$6.1M
$15.3$14.8
$13.7
New Cars Pre-owned Cars
NADA DATA Midyear 2016 
Annual Financial Proﬁle
Compare: Total Sales by Revenue
4

0%
2%
5%
7%
9%
2014 2015 2016
7.6%
8.3%8.7%
2.9%3.3%3.7%
GROSS MARGIN
162%
Higher
Pre-owned cars
Compare: As % of selling price
5

$0
$425
$850
$1,275
$1,700
2014 2015 2016
$1,515$1,589$1,628
$999$1,098$1,186
USED CARS
$500
More per car
Compare: Retail Gross Profit
6

-$300
-$225
-$150
-$75
$0
$75
$150
$225
$300
2014 2015 2016
$228
$282$294
-$227
-$42
$14
Compare: Retail Net Profit
USED CARS
$228
Profit
NEW CAR
$227
Loss
7

NEW
Needs F&I, Fixed 
Ops, Add Ons
8
PRE-OWNED
Makes proﬁt 
immediately
CERTIFIED

-$800
-$600
-$400
-$200
$0
$200
$400
Domestic Import Luxury
-$27
$132
$355
-$720
-$435
-$54
New Used
9

Why certify your vehicles
4
CPO vehicles sell an average of five days faster
than non-CPO used vehicles, resulting in 20%
more turns per year.
2017 Autotrader, Inc., All Rights Reserved.
PRE-OWNED
CERTIFIED
PRE-OWNED 5 Days

4
While the peace of mind offered by CPO is
important to shoppers, inventory selection –
and whether or not the particular make/model
is right for them – is the top priority for
consumers.
PRE-OWNED
CERTIFIED

4
MOST IMPORTANT CRITERIA FOR VEHICLE
PURCHASE
1.Make/model
2.Model year
3.Body style preferred
4.New/used/CPO
5.Warranty coverage
PRE-OWNED
CERTIFIED

4
CPO vehicles are also a powerful tool for
reaching Millennials, who place a higher value
on CPO compared to other age groups.
PRE-OWNED
CERTIFIED

4
Millennials value CPO
PRE-OWNED
CERTIFIED
0
20
40
60
80
WPM
74%
62%

Increased Focus 
on Pre-Owned
Increased bottom
line revenue
PRE-OWNEDPRE-OWNED
Increase the bottom line
10
PRE-OWNED
CERTIFIED
CERTIFIED CERTIFIED

1.4
•Vist 1.4 dealerships
•Know what they want
•Need to know you have it
Consumer buying behavior
11

Assume you DO have
inventory or can easily get it.
NEW
New vs Used Buyer
12
PRE-OWNED
Assume you DON’T have
inventory and need
confirmation of inventory
CERTIFIED

PRE-OWNED
Need to market
CPO vehicles at
an inventory level
14
CERTIFIED

Digital Channel Sub Type Focus On Inventory
SEM Branded Keywords No
SEM Non Branded Keywords No
SEO Blog Articles No
SEO Videos No
Display Brand, Oﬀers, Specials No
Facebook Sponsored Updates No
Facebook Sponsored Carousel Yes
Listings AutoTrader & CarGurus Yes
Typical Dealership Digital Marketing
15

NEW
Assumes
Car is Available
Not at inventory level 
Still OK
Typical Dealership Digital Marketing
16
PRE-OWNED
Assumes
Car is NOT Available
Not at inventory level 
NOT OK
CERTIFIED

Need to
Drop
Need to
Have
Need to
Win
17

Ads that simply state you have used inventory
Need to drop
18

Ads that simply state you have a CPO Program
Need to drop
18

Make Model Based Ads
Need to have
19

• Find most commonly
stocked cars
• Put in Keyword
Spreadsheet
• Upload to Google
Adwords
• Link to Filtered SRP for
landing page
Chrysler
200
300
Town and Country
 
Caravan
Dodge
Charger
Challenger
Dart
Journey
Durango
Caravan
Ram
1500
2500
3500
Jeep
Compass
Patriot
Renegade
Wrangler
Need to have
20

• Create Ad Group
• Target Geo
• Select Make & Model
in “Detailed Targeting” 
Link to Filtered SRP for
landing page
Need to have
21

Make Model SEM for Pre Owned
Pros Cons
• Easy to set up
• Good for used vehicles
you typically stock
• Time consuming
• You may not always have
stock - need to turn ads off
• Not scalable if you have to
deal with many brands
• Doesn’t work well for off brand
vehicles
• SEM Expensive
Need to have
22

Inventory on Listings sites
Need to have
23

Pros Cons
• Aligns to exactly how
buyers want to buy pre
owned
• There. Are. Just. So. Many.
• Market Saturated.
• Only a “Need to have” not a
“Need to win”
Need To Have: Inventory on Listings sites
24

• Upload your inventory
• Automatically determines keywords
• Automatically generates ads
• Goes directly to VDP
• Searched for “Used Ford F150”
• Dynamic Search Ads scan your entire
inventory to create keyword and
appropriate ad combos automatically
Need To Win: Dynamic Search
25

Need To Win: Partners that can get Dynamic Search
26

Pros Cons
•Aligns with how used car
buyers shop
•No need to keep entire
keyword/ad list
•Scalable as it auto scans and
auto updates
•Ads are inventory based and
will link to VDP to engage
• Not for novice users
Need To Win: Dynamic Search
27

Need To Win: Inventory Advertising
• Automatically load in inventory
• Finds shoppers looking for the cars you
have
• Drives them directly to VDP
• Retargeting - Suggests similar vehicles
along with last seen vehicles
28

Your
Agency
or
Need To Win: How to get Inventory Advertising
29

Pros Cons
• Proactive approach
• Complements and Boosts
SEM
• Retargeting bonus
• Difficult to maintain in-house
Need To Win: How to get Inventory Advertising
30

Need To Win: Facebook Sponsored Carousel Ads
• Similar to Make-Model Facebook ads
but with actual inventory
• Can retarget last vehicle seen
31

Pros Cons
• Make Model level
targeting but with
inventory
• Take advantage of vibrant
but closed Ecosystem
• Not scalable
• Not perfect fit for all pre-
owned
• Performance varies by
partner
Need To Win: Facebook Sponsored Carousel Ads
32

Need To Win: Ads in Facebook & Instagram
• Using data from our network you can
match the most relevant vehicles in
your inventory to active Facebook users
• Drives them directly to VDP
28
2015 Audi A6 2013 Audi A6

Need To Drop Need To Have Need To Win
Brand/Offer Based Make Model Based Inventory Based
SEM
Ads that simply promote
that you have used cars
Make Model Keyword based
Ads that go to an SRP Page
Dynamic Search Ads
Display
Ads that simply promote
that you have used cars
Dynamic Inventory Ads
Facebook
Make Model Keyword based
Ads that go to an SRP Page
Carousel Make Model
Keyword Ads
Listings
Used Inventory on listings
sites
Level of optimization
for pre-owned
Low Medium High
MarTech Review
33

New Car
Marketing
Total
Inventory
marketing=Used Car
Marketing+
34
Certified  
Pre-Owned+

Total Inventory marketing
Why only
to SRP with
new cars?
35

Inventory based marketing for New Cars
Co-op
Approved
36

• Similar to many other CPO programs, KIA initially
focused on brand awareness to support its
dealers by creating a bridge to new car
• Primary goal was to build brand equity & Loyalty
• To continue growth and success the move to
inventory was required.
SUCCESS STORIES
Kia Canada CPO Program

SUCCESS STORIES
Problem
• Past success with branding and awareness
focused ads was stagnating
• A need to show greater support to dealers in the
CPO program
• Low number of users moving from CPO landing
pages to the Vehicle Detail Pages

SUCCESS STORIES
Solution
• The Auto Audience Network has moved the focus from brand to VIN
• Ad performance metrics are far above those of the branded programs
(CTR above 1.3%)
• Post click metrics have improved signiﬁcantly (Bounce rate halved, Time
on Site up 62%, VDP per Session increased from 0.2 to 1.3)
Since July 2017  
the monthly engagement with 
VDP views have increased by 40%

SUCCESS STORIES

What have we learned?
?
Facebook
CPO
Blog
SEO
Listings
Sites
Offers
USED CARS
$500
More per car
Smith Autos
Pre-Owned
NewUsed
37

Please follow up
with questions at
any time.
Ian Cruickshank
ian@speedshiftmedia.com | 604.520.9177 Ext. 225
VP, Sales & Marketing, Speed Shift Media
38

Don't get owned marketing your Certified Pre-Owned Inventory (CPO) - Presented at Used Car Week in La Quinta, CA - November 2017

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Don't get owned marketing your Certified Pre-Owned Inventory (CPO) - Presented at Used Car Week in La Quinta, CA - November 2017