Dealer Budgets Exposed: How To Create An Effective Marketing Budget

Strategy-Process-Training-Results

Dealer Budgets Exposed: How To Create An Effective Marketing Budget

Brian Pasch CEO PCG Digital Marketing


Moderator

Becky Ross Marketing Manager

(303) 228-8753

[email protected]


Presenter

Brian Pasch CEO PCG Digital Marketing (732) 450-8200 [email protected]


• Need Login and Password For Google Analytics

• Need Traditional Media Budget

• Need Digital Budget

• PPC Budget Specifically: CPC

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Email to: [email protected]

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21 Chapters covering that latest strategies

to create a competitive

advantage in your local market.

Best Seller in Automotive Category on Amazon.com


How We Are Serving Dealers

SEO SEM IRM

Social Chat

Assessment Strategy Process Training Insights

Digital Marketing Blitz – Jan 23rd DMSC – February 5-7th Orlando

Automotive Boot Camp – May Philadelphia Digital Warrior Academy

AutoCon – September


Assessment Strategy Process Training Insights


Groups That Trust Our Advice


What Are Smart Groups Doing?

• Hiring Centralized Resources For Some Functions

• Running Their Business Via Data & Internet Analytics

• Upgrading Their Commitment to CRM Utilization

• Fixing Broken Phone & Leading Handling Processes

• Shifting Marketing Dollars from Traditional to Digital

• Focusing on their Online CSI scores and not just the OEM CSI scores.


• Engaging in Service Drive Equity Mining

• Connecting With Mobile Consumers.

• Engaging Shoppers With Video Marketing Messages.

• Realizing They Only Know- What They Know.

• Getting Their Marketing Budgets Aligned With Today’s Car Shopper.

What Are Smart Groups Doing?


The New Digital Customer


Objective: Crush A Bug


More than a year

7%

2-3 months

23% 4-6 months

17% 7-12 months

10%

A month

17%

1%

One day

2% 2-3 days

3% 4-6 days

2% A week

6% 2 weeks

5% 3 weeks

4%

5-8 hours

0%

auto shoppers are in market longer than ever

majority of auto shoppers are in market for 2 months or more

80% start their search with a

different manufacturer in mind then

the the manufacturer brand in which

they purchased a vehicle.

74%

Over 1 Month

of auto shoppers

are in-market for


Shoppers enter the market with brands in mind

12% Vehicle

Segment

25% 3rd Party Auto

Site

20% Brand

Purchased

12% Vehicle Segment

43% Competitor Brand

25% 3rd Party Auto Site

20% Brand Purchased

Source: Compete Vehicle Cross Shopping Analysis, July 2012.


Shoppers enter the market with brands in mind

12% Vehicle

Segment 43% Competitor

Brand

25% 3rd Party Auto

Site

20% Brand

Purchased

12% Vehicle Segment



20% Brand Purchased

63% of purchasers start

with a brand in mind



….yet, most shoppers will switch

12% Vehicle Segment



20% Brand Purchased 20%

of purchasers start

with the brand

they buy



Our Marketing Budgets for 2013 Must Connect With Today’s Car Shopper!

Let’s Look at the differences between the younger “open-minded” buyers and those that are 55+ and are more likely to have settled a brand of car they like…


Open-minded shoppers are younger

55+

35-54

18-34

55+

35-54

18-34

Source: ‘Constant Consideration’: Vehicle Shopper’s Path to Purchase” Compete 2012.

4+ Brands 1 Brand


Open Minded Shoppers are likely to have switched to another brand

28%

48% 60%

72%

52% 40%

1 Brand 2-3 Brands 4+ Brands

Yes No


Was this the first time your ever purchased this brand?


How do you reach these open-minded shoppers?


50%

61%

64%

70%

76%

82%

83%

Radio

Flyers/Brochures

Magazines

Newspapers

TV

Video Sites

Social Networking Sites

Newspaper Sites

Online Mapping Tools

Family Members/Friends

Regional Dealer Sites

Professional Review Sites

Blogs/Forums

Vehical Evaluation Sites

Salesperson

Search Engines

Visited a Dealership

Test Drive

OEM Sites

Dealership Sites

with 7 of the Top 10 sources

shoppers turn to being digital



48%

50%

61%

64%

70%

72%

76%

76%

79%

82%

83%

Family & Friends

Regional Dealer Sites

Professional Review Sites

Blogs/Forums

Vehical Evaluation Sites

Salesperson

Search Engines

Visited a Dealership

Test Drive

OEM Sites

Dealership Sites

Online usage is surpassing that of offline


Which sources did you use to look for information?


49%

37%

44%

26%

41%

46%

51%

43%

48%

18%

15%

18%

30%

26%

21%

20%

25%

23%

3%

24%

5%

3%

9%

13%

16%

20%

18%

Looked at 3rd party/Consumer reviews

Texted/IM’d someone for their opinion

Used comparison tool

Checked address/hours of dealership

Looked for discounts/offers

Checked to see if it was in stock

Sent a picture

Checked price at other dealerships

Reviewed description of specific model



Which activities did you perform on your mobile device?


Take The Mobile Test


Online video moves them to act

30%

32%

46%

47%

57%

50%

26%

25%

26%

25%

37%

45%

6%

13%

17%

14%

33%

47%

Used mobile to find info

Shared an online video

Talked to friends, family or colleagues aboutvehicles

Searched dealer inventory/availability of a specificvehicle

Visited a dealership

Used my computer to find info



As a result of watching an online video, which actions did you perform?


Take The Video Test


Auto shoppers love video Video is considered the most engaging ad format

Source: Google/Compete/Polk, Auto Buy Flow Study, June 2011\

52% of car shoppers find

online video ads the most useful ads in their shopping process

40% of car shoppers decided

which company to purchase from based on

an online video ad

30% of car shoppers were

prompted to start shopping by seeing an

online video ad


This New Data Begs Some Questions

How Much Of Your Marketing Budget is Allocated to:

• Mobile Marketing

• Video Marketing

• Conquest Marketing

• Search Visibility

• Merchandising Your Website • Do you really stand out?


How are auto shoppers utilizing the web throughout the path to purchase?


vehicle shopping searches have grown +300% over the past 5 years

+40% query growth Y/Y

Source: Google Internal Data, Jan 2007 – June 2012.

1/1/07 1/1/08 1/1/09 1/1/10 1/1/11 1/1/12

Vehicle Shopping Queries on Google.com


and many of them find your site from Search

Source: Google/Compete/Polk, Auto Buy Flow Study, June 2011

33%36%

42%

55%

0%

10%

20%

30%

40%

50%

60%

2007 Purchasers 2008 Purchasers 2009 Purchasers 2010 Purchasers

Dealership Site Search Referred Visitation by Purchase Year (Clickstream Data; Share of Purchasers Anytime During the 6-Months Prior to Purchase)

55%

search refers more than half of shoppers to dealer sites


auto shoppers search often 84% of shoppers searched more than once


16%

11%

14%

19%

40%

Searches

10+

5-9

3-4

2

1

Number of Automotive Search Queries Purchasers; Jan – Dec 2010


auto shoppers use a variety of devices Different device behavior implicates different strategies

Source: Google Internal Data, 2011. % of each platform’s traffic shown hourly for one day. Does not indicate absolute or relative traffic volumes.

12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM

Tablet Mobile Desktop

Day Evening Morning Night

Hourly Distribution of Searches by Platform (doesn’t reflect absolute traffic volume)


as consumer’s rely more on their connected devices, this percentage will

only continue to grow…

nearly 1 in 5 auto queries are mobile

By 2013 40% of auto queries will come from a mobile device


mobile search is used for lower funnel behavior


44%

use their device for

price comparison

on the dealer lot. 32%

use their smartphone to find

a dealership.

23%

use them for contacting dealerships.

21%

of top dealer searches come on

mobile devices.

48% Looked up dealer

information


but search isn’t their only information source Average auto shopper uses 18.2 information sources

Source: Google/Shopper Sciences, Automotive ZMOT Study, 2012

18.2

information

sources are used

by car shoppers

Automotive ZMOT Study, 2012

25.6

information

sources are used

by car shoppers

18 – 34 years old

– 11 more than

the average over

50 year old

read automobile reviews or endorsements online

watched videos about automobiles online

talked to a customer service representative online

requested a quote for an automobile

went on a test drive

read comments following an article online

talked with friends and family

saw a TV ad


in fact, they spend most of their time online elsewhere

Source: Online Publishing Association and Nielsen/NetRatings, August 2010

Search

5%

Email & IM 20%

Commerce 11%

Content 38%

Community 26%


winning customers online goes beyond Search Dealers will increase investment in online branding solutions

Source: Borrell Associates, 2012 Automotive Advertising Outlook, May 1, 2012

$0

$1,000

$2,000

$3,000

$4,000

$5,000

2011 2012 2013 2014 2015 2016

Display - Run of Site

Display Targeted

Email

Paid Search

Video

Franchise car dealers online ad spending

in $millions


you can reach shoppers with Display


display will make search better Increase likelihood to purchase by 8%

iProspect & Comscore real branding implications of digital media - August 2011. Share of exposed respondents who answered affirmative. i.e., 38% of those exposed to a search & display ad were able to recall a brand unaided

17%

26% 26%

38%

33% 34%

Unaided Brand Recall Likelihood to visit a brand'swebsite

Likelihood to purchase

Search Only Search + Display


Get more mileage from your TV ads by putting them on YouTube

Skip this ad now >>

[clickable banner]

[your TV spots or online videos]


Auto shoppers share their experiences 80% of auto shoppers want to talk about their purchase experience - with nearly half sharing their experience digitally


7% Wrote a customer review

on a website

9%

Wrote about it on a social network page

18%

30%

Mentioned it to a co-worker or took an online survey

63% More than

Mentioned it to friends/family

Blogged about their experience


Users trust reviews from family and

friends more than any other

advertising source 76% of users trust

personal

recommendations

when making

purchases

49% of users trust online

consumer opinions

Source: The Nielsen Company, “Trends in Advertising Spend and Effectiveness, “ June 10, 2011


How can your dealers succeed in the online space?


Search

Strategy-Process-Training-Results SEARCH


SEM

SEO


good to great ads

Good ad

ad copy with a call to action

sitelink extensions

Better ad

call extensions

Great ad

location extensions

“Sitelinks help us engage users faster with more

options, and reduce wasted clicks”

“With Location Extensions we feed our Google Places address into our ad, and help users get directions as

soon as possible in the ad itself”

1 (866) 664-6921)


opt into mobile Click to Call


location extensions


bid by distance mobile beta Increase your share of voice among mobile users near your dealership


Mobile Offer Ads


Paid search checklist

bid on all relevant keywords

show ads on all devices

write compelling, useful ads

use sitelinks, call and location extensions

create a mobile optimized site

test bid by distance or offer ads

optimize your investment


Display/Video


re-engage site visitors with Remarketing Just like following up with people who visit your lot – why not follow up with people who visit your ‘online lot?’

1

2

3

your ad here


what if you could make your display advertising more like your search

advertising?


Contextual targeting Target sites on a keyword basis – more refined than ever

text ad

image ad

video ad

site keyword ad

Display

2012 Chrysler 300

Dodge Dart prices

Ram specs


what if you could only show ads to

people shopping for a car?


Interest category marketing Allows you to show ads only to people shopping for cars

text ad

image ad

video ad

Display


what if you only paid if someone

watched your commercial?


Trueview in-stream Pay only when a user watches your video

Skip this ad now >>

[clickable banner]

[your TV spots or online videos]


Trueview in-search Promote your videos ads when people are searching for your content

Ads

[your video thumbnail]

by yourdealershipvideos | 12,351 views


Display & Video checklist

implement remarketing tags on website

advertise to customers on your remarketing list

create a free YouTube brand channel

test online branding with contextual or behavioral targeting

upload videos to the channel

test promoted videos on YouTube

take existing TV commercials and run them on TrueView


Napkin Math For Traffic Attribution


Three Basic Questions

What percentage of your customers use the Internet to research a car before coming to the dealership to make a purchase? What do consumers primarily do when they visit your website? What are you best options to expose your inventory to in-market consumers?


General Motors Dealership

Monthly Budget: $100,000 Traditional $23,000 Digital Adwords Was Not Being Used at All

Total Website Visitors: 5,054

Direct: 1,279 (i.e. www.dealerwebsite.com) Home Page: 1,024 Organic: 2,739 Referrals: 1,036

Organic Visitors: 2,739 Used Dealership Name in Search: 1,378 Did Not Use Dealership Name: 786 Unknown: 482 Referral Traffic: 1,036 (top 3 sources listed below) Group Portal: 423 Used Car Site: 69 Email Campaigns: 100

http://www.dealerwebsite.com


Traditional Spending: $60K on Radio $20K on TV $10K on Print $10K on Direct Mail Digital Spending: $5,000 Autotrader $3,500 Cars.com $4,500 TIM $3,000 Cobalt DAP to OEM Site $1,000 SEO/IRM $3,000 OEM Leads $2,000 Website Package $1,000 Misc

$100,000

$23,000

Marketing Strategy

Let say $60,000 is touching Internet Shoppers



Direct: 1,279 Home Page: 1,024 Organic: 2,739 Referrals: 1,036

Organic Visitors: 2,739 Used Dealership Name in Search: 1,378 Did Not Use Dealership Name: 786 Unknown: 482 Referral Traffic: 1,036 (top 3 sources listed below) Group Portal: 423 Used Car Site: 69 Email Campaigns: 100

Napkin Math Formula #1 - Generous

Home Page Direct: 1,024 Organic Searches with Name: 1,378 Portion of Unknown: 300 Portion of Non Branded Organic: 100 Portion of Group Portal: 150 Total Attributed to Traditional: 2,932

$60,000 / 2,932 = $20.46 / visit


May 29, 8:30a PST AutoTrader.com

May 29, 11:46a From Google PAID, clicks to kengarffford.com and navigates to inventory page

May 29, 2:18p From Google, clicked back to the same inventory page as earlier

May 30, 12:04p AutoTrader.com

June 1, 2:23p Direct to KenGarffFord.com

June 7, 2:25p Direct to KenGarffFord.com

June 7, 2:26p: Phone call to the dynamic number listed on the dealer website; Customer: Arturo called from: 510-xxx-xxxx

May 29, 11:45a Google Organic, search term "Ken Garff Ford Utah"

Google

May 29, 2:18p Google Organic, search term "Ken Garff Ford"

Google

http://www.kengarffford.com/new-inventory/index.htm?SByear=clear&SBmake=Ford&SBmodel=F-150&SBtrim=clear&SBprice=clear&sortBy=internetprice asc,make,model,trimlevel,year desc


http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=94580&endYear=2013&keywords=raptor&modelCode1=F150PICKUP&photosOnly=true&showcaseOwnerId=70580&startYear=2010&makeCode1=FORD&bodyStyles=TRUCKS&keywordsfyc=raptor&searchRadius=500&pricesOnly=true&listingId=322531442&Log=0



https://www.google.com/search?source=ig&hl=en&rlz=&q=ken+garff+ford&oq=ken+garff+ford

https://www.google.com/search?source=ig&hl=en&rlz=&q=ken+garff+ford+utah&oq=ken+garff+ford+utah


Napkin Math Formula #2 – Middle Road


Home Page Direct: 1,024 716 Organic Searches with Name: 1,378 964 Portion of Unknown: 300 210 Portion of Non Branded Organic: 100 70 Portion of Group Portal: 150 105 Total Attributed to Traditional: 2,932 2,065

Autotrader & Cars.com influences direct traffic and searches on Dealer’s Name. 30% Overlap in visitors at least! 30,000 VDP views on Autotrader.com So let’s reduce traditional influence by 30%

$60,000 / 2,065 = $29.05 / visit


Napkin Math Formula #3 – More Realistic


Home Page Direct: 1,024 512 Organic Searches with Name: 1,378 689 Portion of Unknown: 300 150 Portion of Non Branded Organic: 100 50 Portion of Group Portal: 150 75 Total Attributed to Traditional: 2,932 1,401

If you shut off all traditional advertising this month, what would the branded and direct Internet traffic do? Let’s say the traffic is cut in half…because of the branding and location, people will still know to search that name.

$60,000 / 2,065 = $42.82/ visit


Traffic Now Analysis Napkin Math 1: $20.46 Napkin Math 2: $29.05 Napkin Math 3: $42.82

So if we want to increase the number of people who see our in stock vehicles, why wouldn’t we look for affordable solutions to drive more eyeballs to our VDP’s?


Traffic Now Analysis from Traditional Napkin Math 1: $20.46 per visitor Napkin Math 2: $29.05 per visitor Napkin Math 3: $42.82 per visitor

So, have you maximized your Digital Channels?

Google Advertising Averages for Dealers SEM: $2.00 - $3.50 per visitor Display: $2.00 - $2.50 per visitor Retargeting: $1.75 - $2.50 per visitor Mobile Apps: 15 cents – 50 cents Pre-Roll 25 cents per view (2.50/click)


Chevrolet Store – August 2012

Monthly Budget: Traditional: $16,486 Digital: $17,482


Direct: 2,210 Home Page: 1,350 Organic: 4,394 Paid: 1,564 clicks based on SEM budget Referrals: 802

Organic Visitors: 4,394 Used Dealership Name in Search: 2,401 Did Not Use Dealership Name: 1,316 Unknown: 677 Referral Traffic: 802 (top sources listed below) Google: 126 Autotrader: 45 Sunrise Blog: 69 Cars.com: 32 Tier 2 Site: 58 Portal Site: 23


Napkin Math Formula #1 - Generous

Home Page Direct: 1,350 Organic Searches with Name: 2,401 Portion of Unknown: 400 Portion of Non Branded Organic: 300 Group Portal: 23 Total Attributed to Traditional: 4,474

$16,486 / 4,474 = $3.68 / visit


Direct: 2,210 Home Page: 1,350 Organic: 4,394 Paid: 1,564 Referrals: 802

Organic Visitors: 4,394 Used Dealership Name in Search: 2,401 Did Not Use Dealership Name: 1,316 Unknown: 677 Referral Traffic: 802 (top sources listed below) Google: 126 Autotrader: 45 Sunrise Blog: 69 Cars.com: 32 Tier 2: 58 Portal Site: 23


Napkin Math Formula #2 – Middle Road

Home Page Direct: 1,350 945 Organic Searches with Name: 2,401 1,681 Portion of Unknown: 400 147 Portion of Non Branded Organic: 300 210 Portion of Group Portal: 23 17 Total Attributed to Traditional: 4,474 3,000

Autotrader & Cars.com influences direct traffic and searches on Dealer’s Name. 30% Overlap in visitors at least! So let’s reduce traditional influence by 30%

$16,486 / 3,000 = $5.49 / visit



Napkin Math Formula #3 – More Realistic

If you shut off all traditional advertising this month, what would the branded and direct Internet traffic do? Let’s say the traffic is cut in half…because of the branding and location, people will still know to search that name.

$16,486 / 2,237 = $7.36 / visit

Home Page Direct: 1,350 675 Organic Searches with Name: 2,401 1,200 Portion of Unknown: 400 200 Portion of Non Branded Organic: 300 150 Portion of Group Portal: 23 11 Total Attributed to Traditional: 4,474 2,237



Traffic Now Analysis from Traditional Napkin Math 1: $3.68 per visitor Napkin Math 2: $5.49 per visitor Napkin Math 3: $7.36 per visitor

So, have you maximized your Digital Channels?

Chevrolet Store Data

Google Advertising Averages for Dealers SEM: $2.00 - $3.50 per visitor Display: $2.00 - $2.50 per visitor Retargeting: $1.75 - $2.50 per visitor Mobile Apps: 15 cents – 50 cents Pre-Roll 25 cents per view (2.50/click)


AutoTrader Statistics: August Used Car VDP’s: 2,977 New Car VDP’s: 628 Total: 3,605 VDP Views Cost: $2,275 Or 63 cents per VDP view

Recommendation Setup Analytics to show VDP views on your own website.