Evolution of Automotive Digital Marketing – Where Do Dealers Go From Here?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 - Session #211

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.

Introduction and Background:

Ralph PagliaRalph Paglia Vice President – DigitalVice President – Digital

Tier10 MarketingTier10 Marketing• Currently leading 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…

www.ADMPC.comwww.ADMPC.com

Early History of Internet Marketing1969 to 2007

History of Internet 2000 to ?

History of Internet Marketing 2007 to Now

2007 – 2008 – 2009 – 2010 – 2011 – 2012 - Future

The “Minority The “Minority Report” Michael Report” Michael Keranen Effect…Keranen Effect…

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 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 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.

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.

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 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 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).

In the mid-1990s membership to BBSs begins to decrease, as the graphics-oriented World Wide Web bursts on the scene and grabs computer users' attention.

19861986Lead Generation via InventoryLead Generation via Inventorylistings posted from stock cards listings posted from stock cards to San Diego Defenseto San Diego DefenseContractor BBS’sContractor BBS’s 5053016369@Compuserve.net5053016369@Compuserve.net

19951995

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.

HistoryCarsDirect 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]

The Vision Industry Pioneers had in 1998

1998 - 20041998 - 2004

1998 - 20121998 - 2012

Targeting TechnologyTargeting Technology

Web 2.0 Engagement TechnologyWeb 2.0 Engagement Technology

CRM Systems CRM Systems TechnologyTechnology

Showroom / Service Showroom / Service DriveDrive

Where are the best dealers going to get their competitive advantages in 2012 and

2013?

Targeting TechnologyTargeting Technology

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Made Possible by the Advent of Customer Engagement

on Massive Levels

Advent of Customer Engagement on Massive Levels

19

PhoneFlow

Automotive Marketing Principle #1: Stories Sell! Stories Sell! (Yesterday, Today and Tomorrow)

Dealer Dealer Story, ArticleStory, Article

or Newsor News

DEALERSHIP SPONSOREDSOCIAL NETWORK

(community)

1. Set Up a “Profile” for each Dealer/GM/Manager2. Create a “Group” for your Franchise/Brand3. Create a “Fan Page” for your Community4. Post Links to dealer eCommerce site content items5. Remember the 80/20 Rule of Social Content

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…

Social Media Holds Dealerships Accountable for their Delivery of the Customer

Experience

Why is Reputation Management Important to Car Why is Reputation Management Important to Car Dealers?Dealers?

Why is Reputation Management Important to Car Why is Reputation Management Important to Car Dealers?Dealers?

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www.FeldmannReviews.comwww.FeldmannReviews.com

www.LouFuszReviews.comwww.LouFuszReviews.com

Retargeting ODA

Retargeting ODA

Our industry’s focus has been on bringing people into showrooms and service drives…

“People won’t buy a car or service online”

Resources and budget for a “Complete Digital Marketing

Strategy Implementation”

TrafficTraffic

EngagementEngagement

ProcessProcess

RevenueRevenueRealizationRealization

TrafficTraffic

EngagementEngagement

ProcessProcess

RevenueRevenueRealizationRealization

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.

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.

www.ADMPC.comwww.ADMPC.com

Slideshare.net/RalphPaglia

http://AutomotiveDigitalDealers.com

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