2008 digital advertising dealer summit

FMC LeadManagement DIGITAL TEAM 1

Digital Advertising Dealer Summit

April 18, 2023


Welcome


• Play 2/3 min video

Digital Dealer Speak


• OEM (1), Ad Association (2) and Dealer Websites (3)• Inventory Aggregation Portals• Lead Producers and Resell Aggregators• Specialized Microsites and Landing Pages• URL and domain management portfolios• CRM and Lead Management Tools• Automated Email Marketing and Communication systems• Assigned Resources and Business Processes• Search Engine Optimization• Social Networking and Reputation Management• Digital Advertising

– Search Engine Advertising– Content and Demographic Network Ad Placements– Behavioral Targeting Campaigns– Retargeting Campaigns– Site, Services and Event Sponsorship Campaigns

What is Automotive Digital Marketing?


Automotive Ad SpendShift to Internet


Digital Media Spending Growth

*Source: IAB.net


0.5% 2.0%5.0%

10.0%9.0%

16.0%

25.0% 27.0%

0%5%

10%15%20%25%30%

2005 2006 2007 2008 FCST

Tier 2

Tier 1

Digital Spend % - TIER I / TIER IITier I and Tier II spend has increased as Internet shopping activity has grown

Source: Ad Activity, SEM/Display


Digital Growth - Retail SalesInternet Sales as a % of Retail sales continue to grow in importance

Source: CKS Sales Match


70+%

70+%

% of Ford buyers research on-line


Car shopper are qualifying dealers by researching online with the vast majority using search

All Car Buyers are “Internet Customers” Majority of Vehicle Research is Being Done Online


Moving beyond “Why Digital”

1999 2000 2001 2002 2003 2004 2005 2006 200710.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

40.0%

54.0%60.0%60.0%

64.0%64.0%67.0%68.0%70.0%

26.0%33.0%

43.0%47.0%47.0%

54.0%53.0%59.0%61.0%

New Used


Why doesn’t Auto advertising have the same impact?

Other, 17.6 hours

News-papers,

3.9 hoursTelevi-

sion, 16.4 hours

In-ter-net, 32.7 hours

Weekly Hourly Media Consumption 1

(Total time spent using all media was 70.6

hours)

1. IDC Study, U.S. Consumer Online Behavior Survey Results 20072. 2006 National Automobile Dealers Association Data

Internet

Television

Newspaper

Direct Mail/

Radio/Other

11.50%

19.50%

27.30%

28.30%

Percent of Advertising Spend 2


Only travel is more influenced by Online media

Source: DoubleClick Touchpoints III


“Which one of these information sources was most important when making decisions about buying your vehicle?”

Inte

...

Fam

ily

Frie

nds TV

Mag

a...

News.

..

Radio

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0% 35.3%

24.9%

13.4%

8.2%4.4% 3.6%

1.1%


Today’s Biggest Dealer Advertising ChallengeOverspending on Newspaper, Radio, Outdoor & Mail Relative to Usage

0%

5%

10%

15%

20%

25%

30%

35%

40%

Newspaper Radio Television Internet Other

Dealer

Consumer

The Average Car Dealer’s Advertising Spend Does Not Match The Car Buying Consumer’s Media Consumption Behaviors…

Average Dealer Advertising Spend vs. Consumer Media Consumption

Deale

r A

d

Bu

dg

et

Effi

cie

ncy G

ap


Dealer Advertising Budgets Not Aligned

1/10TV & RADIO

3/10PRINT

8/10INTERNET

FEW LEADS

DILUTED OPPORTUNIT

Y

Where Do You FindThis Sales Opportunity?

WHY?PRODUCIN

G LESS THAN

DESIRABLE RESULTS

92% of Ad Budgetfocused at 30% of Customers 8% of Ad Budgetfocused at 70% of CustomersDealers are relying on 3rd Party Lead Providers

for Digitalwho send same lead to your dealership and others


Dealer Ad Budgets RealignedSTRATEGY

1/10TV & RADIO

3/10PRINT

8/10INTERNET

2008 AUTO BUYERMORE

LEADS ON OWN

HIGHER QUALITY

HIGHER CLOSING %

HIGHER GROSSLOWER

COST PER LEAD

STRATEGY

25% of Ad Budgetfocused at 70% of Customers• Dealer becomes regional buying service• Dealer generates more high quality leads on

own• Dealer quickly captures higher share of

online market


Objective AnalysisWhere are Dealers shifting money from, so that Digital Marketing does not increase overall advertising budgets or Costs PVR?

Includes auto manufactures, national dealer associations, individual dealerships and other market vendors, excludes auto insurance and

retail companies.

Source: eMarketer


Newspaper spending is declining

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$4.9$5.2 $5.2

$5.0

$4.6$4.3

$4.1$3.9

$3.7

$3.3 $3.2

Spend (Bil-lions)


It’s not all about the lead

2004 2005 2006 20070%

20%

40%

60%

80%

Online New Car Shopper as % of Total BuyersEmail Lead Requestors as % of Total Buyers

64%

20%

67%

21%

68%

21%

71%

22%


Only 22% of dealer website visitors submit a lead

Yes; 22%

No; 88%

Submit an Online Request for

Quote

Yes; 39%

No; 61%

Visit Dealer Based on Online

Information

39% visit a dealer based on information found online


The vehicle shopping process takes about three months for the average AIU

Purchase Milestones of New-Vehicle AIU's

012345678910111213141516

Weeks Before Purchase (Mean)

Decide on typeof vehicle

Start visitingdealers

Decide it was time to purchase

Shop vehicleson the Internet

Start activelyresearching vehicles

Decide onmodel

Purchasenew vehicle

14.7

11.7

11.0

10.4

7.6

6.3

0

Source: 2007 J.D. Power and Associates New Autoshopper.com StudyBased to AIUs


One-third of new-vehicle buyers purchase within one month of deciding they need a new vehicle

53 or more

25 to 52

21 to 24

9 to 20 5 to 8 4 3 to 2 1 week0%

5%

10%

15%

20%

25%

2%

10%

15%

22%

18%

13% 13%

8%

Shopping Timeline of AIU's

Decide time to buy

Weeks Before Purchase

27% Shopping Process Over Five Months

34% Shopping Process One Month or less


Ecommerce Elite


Most Improved


Lead Volume


Lead Response Time


Percent of Retail


Why Digital? Current Marketplace


Ford Lincoln Mercury Co-Op


Ford Lincoln Mercury Digital Advertising Program


• Do it yourself• Need some assistance• Turn Key - Complete

Ford Lincoln Mercury Digital Advertising Program


• Showroom• Phones• Lead Response

Check Current Process


Resources


• Home Portal

Resources


• DMC

Resources


Bulk Email


• Most cost effective, highest ROI

Bulk Email


WebSite


Standard DealerConnection


Premier Customization DealerConnection


Online and Offline

Promoting Your Dealership


ADP Speaker Bio / Introduction


Video


• Page 12

Google Ad Words


• Buyer beware

Common Pitfalls


What to Measure


SEO• (Search Engine

Optimization)

SEM • (Search Engine

Marketing)

Search Defined


Digital Advertising Myths


15 Minute Break


Welcome Back


Turn Key Solution


• How much is it?• How does it work?• Who does the work?• Why would I use it?

Turn Key Solution


• Pricing• $495.00 a month• Spend only as much as you like with a

20% markup added• Month to month contract

Turn Key Solution


• How does it work

Turn Key Solution


• Who does the work• Virtual Marketing Representative (VMR)

Turn Key Solution


Turn Key Solution


• Metrics• KBA

Turn Key Solution


• Tier I and II Negotiated Pricing cascaded to Tier III

Turn Key Solution


Case Studies


Relationships


Specific Media


Question and Answer Panel

2008 digital advertising dealer summit

Documents

dealer advertising budgets

dealer websites

videodigital dealer

ad activity

ad association

ad budgetfocused at70

national dealer associations

ad budgetfocused at30