Download - Automotive Digital Marketing; Tier 3 (Dealer) Advertising

8/8/2019 Automotive Digital Marketing; Tier 3 (Dealer) Advertising

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2010 Dealer Digital Advertising ProgramDavid Schoonover

02/22/10



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TABLE OF CONTENTS

1. Executive Summary2. Objectives

3. Budget

4. Timeline

5. Program Benefits

6. Strategy

7. Current State

8. Competition

9. Case Studies

10. Dealer Process Flow11. Communications Plan

12. KMA Coordination13. Current Publishing Partners

14. Billing Process

15. Measurement

16. Creative Development

17. Dealer Package

18. Field& Dealer Training



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1. EXECUTIVE SUMMARY

Establish a Tier 3 dealer digital advertising program, inclusive of

display ads, search, and social media



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2. OBJECTIVES

Provide Kia dealers with a mechanism to extend their traditional(TV, print, radio) advertising Online

Increase Kia brand continuity and ability to extend sales eventsand launch communications

Improve dealer profitability through reduced costs

± Dealers don¶t know what they should be paying for digital services. By havingKMA involved, we can µwatchdog¶ on their behalf

Achieve net zero cost program for KMA

Provide subject matter expertise at the regional and dealer level to foster growth and program development: self-funded by program revenues

Educate dealers how to advertise in the digital age, and provide themwith online ad development tools necessary to complete the task

Improved coordination and consistency for T1, T2, T3 advertising efforts



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3. BUDGET

Assumptions: ± 30% dealer participation (Kia Responsible)

± $4,200 Avg Monthly Dealer Ad budget

Total, Year 1 $622,180.00Earn Back Credits $541,793.80

Net KMA Cost, Year 1 $80,396.20



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4. TIMING

EAD 60 days from development to signature RFP 90 days incl. Q&A (draft 30, vendor response 30, Q&A 30)

Vendor Selection 45 days (21 days vendor pres, 24 for decision)

Contract 60 days (author, negotiate and execute)

Systems Dev 120 days

Total time to launch = 375 days



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5. PROGRAM BENEFITS

Plan, develop and deliver a Digital Marketing Program ± Competitive advantages

± Retail digital marketing expertise

± Digital advertising capabilities to Kia dealers in the USA

± Kia Sales Region based resources; Digital Marketing Consultants (DMCs)

± Visit dealerships to consult, implement & execute to immediately impact Digital

Marketing and Lead Management effectiveness ± Attend KMA Sales Region¶s relevant meetings, provide training to KMA

Region staff and become their KMA Sales Region¶s ³Go To´ resource

± Facilitate KMA Sales Region planning, scheduling, dealer participation andexecution of quarterly Kia Dealer Digital Marketing Summits

± Educate and guide dealers towards transitioning an appropriate portion of their monthly advertising budgets into KMA endorsed digital advertising solutions

± Execute direct phone contact and email communications with targeted dealers

Increase dealer competitive position by adding their capabilities

Adds additional lead generation mechanism

Further leverage and expand upon Kia programs (eLeads and Website)



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6. STRATEGY

± Leverage Kia iMarketing Dealer Services infrastructure

± Increase dealer knowledge base through significant teaminvolvement

± Install market-level flexibility to fully maximize local-marketconditions, politics, economy, events, etc.

Fix Dealer Site andSEO Optimize

Paid Search Display Ads Social Media



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7. CURRENT STATE

AUTOTRADER ELEADS TRAINING AND CLOSE RATES

DEALER ACTIONS AND REQUESTS

KIA DEALERS ARE LARGELY ON THEIR OWN

DEALER DIGITAL SPEND BY OEM

eMarketer.com ³Cross-channel online marketing used to target differentareas of the purchase funnel makes an effective combination.´



Dealer Feedback: ± ³Digital Advertising dollars are the best money we spend.´ Large Midwest

Group Marketing Director

± ³My problem is I just don¶t have the right guys for all this stuff, I¶m trying to run

a business here and if I fall behind by 60 days«I¶m lost. I need this help.´

General Manager of a Market Leading Ford Dealership

7. CURRENT STATE



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8. COMPETITION

All major OEM¶s have a T3 digital advertising program (exceptHyundai and Kia)

1. Ford: Long term leadership, large team, digital dedication andsignificant allocation of human and financial resources since

19972. Honda: Excellent business process (a stable of the company)

3. GM: Substantial funding, full program. Downside is that they payfor everything for their dealers, the dealers don¶t have a financialstake thus they are not as engaged. Large company creates lack

of coordination4. VW ± funds and dedication

5. Subaru ± Scrappy and excellent and niche marketing, plus notscared of unpopular niches such as GLBT



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8. COMPETITION con¶t

All major OEM¶s have a T3 digital advertising program (exceptHyundai and Kia)

6. Nissan ± live regional trainers

7. Chrysler ± minimal program. Just launched PAP promotionalallowance program which provides a higher rate of co-op creditsfor digital advertising. No other guidelines or services.

7. Toyota ± highly fragmented internal organization (GST, SET)leads to non-centralized strategy



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APPENDIX

1. Case Studies2. Dealer Process Flow

3. Communications Plan

12. KMA Coordination

13. Current Publishing Partners

14. Billing Process

15. Measurement

16. Creative Development

17. Dealer Package

18. Field& Dealer Training



Digital Advertising Campaigns using 2 types:

1. Site Placement Targeted Campaigns

2. Keyword Search Advertising Campaigns

Albuquerque - Santa Fe, NM Market

Dealership Digital Advertising Pilot & Proof Of Concept

Dealership Digital Advertising Case Study

9. CASE STUDIES



Digital Advertising for DealersCase Study ± Paid Search and Web Site Display Advertising

PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!

3 Month Campaign



BEFORE Digital Advertising

PHONE VOLUMEPrevious Month beforeDigital Ad Campaigns

(Nov 21-Dec 29) = Same Days TrackedWebsite 800 Sales Line = 272 Total Calls



AFTER Digital Advertising Implemented

PHONE VOLUMEDigital Advertising Campaigns(Jan 21-Feb 29) = Same Days Tracked

Website 800 Sales Line = 476 total Calls



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10. DEALER PROCESS FLOW

ADP creates a KIA specific DA information and enrollment portal ± Defines KIA DA enrollment process for the dealer

± Addresses FAQs

± Dedicated line to track inbound phone activity

± Automated and manual KIA branded follow-up email communications

± KIA repository email account to capture any communications for future review such as [email protected]

Virtual and or onsite DA presentations

Local area resources for in-store DA presentations, planning,clarifications and enrollment

1-800-XXXXX

www.KIADigitalAdvertising.com

Support Co-Op and IDA claim submission



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11. COMMUNICATIONS PLAN

Internal ± Introduce the field team in a Field Communication

(Regional Digital Dealer Training Managers)

± KIA District Manager Conference Calls and Meetings

± Emphasize the need for their support

± Introduce the KIA DA Launch Kit including presentations and supportmaterials

Dealer announcement prior to the Sportage Launch

± Website (iMarketing, or ADP provided like Cobalt?)

± Phone number

± Letter from Michael

Roll Out



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12. KMA COORDINATION

± Tier 1 In-Market plan

± I+

± D&G

± Reprise Search

± AD Kia.com



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13. PROPOSED PUBLISHING PARTNERS

± Google; Search Engine and Content Network ± Yahoo!; Search Engine and Display Advertising Network

± Microsoft; Search Engine Advertising Network

± Specif ic Media; Display Advertising

± Jumpstart Automotive Media; Display Advertising

± Outsell; Digital eNewsletter & fully staffed Chat services

± Kelley Blue Book; Display Advertising within KBB.com

± DoubleClick; Digital Advertising hosting, trafficking andtracking technology

± Liquidus SpotSense; video advertising. ± DealerRater.com; Certified Dealer program for online

reputation management and social marketing

± Liquid Motors; Online classified listings and inventorymanagement tools



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14. BILLING PROCESS

The process will follow the current Proxicom e-Leads structure: ± ADP will manage contracts, billing and payments for all

advertising publishers

± ADP will provide Kia on a monthly basis with a statement of charges by dealer

± KMA will bill dealers via the parts statement

± KMA will pay ADP once dealer payments are collected, thusmaintaining a positive cash flow

± The billing rate will be 1:1, thus except for startup costs, KMAbudgets will reflect a $0 net cost.

± ADP will retain in a Kia µbank account¶ a 10% credit (from adbuys only, not the monthly dealer admin fee). That credit willbe used to fund the RDDTM¶s.



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15. MEASUREMENT

Kia Digital Advertising Program for Dealers; KMA Cost Recovery Analysis and Profor ma

Assumptions

Kia Advertising Co-Op will require that Digital Advertising be purchased by dealers through the Kia Digital Advertising Program in order for campaigns to be Co-Op Program Eligible. ADP currently works directly with, andrecommends NSI for KMA Dealer Advertising Co-Op program management services.

30% Dealer Participation

$4,200 Average Monthly Digital Ad Media Budget (current ADP DA average for 500+ dealers)

Kia Motor America responsible for enrolling 30% of dealer network into program participation.

Eligible KiaDealers

Dealer NetworkParticipation

Net ParticipatingDealer Count

Average MonthlyDealer DA

BudgetMonthly DA

Media Buy Total

Monthly KMAEarn-Back

CreditsAnnual KMA

Earn-Back Credits

642 29% 186 $2,425 $451,487 $5,417,838 $45,149 $541,783.80

Kia First Year Program Costs from "Breakdown" Worksheet

Kia Regional Digital Marketing Consultant Annual Cost (year 1): $543,200.00

Kia Digital Advertising Program Development and Set Up Costs (one time): $78,980.00

Total Year 1 Costs (from ADP): $622,180.00

Less - Annual KMA Earn-Back Credits: $541,783.80Net KMA Cost for Year 1 of Program: $80,396.20

© Copyright 2009 ADP Dealer Services - Kia Motor America Confidential



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17. DEALER PACKAGES

C onceptual Packages

Package One

Utilizes Google Search to capture a buyer¶s attention when they areactively using the internet to research, find or buy their nextvehicle. Drives additional sales by reaching out to your bestprospects and customers with our monthly eNewsletter.

Includes:

Custom Search Engine Marketing Campaign

eNewsletter

Designated Virtual Marketing Representative

Monthly Reporting

Package Price: $2,000/Mo

Package Two

Leverage both Google Search and Yahoo Search along withbanners on KBB to catch the attention of buyers researchingtheir next car and the value of their trade.

Includes Package One Plus:

Yahoo Search

Banner advertisement on KBB.com

Two banner ads for messages/ vehicles/offerings (ie. Ford Fusion,F150)

Floodlight tags on your website to track post impression activity

Monthly Reporting


Package Three

This blended approach targets consumers during the active stages of research plus utilizes our ad network and behavioral targetingto advertise to shoppers when they are using the web for news,entertainment or information.

Includes Package Two Plus:

Your dealerships advertisement on our premier ad network

Behavioral targeting and retargeting to in-market shoppers

Floodlight tags on your website to track post impression activity

Monthly Reporting


Package Four

Dominate your competition by maximizing nearly the entire reach of the internet along while putting your dealership in the front of consumer minds by capitalizing on site retargeting.

Includes Package Three Plus:

Ad Display Network: choice of one: Automotive Behavioral

Targeting, NetCast or AutoCast products

One set of Custom banners per quarter

Two Custom microsites

Monthly Reporting

Package Price: $15,000+/Mo (depending upon market size)



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18. FIELD AND DEALER TRAINING

± ADP to provide 1 fulltime dedicated resource per Region and1 dedicated Program Manager to:

± Become the RDDTM (Regional Dealer Digital Training Manager)or the Regional SME for all things Digital

± Facilitate Internal and External training sessions/seminars to

increase awareness and engagement ± Execute in-dealership visits and mystery shops to speak to

what's happening now with the opportunities being generatedand provide practical insight to improve key vital statistics suchas:

± Lead response rates

± Lead response times ± Initial and cumulative closing ratios

± DA program participation and ongoing engagement.

± Digital portal utilization by the Dealers



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ABOUT ADP

Division of Automatic Data Processing, Inc. 30+ Years Automotive Industry Experience

Projects with all major OEMs

25,000+ clients

DMS, Digital Marketing, Relationship Management, Networking, &Telecommunications Products & Services

Partnered with industry leaders, including Google, Omniture, KellyBlue Book, Specific Media and more



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ISSUES

Single Source Justification I+ to review dealer package offerings

Add ADP to terminated dealers eMail

ADP to provide first cut at contract

Determine financial responsibility for terminated dealers

Pixel tagging Kia.com

Officially add to co-op program

Establish desks at the regions for RDDTM¶s

Dealer agreements

Legal to negotiate contract terms

Procurement to negotiate trainer and other rates

Update ADP proposal w/Kia travel policy numbers

Download - Automotive Digital Marketing; Tier 3 (Dealer) Advertising

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