Marketing MixologyThe right marketing cocktail for your

dealership and prospects

Are we mixing the right set of messages – and media – for our dealership customers?

Today we are going to share some perspectives on how to get there…

The right marketing mix

What is your marketing mix?

We all know that marketing and advertising mix is changing – with Internet advertising growth coming largely at the expense of newspaper spend…..

Total Automotive Advertising Expenditures by Segment

2006 2011

Newspapers25%

TV43% Radio

10%

Internet8%

Other14%

$13,242 $3,105

$2,320

$4,322$7,538

Newspapers19%

TV46% Radio

10%

Internet13%

Other12%

$15,554$3,159

$4,264

$4,051$6,185

Source: Borrell Associates, 2007. Includes both new and used car advertising. ($Millions)

8

Car dealership advertising mix

Over 68% of consumers spend time and conduct research on the Internet prior to purchasing a new car(1) yet Internet share of dealer marketing wallet does not even come close to this.

We still have an unhealthy reliance on the newspapers…..

More consumers will utilize the Internet as a research source and it only makes sense that dealerships shift advertising spend to match up…

(1) J.D. Power and Associates. 9

Dealer Media Spend

Consumer Media Consumption

0%10%20%30%40%50%60%70%80%90%

100%

InternetTVRadioNewspaperOther

Source: Jupiter Research Library 2006, NADA.

Too Much?

Too Little?

What consumers are doing is not what dealers are buying…

Activity in offline channels drives traffic online

Leading Media that Prompt Online Searches by US Consumers, 2007(% of respondents)

Note: n=15,439 ages 18+Source: BIGresearch, “Simultaneous Media Usage Study (SIMM) 10” as cited in press release, August 2, 2007

Function Traditional Media

Projected Use Balance Online Equivalent

Awareness TVOutdoor

Display Ads,Sponsorships

Consideration MagazinesWord of Mouth

Review Sites, Research Sites,Brand Sites

Research MagazinesWord of Mouth

Review SitesSocial Networks

Promotions Radio Display Ads,Social Networks,In-market Websites

Shopping Newspaper In-market Websites,Online Classifieds

Leads Yellow Pages Dealer LocatorDealer Website

Trial Test Drive Virtual Tour

Owner Marketing Direct Mail Email

Offline and online will achieve a new equilibrium of use and marketing spend

Be Everywhere: Beyond Just Search

A More Complete Advertising Solution

Television

Print

Internet

Audio

Mobile

•Analytics

•Triggers

•Formats

Online is innovating offline:

Dealers are all different

And so are consumers

Different messages and media will appeal at different points in the purchase funnel

So which media cocktail will work best?

Introducing our cast

> RJ Woodring, General Sales ManagerWoody Buick Pontiac GMC

> Mike Hatfield, Sales DirectorDave Mungenast St. Louis Honda

> Bill Smith, Internet & Advertising ManagerDave Arbogast Buick Pontiac GMC

Focus your mix on consumer purchase patterns with your business objectives in mind

The perfect media mix

Pre-selection filter• Build your dealership brand online

• Offline alone is too expensive now

Engagement filter• Drive revenue and results now

Purchase filter• Take care of your customers…the

internet has made it easy for them to talk to each other

Build your dealership brand online

Why do it?

• Prep consumers to think of you when they become in market

• Tell them what your dealership stands for

• Develop positive dealership name recognition

• It’s way cheaper than offline advertising…

• No, don’t stop advertising offline, just balance your spend to bring down your cost per vehicle sold

Build your dealership brand online

What to keep doing…

• TV - but keep branding messages consistent online

• Billboard - drive people to your website - not your URL - think keywords

What to do…

• Display advertising1. Maximum reach2. Retargeting3. Remarketing

• Have a relevant websiteLots of content to drive organic search

• YouTube

Engage Consumers: New Ad Formats

Gadget Ad (game)

InVideo ad (Google Content Network )

InVideo ad (YouTube)

YouTube Brand Channel (contest module)

That’s right…display ads and a relevant website

Drive results now

Why do it?

• Revenue

• Capacity

• Revenue

• Capture highly-qualifiedhand raisers

• Revenue

What to do…

• Buy 3rd party leadsThey work and are still way less expensive and

measurable than offline

• Paid search engine marketing

• Promos, specials and events - anything to drive sense of urgency

• Again, a relevant website but now focused on1. Calls-to-action2. Simple lead forms3. Specials to pull consumers into the showroom

Results now

What to keep doing…

• Radio and Newspaper focused on Specials and Promos – TV’s too expensive to be effective here

Your manufacturer is running offline promotions that could drive traffic to your showroom - make sure it does.

Drive results now

Drive results now

Multivariate: Test multiple “Sections” of Your Page

??

Test a headlineTest an image

A “section” is any area of your page where you’d like to test alternative copy or creative

Multivariate: Test Multiple Sections and Combinations

Multivariate: Test Multiple Sections and Combinations

Multivariate: Test Multiple Sections and Combinations

2 different headlinesx 3 different images = 6 possible combinations

A/B: Or test whole pages

Simple Results

Combination 57 is performing the best

Bars represent relative improvementOriginal is

highlighted here

Why do it?

• You spent all that money to make them your customer…now leverage them to improve your gross margin

• Your existing customers will spend the most money on service, parts and their next car

Keep your customers

What to do…

• Email Marketing to Owners – stop calling them during dinner

• Scheduled maintenance and promos to keep them coming back

• Email newsletters - keep them tied to your dealership through community information and events

• Offer to install car seats and do safety checks

• Social networks & Service Blogs

• One more time…a relevant website but now focused on1. The Entire Dealership2. Service and parts3. Info about owning and maintaining their

purchased vehicle

What to keep doing…

• Community Sponsorships

• Cable TV

• Radio for Service Offers

Keep your customers

Stay in touch…email schedule maintenance and seasonal promotions

Content Network: Social Networks

Web Utilities: YouTube…Broadcast Yourself

Web Utilities: Mobile Ads

Google Search Ads for Mobile

Search Ads on Partner Sites

Contextual Targeting for Mobile

Ads on Google mobile search results

Ads on search partner results

Google Ad Sense for Mobile Content

Some of it is but not all of it.

Measure Success: Robust Reporting

Conversion Tracking Google Analytics

Figure out how to leverage advertising that other people are paying for

And then adjust to do even better

Need more recipes?

> Join “Maximizing Your Media Spend: Five Strategies that Top-Performing Dealers Use” next – at 11:45 am – with Ken Pfau, Cobalt’s Director of Training & Consulting

> Visit us at Booth #79

> For more information on Cobalt’s Industry Research visit www.cobalt.com/research