kenny ross digital advertising strategy proposal

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Kenny Ross Auto Group Digital Advertising Strategy Proposal from ADP Digital MarketingPresented: August 11, 2009

http://www.adpdealerservices.com/en/solutions/front-end/internet-marketing.aspx





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Kenny Ross Auto Group Digital Advertising Strategy Proposal from ADP Digital Marketing

Ralph Paglia Director – Digital MarketingADP Dealer Services• 20+ year automotive industry leader in Digital

Marketing, Advertising, Lead Management and dealership CRM process design and execution.

• Executed Digital Marketing strategy that generated144,000+ leads to single-point Chevy dealer in 2 years.

• Built dealer team that sold 4,000+ Vehicles to Web Leads in 2006. • Worked with Ford in 2007 to develop first Tier 3 Digital Advertising program

providing dealers with geotargeted Tier 1 marketing assets• Managed first retail automotive Behavioral Targeting Digital Ad pilot program

while at Courtesy Chevrolet in 2005, 2006 and 2007• Started generating Internet leads in 1988 using CompuServe ISP access

and vehicle listings on defense contractor BBS’s in SoCal • Internet Sales & Marketing Consultant to Ford, Mercedes-Benz, GM, Honda,

Toyota, Mercedes-Benz, Hyundai and over 200 dealers.• Piloted the ADP Social Marketing & Reputation Management Solution

Cell: 505.301.6369 [email protected] www.ADMPC.com

Kenny Ross Auto Group Digital MarketingOnline Advertising Strategy

Display Advertising Impact on Search

Digital Advertising Measurability & Marketing Insights Gained

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Display Advertising Impact on Search

REPORT METHODOLOGY

• Research leveraged 12 months of proprietary Specific Media

Advertising Effectiveness data backed by comScore

• Scientifically Validated – Utilized Control vs. Test Group

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KEY TAKEAWAYS:

Display advertising has an impact on both paid and organic searches

and clicks

Consumers exposed to display advertising were more likely to search

for brand and segment terms than unexposed consumers

Consumers exposed to display advertising are more likely to click

through on search listings

• Study shows a strong correlation between display advertising and search

REPORT SUMMARY

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Display Ads Increase Dealer Name and Branded Search

• Rigorously conducted marketing

research using scientific methods

shows a strong association between

display advertising and lifts search

activity

• Automotive shoppers exposed to

website placements of display

advertising were more likely to

search for brand terms (i.e.

automotive manufacturers) and

segment terms (i.e. vehicle class)

Display Advertising Lift on Search Activity

Advertiser Category Average Search Lift

(Brand & Segment Terms)

Automotive 130%

CPG 22%

Health 291%

News & Media 144%

Personal Finance 246%

Property & Real Estate 125%

Travel & Tourism 347%

Median Lift 144%

Display Advertising Impact on Consumer Searches

BRAND: Although the most significant lifts were seen in Travel, Health and Personal Finance for branded terms, Automotive showed dealer name and brand search lift of 123%... More than double the search volume for display advertising dealer’s name!

SEGMENT: Personal Finance, Travel and Automotive showed the highest lifts for the more general product related search terms. Display ads drove a 137% increase in vehicle related search terms!

Consumers exposed to an advertisers’ online display advertising searched more than consumers who were not exposed

Brand Terms: Names and nouns search terms associated with an advertiser (i.e. Sanderson Ford)

Segment Terms: General terms associated with a product, service or industry (i.e. pickup trucks)

Impact on Search Click Through Rates for Display Advertisers

ORGANIC SEARCH: Automotive Consumers exposed to dealership display ads were 180% more likely to click an organic search link to that dealer’s web site.

PAID SEARCH: Automotive Consumers exposed to a dealer’s display ads were 183% more likely to click a paid search link for that Dealer.

Consumers exposed to an advertisers’ online display advertising were more likely to click on search results than those who were not exposed

Paid: Paid text-based search ads that describe the dealer’s website and products and services offered

Organic: Non-paid text-based listings that describe dealer’s website and products and services offered.

N/A: Insufficient data available

Strategic Action Items for Dealer Advertising

Add targeted display advertising to maximize overall search marketing results and search advertising cost efficiency

Online Display Advertising increases car buyer exposure to your dealership’s paid and organic search listings:

A higher number of automotive shoppers see your search listings

More people click on your search listings, both organic and paidOnline Display Advertising keeps a dealership’s name at the top of each car buyer’s mind when they start searching for information about the makes, models, service and parts you sell.

Display boosts branded term searches because they are advertiser specific

Increase Search click-through rates and quality scores by adding online display advertising to your monthly ad budget.Higher quality score = Lower CPC

Dealers with large Search Advertising budgets should shift funds from inefficient keyword terms and geos to display. This increases cost effectiveness for dealer’s entire search marketing strategy…

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Digital AdvertisingOne size does not fit all, and the mix is

where dealerships get the greatest positive ROI from investment

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Car Companies and their Dealer Network Marketing Structures

Tier 1

(OEM)

•Broadcast Media•Interactive Media•Print Media•Other

Tier 2

(Regional

Association

s)

•Dealer Funds•OEM Funds•Variable Structure

•Agency FactorsTier 3 (Dealers)

•Print Media•Broadcast Media•Other•Interactive Media

Total Marketing and Advertising Impact in the Marketplace

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Source: DoubleClick Touchpoints III

Why does automotive advertising have less impact on showroom traffic in 2009 as it did in 1999?

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

Internet

Family

Friends TV

Magazi

ne

Newspap

erRad

io0.0%

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%

R.L. Polk 2008


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Other17.6 hours

Newspaper,3.9 hours

Television16.4 hours

Internet 32.7 hours

Weekly Media Consumption Hours1(Total time spent using all media was 70.6

hours)

Internet

Television

Newspaper

Direct Mail/

Radio/Other

11.50%

19.50%

27.30%

28.30%

Percent of Advertising Spend2

¹IDC Study, U.S. Consumer Online Behavior Survey Results 2007 ² 2008 National Automobile Dealers Association Data


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OEM’s each face considerable challenges in an automotive marketplace where their consumers now turn to the web when gathering information used to decide what brand and model vehicle to buy… …and where they will buy it!

Dealers do not currently have the skills and know-how needed to advertise effectively online, but they continue to be masters at using advertising media that is no longer cost effective.

Tier 3 Advertising spend dwarfs Tier 2 and even Tier 1, so Car Companies that educate their dealers the best, will win market share.

Why do car dealers continue to spend over 85% of their advertising budgets on offline media? - NADA

2009 Car Company Marketing Dilemma

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1. Online Display AdvertisingADP Publisher & Network ConsortiumAutomotive Websites

Local Media Websites

National Websites

2. Targeting TechnologyBehavioral Targeting

Geotargeting

Contextual Targeting

3. Search Engine AdvertisingCPC/PPC/Sponsored Links

4. Other Digital Advertising MediaMobile Phone Ads

Google TV

Video Advertising

Interactive Email Marketing

¹Return On Marketing Investment

ADP is only Tier 1 qualified supplier of these Types of Tier 3 Digital Advertising Solutions in a

Managed Program that Meets OEM Branding and Distribution Standards

MEASURABLE RESULTS

QUALIFIED TRAFFIC

EFFECTIVE TARGETING

COST EFFECTIVE ROMI*

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ADP Publisher Network Provides Scalable Tier 3 National Buying Power with Local Geotargeting delivers Lower Costs

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Targets 9 key “in-market” consumer behaviors

Digital Advertising Campaigns– Get a Quote– Virtual Test Drive– Search Dealer Inventory– Browse Model-Specific Inventory– Offer or Incentive Driven– Maximize Your Trade-in Value– Make Buy-Back Campaigns– Preapproved Finance Solutions– Get Your Payment

Scalable Dealer Display Advertising: High Quality, Animated Flash Display Ads

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ADP AdVantage Compiler Software: Scalable, Automated and Efficient Ad Creative System

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ADP AdVantage:OEM Co-Op Preapproved Campaign Asset Manager

https://apps.bzresults.net/bcc4/login.htm

ADP Places Dealer Ads on Thousands of Relevant Sites when Local Car Buyers visit them…

ADP uses Behavioral Targeting and Retargeting to show Dealer Ads to Car Buyers… On Automotive Sites and when they Visit Non-Auto Sites.

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Campaign Examples at www.FordDigital.com

http://www.forddigital.com/

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Google Search Engine Advertising

Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored Links”

ADP Managed Tier 3 Search Engine Advertising- Dealer Campaigns Integrated with OEM Tier 1 and Association Tier 2

Search Advertising• Impressions

• Impression Share

• Clicks

• Click through rate (CTR)

• Cost per click (CPC)

• Average Position

•Tier 3 – 2 – 1 Keyword & Geotargeting Optimization

• Bid Strategy excludes keywords that dealers already have SEO rank

• ROI Enhanced by Display Adverting

Dealers/Suppliers Competing with OEM’s and Regional Ad

Associations for Keyword Bids used in Search Advertising

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Search Campaign Tracking & Reporting- Sent to Dealers and OEM Stakeholders

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Search Placement / Keyword Report- Dealers and OEM Stakeholders

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Omniture Post-Click Reporting Dashboards- Tracking code can be installed within any site, regardless of supplier

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Organic to Paid Keywords Report- Allows Optimization of Dealer Spend by Eliminating Redundant Bids

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Competitive Analysis

Compare Competitive Set– Benchmark growth– Visitor Length– Demographics– Competitor Keywords– Advertising Opportunities– Upstream traffic– Downstream traffic

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HitWise Competitive Analysis: Clickstream

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HitWise Competitive Analysis: Search Terms

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Compete, Inc. – Unique Visitors

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Google AdPlanner and Keywords by Site Trends- Extends Search Effectiveness to Display Advertising on Websites

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Communicating Reports – VMAR and Analysts- Best Tier 3 Account Management in the Industry

Roles & Responsibilities: – PLAN– EXECUTE– MEASURE/REPORT

This equates to:– Evaluate dealership current marketing

and advertising activities– Develop annual, quarterly and monthly

advertising calendars– Work with dealer on budget

development and spend– Execute marketing campaigns– Report and assess results to improve

dealer ROI – Benchmark results and recommend

best practices– Coordinate campaigns

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Dealer Dashboard – Tying it all together- Aggregated by Nation, Region and Zone for OEM

Reporting DashboardTying it all together with industry’s first systemthat consolidates data feeds from multiple sources of DA campaign performance reporting, providing relevant reporting for Tier 1, Tier 2 and Tier 3 digital marketing stakeholders

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Integrating Online Advertising for the Brand Connecting Tier 3 with OEM to Drive Efficiencies

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Using Keyword Enriched Domains for Competitive Advantage

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Social Marketing and the Power of 21st Century Word of Mouth

Selecting a Targeted Site for Focus and use with Kenny Ross Strategy

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It’s as Easy as ADP to leverage the overwhelming growth in consumer use of Social Networks and User Generated Content (Web 2.0) to develop your Social Marketing and Reputation Management Strategy that utilizes “Positive Word of Mouth” amplified with the power of the Internet to enhance your good reputation, create top of mind awareness and elevate your dealership’s brand in a more cost effective manner than either CRM or advertising alone.

It’s Easy as ADP to tap into consumer adoption of Social Networking and User Content Creation by creating your own online community of customers, employees and suppliers filled with high quality content such as Videos, Photos, the latest reviews and road tests, interviews and articles supplied by car companies, enthusiast publications and consumers.

Social Marketing & Reputation Management

Value Proposition Overview:

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ADP will build your dealership sponsored online community using the most powerful social networking platform technology available to make it easy and fun for your customers to participate… Using a combination of OEM and enthusiast publication content , we incorporate highly desirable content which is automatically updated daily to create an engaging and rich experience for people in your local market area. ADP Social Marketers will publish blogs, forum discussions, photos and videos that will stimulate your community members to respond and create their own content, triggering others to join in!

ADP will build and deploy a comprehensive syndication strategy that uses Really Simple Syndication (RSS) and embedded HTML code (Widgets) built into your dealership sponsored community to push content and member activities out to the most popular sites on the web.

Value Proposition Specifics:


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Your dealership will achieve a highly positive presence within today’s most popular sites where customers spend hours and hours of their online time. Your community’s content syndication will grab people’s attention and pull them into your online community. ADP will use your online community’s syndication power to connect your dealership to the millions of people using sites such as:

• Facebook• Twitter • MySpace• Flickr• LinkedIn• Blogger• Wordpress• Typepad• Digg• And many more…

Specific Services to Dealer:


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Why use ADP for Social Marketing and Reputation Management?

ADP has built a staff of Social Marketing Analysts who stay on top of which Social networks and Web 2.0 sites are the most effective. We know where to get and how to use the best auto-updated content that keeps your online community and content syndication fresh and relevant to your customers. ADP will use DMS, Lead Management Tool and CRM application exports to create invitations for your customers to join the community, which is an important part of creating high quality sales opportunities at a nominal cost. ADP will use our access to new OEM tools and independent sources to leverage information feeds, image galleries, and video content updated daily to enrich your online community. ADP knows how to take advantage of powerful social network web site platforms as an online magnet to pull in and engage enthusiasts in your area, along with previous sales and service customers. With your involvement and participation, ADP is the only dealership supplier that know how to guide your community towards reaching critical mass needed to achieve the Web 2.0 alchemy that drives dealership opportunities to do business.


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Dealers currently see the Social and UGC Online

Landscape as a bewildering array of brands and sites!

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1. Social Networks2. Professional Networks3. Video Hosting Sites4. Photo Hosting Sites5. DIY Publishing (Blogs)6. Consumer Reviews & Ratings7. SMS, Status & Bookmarking 8. Social Network Platform Tools

Social Marketing/Reputation Management StrategyADP Organizes into Solution Component Categories

http://youtube.com/

http://www.dealerrater.com/

http://www.wikipedia.org/

http://www.photobucket.com/

http://www.craigslist.org/

http://www.digg.com/

http://www.wordpress.com/

http://www.technorati.com/

http://del.icio.us/

http://www.friendster.com/

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Kenny Ross Auto Group Social Marketing and Reputation Management Strategy Recommendations

SM/RM Solution Components by CategorySocial &

Professional Networks

(Groups)

Article &

Content Publishing

Blogs(microsites)

UGC

Video & Photo Servers

(Video-Photo SEO)

Consumer Reviews &

User

Rating Site

s

Social Book

marking &

SMS

Sites

www.SandersonCommunity.comDealer Sponsored Online Community

DigitalRalph says:“Use a network of Web 2.0 sites connected to your online community as a social marketing strategy”

http://www.sandersoncommunity.com/

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DigitalRalph says:“Use your network of connected Web 2.0 sites for push-pull syndication of OEM supplied and User Generated Content assets. Leverage your car company’s daily updates and get your customers to create content that provides most of the updating work needed to keep your site relevant!”

ADP connects and manages components to deliver turn-key Social Marketing/Reputation Management …

Social Marketing & RMComponent Integration = Value

Dealership Community.com

Facebook

MySpace

LinkedIn

WordPress

YouTube

Flickr

Photobucket

Blogger

DealerRater

Edmunds

Kudzu

Twitter

Digg

Del.cio.us

Technorati

ADP SM/RM Solution Component Deployment Example

www.Ford-Community.comDealer Sponsored Online Community

http://www.ford-community.com/

http://youtube.com/

http://www.photobucket.com/

http://www.digg.com/

http://www.wordpress.com/

http://www.technorati.com/

http://del.icio.us/

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Google Adsense to be replaced by ADP Ad Network Space

www.Ford-Community.comDealer Sponsored Online Community

Created and Managed by ADP & Dealer

http://www.ford-community.com/

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www.Ford-Community.com/video Dealer Sponsored Online Community


http://www.ford-community.com/video

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www.Ford-Community.com/photo Dealer Sponsored Online Community


http://www.ford-community.com/photo

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Google Adsense to be

replaced by ADP Ad Network Space

www.Ford-Community.com/members Dealer Sponsored Online Community


http://www.ford-community.com/members

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www.SandersonCommunity.com Dealer Sponsored Online Community



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www.SandersonCommunity.com Dealer Sponsored Online Community



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www.MyJeepCommunity.com Dealer Sponsored Online Community


http://www.myjeepcommunity.com/

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Reputation Management

Selecting a Targeted Site for Focus and use with Kenny Ross Strategy

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ADP Social Marketing/Reputation Management Pilots to date have used DealerRater.com as the Customer Review content supplier and partner

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• Certification Seal - Official Certification Seal to display ALL your dealership websites • Seal is displayed on your DR review page • Certification Seals link to your review page • Monitor reviews via email alerts • 2 week reconciliation period to work with customers who have issues with dealership. • Lets potential buyers know you're serious about customer service • Blacklisted dealerships are not eligible

DealerRater.com Certification BenefitsBuild Your Online Reputation, Get Certified!

ADP Reputation Management:DealerRater.com Filtered Review Integration

https://www.dealerrater.com/company/cert1.aspx

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ADP Reputation Management Solution: DealerRater.com positive review generation

• Customer Rating Cards Rating cards to hand out to your raving fan customers • Easy way to increase your rating • Helpful reminder for your best customers to post a review• Good for both sales and service department consumer reviews

• Use the back side to promote sales & service specials• Works pre sale AND post sale • Direct community members to your good ratings • ADP assigns a URL: www.RateABCMotors.com • Dealer Community topic for Forums and Blogs

http://www.abcmotorsrateus.com/

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• Dealer Directory Certification Icon Certification icon displays next to listing • Lets buyers know immediately of your status • Attracts more clicks

• Free Vehicle Leads Receive and track vehicle leads • Optional - receive leads from distant buyers • Optional - receive leads for competing makes

• Free Classified Ads Unlimited Listings – New & Used Inventory • Up to 36 photos per car • Inventory data via DMS or 3rd party provider • Ad runs until car is sold

ADP Reputation Management Solution: Additional DealerRater.com features for dealers

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Current pricing levels will be maintained with DealerRater using ADP as a reseller with a negotiated margin… Cost will be included in the price charged to dealers with ADP in control of the accounts

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Solutions Summary

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KELLEY BLUE BOOK DIGITAL ADVERTISING PROGRAMS FOR FORD AND LINCOLN MERCURY DEALERS

KBB.com is the #1 automotive web site*

53% of KBB.com visitors plan to buy within the next 3 months**

Half of online shoppers come to KBB.com†

KBB.com is the most visited automotive information web site†

Our online advertising packagebased on your individual needs, Kelley Blue Book will create custom advertising packages for ford and Lincoln Mercury dealers leveraging many different ad placements‡ resulting in reaching more lower funnel car shoppers.

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Reach in-market shoppers in your local area• Exclusively target local car shoppers by make and territory• Customize your ad placement based on dealer-defined territoryProminent placement and special Showcase Dealer recognition• Be the only advertiser in your market area to showcase on kbb.com• Maximize brand exposure on new-car pricing report page and 130+ additional premium pages• Secure top dealer placement on search result pages• Enhance your marketing message using dynamic, expanding rich-media ads Drive more traffic to your Web site• Link your banner ad and listings directly to your dealer Web site• Generate high quality leads from kbb.com

Dealer Showcase Package

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Auto Intender Package

Reach local car shoppers by advertising on the used-car home page and used-car category pages.

Premium ad placement and branding opportunity

• Reach new-car shoppers researching their trade-in information in the used-car section

• Secure top-of-page positioning to ensure your ad message is seen first and every time

• Maximize ad investment by marketing only to targeted customers

• Target local car shoppers researching anymake and model

• Enhance your marketing message using available rich-media ads

• Align your brand with the #1 automotive Web site trusted by millions of car shoppers

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Run of Used Package – Leaderboard, Skyscraper

Target local car shoppers researching their next vehicle purchase.

Maximize brand impact

• Customize your ad placement based on make and dealer-defined territory

• Effectively shut out your local competition by owning multiple ad units (leaderboard and skyscraper combined)

• Reach new-car shoppers researching trade-in information in the used-car section

• Premium page takeovers increase brand recognition and purchase consideration

• Maximize brand exposure on make-specific content pages

• Powerful add-on for your Dealer Showcase ad package

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Behavioral Targeting Network (BT)

Target local in-market shoppers as they visit other relevant network Web sites.

Premium ad placement on top local Web sites

• Identify your target shoppers while they research their next vehicle purchase on kbb.com

• Qualify and track those shoppers as they leave kbb.com

• Display your marketing message to the same kbb.com visitors when they enter other network sites

• Increase purchase consideration by reaching intended shoppers in the right place, at the right time

Dealer Ads are delivered to the following category of niche Web sites:

• Automotive• Business/Finance• Career• Family• Music• Photo/Video Sharing• Sports• Social Networking• Technology• And More!