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Ralph Paglia 12th Digital Dealer Conference - Automotive Digital Marketing

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  1. 1. Evolution of Automotive Digital Marketing Where Do Dealers Go From Here?Brief overview of last 10 years, where State of the Art for car dealersstands today, and where the most successful dealers will get theircompetitive advantage tomorrow Ralph Paglia - Session #211Ralph Paglia will share insights gained from 20 years of designing, implementing andmanaging digital marketing strategies and tactics for car dealers... provide an overviewof lessons learned that allude to critical mistakes being made by many dealers today.Review dealer best practices specific to selecting software tools, deciding what shouldbe managed in-house versus what and when it is better to outsource access tomultiple online tools, reporting and tracking systems, as well as multiple free and lowcost resources that they can begin using before they return to their dealerships learnhow to apply tracking systems to Key Performance Indicator (KPI) measurement pointsthat make managing a dealers digital marketing strategy easier and simpler for dealersand general managers. You will also learn how to use these same KPI measurementand reporting techniques to make recommended budget allocation changes that willhelp your dealership realize a stronger ROI from your total marketing investment eachmonth... access to download a proprietary Excel spreadsheet file that they can use tomake media allocation recommendations based on Paglias unique Budget Cascade automated calculations derived from minimum budget requirements and maximumeffectiveness peaks within each digital and offline channel.
  2. 2. Introduction and Ralph PagliaVice President DigitalTier10 Marketing Currently leading build-out and development ofTier10s Digital Marketing, Advertising and SocialMedia 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 MarketingConsulting 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 accessto post vehicle inventory listings on defense contractor BBSs
  3. 3. Early History of Internet Marketing1969 to 2007
  4. 4. History of Internet 2000 to ?
  5. 5. The Minority Report Michael Keranen Effect2007 2008 2009 2010 2011 2012 - Future History of Internet Marketing 2007 to Now
  6. 6. 1978: The First Computer Bulletin Board System, CBBS, Goes OnlineTwo 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 AnnualONE BBSCON, the host had everyone in the room stand up. Then heasked those who did not run a BBS to sit. Then those who didnt havea 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 hestood there alone the host said, "Folks, meet Ward Christensen.Ward Christensen and Randy Suess develop the Computerized BulletinBoard System (CBBS) in Chicago. Opened to the public the followingyear, 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 late1970s 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 was1986plenty of indoor time for programming and fiddling with digital equipment. The idea had been building for awhile, and that winter they decided todevise a simple computer communication system. Christensen developed the software and Suess assembled the hardware.Lead Generation via InventoryOn February 16, 1978, their system is complete; they name it the Computerized Bulletin Board System (CBBS). When it finally goes online tothe public in 1979, Christensen manages the system under the title "system operator" (soon shortened to "sysop"). CBBS operates like a virtualthumb-tack bulletin board. Participants can post messages to a public "board," and others can read and respond to those messages, creating anlistings posted from stock cardsongoing virtual discussion.In November 1978 Christensen and Suess publish an article in Byte magazine, describing CBBS and outlining the technology for devising virtualto San Diego Defensebulletin 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 fromtime-sharing systems). In 1979 most individuals who own computers and modems -- or have access to and knowledge of computing hardware --Contractor BBSsare computer hobbyists and scientists. So at first, most topics on CBBS hover within the realm of computers and electronic communication, buteventually the talk broadens. [email protected] kindles a revolution in electronic communication. Virtual bulletin boards begin popping up around the country; they are given the genericname BBS, for bulletin board system. Some cover a range of topics, and others are intended for highly specific discussions. By the early 1990smost BBSs are connected to the Internet, and a whole new virtual world is introduced to BBS members, who had previously roamed within the
  7. 7. is credited withinventing online car buying in1995 and offers comprehensiveconsumer resources for vehicleresearch, purchasing, ownership, safety and maintenance, as well as unmatcheddealer training, support and technology. Whether buying, owning or selling a vehicle, offers a comprehensive and positive consumer experience. Theirstock was trading at $40 in 1999 and is currently trading at $.70.
  8. 8. HistoryCarsDirect was founded in 1998 by Scott Painter, launched from thebusiness incubator Idealab. It was the first company to sell vehicles online directly toconsumers, rather than referring consumers to brick-and-mortar dealers as all otheronline car buying services did at the time.[1][2][3] In 2000, Roger Penske invested in thecompany and joined the Board of Directors.[4]In 2004, the firm began to expand into other "big ticket" consumer categories such ashome mortgage and real estate with the acquisition of web properties and[5] Reflecting its diversification, the companychanged its name to Internet Brands in 2005, and the company was restructured intoseveral divisions focused on vertical markets. The automotive operations nowfunction as part of the automotive division of Internet Brands.[6]
  9. 9. The Vision Industry Pioneers had in 19981998 - 2004
  10. 10. 1998 - 2012Targeting TechnologyWeb 2.0 Engagement TechnologyCRM Systems TechnologyShowroom / Service Drive
  11. 11. Where are the best dealers going to get their competitive advantages in 2012 and 2013?
  12. 12. Targeting Technology
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  14. 14. Made Possible by the Advent of Customer Engagement on Massive Levels
  15. 15. 19 Advent of Customer Engagementon Massive Levels
  16. 16. Phone Flow
  17. 17. Automotive Marketing Principle #1: Stories Sell! (Yesterday, Today and Tomorrow) DEALERS HIP SPON SOREDSOCIAL N ETWORK( com m un ity) DealerStory, Article or News
  18. 18. 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
  19. 19. Ads were seen 7,201,334 times by Facebookmembers who live near the dealership1,730 of those Facebook members clicked onone of the two Facebook displayadvertisements$1,595.25 spent for the Facebook AdCampaigns, each customer visit to ourcommunity site or Fan page cost 92 cents(CPC).To show Facebook members our dealership adseach 1,000 times (CPM), cost 22 cents
  20. 20. Social Media Holds Dealerships Accountablefor their Delivery of the Customer Experience
  21. 21. Why is Reputation Management Important to Car Dealers?
  22. 22. Why is Reputation Management Important to Car Dealers?
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  26. 26. Retargeting ODARetargeting ODA
  27. 27. Our industrys focus has been on bringingpeople into showrooms and service drivesPeople wont buy a car or service online
  28. 28. Resources and budget for aComplete Digital Marketing Strategy Implementation
  29. 29. Process Traffic RevenueRealizationEngagement
  30. 30. TrafficProcess RevenueEngagementRealization
  31. 31. Dear Ralph,You cant improve your digital marketing gameif you dont know the score. The only way toovercome your competition and increase theROI of your marketing is to view all yourcampaign data holistically.
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