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Digital Advertising: What is It and How Should We Measure It? Yes Virginia, the world isn’t flat and there is no such thing as a $20 lead!
As more money gets shifted from traditional offline advertising media into online interactive media, the ability to create a wide variety of consumer experiences around receiving a dealer’s message brings new possibilities. What are a few of these new ways for dealers to engage car buyers and how do we measure what messages are more effective than others? This session will explore online advertising from the perspective of generating consumer engagement and creating a positive perception of the dealership, while debunking the myth of the $20 lead. Paglia will present the concept of Key Buying Activities (KBA) from a dealer perspective and how to track and measure them. The session will showcase actual dealership case studies and provide access to spreadsheets and document templates that attendees can repurpose for their own use.
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What’s Hot vs What’s Not - Automotive Digital Marketing 2009
Getting Hotter 2009 Cooling DownDigital Marketing Versus Buying Leads
Digital Advertising Versus Newspaper Advertising
Multiple Websites Versus Single Dealer Website
Multiple URL’s Versus A Single “Branded” URL
Transactional Websites Versus Online Billboards
Targeted Email Marketing Versus Bulk Broadcast Email
Online CTP Video Ads Versus Static Banner Ads
Online Advertising Versus PPC Search Advertising
User Generated Content (UGC) Versus One-Way Communication
1. Online Display Advertising– Ad Networks
• Automotive Websites• Local Media Websites• National Websites
– Behavioral Targeting– Geotargeting– Contextual Targeting
2. Search Engine Advertising– CPC/PPC/Sponsored Links
3. Offline Ad Buying Efficiency– Google Audio (radio)– Google Print (newspaper)– Google TV
Digital Advertising Advantages
MEASURABLE RESULTS
QUALITY TRAFFIC
HIGHLY TARGETABLE
COST EFFECTIVE ROI
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Other17.6 hoursNewspaper,
3.9 hours
Television16.4 hours
Internet 32.7 hours
Weekly Hourly Media Consump-tion 1
(Total time spent using all media was 70.6 hours)
Internet; Col-umn1; 11.50%
Television; Column1; 19.50%
Newspaper; Column1; 27.30%
Direct Mail/
Radio/Other; Column1; 28.30%
Percent of Advertising Spend 2
Why doesn’t local dealer advertising have the same impact on showroom traffic as it did 10 years ago?
1. IDC Study, U.S. Consumer Online Behavior Survey Results 20072. 2007 National Automobile Dealers Association Data
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Different media channels are more effective at distinct stages of the automotive shopping funnel
Consideration
Purchase
Awareness
Familiarity
Visit Dealer
Advertising Media Channels
TV Ads
Radio A
ds
Digital A
dvertising
New
spapers
Outdoor
Source: DoubleClick Touchpoints III
Internet; #1 Source; 35.3%
Family; #1 Source; 24.9%
Friends; #1 Source; 13.4%
TV; #1 Source; 8.2%
Magazine; #1 Source; 4.4%Newspaper; #1
Source; 3.6%Radio; #1 Source; 1.1%
“Which one of these information sources was most important when making decisions about buying your vehicle?”
R.L. Polk 2007
Digital Advertising
Results?
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Digital AdvertisingMeasurement
& Analysis
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This campaign ran for new pickup trucks across multiple states in the Southeastern USA. Conversion to a “Key Buying Activity” (KBA) is defined as “printing out a test-drive certificate.” As Figure 4 shows (next slide), Careers & Education generated the best blend of performance, including click-through and conversion rates… Dating & Social Networking was the highest-performing conversion category. Autos & Transportation had a conversion rate dramatically lower than the average of the campaign while the click-through rate was only slightly higher than the average. Here’s the point; guessing where in-market auto buyers can be found and sticking to that without looking at any campaign data will not lead to campaign success. The true benefit of this data for the dealer and his digital marketer is not only in understanding this campaign’s performance, but also in being able to use the data to more accurately target their online advertising investments going forward – both within the current campaign and future ones… By removing low performing categories, performance will increase.
Campaign Example #1 – Southeast USA; Pickup Trucks
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Regional Truck Campaign #1 Click-Through & Conversion Rates by Site Category and Traffic
The size of the bubbles show the volume in terms of impressions served for each category… The placement of the bubbles represents performance in terms of click-through and conversion rates…The vertical dashed line represents the average click-through rate for the campaign.The horizontal dash line represents the average conversionrate for the campaign
Figure 4
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Campaign ran for a full sized pickup truck in Texas. KBA Conversion defined as providing personal information to a dealer (Lead), or “watching the one minute and thirty second video in its entirety.” Figure 5 on next slide shows that Science and Nature performed better than other categories in clicks while Money & Finance outperformed all categories in conversions. This is interesting because Money & Finance is traditionally thought to be a fit for luxury vehicles, not full-size pickup trucks. Second, traditional thinking tells us that consumers within Money & Finance sites are “time-challenged”. Yet this group spent more time than any other group watching the video. Clearly, stereotypes continue to be challenged. Autos & Transportation sites performed below the campaign average both in terms of click-through and conversion rate. The assumption that a category consisting of automotive enthusiasts is the best way to reach consumers who are ready to buy a car within the next four or six weeks proves to be incorrect. These types of auto sites are sometimes even referred to as “in-market” sites when real campaign data continues to suggest that in-market buyers can be more successfully found on other sites in other categories.
Campaign Example #2 – Texas; Full-Size Pickups
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The size of the bubbles representsthe volume in terms of impressions served for each category. The placement of the bubbles represents the performance in terms of clicks and post-click conversion rates…The vertical dashed line represents the average click-through rate for the campaign.The horizontal dashed line represents the average conversion rate for the campaign
Click-Through and Conversion Rates by Category and Associated Volume
Figure 5
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It’s not ONLY about generating leads, it’s also about the majority that shop online and buy offline!
Online New Car Shopper as % of Total BuyersEmail Lead Requestors as % of Total Buyers
64%
20%
67%
21%
68%
21%
71%
22%
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16,266 Online Car Shoppers driven to Dealer’s Sites in 4 months.
$1.90 Cost per Online Car Shopper that actually clicked through to Dealer’s web site
$1.51 Cost per 1,000 Online Car Shoppers that saw the Dealer’s advertisements
Online Car Shoppers saw Dealer’s Ads over 20 Million times in the same 4 months.
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Impressions Generated How many times the ad was seen
Click Through Rate (CTR) # of Visitors to the dealer’s web sites, divided by Impressions Generated
Leads Generated Leads, Phone Calls & Showroom Visits attributed to ad campaign
Vehicles Sold Units Sold to Leads Generated
Campaign Cost Total dollars spent buying placements or clicks for Ad Campaign
Cost per 1,000 Impressions (CPM) Campaign Cost divided by Impressions Generated multiplied by 1,000
Average Cost per Unique Visitor Campaign Cost divided by Unique Visitors as tracked by referring URL
Average Cost per Lead Generated Campaign Cost divided by Leads Generated
Advertising Cost PVR Campaign Cost divided by Vehicles Sold
What to Look at when measuring a Digital Advertising Campaign
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Digital Ad Campaign Metrics Analysis Example (4 Month PPC & Display Ads)
• 33,257,657 Impressions Generated – How many times the ad was seen
• 29,528 Click Throughs - Visits to the dealers web sites, landing pages and micro sites
• 2,248 Leads Generated - Electronic Leads and Phone Calls Generated
• 174 Vehicles Sold – You know what this means! Counts Phone & Internet, but NOT showroom
•$71,801.30 Campaign Cost – How much spent on Digital Advertising Campaign
•$2.16 Cost per Thousand (CPM) - How much to get 1,000 Impressions
•$2.43 Average Cost per Visitor to dealer’s site
•$31.94 Average Cost per Lead Generated
•$412.65 Average Cost PVR (compares to $610 YTD)
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Average monthly total vehicle sales for year prior to starting digital advertising was 144. Since starting with digital advertising sales have averaged 178 units per month. 24% growth in sales volume attributed to increased showroom traffic, phone calls and Internet leads from digital ad campaigns. Dealer’s CRM tool shows a 22% average increase in showroom traffic. Toll Free Ad Tracking reports show 24% increase in phone calls, with increased call volumes coming in from dealer web site. Dealer web site Internet leads have increased 33% since starting digital advertising campaigns. Dealer invoicing from ADP Digital Advertising Program using campaign examples above is:
Digital Advertising Media Purchases……..……..………..$ 5,495.21Media Management Services…...………...………………..$ 1,099.04Account Services……………………………………………..$ 495.00
----------------Total Digital Ad Invoice………………………………………$ 7,089.25Net Cost Per Site Visit Generated…………………………..$ 1.80Net Cost Per Thousand Ad Impressions…………………..$ 0.78
REPORT:ACCOUNT:DATE RANGE:
Campaign Impressions Clicks CTRAvgCPC
AvgCPM Cost
AvgPosition
Ford - San Diego +75 miles Keyword 213,362 243 0.11% $1.88 $2.14 $456.23 2.90ABC Motors Ford - National Keyword 48,800 116 0.24% $0.51 $1.21 $58.86 4.30Site Category Targeted Ads - SoCal 298,946 89 0.03% $1.12 $0.33 $100.05 1.00Display Ads - SD Site Targeted 627,813 163 0.03% $1.23 $0.32 $200.14 1.10ABC Motors Ford - SD Keyword 73,034 125 0.17% $2.06 $3.52 $256.94 3.00Ford Price Quotes - SD Keyword 5,270 1 0.02% $0.00 $0.00 $0.00 4.90ABC Motors - San Diego Keyword 366,616 884 0.24% $1.45 $3.49 $1,279.29 2.50Ford Price Quotes - SoCal Keyword 12,950 16 0.12% $1.10 $1.36 $17.61 3.00ABC Motors - San Diego Site Targeted 5,995,252 1,954 0.03% $1.14 $0.37 $2,229.96 1.00Ford Models - SD Keyword 27,632 56 0.20% $1.85 $3.76 $103.79 2.50Referral Bonuses - SoCal Site Targeted 730,581 98 0.01% $1.59 $0.21 $155.33 1.00Video Ads - SD Site Targeted 34,859 2 0.01% $26.30 $1.51 $52.60 1.10Southern CA Geo - Keyword 30,209 153 0.51% $2.96 $14.97 $452.14 3.10Video Ads SD - Keyword Contextual 103 0 0.00% $0.00 $0.00 $0.00 1.300% APR 60 Months - CPC Site Targeted 613,971 47 0.01% $2.81 $0.22 $132.27 2.10Totals and Overall Averages: 9,079,398 3,947 0.04% $1.39 $0.61 $5,495.21 2.32
Monthly Combined Digital Ad Campaign SummaryDigital Advertising Example Case Study #2 - Actual ResultsNovember, 2007
Case Study #4: Dealer name and URL’s changed to protect confidential marketing strategy.
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Campaign Ad Group Impressions Clicks CTRAvgCPC
AvgCPM Cost
AvgPosition
National Search - ABC Ford ABC Ford Since 1965 373,651 94 0.03% $0.73 $0.18 $69.01 3.4National Search - ABC Ford Ford-USA.com 216,607 423 0.20% $0.45 $0.89 $192.30 4.3ABC Motors Ford - SD ABCFordSanDiego.com 41,010 255 0.62% $2.31 $14.34 $588.07 3.9ABC Motors Ford - SD SanDiegoFordFocus.com 4,420 3 0.07% $0.68 $0.46 $2.05 4.6ABC Motors Ford - SD SDFordExplorer.com 3,918 1 0.03% $0.79 $0.20 $0.79 2.7ABC Motors Ford - SD SDFordMustang.com 89,405 124 0.14% $2.91 $4.04 $361.24 2.5ABC Motors Ford - SD SDFordExpedition.com 10,822 6 0.06% $2.54 $1.41 $15.26 2.6ABC Motors Ford - SD SanDiegoFordF150.com 30,012 36 0.12% $2.14 $2.57 $77.17 3.4ABC Motors Ford - SD SDFordEscape.com 29,296 30 0.10% $2.19 $2.24 $65.58 3.8ABC Motors Ford - SD SanDiegoFordFusion.com 35,120 73 0.21% $2.15 $4.46 $156.72 2.4ABC Motors Ford - SD SanDiegoFordF250.com 6,782 22 0.32% $3.01 $9.77 $66.26 3.2ABC Motors - SD+75 miles SD-Ford.com 14,014 27 0.19% $1.24 $2.38 $33.35 3.5ABC Motors - SD+75 miles Pick a Ford - FordDirect 43,510 45 0.10% $1.09 $1.13 $49.07 2.6ABC Motors - SD+75 miles GetPreapprovedInSeconds 42,331 97 0.23% $0.79 $1.80 $76.17 2.6ABC Motors - SD+75 miles Ford.com RequestAQuote 39,958 216 0.54% $1.86 $10.07 $402.48 2.8ABC Motors - SD+75 miles San-Diego-Ford.com 19,727 60 0.30% $1.51 $4.58 $90.31 3.9ABC Motors - SD+75 miles SDWheels-Ford.com 95,448 156 0.16% $1.65 $2.70 $257.34 2.8ABC Motors - SD+75 miles SoCal-Ford.com 154,110 124 0.08% $1.83 $1.47 $226.80 3ABC Motors - SD+75 miles SD-Ford-Mustang 44,762 144 0.32% $2.22 $7.14 $319.41 1.9ABC Motors - SD+75 miles SDFordExpedition.com 22,491 42 0.19% $2.27 $4.24 $95.31 2.5Ford Price Quotes ABC Ford Price Quote 16,530 7 0.04% $0.00 $0.00 $0.00 3.7
1,333,924 1,985 0.15% $1.58 $2.36 $3,144.69 3.3Overall Online Totals and Averages:
ABC Motors Case Study - Actual Numbers - Name, Location and URL's ChangedOct-07All Keyword and Site Targeted Campaigns by Ad Group
Average monthly sales prior to starting digital advertising was 62. Since starting digital advertising, sales have averaged 75 units per month. 21% growth in sales volume attributed to increased showroom traffic, phone calls and Internet leads from digital ad campaigns. Logs show 33% increase in showroom traffic. Phone Tracking reports show 38% increased call volumes coming in from dealer web site. Dealer website leads have increased 50% since starting digital advertising campaigns. Dealer invoicing from the ADP Digital Advertising Program for Dealers using campaign examples shown above is as follows:
Digital Advertising Media Purchases……..……..………$ 3,144.69Media Management Services…...………...……………..$ 628.94Account Services…………………………………………..$ 495.00
----------------Total Digital Ad Invoice……………………………………$ 4,268.63Net Cost Per Site Visit Generated……………………….$ 2.15Net Cost Per Thousand Ad Impressions………………..$ 3.20
Case Study #5: Dealer’s name, location and URL’s changed to protect confidential marketing strategy.
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“Our experience with using Digital Advertising has been nothing short of fantastic. We have used Online Advertising and Radio Campaigns to blanket our market area with great success…
From January 21, 2008 to February 29, 2008, we used Digital Audio Campaigns to run 1,184 radio spots that aired on 24 stations in our market… These radio ads have aired during peak drive times from 6am to 7pm weekdays and cost a fraction of what we usually have to pay.
At the same time we ran an online advertising campaign that produced 2,492 visitors to our website and generated 20,774,648 Impressions. “
- Darin WadeGeneral Manager Rich FordAlbuquerque, NM
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Reaching More Car Buyers with Less Money
Google Audio Traditional Traditional Traditional
Total Spots 4,961 4,961 4,961 4,961
Price per spot $ 2.15 $ 25.00 $ 50.00 $ 75.00
Total Spend $ 10,666 $ 124,025 $ 248,050 $ 372,075
Savings $ 113,359 $ 237,384 $ 361,409
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Digital Advertising Examples:
Search Engine Advertising
Digital Advertising:Google Search Engine Advertising
Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored Links”
Digital Advertising:Yahoo! Search Engine Advertising
Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Yahoo calls their Search Ads:“Sponsored Results”
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Sponsored Links (paid search listings) are displayed at top and right side of search results page…
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Ford Dealer listings on local search maps are shown when a community name is used in search query… “Local Business Results”
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Organic (free) web site Links are listed in the middle/left/lower section of the search query results page…
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Display Advertising
on Consumer Facing Websites
Digital Advertising Examples:
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• Types of Online Advertising Buys:– Pay for Placement by Time
(fixed monthly fee)– Pay per Click (PPC or CPC)– Pay per Thousand
Impressions (CPM)– Pay per Conversion (CPA)
Leads & Calls Generated
• How to Get it Done:– In-House: Do It Yourself – 2 Day Digital Advertising
Setup and Training Visit – ADP Digital Advertising
Program for Dealers – Other SEM Service
Providers & Ad Agencies– Tier 2 Dealer Advertising
Association– OEM Digital Ads
How does buying Digital Advertising work?Can dealers use online ads to drive Traffic?*
*Traffic = Showroom, phone and visits to your web sites
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Digital Advertising
Results
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Here In Dallas, TX we used Digital Advertising to drive traffic to CBS’s DFWvehicles.com to supplement their TV, Radio and Outdoor advertising campaigns that utilized their own media channels… Exceptionally high click-through rates reflect the synergies achieved with Integrated Marketing campaigns that utilize on and offline media
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In less than an hour, we set up Site Targeted Online Display Ads, Search Engine Ads, Radio Ad Campaigns on 24 stations, and a Saturday/Sunday Full Page Newspaper Ad Campaign…
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Digital Ad Media Purchases…………………$ 6,389.72Media Buying Service.…………...…………..$ 1,277.94Account Services……………………………..$ 495.00 ----------------Total Digital Ad Invoice…………….……$ 8,162.66
Net Cost Per Thousand Impressions…$ 0.31Net Cost Per Visitor……………………...$ 2.13
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Digital Advertising Campaigns (Feb 1- Mar 31) = Same Days Tracked
Website 800 Sales Line = 492 total Calls
Rich Ford Results
75% Increase in Sales CallsFrom Dealer Web Site
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Rich Ford 2008 Results: #1 in sales volume for their region 2008 YTDFebruary-March 2008 Sales Performance:
–120 TOTAL NEW CARS 31.9% increase from 2007
–217 TOTAL NEW TRUCKS2.8% increase from 2007
Digital Marketing Call To Action Go to www.ADPdigitalAdvertising.com and
get a no-charge Search Marketing Analysis sponsored by the ADP Digital Marketing Team… An ADP Digital Advertising Team specialist will review results with you.
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Thank You for Attending!
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