Archive for June, 2007
If not, maybe you should. See below article:
Poll results: video as a marketing tool
Digital Dealer recently conducted a poll asking dealership Internet sales managers, e-Commerce Directors, BDC managers, CRM managers, dealers and department managers who are most interested in sales-related technology solutions and applications if they use online video ads as part of their marketing initiatives. Our research revealed that 50 percent of managing personnel found success in utilizing online video ads in all marketing categories including: Web site, e-newsletters and e-mail campaigns.Top-Line Results:
69 percent included online video ads as part of their marketing program
31 percent didn’t include online video ads as part of their marketing program
Out of the 69 percent who utilized online video ads successfully as part of their marketing program:
41 percent used online video ads on their Web site
6 percent used online video ads in e-newsletters
3 percent used online video ads in e-mail campaigns
Conclusion: online video ads are generating sales.
In support, the Online Publishers Association (OPA) working in partnership with OTX published a report: Frames of Reference: Online Video Advertising, Content and Consumer Behavior in June 2007 citing, “Eighty percent of viewers who had watched an online video ad, just over half had taken some sort of action. Nearly a third had checked out a Web site, while 22% had searched for more information, 15% had gone into a store and 12% had actually made a purchase.”
Reaction and behaviors of US online video viewers who have seen an online video advertisement in April – May 2007 (% of respondents)
- 45% elicited a response
- 31% check out company Web site
- 28% looked for more information
- 22% searched for more information about the product
- 19% clicked on banner ad that accompanied video
- 16% bought something
- 16% talked to friends/family about the product
- 15% gone to store to check out product
- 13% requested information about the product
- 13% made a purchase
- 9% forwarded video ad to friends/family
- 9% signed up for product/service trial
- 5% called toll free number to find out more
- 4% ordered subscription
From Digital DealerThursday, June 21, 2007
VOLUME 2 ISSUE 25http://www.imakenews.com/digital1/e_article000840660.cfm?x=b9LHBL9,b4TSprpk
It wasn’t long ago that email was predicted to be the destroyer of direct mail. Then the public’s confidence in direct mail went the way of the dodo thanks to the piles and piles of virtual junk that was heaped upon us by spammers.
– “You too can make $10,000 a week working from home!” –
But recent advances in spam filtering, as well as special legislation, have brought email marketing back to the forefront of the marketing discussion. Consumers are starting to trust their email again… especially from businesses they know and trust.
So, if you are one of those dealerships that gave up on email marketing in the early part of the decade, it’s time to give it another try. You won’t be sorry.
Marketing Strategist/Creative Consultant
Smack Dabble LLC
Here’s another good one:
The Center for Media Research says that according to a new report from Borrell Associates, automotive ad spending will reach $31 billion this year, but total ad dollars will grow only 1.7 percent during the next five years, compared with an annual growth rate of 3.7 percent in the last five years.
Online spending for the industry will hit $2.8 billion in 2007 and represent 7.6 percent of all automotive advertising, an annual growth of 13 percent. Moreover, the Internet will become the top marketing channel for used-car marketers this year at the local ad level, surpassing newspapers for the first time. Used-car dealers are allocating 20 percent of their spending to the online channel, compared with 7.6 percent of the industry’s total online ad budget.
Online car marketing will hit $4 billion by 2010, says the report, and become the second most-used medium for automotive advertisers, surpassing newspapers, cable, radio and direct mail and trailing only broadcast TV.
Budgets for offline auto ads in newspapers, direct mail and directories will decline by 20 percent each during the same period, the report indicates.
The report says that local car dealers will spend 29 percent of their online ad budget on online video and paid search this year, but will increase that proportion to 76 percent of online marketing by 2012. E-mail will also gain as a lead-generation tool, while display ads such as banners will decline.
Many shoppers are going directly to manufacturers’ Web sites rather than to third parties, doing their early research online. The Internet is not yet effective at reaching car buyers still in the “dreaming” stage, the report says, adding that manufacturers will use TV spots to sell their brands and then drive prospects to a Web location.
From Dealer Pre-owned
Wednesday, May 23, 2007
VOLUME 1 ISSUE 43
by Cheril Hendry
I came across this article and thought it would be of interest to our readers.
Even the best online efforts of national and regional automotive marketers fall victim to the retail dealer’s ability to destroy them. But times are going to change.
Today’s auto dealer has the opportunity to benefit from the cheapest form of advertising his business has ever known. Yet his ability to give customers what they want in online shopping at the retail level continues to blinded by his past marketing tactics. He does what he’s always done when making marketing decisions. He relies on the influence of his equally blinded constituents in the retail automotive world, other dealers, and ignores any opportunity to understand and respond to the consumer better than ever before.
The result? Online versions of tacky dealer marketing that resemble past initiatives historic to print and broadcast: Lack of differentiation. Commodity advertising that ignores any kind of retail brand effort, and internal systems that give customers the same poor service they’ve received for decades. Now it’s just happening online instead of in person.
One obvious case in point is the average dealer’s Web site, most often built by a third party provider who knows the one thing a dealer wants from online marketing is leads. Leads that will bring live bodies into showrooms within hours. Leads that, he fears, may not come in unless they are coerced and teased and manipulated through online tactics. Every click, every link, every effort the consumer makes to get relevant information from a dealer’s site is responded to with a form to fill out. My personal favorite is the common “Get an Instant Quote Now” link. Once clicked on, you get a 15-line form to complete with the promise that someone will get back to you quickly with a price. Consumers are leaving virtual skid marks on links like this.
When a dealer is presented this information logically through Web site back-end statistics and industry behavioral tracking, he agrees this is not what most shoppers want to go through online. Yet when given the opportunity to change his website and provide customers with information they really want, he defers to his main competitor’s site that just happens to have the same form submission. Since this competitor is outselling him by 30 or so vehicles a month, the dealer assumes this particular form submission process must be a part of their success. So he sticks to what he’s been doing, and the consumer sticks to his opinion of dealer advertising. Bad.
But things are changing.
Contrary to retail automotive dealers’ past ability to deliver poor quality marketing messages and still be successful, today’s incomparably tough industry conditions require survival of the fittest. And guess who gets to be the judge? Refer to Time Magazine’s Person of the Year (You). Or Ad Age’s Agency of the Year (The Consumer). Consumers are in control and over the next few years if they don’t get what they want from a dealer’s online communication methods, they’ll have the ability to “virtually” kill the dealer. And “virtually” killing him by lack of attention online will equate to killing him via minimal showroom traffic, trickling service R.O.’s and non-existent repeat and referral business.
There are some smart dealer principals already aware of this. They understand a trip to their physical showroom is contingent upon a customer’s interest in their virtual showroom. These are certainly tomorrow’s industry leaders who will be chuckling all the way to the bank. Meanwhile, the factory’s job of filtering out the weaker franchisees may become a little easier with the help of these new consumers.
What will be left is what I personally hope for. The best of the best. Smart dealers taking good care of customers while they make more money due higher grosses and lower advertising costs. They will deliver what the customer wants. And it will center much more around a dealer’s brand than a dealer’s price. Just like Best Buy. And Starbucks. And Nordstrom. And all the other retailers who take advantage of the knowledge their customers offer them and do something with it.
Cheril Hendry is CEO of HLF Brandtailers in Irvine California, an agency exclusive to automotive marketing and advertising. www.hlfbrandtailers.com.
Published by Dealer Communications Copyright © 2007 Dealer Communications Inc.. All rights reserved.Information in this newsletter is provided by both proprietary and public sources. Dealer Communicaitons makes no claims as to the accuracy of information provided by third party providers.
Welcome to GO DIGITAL, a blog dedicated to the digital marketing side of the automotive retail business. Every year, more and more cars are being sold online. And the tools and technologies employed by dealerships to sell those cars is becoming more and more sophisticated. That’s the business we’re in here at Dealer Impact and we figured it was high time we started a blog.
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