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See You Later Autotrader!

Stephen - your results for cars.com in March differ from the totals that we track in every category. I just talked to our local executive, Sharla, and asked her to set up a time to discuss with you in more detail. In addition to the discrepancies, I've found that results vary wildly depending on level of investment and that you are not participating in our highest tier, yet have Alpha and Spotlight on AT. Expect a call from Sharla to review shortly.....
 
Forget about the notion of "leads" for a sec...

Imagine there's a brand-new TV Channel: the CAR CHANNEL. All they do on this channel is show cars. They advertise the hell out of this channel, and attract millions and millions and millions of people who are interested in cars.

How much would you be willing to pay to advertise your store on this channel?
How much would you be willing to pay to have them show YOUR cars on this channel?

I have to disagree with your analogy. We also took the leap of faith and dropped them. Then their zealous rep went over my dead and straight to the DP to offer to "survey" my customers. I actually had customer complaints from a gal named "Cinnamon" calling my customer asking "This is cinnamon calling on behalf a JL REED. May I talk to the person who does da car research?". our dealership name is JL Freed. They really turned my customers off. Then they came in with proof showing me that autotrader was the number 2 source. They seemed to dismiss the fact that customers might actually visit more than one site.

My problem with AT isn't that people do not visit it, they do. As many have said, they use backhanded, gestapo techniques lure dealers into overpaying. they use reps that are too pushy to sell their product and oversell. When their is an issue, they blame atlanta. Rather than a charging a single price for listing, they charge you a respectable amount to list, a ridiculous amount to not show up on page 20. Then decided to added insult to injury by adding a spotlight charge. Then another upsell. And to make this worse, they charge for premium listings by franchise. So much for having a strategy of stocking off brand used cars because they just wont show up. until page 30... unless it is an ultra rare car.

But back to my original reply, the reason that your analogy is wrong is that it is a not " a brand-new TV Channel: the CAR CHANNEL. All they do on this channel is show cars. "

It is a channel is an ocean of channels that do nothing but show cars. Furthermore, contrary to what they say, they are a listing site and not a content site.

I think the analogy to Roman empire is spot on. They were the big player because of their magazine. Then came the internet, and it worked for a long time. Cars.com, usedcar.com and google itself are going to continue to rise to where autotrader is/was and beyond if you understand how SEO works. Furthermore, I have more faith in craiglist than AT. I have to agree with yago on this. I thought it was a waste of time to realize how to effectively advertise on there as it isn't like advertising on other sites. Once I began adjusting, it has become a mainstay source and as yago often states.... it is free.
 
I have to disagree with your analogy. We also took the leap of faith and dropped them. Then their zealous rep went over my dead and straight to the DP to offer to "survey" my customers. I actually had customer complaints from a gal named "Cinnamon" calling my customer asking "This is cinnamon calling on behalf a JL REED. May I talk to the person who does da car research?". our dealership name is JL Freed. They really turned my customers off. Then they came in with proof showing me that autotrader was the number 2 source. They seemed to dismiss the fact that customers might actually visit more than one site.

My problem with AT isn't that people do not visit it, they do. As many have said, they use backhanded, gestapo techniques lure dealers into overpaying. they use reps that are too pushy to sell their product and oversell. When their is an issue, they blame atlanta. Rather than a charging a single price for listing, they charge you a respectable amount to list, a ridiculous amount to not show up on page 20. Then decided to added insult to injury by adding a spotlight charge. Then another upsell. And to make this worse, they charge for premium listings by franchise. So much for having a strategy of stocking off brand used cars because they just wont show up. until page 30... unless it is an ultra rare car.

But back to my original reply, the reason that your analogy is wrong is that it is a not " a brand-new TV Channel: the CAR CHANNEL. All they do on this channel is show cars. "

It is a channel is an ocean of channels that do nothing but show cars. Furthermore, contrary to what they say, they are a listing site and not a content site.

I think the analogy to Roman empire is spot on. They were the big player because of their magazine. Then came the internet, and it worked for a long time. Cars.com, usedcar.com and google itself are going to continue to rise to where autotrader is/was and beyond if you understand how SEO works. Furthermore, I have more faith in craiglist than AT. I have to agree with yago on this. I thought it was a waste of time to realize how to effectively advertise on there as it isn't like advertising on other sites. Once I began adjusting, it has become a mainstay source and as yago often states.... it is free.

Brian,

What you are describing has not been my experience with AutoTrader. I can't imagine a rep going over my head and the people that I have met have always been highly professional.

When you purchase a website or display advertising, you are purchasing a template. Some are better than others but they all require good marketing to be effective. I have been very successful using display advertising for both new and used cars and will continue to recommend it provided the dealership is willing to put in the effort to make it work.

I am also a fan of vAuto and Dale Pollak. Dale has a webinar on the site: "Pixel Management" which is excellent. Here is a link to that, for anyone that is interested. Click here.
 
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Doug, Impressive video. I'm compelled to read velocity 2.0. Question though. How does one evaluate the value of their SRP/VDP metrics? With respect to the thread, if I were considering cancelling with a vendor such as autotrader, how would I determine if the price I was paying for SRP's and VDP's are adding value? Let's say that I'm converting 3% of my SRP's with both Autotrader and Car.com, and my SRP count is identical (within 1%). Do you believe that it makes sense to keep Autotrader if it cost twice as much as cars.com based solely on the fact that your metrics are standing up on a popular platform, or do you view the Autotrader account as too costly for the same results?
 
Mike, Lindsey Auguste and Dennis Galbraith just posted this over on DrivingSales; Comparing AutoTrader.com and Cars.com

The gist is summed up in the first paragraph: "Our conclusion to the years old AutoTrader.com and Cars.com comparison debate boils down to one simple word, "don't." ."

In full disclosure, I worked at ATC for years and now work for a company owned by the ATG group - any opinions are my own
 
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Mike, I agree with Ed on this.

I often comment on DealerRefresh. It is a rare day when I don't visit the site. I don't always agree with everything that is written here and this thread is a great example. I have a passion for what we do and I have the utmost respect for people that actually sign up and contribute. If we all thought the same way, none of us would learn and that is my main objective in coming here.

This thread is about equally divided. Some of us are believers and some think display advertising is a waste of money. I have gone through this thread several times. It happens that many of the people that I hold in the highest regard, on DealerRefresh, happen to side with display advertising. That may not be the acid test for all topics but it reinforces my belief in this one.
 
I agree with you both, display advertising works. I was just curious as to what you thought of how the law of diminishing returns applies to the places you choose to do your display advertising. Based on the Q&A at the end of the pixel management video, and the article Ed posted, you can't use the metrics to make a comparison between products. If that is the case, how do you guys go about determining what sense it makes to be in 2, 3, 4, or more places?
 
I have always been able to justify the display advertising on ROI. The additional traffic to my website is a plus.

Using vAuto isn't that simple. If you consider miles, market size, certification, major options etc., a car that would initially seem generic may not be. If my competition is Uncle Buddy's Used Cars, I have an advantage.

Many dealers only look for display advertising as an avenue for used cars. Using the same marketing approach, that you would use for used cars, can be just as effective for new.
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Mike, Lindsey Auguste and Dennis Galbraith just posted this over on DrivingSales; Comparing AutoTrader.com and Cars.com

The gist is summed up in the first paragraph: "Our conclusion to the years old AutoTrader.com and Cars.com comparison debate boils down to one simple word, "don't." ."

In full disclosure, I worked at ATC for years and now work for a company owned by the ATG group - any opinions are my own

This article is correct in that you are comparing apples to oranges. Each has unique customers but also shares customers. What they do not mention is Autotrader's newest rival whic does share of many of the
same prospects and closely mimics its original model of classified ads: Craigslist. The dirty secret is that craigslist probably has more automotive visits for used cars than cars.com and autotrader.com combined. Most dealers are not able to get much out of it because they want to take the turn key approach and just pay and receive leads. Even with Cargigi, I didn't get as much out of it until I learned to work it. You need to approach it differently. When you do this and combine it with cargigi, it is very powerful. A difference is that craigslist is regional. With cargigi, it costs about $250 per region to list a car. depending on your listing service I pulled out of Philly and went into a smaller northern suburb and have gotten higher results. I am considering expanding into more suburbs with 250 miles and it will be much lower still that what the "premier" sites want to charge us.

When combined with Cargigi, it not only gives me a lead, but it also provides me with what they also looked at on the site which allows me to switch them to other brands. for example, I recent had one looking at a '10 civic. they also looked at an audi, passat and elantra. I had two of those in stock, and was able to build enough value in the cars that we have to bring her in from about 45 minutes away that night. She is driving a passat we had in stock now for about 60 days.
 
When combined with Cargigi, it not only gives me a lead, but it also provides me with what they also looked at on the site which allows me to switch them to other brands. for example, I recent had one looking at a '10 civic. they also looked at an audi, passat and elantra. I had two of those in stock, and was able to build enough value in the cars that we have to bring her in from about 45 minutes away that night. She is driving a passat we had in stock now for about 60 days.

The better your phone skills and the more CL customers you'll bring to your dealership!