Should We Change How We Look At Advertising

[ajholland]

We have all seen the numerous studies and reports that show the reverse bar graph that correlates what sources influence car purchases and where dealerships are actually investing their ad dollars. Being in the position that most of us are in, we unfortunately are usually on the wrong end of budget allocations. The tradional vs. non-traditional investment mix is one that we constantly battle, especially with the old school dealers.

Is it time for dealerships to stop looking at advertising as traditional vs. non-traditional? We would classify a billboard as traditional at my dealership. We would classify the banner we run on our local newspaper's website as internet. However, aren't the banner and the billboard both serving the same purpose? I see the banner as the modern traditional ad, but they are always lumped into my internet budget.

What if we changed our ad categories to impression vs. lead generating. Would this help our cause in shifting our dealer principals to a more digital world. Newspaper, radio, TV, website banners, remarketing etc. would be considered impressions. Website chat, Autotrader.com, Cars.com, trade-in programs etc. would be lead generators. The website itself is an operational expense, so it would not be considered in the ad mix at all.

Maybe it wouldn't make a difference at all and my piece of the pie wouldn't change, but it seems to me that as advertising has changed over the years that our views may be outdated.

 

[ddavis]

AJ, I doubt that there is a single person on DealerRefresh that doesn't believe that the Internet is the most efficient way to advertise our products. Advertising is advertising. I'm sure that you have a ROI report in your CRM. Add a line for every advertising expenditure that your store makes. Get a buy-in from your GM. You have to know what works and doesn't work.

 

[john.quinn]

What if we changed our ad categories to impression vs. lead generating. Would this help our cause in shifting our dealer principals to a more digital world. Newspaper, radio, TV, website banners, remarketing etc. would be considered impressions. Website chat, Autotrader.com, Cars.com, trade-in programs etc. would be lead generators. The website itself is an operational expense, so it would not be considered in the ad mix at all.

Hi AJ -- I think you're on the right track. I actually explained it even simpler when managing our ad budget: Branding Efforts vs. Traffic Efforts.

I defined Branding like I think you're viewing "impressions:" those avenues that provide the viewing of our Brand over and over and over again, in an effort to produce top-of-mind awareness.

I defined Traffic Efforts very simply: when people are in-market, where do they look for information? We answer that question for our market, and we are "there."

If you are trying to get a bigger piece of the pie for your "non-traditional," remember the 1st Rule of Fishing:

Fish Where the Fish Are!

While your GM or DP may have a favorite part of the Lake where he caught that whopper 15 years ago, if your fish finder says that there is a school right underneath the boat, drop anchor and go fishing!

 

[ddavis]

My great uncle said, "if the dog won't hunt, it won't eat". I have had to fight for every dime for my Internet departments and I live by the ROI report. If I can't tie it to a sale or increased traffic to my website, I don't want it.
Customers think we are a bunch of crooks. How do you brand that? Branding is for the factory. Customers want to know if you have a car and are willing to sell it for a price that they feel comfortable paying. They don't want to be your friend. They are not going to invite you to dinner or their daughter's wedding.
Be the volume dealer, in your market, the branding will take care of itself.

 

[john.quinn]

My great uncle said, "if the dog won't hunt, it won't eat". I have had to fight for every dime for my Internet departments and I live by the ROI report. If I can't tie it to a sale or increased traffic to my website, I don't want it.
Customers think we are a bunch of crooks. How do you brand that? Branding is for the factory. Customers want to know if you have a car and are willing to sell it for a price that they feel comfortable paying. They don't want to be your friend. They are not going to invite you to dinner or their daughter's wedding.
Be the volume dealer, in your market, the branding will take care of itself.

Wow, that's an awfully cynical approach. I can tell you that being the 1st dealer that people consider when in market (TOMA) has major advantages. Associating your name with a positive image has it's place in the marketing mix.

Ask Coca-Cola. Ever see a price on one of their ads? But you see lots of happy people and polar bears drinking soda. "Have a Coke and a Smile!"

What's the 1st toothpaste that comes to mind? (Crest?)
Hamburger Restaurant? (McDonalds?)
Diapers? (Pampers?)

That's TOMA. Powerful.

 

[ddavis]

John, I had a budget seperate from new and used cars. Don't come to me with billboards, balloons, banners at the high school stadium, or license plate frames because it has my URL on it. The same is true of print, and electronic media. Flashing www.mydealership.com on the screen or mentioning it on the radio shouldn't make it part of my budget. I believe that TV can really contribute but I want it totally about the Internet department. Advertising is one of the the three largest variable expenses and much of it is wasted.

I don't think "brand" or "image" are words that should be used in polite conversation.

As long as car salespeople are the blunt of jokes, you will never have the budget to change the hearts and minds of the public.

Put a customer in front of me and I will sell them and their friends. This is what it is about.

 

[john.quinn]

John, I had a budget seperate from new and used cars. Don't come to me with billboards, balloons, banners at the high school stadium, or license plate frames because it has my URL on it. The same is true of print, and electronic media. Flashing www.mydealership.com on the screen or mentioning it on the radio shouldn't make it part of my budget. I believe that TV can really contribute but I want it totally about the Internet department. Advertising is one of the the three largest variable expenses and much of it is wasted.

I don't think "brand" or "image" are words that should be used in polite conversation.

As long as car salespeople are the blunt of jokes, you will never have the budget to change the hearts and minds of the public.

Put a customer in front of me and I will sell them and their friends. This is what it is about.

Obviously, we're coming at the topic from different perspectives. You're talking departmentally, I'm talking globally. My focus, along with driving traffic, is my dealerships's image in the community. And I promise, our image is not a dirty word.

And I struggle with the cost of "branding" while at the same time recognizing the power of top-of-mind-awareness. As you mention, half of all advertising is wasted money. But I've yet to figure-out which half.

Lawyers are bear the brunt of jokes too. I just called my insurance guy a crook this morning. But you certainly can be a positive, contributing member of the community with a good name, even in this business.

Case in point: Community Excellence | The Times Leader, Wilkes-Barre, Scranton PA - News And not that I want to spin the conversation down this path, but theoretically, how would you put an end to wasteful advertising?

CRM is the answer -- the CORE of CRM: managing relationships. Doing things sooo well and sooo right that your deeds are sung on the highest mountains and retold across vast seas

And when you see dealerships with that 60%-80% repeat/referral number with per-unit advertising in the low $200's... you begin to realize that it may not just be a fantasy.

 

[ddavis]

John, if a dealership has 60%-80% repeat/referral business they have already established top of mind awareness. Understand that they are coming back because they appreciated the way they were treated. Again, put a customer in front of me and I or one of my guys will sell them and make a favorable impression. You have to get them in the door and that is what my budget is for. I was at a dealership that spent $600/month in balloons and had a dozen billboards. I don't think either has ever sold a car.

My ROI report dictated my budget and I'm one of the tightest guys in the car business. My former GM used to call me cheap but he appreciated me. Any vendor (usually a stunning blonde with big ta-tas) would be sent to me for the final say. I would always welcome them to come back but with no expectations that I would buy anything.

 

[john.quinn]

John, if a dealership has 60%-80% repeat/referral business they have already established top of mind awareness.

Exactly! But why then does Coke and Crest keep advertising?

Please understand that I'm not disagreeing with a single word you've said -- but there is "something" else too that your approach leaves out.

 

[ddavis]

Exactly! But why then does Coke and Crest keep advertising?

Please understand that I'm not disagreeing with a single word you've said -- but there is "something" else too that your approach leaves out.

The public perception of Coke and Crest isn't Alibaba and the forty thieves.

I was a Alpha/Premium dealer on AutoTrader and bought the new and used car specials on Cars.com. I could justify every dime through my ROI report. I could justify my PPC budget with an increase in web traffic but there was never enough. Adding items to my budget that I can't justify through my ROI report would end up as cuts to the budget that matters.

I'm going to have to bring out Uncle Joe's pixies and unicorns.