- Dec 2, 2009
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Should We Change How We Look At Advertising
- Thread starter ajholland
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I think they might have unchained him and he ran out like he stole something. Actually, I believe he is on vacation.
Just before you resigned from MotorWorld, I remember a thread "cut, cut, cut". John, I always read your posts!
- Dec 2, 2009
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Yes -- CUT! Always the edict: CUT! And always the question, What to cut? And that was my question -- what value is there to "branding" the dealership.
I think I've gleaned your opinion, Doug
Unfortunately, I'm still left with the question: which half of the advertising isn't working?
- May 1, 2006
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Wow, these are some shocking posts from you ddavis. I never thought you'd be so singularly minded about how a consumer perceives your dealership. I know you said branding and image are bad words in your world, but...
Do you have a dealership with a physical location?
Does your dealership have a name?
Does it have a sign out front?
Can the public see that sign?
If you're saying yes to any of this then you're branding yourself. The appearance of the building and the name on the sign might not be line items on your advertising budget, but they play into how the market views you.
You're a smart guy - you know this.
I'm really just saying I'm shocked at your posts. I took you as someone who saw the bigger picture.
Do you have a dealership with a physical location?
Does your dealership have a name?
Does it have a sign out front?
Can the public see that sign?
If you're saying yes to any of this then you're branding yourself. The appearance of the building and the name on the sign might not be line items on your advertising budget, but they play into how the market views you.
You're a smart guy - you know this.
I'm really just saying I'm shocked at your posts. I took you as someone who saw the bigger picture.
John, that is my point. If everything can be justified in the ROI report, any cut goes through the fat and into the muscle.
In the 80s, we were spending $350/car in Advertising. I have never spent half that in my Internet departments. I continued to see money wasted by the new and used departments but they didn't evaluate their expenditures by ROI. I usually got what I asked for but I always felt like a beggar. My departments sold up to 70% of the cars with under 20% of the budget and 30% of the sales force. Put that into perspective: Your top three variable expenses are Advertising, Interest Floor Plan and Salesperson Compensation and Incentives. Look at the effects of a good Internet department. Lower advertising costs, faster inventory turn and a more efficient sales force.
Dealers, have you hugged your Internet Director, today?
In the 80s, we were spending $350/car in Advertising. I have never spent half that in my Internet departments. I continued to see money wasted by the new and used departments but they didn't evaluate their expenditures by ROI. I usually got what I asked for but I always felt like a beggar. My departments sold up to 70% of the cars with under 20% of the budget and 30% of the sales force. Put that into perspective: Your top three variable expenses are Advertising, Interest Floor Plan and Salesperson Compensation and Incentives. Look at the effects of a good Internet department. Lower advertising costs, faster inventory turn and a more efficient sales force.
Dealers, have you hugged your Internet Director, today?
Alex, true, none of the items above are budgeted under advertising. Some of the best people are in the car business. This is not the public perception. I can change that with a face to face meeting.
Most of us have budget restraints and I don't need ballons, billboards and banners, at the local stadium, at the expense of my Internet budget.
- May 1, 2006
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Would you ever consider PPC, display advertising, premium spots with ATC/Cars.com, Edmunds Premium placement, or video as part of Internet budget?
And there it is... the problem. Many dealers (and Dept. heads) see the Internet Budget as being all about - and only about - Lead Gen. What JQ referred to as "Traffic Efforts". Branding DOES matter. TOMA DOES matter. They don't seem to fit with this veiwpoint.
The same efficiencies that make the Internet perfect for Lead Gen also make it perfect for Branding. Unfortunately Branding doesn't lend itself an ROI report the same way Lead Gen does. Is the answer to split the budget into Lead Gen and Branding as AJ suggests? It makes some sense.
Alex, you didn't read all of my posts. I was an Alpha/Premium dealer on AutoTrader and bought the new and used car specials on Cars.com. I could justify my PPC budget with the additional traffic to the website and our closing ratio from website traffic. We sold up to 70% of the cars with under 20% of the budget. We were the highest volume Internet department in a group of over 100 stores. I get very defensive when someone wants to cut into our 20% when I see a bunch of waste, in the name of branding.
- May 1, 2006
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I did read all your posts. That's why I put ATC & Cars.com in the question 
I really don't think I need to say anymore though. Ed Brooks took the words right out of my mouth.
I really don't think I need to say anymore though. Ed Brooks took the words right out of my mouth.
