An Open Letter to Mark O'Neil - Chairman and CEO of DealerTrack

[joe.pistell]

Dear Mark O'Neil,

You are the Chairman and CEO of DealerTrack with a fascinating bio that includes being President of an Auto Dealer Group, you’ve worked at Intel, you co-founded CarMax and you're Director at DealerTire.com. It's quite clear you have a nose for opportunity and with your Harvard MBA, you know how to leverage it.  I hope this information finds its way to your desk.

I would like to present to you comprehensive report of a gigantic opportunity that resides inside one of your existing companies.  It is an undiscovered jewel that's waiting for you to roll it out.  Once you do, your data marketing partner will become Google...Yes Google.

I have better news. Google’s management team needs you and is looking for CHROME.

What is this Google Opportunity and what does this have to do with DealerTrack’s CHROME?  Google has a new  product search feature called Google Products, and it requires extremely detailed product data that CHROME specializes in.  Let’s see how it all fits…

Let’s look at a Google Products example for a Garmin GPS:


Google is slowly building out it’s Google Products platform. Here is another Google Products example, this time taken from the automobile accessories industry.  See the link for  “Jeep Floor Mats” (Scroll to the bottom and you’ll see the “product attributes” that Google requires to make this work). If you swap out the Jeep Floor mats and insert ANY vehicle for sale (like a NEW 2011 Ford Flex or a USED 2008 Buick Enclave) Wow!

This digital marketing opportunity is not limited to Google.  Here is Yahoo’s example of the same concept:


Bing has it also, but it’s not as fully developed.

WHY CHROME?

I saw this opportunity in 2010 and attempted to fill this void myself.  I've had discussions with Google Products data vendors from other verticals (EdgeNet.com) and have come to the conclusion that it will require an automotive data specialist inside our space to make this happen.  IMO, there are few companies in the automotive space that has what Google needs and I have been working with CHROME data so long, I felt you’d be best suited to it.  This is confirmed by Google’s PR: “Going to the Source to Improve Product Data”

When CHROME takes on this new partnership with Google, what kind of nationwide impact am I talking about here?

Let look at the automobile accessories industry for clues to what could happen in our space, let’s look at Audi Q7 accessories and visualize a 2011 Audi Q7 in its place:


What happens is CHROME creates the attribute map for all automobiles and this information creates a path FROM Google Products to the Google Shopping system, and to the organic search results AND to the Google Adwords (Paid search) results. I’ve uploaded my inventory to Google Shopping and nothing happens because there is no Google Products for automobiles (yet).  My Audi Q7 is highlighted below and it sits there all dressed up and no place to go!


The Google Products is a relatively new feature for Google, and Google’s roll-out is limited to the time consuming connections it makes with vendor attribute specialists.  Google is looking for a solution partner in the automotive manufacturer/dealer space and they don't know you have the key to the attribute vault!

CHROME’s Revenue model? That’s up for exploration.  I believe you'll need to build a new business model for the product as it's a data/advertising product with no peer (in our space).   My research taken from www.Edgenet.com tells me that any retailer that wanted to be visible in the Google Products system needs to “participate” with the data vendors program.  This makes the Google Products vendor the “gatekeeper” for all retailers!  That being said, the Automotive model is completely unlike ecommerce retail so creative exploration will be required.

I do know, once it's launched, it's impact WILL dramatically impact our entire automotive retail internet marketing industry... forever.

Mr. O’Neil, your team’s contact at Google is Mr. Brian Lam, Strategic Partner Manager, Google Product Search.  Mr/ Lam is a new hire (6/2010) and you two need to talk!   The  “Google Products” platform is built around ecommerce, so some joint creative thinking will be needed.  Once you two conquer the details, the impact to consumer, manufacturer and retailer is going to be... epic.

I hope you and Mr. Lam found this report to be the beginning of a new product launch in the automotive retail space.  If I can be of any service to you or your team, please feel free to contact me.

-Joe Pistell

 

[Eric Miltsch (blog)]

Very nice Joe. I often said that Google fails at two segments: Automotive & Healthcare.

The market is ripe for a web/mobile/social shopping experience that simply revolutionizes the way consumer shop for anything automotive. (Vehicles, services & parts)

 

[Joe Pistell]

If this Google Products concept becomes reality in our space...

BIGGEST WINNERS! PPC specialists like:
Eric Mayhew's Total Control Dominator @ Dealer.com
Duncan Scarry's HayStack2 @ Moore & Scarry

WINNERS! Google Supported Review Sites Like:
Chip Grueter's DealerRater.com

WINNERS! WebSite Vendors:
Another technical service needed by dealers
HomeNet (yet another mission critical inventory feed that web vendors need)

WINNERS! Traditional Media:
Organic SEO is slowly dying. The days of free traffic due to intelligent site design are almost gone. Big 3rd party sites know that TV branding is alive and well and will have to spend more $ to offset the lost organic traffic.

LOSERS:
Organic SEO for Dealers.
Organic SEO for 3rd party sites like AutoTrader, cars.com, usedcars.com, cargurus.com.

 

[Alex Snyder (blog)]

I'm curious on a few points in this comment Joe. However I just want to start with one: Why do you believe organic SEO is dying to TV branding?

 

[Andy Guyler]

Joe
I may be wrong here but I think Google Products is populated by Google Merchant which use to be Google Base. If you understand the data structure you can upload a file to Google Merchant unless of course your product is Vehicles, Real Estate and a few other large categories. IF you can get a file uploaded to Google Base it will populate the Product search. I will say it is not easy though.

 

[Joe Pistell]

Mornin' Alex! You write: "...organic SEO is dying to TV branding?"

In this sentence what I want to say is: "Organic SEO is dying and Traditional Media is it's benefactor". Let me break it down.

Organic SEO is dying.

We all know that searchers click the top listings on the Search Return Pages (SERPs) and we know that Google is constantly adding new SERP products that push the organic results lower and lower. Over time we've seen Google Adwords (paid ads), Google Places(Local Maps) push Organic SEO lower, Now "Google Products" is yet another item that pushes the organic results lower on the page.

Google Adwords is a long tail and a short tail product. Google Local is a short tail product, and now "Google Products" is aimed at longer tail organic SERPs (e.g. year, make, model) A future "Google Products" example would be "2010 Kia Soul for sale" In almost all cases that I've seen, Google hard wires the "Google Products" result to the top of the SERP.

Ok, so how does TV win more revenue as google expands it's SERP products?

Any Automotive business that LIVES on the internet (AutoTrader.com, Cars.com, UsedCars.com, CarGurus.com, etc.) gets traffic from an assortment of sources. Internet Traffic a site can come from TV, Print, Google Paid ads and folks Google'ing the site's name. On top of all that, a portion of a sites traffic is from Organic SEO (Long Tail SERP example: "best price on 2010 Buick Enclave"). As Organic SEO real estate shrinks, so does that Organic SEO traffic.

This will produce a measurable LOSS in business. Traditional Media WINS more share because the loss in Organic SEO traffic needs to be offset.

AutoTrader and Cars business model is fueled by big investments in traditional media, UsedCars and CarGurus is not. Should "Google Products" come to our space, the lower tier players like UsedCars and CarGurus who live (or die) on Organic SEO traffic, will have the most difficult challenges to their business model.

The ridiculously brilliant Chris Dixon* wrote an article that loosely connects to what I am referring to: "SEO is no longer a viable marketing strategy for startups". SEO is no longer a viable marketing strategy for startups

** Chris Dixon: Personal investor in early-stage technology companies, including Skype, Foursquare, Kickstarter, Stack Overflow, TrialPay, DocVerse (acq by GOOG), Invite Media (acq by GOOG), Gerson Lehrman Group, ScanScout, OMGPOP, BillShrink, Panjiva, Knewton, and a handful of other startups that are still in stealth mode.

 

[terrencegordon]

Joe, good post. It's always been chicken or egg with Google. Users aren't searching for "Year + Make + Model" keywords on Google because of the irrelevant and limited results. We actually approached them in 2009 with a similar plan.
I do disagree that Organic SEO would suffer....at all. For NEW car-related terms, the largest volume of searches and traffic are still based on general terms (not vehicle-specific). It's the USED market that drives the vehicle-specific keyword searches, which the 3rd party sites will continue to dominate until Google decides to incorporate this into their Products, Shopping, or even better - an Automotive channel specifically.

 

[Jerry Thibeau]

Joe, You're clearly working on the wrong side of the business. I predict one day you'll be working for a vendor or Google. Somebody needs to recruit you!

 

[Joe Pistell]

Andy,

I know its a long read, but, If you re-read it, it's all there, everything you don't understand is there... and I mean it's ALL there.

A screenshot of my Google Merchant/Base is up there, see this link:http://www.dealerrefresh.com/wp-content/uploads/2011/05/search_google_q7.png

The inventory in Google Base talks to NOTHING because the Google Products Team has not come up with solution for our space (no ecommerce auto dealer retail and no vendor to supply auto manufacturer product attributes for it).

My Google PPC account, has 56,000 keywords and accounts for 22% of my total site traffic. My son and I have tried every trick in the book to get our Google Base to feed the Google Product Targets needed to display the pics in the PPC ads.

Nada.

My multiple discussions with Edgenet confrimed all my detective work. Google Products is the hub and the attributes are the key. No Google Products, no PPC with Pics, no Google Products Organics.

 

[Joe Pistell]

Terrence,My respect for your teams work has no bounds, you guys are the rebels and I LIKE rebels You wrote: "
Users aren't searching for "Year + Make + Model" keywords on Google because of the irrelevant and limited results. "

If I were the Google Products manager, I can't think of a more important reason for Google Products to be in the automobile retail space than is brought out by your reply.

You wrote:

"...For NEW
car-related terms, the largest volume of searches and traffic are still
based on general terms (not vehicle-specific)."

We agree that the largest volume comes from
general terms (not vehicle-specific). BUT, Google Products does not deploy into this area. We all agree and understand that Organic Short tail SEO has already suffered (from Adwords and
Google Places). Why else would major players buy adwords ads? What I am saying is that Google Products is AIMED at long tail SEO and is yet another punch in the Organic
SEO gut.

You wrote:
"...I do disagree that Organic SEO would suffer....at all."

Terrance, there is no question that we're talking about the small long tail arena only. But, when it hit's it'll be a nuke. Look at this Screen Shot (below) and you tell me that these pics won't steal
eyeballs AND create shopper interest AND new shopper phrases. http://www.dealerrefresh.com/wp-content/uploads/2011/05/audi_google_audi.png ALL of which will go DIRECTLY to the
DEALER.