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Autotrader.com Annual Sales Meeting 2009 - Another Side of AutoTrader?

Geeze boys... I had to take a moment to place a comment on here. Since I have been hiding behind the scenes for a bit.

As we all know AT is a heated discussion as prior posts on Dealerrefresh. Price increases and much more. Yes I was also in the midst of hammering a few AT reps on the head that were fully defending the AT blitz team etc.

David - future post would be greatly appreciated here on Dealerrefresh. Many of us regardless if we are a Dealer, Vendor, competition etc. are ears are open to learning more or should I say SHARPEN our SKILLS!!

Giving them the chance to see of their improvements are what AT says they are, only time will tell.

What it comes down to is we find ourselves blaming others for just that reason. Swallowing a hard pill due to price increases really is a drag and looking back at the ROI on the sale we made from AT is what we need to do.

Do you use AT to the fullest advantage you have?

Yes I sell websites, I am not going to sell a website if you are not going to use the tools I sell you. SPECIALS, UPCOMING SALES, UPLOADING VIDEOS and so on.

To get a tool to work for you, you need to work with all the tools that are provided to you.

I have used AT in the past, and sold a lot from AT. I had to keep on top of it daily to ensure the consumer is going to see what I have and details on that vehicle.

Again lets give them a chance to see what they have in store as David taken his time to place this post on here and seems confident this change is in the best interest of the dealer themselves.

Cheers to the Kool-Aid!
 
David,

Please keep doing guest posts they are interesting and I want you to know that I am a big fan. Keep up the good work.

Everyone,

As competitive as we maybe sometimes be with another we need to remember that we are in this together as one big team. We are the people that move this industry and control it with our experiences, references, and comments. I came to this conclusion yesterday when I sat in a room with vendors and dealers at NADA and watched two former president's speak. I saw how united we were and how we were like a family.
 
Ok. So I've decided to put my two cents in here. I've been lurking around here too, and have been reading a lot of the same stuff on a bunch of different message boards. The conversations aren't that different from what I am hearing from former co-workers.
I used to work for Trader myself. I started as an inside sales rep for TraderOnline for the old Trader Publishing. I went to work for Auto Trader Magazines as an outside sales rep, went to work then for the Alpha Dog of them all, AutoTrader.com as an outside sales rep, and then jumped divisions into a regional sales training position for AutoExtra.com.
I, like many others out there, have had my share of angry moments at our (former) company. But if I step back for a minute, and try to be objective, I have to say, it wasn’t all bad. During my time with the Cox organization(s), I was able to very quickly move from inside sales to outside sales to working for the flagship to being a regional sales specialist. All in about 4-5 years. What other company offers you the opportunity for growth like that? So for that, I am and will always be grateful.

HOWEVER. I too fell victim to layoffs this time last year from my regional position. So I know the pain of what those who were recently let go, are going through. I have to step back for a minute and say something about the demise of our company, Cox Auto Trader/Auto Mart. As a team, we are responsible for where it ended up. And don’t get angry guys, this is just my opinion, and my experience.
I hear a lot of reps complain, about the fact that upper management didn’t care about what was going on, and what changes were being made. Well for someone who actually made it into a management position, and got to actually talk one-on-one with district managers and regional managers, I can say they were doing what they had to do, and were doing the best they could.
AutoExtra.com had the potential to be a great site. They even brought over Joe George, one of the originators on the AutoTrader.com team, to oversee it. I remember having a conversation with him at a team meeting, about how we were in a truly good place at the right time—at a very similar place he once saw AutoTrader.com at. We had a fighting chance, it was just going to take time.
The reps however, (and this goes for AutoMart as well, as I heard about problems with rate integrity, dealer maintenance, and lack of sales enthusiasm from my AutoMart.com counterparts), failed to effectively position, sell, and service their internet products. They treated it simply as an add-on, or would HIDE it, and its cost, in the weekly invoice. I myself tried to share all of the practices I had learned with AutoTrader.com, with my reps, and very few took it to heart. They couldn’t see past the print, instead of looking at the total-market solution of print and internet, that would bring their dealers good leads. They tried to blame the site, the team in Norfolk—everyone but themselves for why it failed. Search engine marketing was our only main form of advertising? Well if the inventory isn’t there it’s not going to show up in searches! If the dealers aren’t there, the site won’t work! CAT and CAM gave reps a way to offset the costs of the print, and if they had done a better job, ACROSS THE COUNTRY, the division wouldn’t have fallen. Internet revenues with smaller overheads could have balanced out the print revenues with the higher overheads. Now yes, some reps had every dealer on an internet package, but if in one office, one city, your entire team isn’t on board, it just won’t work. And if nationally, you don’t build it, it won’t work.
I understand everyone feels hurt, angry, betrayed, lost. I was there too. And some days, I still find myself wandering back asking “what if?” But what’s done, is done. It’s time to take that anger, frustration, and sadness, and refocus all that energy. It’s time to move on. Believe me, I’ve been there.
THAT’S NOT TO SAY, AutoTrader.com didn’t have its shortcoming’s either.
I came on board in June 2006 as an Advertising Consultant, and while I was excited, and happy to be there, the honeymoon would soon come to an end. I took over a territory that had been DEMOLISHED with regards to ATC’s reputation.
Previous to me coming on board, 2 reps in that area and a sales manager, were all let go due to VERY shady practices. They had been giving dealers “free” product, such as upgrades to featured plus, or spotlight power packs, and then charging them later. “Don’t worry, they’ll thank me!” When the dealers refused to pay because they didn’t ask for the product, they were put into collections, or paid the balance to not ruin their own credit, and then cancelled ATC. Then of course, there was also the practice of selling, putting them live, and then never going back in the dealership again. Dealers LOVE that.
Now you all out there know dealers talk to each other. You can imagine how big of a fight it was then, for me to come on board, and try to work against such horrible experiences. And ATC management, WAS aware. However, they didn’t grant me any leniency. Yep, I made sales, but when times got rough because of the many uphill battles I was fighting, they were VERY quick to put you on a performance plan. Managers, as great as they were (and I REALLY DID respect my first DM at AutoTrader.com), couldn’t see past their own ambition to move up the ranks. I had a new manager come on and try to have a “come to Jesus” meeting with me, yet he had NEVER been out in the field with me, and didn’t even know my abilities as a sales rep. So, I knew it was time to move on, and was given the opportunity to move up. (This is part of why you, as dealers, saw such high rep turnover in your dealerships from ATC…their AMBITION, that sometimes border-lined on GREED…actually hurt them).
I’ve met Chip Perry. He is a great guy, and a very powerful, motivational speaker. So I believe when he says they are shifting focus this year to becoming more service oriented. And I believe it will be what’s good for ATC. And I believe in the power of AutoTrader.com.
Sorry I’ve rambled, my Red Bull hasn’t kicked in yet…
David, great post, and as someone who used to work with Mile One dealerships, you definitely have my respect and appreciation for what you do.
 
One more thing… I hate to put it this way, but ATC IS a necessary evil for dealers everywhere. It’s not their fault, they just built something that works. No, really. When they say “WHAT WE DO WORKS” they have the numbers and research to back it up. Every industry has a leader, they are it. And Cars.com is right there with them, neck and neck.
Do you want to sell cars? Do you want to make sure you do it as cheaply as possible? Do you want to make sure that EVERY dollar is TARGETED, and that there are NO wasted ad dollars? In this economy, you can’t afford to waste money.
The sole purpose of sites like AutoTrader.com and Cars.com is to bring car buyers and sellers together. Period. The same is NOT true for radio, TV, newspaper, or direct mail. They are “reach-preachers.” But if a TV or radio station reached 1,000,000 people, only a small percentage of people are looking to buy a car. You just wasted A LOT of money on people NOT in the market to buy. In this economy, are you looking to reach those who are looking to buy today, or those who are looking to buy 3 months from now (which isn’t going to help keep you in business into next month)?
Yes, I know you like the branding, and seeing your face on TV Mr. Dealer, and your company name. But it’s not about you, it’s about the consumer. Trust me. Leave the car selling to you, leave the advertising to us. Image ads don’t sell cars. Product ads do. That’s advertising 101.
AutoTrader.com’s top package is probably around $5,000-$6000 for a Tier-1 partnership at this point, for like, Ford or Chevy. I know TV schedules, and radio schedules, that cost A LOT more weekly.
Monthly, the totals are shocking (and I don’t care if they give you bonus spots, if you look at something like a TapScan report, you’ll see that NO ONE is listening on the overnight or weekend day-parts). Ask your broadcast reps for an Arbitron or Nielsen report, that reflects the RETAIL SPENDING POWER of their station. You’d be surprised how many actually intend to spend money on a new or used car this year. This information IS available, no matter what they tell you. You’ll be shocked to see what your true reach is, and how it actually affects your ROI.
With regards to newspaper and other print products, yes, they are places where people DO go to look for cars, but not a lot of people. Yet I’ve seen what some of you spend on the newspaper! I’m SHOCKED! Consumers want as much information on the car (photos, COMPLETE descriptions) and the seller as they can possibly get before making a decision, and the Internet gives you more of that than any other place, with little to no effort on the part of the consumer. Just point and click, from the comfort of your own home. The newspaper does not. TV does not. Radio does not. The product value/effectiveness doesn’t justify the spend.

It’s time to get with the program.
 
Bill--
What's the Dominator package? Is it that big orange ad at the top of the page? With the banner in the middle of the page, and the ad that pops up before the search results?
And if so, you say it's $3,000 a month?
This must be similar to the Alpha dealer package they were working on before... And now it's just an add on?
 
One more thing… I hate to put it this way, but ATC IS a necessary evil for dealers everywhere. It’s not their fault, they just built something that works. No, really. When they say “WHAT WE DO WORKS” they have the numbers and research to back it up. Every industry has a leader, they are it. And Cars.com is right there with them, neck and neck.
Do you want to sell cars? Do you want to make sure you do it as cheaply as possible? Do you want to make sure that EVERY dollar is TARGETED, and that there are NO wasted ad dollars? In this economy, you can’t afford to waste money.
The sole purpose of sites like AutoTrader.com and Cars.com is to bring car buyers and sellers together. Period. The same is NOT true for radio, TV, newspaper, or direct mail. They are “reach-preachers.” But if a TV or radio station reached 1,000,000 people, only a small percentage of people are looking to buy a car. You just wasted A LOT of money on people NOT in the market to buy. In this economy, are you looking to reach those who are looking to buy today, or those who are looking to buy 3 months from now (which isn’t going to help keep you in business into next month)?
Yes, I know you like the branding, and seeing your face on TV Mr. Dealer, and your company name. But it’s not about you, it’s about the consumer. Trust me. Leave the car selling to you, leave the advertising to us. Image ads don’t sell cars. Product ads do. That’s advertising 101.
AutoTrader.com’s top package is probably around $5,000-$6000 for a Tier-1 partnership at this point, for like, Ford or Chevy. I know TV schedules, and radio schedules, that cost A LOT more weekly.
Monthly, the totals are shocking (and I don’t care if they give you bonus spots, if you look at something like a TapScan report, you’ll see that NO ONE is listening on the overnight or weekend day-parts). Ask your broadcast reps for an Arbitron or Nielsen report, that reflects the RETAIL SPENDING POWER of their station. You’d be surprised how many actually intend to spend money on a new or used car this year. This information IS available, no matter what they tell you. You’ll be shocked to see what your true reach is, and how it actually affects your ROI.
With regards to newspaper and other print products, yes, they are places where people DO go to look for cars, but not a lot of people. Yet I’ve seen what some of you spend on the newspaper! I’m SHOCKED! Consumers want as much information on the car (photos, COMPLETE descriptions) and the seller as they can possibly get before making a decision, and the Internet gives you more of that than any other place, with little to no effort on the part of the consumer. Just point and click, from the comfort of your own home. The newspaper does not. TV does not. Radio does not. The product value/effectiveness doesn’t justify the spend.
 
Trader Hokie-
Yes, the same. Alpha Dominator.....
On top of the $6500 or so we pay as a partner an additional $3000/mo. That is for one Line. I'm a C/J/D store and all three for $6000/mo.

There has to be a point of diminishing returns for both AT and a dealer. I am glad I have a well performing website, well optimized and branded. Maybe I'll give them the heave ho.
 
Oh yea, the Kool-Aid flows freely and all are required to overindulge; same as with the HEAVY drinking, high fiving and back stab... er back slapping, self congratulatory narcissism. You're about to be bamboozled again. David Metter, you're a trip!
How much did you sell your soul for?
 

✨ AI Highlights

A dealer guest post praising AutoTrader.com's 2009 national sales meeting quickly devolves into a heated debate between apparent AutoTrader insiders and skeptics over traffic figures, ROI claims, and whether dealers truly need both AutoTrader and Cars.com. A notable side conversation questions whether dealers should even maintain separate internet budgets, with one commenter arguing that siloed internet departments encourage dishonest lead sourcing. The thread ends on a cynical note, with an accusation that AutoTrader itself runs internal scraping operations to inflate its own traffic metrics.

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