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What to cut?

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john.quinn

john.quinn

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Dec 2, 2009
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#1
The edict is (shockingly, sic) in: reduce advertising expenses for 2012. Significantly.

Our plan is basically twofold: we have branding efforts and traffic efforts.

Does it make sense to "brand" the dealership anymore? (We sell 14 brands under one roof, 75% New Car.)

"Cut Cut Cut Cut Cut"

Here's the problem. We live in the #1 Newspaper readership market in the COUNTRY. We get 1100+ phone calls a month from the actual YELLOW BOOK. We are among the OLDEST (demographically) markets in the country.

Yes, we are that place. Seriously.

Our on-line/digital spending now accounts for about 35% of our overall spending, while we can trace about 25% of our overall sales to digital efforts (ILM).

Over the last few years, we've significantly increased digital spending while keeping traditional costs flat. We can easily slice a big chunk out of traditional by saying, "Dealership branding is not that important anymore."

Is it?
 
#2
John, You will never convince me that any market can deliver the same results from a newspaper.

I was looking at the newspaper ad on your website. Do ya'll (MotorWorld) do a lot of leasing? Are you able to put those same lease ads on the individual vehicles on your website and third party display advertising?
 
#3
ddavis said:
John, You will never convince me that any market can deliver the same results from a newspaper.

I was looking at the newspaper ad on your website. Do ya'll (MotorWorld) do a lot of leasing? Are you able to put those same lease ads on the individual vehicles on your website and third party display advertising?
Click to expand...

To me, the idea is to put offers in front of people where they are looking. (Fish where the fish are, right?).

So if your market is looking in the paper, how do you not advertise in the paper? (Believe it or not, Wilkes-Barre has TWO thriving newspapers... where the papers are now razor-thin in most other markets, in Wilkes-Barre, there are two thick, meaty newspapers!)

We do a ton of leasing, yes. We currently have no mechanism to link offers to inventory, no.

My question is more simple: how important is it, if at all, for Dealerships to brand themselves in today's market?
 
#4
JQuinn said:
To me, the idea is to put offers in front of people where they are looking. (Fish where the fish are, right?).

So if your market is looking in the paper, how do you not advertise in the paper? (Believe it or not, Wilkes-Barre has TWO thriving newspapers... where the papers are now razor-thin in most other markets, in Wilkes-Barre, there are two thick, meaty newspapers!)

We do a ton of leasing, yes. We currently have no mechanism to link offers to inventory, no.

My question is more simple: how important is it, if at all, for Dealerships to brand themselves in today's market?
Click to expand...

John, There is only one Newspaper in this market and it is expensive. We often ran full page, color ads in the paper. Not only did we always get more appointments through our Internet department, the closing ratio was much higher. We also did a lot of leasing.
You use Cars.com and they have new car specials which would allow you to quote leases. None of your competitors are doing this. The same is true if you if you chose to go up a level from the standard listings on AutoTrader where none of your competitors advertise. It would also move all of your vehicles to the top of the listings.
I believe that if you have the same hooks on your digital sites, you would see similar results. You might try it with one of your volume franchises which wouldn't be that expensive.
 
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