Is Social Media Overrated? Artemio Garza Yodle for Brand Networks Summit - Miami, FL January 22, 2015

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1 Is Social Media Overrated? Artemio Garza Yodle for Brand Networks Summit - Miami, FL January 22, 2015

2 Who am I? WHAT S MY NAME? JOB? - ARTEMIO GARZA - CMO Drive with Peace of Mind - Moved to Charlotte, NC ~2 years ago to join Driven Brands - My background is in Mechanical Engineering WHY THE AUTOMOTIVE AFTERMARKET INDUSTRY? - Followed my boss from BK to Driven Brands - Common thread is Private Equity Restructuring in Franchised Businesses - Love Marketing Especially B2C - Learned about marketing on the job BURGER KING - I love technology driven projects

3 What is Driven Brands? - Leading franchise platform in the automotive aftermarket service sector - ~$1 billion in system-wide annual sales - Over 1,600 locations worldwide - Service approximately 3.5 million cars annually - Two iconic multi-generational brands TOTAL CAR CARE BODYSHOP APPEARANCE FOUNDATION Drive with Peace of Mind

4 Why talk about Social Media? 1. Structure of Ad Funds Meineke % contribution of sales Maaco flat weekly fee by market 2. Brand Revitalization Turn the car you drive back into the car you love Drive with Peace of Mind Complicated Thousands of bosses TRUST - accountability Be Creative Fluffy? Out of context 3. Social Media Meineke Bare Minimum Maaco All over the place Challenge for most of us Limited Resources to finance Social Learnings to share Maybe you can help me?

5 Is Social Media Overrated?

6 Social Media Savvy Boss Good thing?

7 Attempt #1 Let s Impress the Boss

8 Know your budget, prioritize your advertising options 1. TV 2. SEO 3. Radio 4. PPC 5. Marketing (CRM + Mass Campaigns) 6. Direct Mail (CRM + Mass Mailers) 7. Local Partnerships 8. Display & Social Media Advertising 1. TV 2. SEO 3. Direct Mail (CRM + Mass Mailers) 4. Marketing Drive with Peace of Mind (CRM + Mass Campaigns) 5. Radio 6. PPC 7. Local Partnerships 8. Display & Social Media Advertising

9 But my boss, board, franchisees still tell me.. 1. Why can t we do something like the ALS Ice Bucket Challenge? that s much better than TV! 2. Make this 50% off offer viral Social Media is free 3. How many fans did we gain this month? 4. Starbucks has close to 40 millions FB fans and Coca Cola close to 100M! MARK RITSON BRANDING PROFESOR MELBOURNE BUSINESS SCHOOL

10 The Oreo Blackout Tweet

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12 Budweiser Superbowl TV Spot

13 Oreo vs Budweiser Number of Impressions Click Through Rate 1 to 3% 10K followers falls to 0.45% 65,000 CTR = 1300 clicks X 15,000 retweets X 208 users = 3 Million People Reached Automatic Bullets 108 Million Viewers 47% watch ads ~ 50 million impressions X 2% CTR = ~ 64,000 impressions

14 Oreo vs Budweiser Cost per Impression ~ 64,000 impressions Automatic Bullets ~ 50 million impressions Direct Mail Comp: $0.28 oversized postcard X 64K = $18,000 Cost of TV Spot $4M Direct Mail Comp: $0.28 oversized postcard X 50M = $14M

15 Know your budget, prioritize your advertising options 1. TV 2. SEO 3. Radio 4. PPC 5. Marketing (CRM + Mass Campaigns) 6. Direct Mail (CRM + Mass Mailers) 7. Local Partnerships 8. Display & Social Media Advertising 1. TV 2. SEO 3. Direct Mail (CRM + Mass Mailers) 4. Marketing Drive with Peace of Mind (CRM + Mass Campaigns) 5. Radio 6. PPC 7. Local Partnerships 8. Display & Social Media Advertising

16 Are there brands for which Social Media advertising ranks high on the priority list? YES NO

17 But all brands must manage Social Media to 1. Respond to consumers/new business opportunities inquiries 2. Address complaints and/or negative comments 3. Ensure a consistent, professional and inviting online presence 4. SEO

18 Attempt #2 Buying Fans - #MAACOVER giveaways - Not integrated to customer service - Lack of alignment with mass media branding strategy

19 Attempt #3 IT Focus - No creative support for Social Media - Canned responses - Reposting generic news content - Added opt-in program for franchisees

20 Attempt #3 IT Focus ü We gained controlled over franchisee pages ü Paid opt-in program helped us finance ü Integrated with Customer Service redirect complaints to website or Customer Service Line We were not prepared post show content We did not know the industry haters We did not maximize exposure No Brand Consistency (Uh-Oh)

21 Attempt #4 Tech Focus + National Branding - Continue to pay for Social Media tool through franchise opt-in program - Spend national budget on content management/creation - Leverage video assets - commercials - Ensure consistency of creative across all channels - TV, print, OOH, In-center, Social etc - Speed to response - Get to know your followers Haters/Qualitative Research - LIMITED ADS

22 Takeaways All brands need to manage social media for customer service and branding but only a few brands need to use social media ads to drive traffic to their business Integrate with Customer Service Traditional Media like TV & Radio work! Don t dilute those budgets! Chose the right Social Media Management Tool and negotiate a deal to support a franchised business Offer opt-in franchisee level program to help you cover the cost of the tool Leverage your print and TV creative to develop content that can be leveraged on both national and local pages to incentivize franchisees to join Use Social Media as a source of high level qualitative customer research Advertising executions along with the other forms of popular culture, such as music, film, and television programs, can be used as a central conversational resource Use this to leverage the media hype around social media and get some PR

23 Fred s Topics 1. Structure of Ad Funds Meineke % contribution of sale Maaco flat weekly fee by market Reporting GET CREATIVE 2. Brand Revitalization Turn the car you drive back into the car you love Drive with Peace of Mind Consistency across all platforms Data Driven Simple Brand Positioning 3. Social Media Meineke Bare Minimum Maaco All over the place Enough Said!

24 THANK YOU!

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