Advertising that INFLUENCES
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1 Advertising that INFLUENCES Your photo here Doug Keim Senior Vice President, Client Experience Cox Automotive Atlanta, GA
2 2
3 Advertising that INFLUENCES Your photo here Doug Keim Senior Vice President, Client Experience Cox Automotive Atlanta, GA
4 4 The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker s company, product, or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service.
5 5
6 Learning Objectives 6 1. Influence consumer preference for your dealership with more effective dealer ad creative 2. Identify advertising messages across Tiers 1, 2, and 3 that consumers respond to most 3. Leverage better co-op dollars
7 7 How do I become a digital marketing investor?
8 8 AUTOMOTIVE SHOPPING
9 9 Automotive Matchmaking Moving from more to the best solutions
10 10
11 11 3 PHASES OF AUTOMOTIVE Inventory Discovery Price & Model Comparison Matching Buyers & Sellers
12 12 Image of a girl hugging her car
13 13
14 70% don t know what they want to buy initially 14 I N I T I A L M A K E / M O D E L P U R C H A S E I N T E N T Knew the exact vehicle that you wanted 30% KNEW EXACT Knew the vehicle make that you wanted Knew body style but not the make/model Didn t know specific car but knew class Didn t know specific car but knew features Didn t know what vehicle you wanted 11% 24% 15% 13% 7% KNEW SOMETHING KNEW NOTHING Source: 2016 Car Buyer Journey Study
15 15 % purchased the vehicle they intended to buy Source: 2016 Car Buyer Journey Study
16 Influencing consumers 16 T H R O U G H O U T T H E S H O P P I N G P R O C E S S DREAM EXPLORE SELECT BUY REFLECT Source: 2015 MAGID
17 Opportunity to influence consumers based on their frame of mind 17 17
18 18 Consumers feel more positive about buying a house and remodeling their home than they do about buying a car Source: 2015 MAGID
19 A Times Cyclical are Market: good but What it won t Goes last Up Must forever Come Down U.S. Light Vehicle Sales Source: Bureau of Economic Analysis (BEA) Source: Bureau of Economic Analysis (BEA) adjusted
20 20
21 148M internet Bookings per year 20M patients $2B revenue 21
22 Shoppers will continue to research online and across multiple devices
23 23 % Use the internet to research & shop Source: 2016 Car Buyer Journey Study
24 24 80% will use multiple devices by 2020 Source: Autotrader forecast
25 Time spent in the shopping/buying process 25 TOTAL Time Spent 1 4 : : : : : : % 2% 3% 15% 21% Researching & Shopping Online Researching & Shopping with Print Talking with Others Visiting Other Dealerships/ Sellers With the Dealership/ Seller where Purchased Source: 2016 Car Buyer Journey Study
26 Online sources used to research & shop 26 N E W & U S E D S H O P P E R S 3 rd Party Sites 78% Dealership 57% OEM 36% Source: 2016 Car Buyer Journey Study
27 Deliver better online shopping experiences for consumers 27
28 28 DISPLAY ADVERTISING & CO-OP
29 Modern fixed income investment portfolio 29 EMERGING MARKETS RBT S 10% HIGH-YIELD 8% Source: Investopedia Inc 8% TIPS 15% CASH 5% STOCKS 25% BONDS (GOVT, CORP, MUNI) 29%
30 Balanced digital diet 30
31 31 Dealer Ads drive awareness & engagement and encourage word-of-mouth Source: 2016 Autotrader Multi-Tier Effectiveness Study
32 3 common missteps Inconsistent creative (a.k.a., design) Ineffective ad messaging Not taking advantage of co-op dollars
33 33 THE TEST: Consumers evaluate various combinations of tier advertising online Source: 2016 Autotrader Multi-Tier Effectiveness Study
34 34 Inconsistent Creative
35 Endemic advertising 35 T I E R 1 T I E R 2 T I E R 3 Source: 2016 Autotrader Multi-Tier Effectiveness Study
36 Multi-tier advertising 36 T I E R 1 T I E R 2 T I E R 3 Source: 2016 Autotrader Multi-Tier Effectiveness Study
37 Digital investor prospectus 37 Multi-tier ad experience has more influence on vehicle 3Xpurchase consideration 63.1% 21.2% 25.9% 40.2% 40.7% Endemic T1 T1 + T3 T1 + T2 T1 + T2 + T3 Source: 2016 Autotrader Multi-Tier Effectiveness Study
38 Multi-tier ad experience has 38 MOST influence on driving visits to dealer & more interactions 37.1% 40.4% 49.3% 61.4% % Endemic Tier 1 + Tier 2 Tier 1 + Tier 3 Tier 2 + Tier 3 Tier 1 + Tier 2 + Tier 3 Source: 2016 Autotrader Multi-Tier Effectiveness Study
39 39 Ineffective AD Messaging
40 40 An incentive message influences vehicle purchase consideration most ENDEMIC REGULAR % 54.5% +32% TIER 1 TIER 2 INCENTIVE 71.7% TIER 1 TIER 2 Source: 2016 Autotrader Multi-Tier Effectiveness Study TIER 3 TIER 3
41 41 and is more likely to influence a dealership visit ENDEMIC REGULAR % 55.6% +21% TIER 1 TIER 2 INCENTIVE 67.1% TIER 1 TIER 2 Source: 2016 Autotrader Multi-Tier Effectiveness Study TIER 3 TIER 3
42 42 FOCUS ON: Sales events & cash back offers
43 43 Not taking Advantage of CO-OP Dollars
44 44
45 45 % say co-op funds are very important Source: 2015 Autotrader Co-Op Study
46 46 % say using co-op dollars for digital advertising is NOT EASY. Source: 2015 Autotrader Co-Op Study
47 Why co-op funds aren t used 47 Restrictions Co-Op funds expire before I can use it Doesn t qualify Pre-approval process is a hassle Not aware of co-op funds Source: 2015 Autotrader Co-Op Study
48 48 Multi-Tier advertising strategy taps into available co-op funds
49 Becoming a best practice dealer in display 49 Conduct a fitness check on your advertising partners Create a multi-tier ad strategy and plan Use incentive messaging, which works 20-30% better than regular messaging to drive vehicle purchase consideration & intent to visit dealer Feature sales events & specific cash back offers the most motivating incentive messages Tap into co-op funds more readily by using a multi-tier advertising strategy
50 50 Questions
51 Advertising that INFLUENCES Your photo here Doug Keim Vice President Cox Automotive Atlanta, GA
52 52
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