Download Ralph Paglia Cell

1
Ralph Paglia
Director - Digital Marketing
ADP Dealer Services
• How to use digital marketing tools to buy Internet, radio,
and TV advertising more cost-effectively than ever before
• How to immediately outsmart your competition by directing
shoppers to your Web site, to your inventory, to your dealership!
Ralph Paglia; Seattle, WA – July 17, 2008
1
2
INTRODUCTIONS: Ralph Paglia
ADP Dealer Services
Director - Digital Marketing
OEM and National Accounts
• Recognized industry expert in Automotive
Digital Marketing, Advertising, Lead
Management and CRM Process design
• Responsible for driving 144,000+ leads to
single-point Phoenix dealer in 2 years and developing
a team that sold 4,000+ cars to Internet Leads in 2006.
• Strategic marketing planner and consultant to car
companies, dealer groups and national enterprise automotive organizations
• Deep history of developing Digital Marketing strategies and tactical
CRM implementation blueprints for dealers and car companies
• Managed first retail automotive pilot program for Google Audio while
in beta testing while at Courtesy Chevrolet in 2005, 2006 and 2007
• Started generating Internet leads in 1988 using CompuServe ISP
access and vehicle listings on defense contractor BBS’s in SoCal
Ralph Paglia;
Seattle,
WA – July 17,Cell:
2008
Ralph
Paglia
505.301.6369
[email protected]
2
3
What are many ISM’s seeking?
• Respect and Relevance within the Dealership
• Credibility with DP, GM and Management Team
• Recognition of Professionalism
and Skill sets acquired
• Logical Allocation of Budget and
Resources needed to get results
• Tools Needed and the freedom
to use them when appropriate
• Self Actualization from being given
the control to achieve results
• Respect from Sales Managers
Is this how they see
the ISM in your store?
Ralph Paglia; Seattle, WA – July 17, 2008
3
4
Poll: Dealers scrounge for cuts
Retailers slash costs by cutting staff,
inventory, vendors and advertising
David Kushma
Automotive News
April 14, 2008
“Many dealers say they are reducing —
or even eliminating — their advertising
budgets and shifting ad spending
online from print, broadcast
and outdoor outlets.”
Ralph Paglia; Seattle, WA – July 17, 2008
4
5
“Which one of these information sources was most important
when making decisions about buying your first vehicle?”
TV
9.0%
Magazine
4.8%
Newspaper
4.0%
Radio
1.2%
Internet
38.8%
Friends
14.7%
Parents
27.4%
Source: Polk Center for Automotive Studies
Ralph Paglia; Seattle, WA – July 17, 2008
5
Who are the vehicle and dealership decision influencers that so
many car buyers describe as being “friends” and “parents”?
6
A Harris Interactive
survey of people who
considered themselves
“very” or “extremely
knowledgeable” about
cars found that 63% had
used the Internet as a
resource for their most
recent car purchase,
while magazines—
presumably enthusiast
titles—were a distant
second, at 33%.
Newspapers ranked only
slightly ahead of TV.
Ralph Paglia; Seattle, WA – July 17, 2008
6
Why is the Automotive Industry shifting billions of dollars away from
offline media into online digital advertising strategies and media?
7
“Which one of these information sources
was most important when making
decisions about buying your vehicle?”
40.0%
35.3%
35.0%
30.0%
24.9%
25.0%
20.0%
13.4%
15.0%
8.2%
10.0%
4.4%
3.6%
5.0%
1.1%
0.0%
et
n
r
te
n
I
Pa
nt
e
r
i
Fr
Ralph Paglia; Seattle, WA – July 17, 2008
d
en
r
ne
i
z
TV
M
a
ag
N
ew
pe
a
sp
R
io
ad
Source: Polk Center for Automotive Studies
7
Today’s Biggest Dealer Advertising Challenge
8
Overspending on Newspaper, Radio, Outdoor & Mail Relative to Usage
The Average Car Dealer’s Advertising Spend Does Not Match
The Car Buying Consumer’s Media Consumption Behaviors…
Average Dealer Advertising Spend vs. Consumer Media Consumption
40%
Dealer Ad Budget
Efficiency Gap
35%
30%
25%
20%
15%
Dealer
Consumer
10%
5%
0%
Newspaper
Radio
Ralph Paglia; Seattle, WA – July 17, 2008
Television
Internet
Other
Source: NADA
8
Marketing & Sales Funnel Still Exists
9
The Goals
→ Make them aware of your vehicles
Awareness
Familiarity
Consideration
Visit Dealer
and dealership
→ Show them that your model
and dealership is for them
→ Convince them to consider
your model and dealership
→ Convince them to shop
your dealership
Purchase
→ Convince them to purchase
your vehicle
Ralph Paglia; Seattle, WA – July 17, 2008
9
“I’m gonna get me one today… Oh Yeah!”
Different media channels are more effective
at distinct stages of the shopping funnel
11
Marketing Channel
Consideration
Purchase
Ralph Paglia; Seattle, WA – July 17, 2008
Newspapers
Visit Dealer
Digital Advertising
Radio Ads
TV Ads
Familiarity
Outdoor
Awareness
11
12
Integrated Marketing Use Multiple Media Channels to
Communicate the Same Messaging More Effectively
Dealership Marketing Budget Allocation
10% 10%
5%
40%
10%
25%
Ralph Paglia; Seattle, WA – July 17, 2008
Digital
TV
Radio
Newspaper
Outdoor
Other
12
“Selling a car is just like fishing, Wilbur…”
Google search query used
from a Phoenix location…
“phoenix ford dealers”
Ralph Paglia; Dallas, TX – June 12, 2008
Sponsored Links (paid search
listings) are displayed at top and
right side of search results page…
Ralph Paglia; Dallas, TX – June 12, 2008
Ford Dealer
listings on local
search maps
are shown when
a community
name is used in
search query…
“Local
Business
Results”
Organic (free) web site Links are
listed in the middle/left/lower section of
the search query results page…
Ralph Paglia; Dallas, TX – June 12, 2008
Ford Dealer Display
Advertisement placed
on FordF150.net site
Ralph Paglia; Dallas, TX – June 12, 2008
Ford Dealer Display Advertisement
placed on 2009 Ford F-150 section
inside FordF150.net
Ralph Paglia; Dallas, TX – June 12, 2008
Offline Media Trends…
20
Striving To Become More Like Web Advertising Trends
 Emulate Web Advertising Strategies in Selected Areas
• Explosion of online content
• Advertisers can’t find shoppers
Viewership
• Publishers can’t find advertisers
“Publisher”
Ralph Paglia; Seattle, WA – July 17, 2008
20
Digital channels emerging that
provide cost efficient access to
local media buying for car
dealers… Providing opportunity
for innovative dealers to gain a
competitive advantage.
Ralph Paglia; Dallas, TX – June 12, 2008
Ralph Paglia; Dallas, TX – June 12, 2008
Available through Digital
Advertising Program from
ADP Dealer Services
24
Ralph Paglia; Seattle, WA – July 17, 2008
24
25
Do you advertise in San Francisco?
Reach more San Francisco customers by advertising
in newspapers! We've made it easy to choose from 20
San Francisco area newspapers (from the San
Francisco Chronicle to the El Mensajero). Create an
ad in minutes, and set a price that's right for you.
Learn more | Dismiss this message
Ralph Paglia; Seattle, WA – July 17, 2008
25
26
Get local with Google Print Ads
Trying to reach customers in Phoenix? We have 14
Phoenix area newspapers from the Arizona
Republic to the Navajo-Hopi Observer. We'll even
help design and run a newspaper ad campaign with
you, based on your goals!
Learn more | Dismiss this message
Ralph Paglia; Seattle, WA – July 17, 2008
26
27
Ralph Paglia; Seattle, WA – July 17, 2008
27
28
Ralph Paglia; Seattle, WA – July 17, 2008
28
29
Ralph Paglia; Seattle, WA – July 17, 2008
29
30
http://www.google.com/adwords/tvads/promotions/acm.html
Ralph Paglia; Seattle, WA – July 17, 2008
30
http://services.google.com/tvads/demos/hpdemo/
32
Ralph Paglia; Seattle, WA – July 17, 2008
32
“Help! Help! This Guy’s trying to rob me…”
Re-activate Google Audio Ads.
Since you last advertised with Audio Ads, we've
introduced new tracking and targeting features. Now
you can track phone calls, website traffic, conversions,
revenue, and more metrics generated by your radio
campaign. You can access over 1600 FM and AM radio
stations, including stations in local regions as well as
Top 10 stations in the largest US markets.
Get help from an Audio specialist | Dismiss this message
35
Buying Radio Spots in Phoenix, we ran 4,961 Thirty Second
commercials at a total cost of $10,635 resulting in a cost per spot at
less than $2.15 each… The equivalent average cost per spot buying
the same Dayparts and reach through local radio media salespeople
would have been over $50 per spot… How can that be?
Ralph Paglia; Seattle, WA – July 17, 2008
35
36
When we
check on
Albuquerque
for Rich Ford,
we find 24
Radio Stations
have provided
Google with
direct access
to On-Air
inventory…
Ralph Paglia; Seattle, WA – July 17, 2008
36
37
What would be
available to Rich
Ford if we
wanted all the
inventory we
could get,
running Radio
Spots 24 hours a
day, bidding on
a $5.00 CPM
listeners basis?
Ralph Paglia; Seattle, WA – July 17, 2008
37
38
Running Radio Spots 24 hours a day, we
would pay $1.59 on a CPM basis to get 8,042
30 second spots on 24 radio stations at a total
campaign cost of $10,611…
This comes out to a net cost of $1.32 per Spot
Ralph Paglia; Seattle, WA – July 17, 2008
38
39
What if we Ran Rich Ford’s Radio Spots ONLY
DURING PRIME DRIVE TIME, Monday through
Friday, paying on a CPM basis… On 24
Albuquerque & Santa Fe Radio Stations?
How Many Prime Drive Time Spots can we get,
and at What Cost per Spot on Local Radio Stations?
Ralph Paglia; Seattle, WA – July 17, 2008
39
40
Running Radio Spots ONLY DURING PRIME DRIVE TIME,
on 23 Radio Stations in Albuquerque/Santa Fe market,
paying on a $2.13 CPM basis, we estimate that the dealer
would get 3,335 spots at a $8,932 total campaign cost,
which comes out to $2.68 Average Cost per Prime Drive
Time Spot… Dealer currently pays over $85 for equivalent
spots through historical sales channels
Ralph Paglia; Seattle, WA – July 17, 2008
40
41
Normally we would check the box “I already have an ad” and then upload our
30 second radio spots to be pushed directly into each stations rotation
software and then broadcast… But, when I first prepared these slides, I still
needed to get the spots (and permission) from Dennis Snyder at Rich Ford!
Ralph Paglia; Seattle, WA – July 17, 2008
41
42
We saved the
campaign and went
to Dennis Snyder to
supply the 30 second
spots he wanted to
run so we can upload
them into the ADP
Digital Advertising
system and pull the
trigger…
Ralph Paglia; Seattle, WA – July 17, 2008
42
52
Ralph Paglia; Seattle, WA – July 17, 2008
52
53
100%
Drive Time
Dayparts
Ralph Paglia; Seattle, WA – July 17, 2008
53
54
Back to the Campaign Summary Screen, we see that
bidding on local newspaper advertising is also available…
Ralph Paglia; Seattle, WA – July 17, 2008
54
55
Digital Marketing Print Ads… Let’s see if we could save
Rich Ford any money on buying newspaper display ads.
Ralph Paglia; Seattle, WA – July 17, 2008
55
56
In this initial section, we are going to
check for any newspapers in Rich Ford’s
market area that may have signed up to
participate in this program...
Ralph Paglia; Seattle, WA – July 17, 2008
56
57
Ralph Paglia; Seattle, WA – July 17, 2008
57
58
A step-by-step process
allows us to select the
section of the
newspaper we would
like our advertisement
to appear in…
Ralph Paglia; Seattle, WA – July 17, 2008
58
59
Next, we select the size of Newspaper Ad
we want to run. In this case we know that
Rich Ford likes to own the whole page
Ralph Paglia; Seattle, WA – July 17, 2008
59
We bid on the Saturday editions…
We bid on the Sunday editions…
Ralph Paglia; Dallas, TX – June 12, 2008
In this example, $951.85 on Saturday
(we “low balled” the newspaper bid)
At $1,324.92 for a Full Page,
we low balled the Sunday bid as well.
Ralph Paglia; Dallas, TX – June 12, 2008
63
Next, we enter a short description,
then save the Newspaper campaign...
Ralph Paglia; Seattle, WA – July 17, 2008
63
Just like the Radio campaign,
we get a summary description
and links to edit the Newspaper
campaign later on...
In less than an hour, we set up Site Targeted Online Display Ads,
Search Engine Ads, Radio Ad Campaigns on 24 stations, and a
Saturday/Sunday Full Page Newspaper Ad Campaign…
Ralph Paglia; Seattle, WA – July 17, 2008
65
65
66
Ralph Paglia; Seattle, WA – July 17, 2008
66
Dealership
Results?
68
Rich Ford Digital Advertising Implementation
• Digital Audio Campaigns (local radio)
• Site Placement Targeted Campaigns
• Keyword Search Advertising Campaigns
Albuquerque - Santa Fe, NM Market
January, February and March 2008
Ford Dealer Pilot & Proof Of Concept
Digital Campaigns Managed by:
Ralph Paglia
Director – Digital Marketing
Ford/ADP Digital Advertising Team
Ralph Paglia; Seattle, WA – July 17, 2008
68
ADP Digital Advertising for Dealers
69
Case Study #1 – Paid Search and Web Site Display Advertising
Digital Ad Media Purchases…………………$ 6,389.72
Media Management Services…...…………..$ 1,277.94
Account Services……………………………..$ 495.00
---------------Total Digital Ad Invoice…………….……$ 8,162.66
Net Cost Per Thousand Impressions…$
0.31
Net Cost Per Visitor……………………...$
2.13
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
Ralph Paglia; Seattle, WA – July 17, 2008
69
ADP Digital Advertising for Dealers
70
Case Study #2 – Digital Audio Campaigns (Local Radio)
Local Radio Station Media Purchases………$ 7,453.32
Media Management Services…...……….…..$ 1,490.66
Account Services………………………….…..$ 495.00
----------------
Total Digital Ad Invoice…….………$ 9,438.98
Net Cost Per Drive Time Spot……..$
5.80
Net Cost Per 1,000 Listeners………$
3.27
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
Ralph Paglia; Seattle, WA – July 17, 2008
70
71
PLEASE NOTE: This Case Study is being used as a real world example,
Ralph
Paglia; Seattle,
– July
17, 2008
your results
will varyWA
from
these
because no two advertising campaigns generate identical results!71
72
Rich Ford Results
Previous Month before
Digital Ad Campaigns
(Nov 21-Dec 29) = Same Days Tracked
Website 800 Sales Line =
272 Total Calls
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
Ralph Paglia; Seattle, WA – July 17, 2008
72
73
Rich Ford Results
Digital Advertising Campaigns
(Jan 21-Feb 29) = Same Days Tracked
Website 800 Sales Line =
476 total Calls
75%
Increase in Sales Calls
From Dealer Web Site
Ralph Paglia; Seattle, WA – July 17, 2008
73
74
Rich Ford 2008 Results:
#1 in sales volume for their region in February 2008
January-February 2008 Sales Performance:
– 120 TOTAL NEW CARS
31.9% increase from 2007
– 217 TOTAL NEW TRUCKS
2.8% increase from 2007
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
Ralph Paglia; Seattle, WA – July 17, 2008
74
Digital Marketing Call To Action
Go to www.ADPdigitalAdvertising.com and
get a no-charge Search Marketing Analysis
sponsored by the ADP Digital Marketing
Team… An ADP Digital Advertising Team
specialist will review results with you.
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
Ralph Paglia; Seattle, WA – July 17, 2008
76
Why do we ask dealers to register at SEMDealer.com
before we recommend any digital advertising?
The ADP Digital Advertising Program is designed to leverage
each dealer’s existing search engine rankings by
researching the “organic” or natural listings that dealers do
not pay for, before buying any paid search listings. By first
testing the most important search words and phrases, the
relevant keywords used by local in-market car buyers that
already show the dealer prominently listed, can be excluded
from those that the dealer pays for. This strategy allows ADP
to bid on only the most effective keywords that the dealer is
not already getting for free, then shift the remaining budget to
display advertising on web sites used by the dealer’s local
customers. Eliminating the practice of bidding on the wrong
keywords or Geotargeting outside the dealer’s effective
market area allows ADP to provide dealers with a blended
online advertising approach that maximizes the showroom,
phone and dealer website sales opportunities generated.
Ralph Paglia; Seattle, WA – July 17, 2008
76
77
Thank You for Attending the KBB eNetwork Brunch!
Three ways that ADP can help:
1. Sell you a a rod and reel (Tools)
2. Teach you how to fish (Assistance)
3. Cook dinner for you (We do it for you)
www.SEMDealer.com
Ralph Paglia
[email protected]
Cell: 505-301-6369
www.AutoDigitalMarketing.com
Forum: Presentation File Exchange
Ralph Paglia; Seattle, WA – July 17, 2008
77
78
Ralph Paglia; Seattle, WA – July 17, 2008
78