Representatives from The Automotive Advertising Network (AAN) will be available for demonstrations at booth # 3657 at the 2012 NADA Convention.  The Automotive Advertising Network is the industry’s first content syndication and search engine optimized network designed to promote car dealers’ inventories on national, regional, local and specialty sites. The AAN is also a heavy ZMOT influencer.

The Zero Moment of Truth (ZMOT) is what Google refers to the point in time where consumers explore and examine products and providers online— leveraging search and social media channels — to identify what’s most interesting to them before they ever go to the store.   The theory is a follow-up to Proctor & Gamble’s popular First Moment of Truth (FMOT), when a consumer looks at a shelf of products in the store and decides which brand to buy, and the Second Moment of Truth (SMOT), when that consumer actually uses the brand at home and decides if they like it or not.

With over 80% of consumers searching for cars online, a dealership’s digital ZMOT could determine whether or not a consumer ever walks into their dealership.  Automotive industry experts agree; ZMOT can negatively or positively affect a dealership’s perception within seconds.

To be a top ZMOT influencer, dealerships must be successful in two critical online factors: obtaining consumer reviews and owning more assets that rank on Google Page 1.

The Automotive Advertising Network is a powerful tool for dealers that want to dominate ZMOT.  AAN can influence ZMOT and a consumer’s purchasing decision by boosting a dealership’s visibility online with syndicated content and syndicated reviews.  The AAN syndication tool allows dealers to publish search friendly content on multiple regional and local websites with the click of just one button. The AAN can also syndicate the same content to a dealer’s personal blog sites like those created on WordPress, Blogger, Typepad and Ning.

AAN to Reveal Dealership In-Store Review Platform at 2012 NADA Convention

Earlier this week, Ananth Godavari, CEO of the AAN, announced plans to unveil a groundbreaking in-store review platform at the upcoming 2012 NADA Convention.  This new technology will allow dealers to syndicate customer reviews that are written online to their websites and dealership blog sites.

The AAN helps dealers dominate ZMOT by owning multiple AAN created web assets and syndicating consumer reviews so that no matter where the consumer looks, an AAN client is always top of mind and top of results pages.

2012 NADA attendees can see demonstration of the AAN and its new review syndication tool by visiting booth # 3657 at the convention.  CEO Ananth Godavari will be at the booth to talk about the latest technology advancements in content and review syndication and how dealers can use this technology to become more profitable in 2012.

About the Automotive Advertising Network

The AAN is the industry’s first optimized, dealer-centric network with no third-party ads, designed to promote car dealers’ inventories on national, regional, local and specialty sites.

Developed by industry experts Brian Pasch, Sean Wolfington, David Boice and Ananth Godavari, the AAN is a comprehensive digital marketing and branding platform that utilizes proven practices in Search Engine Optimization (SEO), inventory advertising, social media and content publishing to advertise and sell dealer inventory.

Using these proven SEO strategies, the AAN helps dealers establish high quality, exclusive leads for less money, translating into higher closing ratios and lower costs for the dealers.  Plus, unlike traditional third party lead collectors, the dealer’s own inventory-listing pages are free of competing ads.

The AAN has changed the playing field for dealers who have typically had to compete with national third- party lead providers who have long had an advantage on the search engines because of their national footprint and corresponding search authority.

I have written about the influence of Jim Lecinski’s book “Winning The Zero Moment of Truth” and the data that confirms that consumers are actively researching online during the Zero Moment of Truth prior to contacting a local car dealer.

This first contact, called the First Moment of Truth (FMOT), can be elusive for car dealers.  Whether a consumer makes initial contact by phone, a website lead form, or a chat session getting the consumer to come in for a test drive does not happen without considerable effort.

Internet BDC employees know the truth better than most.  A lead submitted can take numerous calls or emails to make contact. Lead to show ratios are unpredictable and can vary based on the BDC agent.   I won’t even start to go into the other challenges that include fake phone numbers and names!

New Strategies Increase Lead To Show Ratios

So I have some great news.  What if you could increase those lead to show ratios?  What would that be worth to your pay plan or monthly profits?

I’m not talking about introducing BDC phone scripts, training, recording and inspection of lead/phone processes.  That should be standard operating procedure at your store and if it not the case, get help!

Consider that the contacts that come through your website are based on previously committed marketing costs. Anything that improves lead to show ratios should stand on its own merits.  What is it worth to get someone from behind their computer into your store?  Is it worth $25 to you?

Our consulting team has been exploring this question and have been very pleased with the data and results from a new product strategy from HookLogic.  Behind this great product is the passion and BDC/Internet experience of Jeff Kershner who many know through his DealerRefresh.com community website.

Jeff helped develop this product over the past three years while working at the Younger Automotive Group and the end product is just fantastic.  The product uses targeted incentives to get consumers to show up for a test drive.  Research has shown that the test-drive is an important “step” in a car purchase so the dealer who gets the test drive is most likely to win the sale.

Gift Cards Work When Done Right!

So, by using gift card incentives, Hooklogic technology increases Lead to Show ratios significantly.  One way this is done is  by IMPROVING your lead forms with the option to receive a gift card, normally $25 in value, to stores like Starbucks, Home Depot, or even an Amex gift card.

When you visit their website, you will see that they practice what they preach.  The image on the right is an enhanced lead form using the HookLogic technology.  This product is called “Web to Show”.

The second part of the strategy is to filter and score UNSOLD LEADS, which we all have, and offer these leads a reason to come in for a test drive if they score properly. This product is called “Lead to Show”. Considering that many dealers buy third party leads, this scoring and activation can “data mine” great prospects without the tedium of calling everyone.

Reports show an average increase of 5-7% closing ratio on 3rd party leads alone. The case studies, which Jeff can share with you, are impressive.

Contact Jeff For A Demo

If you have not tried a seamless incentive program for your dealership, you are missing another opportunity to distinguish yourself during the Automotive Zero Moment of Truth (ZMOT).  If you are heading out to DMSC or NADA, you should schedule a demo with Jeff and his team.

You can reach Jeff via email at: jeff.kershner@hooklogic.com and it would be a mistake not to get a webinar demo if you are not attending NADA.  Snooze you lose!   You can read more at http://www.leadtoshow.com 

I’ve known Jeff for a number of years and last year I was pleased to present him with the Lighthouse Award for his passion and contributions to the Automotive Industry via DealerRefresh.

Disclaimer

I am not a partner or equity stakeholder in HookLogic nor  have I accepted commissions for referrals for this product.  I am sharing this product because the PCG Consulting team has found this to be a great product to recommend to dealers.

Brian

Brian Pasch, CEO
PCG Digital Marketing
Text PCGedu to 75674 get information on our upcoming conferences
Brian Pasch

Representatives from New Jersey’s top automotive Internet marketing firms, PCG Digital Marketing, PCG Consulting and the Automotive Advertising Network, will be conducting short, 10-minute express training sessions at their NADA booths every 30 minutes. NADA attendees can jump in on any training session to learn more about the latest techniques and proven practices in automotive digital marketing.

It can be hard to take advantage of everything that NADA has to offer, that’s why representatives of these three automotive Internet marketing firms will be offering the express training session for dealers. Each booth will be going over the most pressing digital marketing updates–what every dealer needs to know to stay competitive online in 2012. With short 10-minute presentations, dealers will still have plenty of free time to explore the rest of the exhibition floor.

Automotive SEO Workshops

Topics to be covered include:

• SEO checklist tips
• Inventory syndication
• BDC tips
• Content syndication
• Reputation management tips
• Review syndication
• What is the Zero Moment Of Truth?

Presenters will be automotive industry veterans Brian Pasch (CEO, PCG Digital Marketing), Glenn Pasch (COO, PCG Digital Marketing) Ananth Godavari (CEO, Automotive Advertising Network), Marc McGurren (Partner, PCG Consulting) and Matt O’Such (SEO Strategist, PCG Digital Marketing).

The express training sessions will take place twice a day between 9:00 am and 3:30 pm all three days of the NADA Convention. Training schedules will be available at the booths:

• PCG Digital Marketing/ PCG Consulting: Booth #3659
• Automotive Advertising Network: Booth #3657

Brian Pasch, CEO of PCG Digital Marketing is quoted, “This is an absolute must for dealers looking to absorb the most important information in the least amount of time. Dealers will be pressed for time at the convention; stopping by a 10-minute training session gives them the opportunity to learn about what’s hot in digital marketing without taking too much time away from the rest of their day.”

I had an great call today with a successful car dealer that was spending over $150,000 a month on cable TV for three same brand stores in one state.    Their three store budget had no allocation for PPC, Retargeting, Chat, Reputation Management, Video Marketing, or  Mobile Marketing.

The dealer is leading his market and is profitable so his internal processes and execution are outstanding. This dealer was passionate and a refreshing pleasure to speak with today.

The TV commercials he designed branded the names of the dealerships and their current promotion. The dealer principal has set his TV budget to be omnipresent and it seems that he has achieved his goal for high frequency Cable TV messaging.

Opportunities For Continued Success

The dealer did not see the need to have PPC ads, marketing videos, or retargeting banners in front of consumers during their online ZMOT shopping research.  I felt that this was an opportunity he was missing for continued and sustainable market leadership.

I had a lot of convincing to do..and at times the conversation was heated.  Why would a successful dealer need to change anything?

Since consumers use broad keyword searches, that are not easily optimized by SEO, paid search (optimized for conversion) should be a part of a comprehensive digital marketing strategy.  Paid search campaigns should include specifically designed mobile ads and strategies.

Retargeting leverages the existing traffic generated by years of stimulus, brand recognition, and amplifies your PPC investments.  Since this dealer believes in constant name recognition, retargeting banners are the digital equivalent to offline branding.

Chat is a great tool to allow consumers to engage in a communication channel that they prefer.  Leaving chat off a website minimizes the ROI of stimulus investments.

Great Stimulus Does Not Pave a One Way Road

Stimulus for new and used car sales is constant in the USA.  When a consumer is ready to purchase a car, there is no lack of stimulus on TV, Radio, and print.  Stimulus will always be needed, however the bigger question is should the dealer by doing it?  And if so, is the budget sufficient to achieve the needed frequency to be effective.

Successful digital marketing strategies have to acknowledge that consumers go to the Internet to research and prepare before they contact a dealership.  A TV commercial is just one influence of many that drive consumers to look into a particular brand, model, dealership.

No matter how strong a TV campaign is designed, it will not bypass the Internet ZMOT process for most people. No matter how many times a dealer’s name is broadcast on TV, consumers do not limit their searches to the dealership name.

A dealer with a strong stimulus investment must have an equally strong digital presence during ZMOT.  If not, competitors will leach off that stimulus for their own benefit.

Dealers need to be omnipresent during ZMOT which includes great online reviews, compelling video assets, social engagement, great website content, and even paid search ads.

What is very surprising is that dealers who are heavy on stimulus and light on ZMOT investments can be successful and a market leader today.  The bigger question is whether that is sustainable.

The good news is that we negotiated a budget for some of the recommended digital strategies which is a great opportunity to build a partnership of success based on testing and measurement.

Since PCG started the Automotive Zero Moment of Truth in October, I have had the opportunity to view hundreds of marketing and advertising budgets.

I created a spreadsheet to plug in expenses which allocates the investments into categories for Stimulus, ZMOT, FMOT, and SMOT.

One of the most disturbing patterns is that dealers are addicted to drugs.  Not in a traditional sense but addiction to the drug of Tradition Advertising or what Google calls Stimulus spending.

The second trend is that the automotive stimulus spending is not supported during the Zero Moment of Truth.

Consumers Don’t Go Directly Into A Dealership

Prior to the Internet, a TV or radio commercial may have encouraged a consumer to drive directly over to the dealership to get more information on a particular car or sale.  Today, stimulus drives consumers to validate traditional marketing claims and research prices, features, and styling.

So if a car dealer wants to invest in cable TV, radio, and print they must have sufficient visibility online to direct that research to their own website.  This is one of the greatest opportunities for dealers who want to increase market share.  They need to reallocate resources from the Stimulus column into the ZMOT and FMOT columns.

If you would like a copy of the planning spreadsheet, send me an email.  I will also give you feedback on your marketing budget to lend an extra set of eyes and strategy to your dealership plans for 2012.  This simple spreadsheet has helped so many car dealers in the last 60 days.

Looking At Website Traffic: Adwords vs Traditional

One of the discussion points from the ZMOT spreadsheet is the cost to get someone to visit a dealership website.  We know that leads generated from a dealer’s website are the highest converting leads.

Here is a real example of a Honda dealer’s advertising investments which generated 6,132 unique visitors in the month of October.  Their total advertising budget was $80,000 a month.

Their Google Adwords campaign sent 2,200 visitors to their website at a cost of $2.27 per visitor.  They were only spending $5,000 a month on Google Adwords.

The balance of their website traffic that month was 3,932 visitors.  Their investments in traditional advertising included radio, TV, newspaper, and direct mail which cost $47,833 in October.

The dealership also spent over $15,000 on third party classifieds website and third party leads, which I am excluding from this analysis.  However, some of these investments do bring traffic to a dealers website, like Cars.com and Autotrader, but I am excluding that for now.

The stimulus investment of $47,833 did not generate all of the 3,932 visitors because brand awareness and word of mouth can yield direct website traffic.  Even, if we ignore that fact, the cost per visitor from stimulus advertising is $12.16 per visitor.

If you factor in that the Unique Visitor in October was 60% of the overall total and traffic from their third party classified investments, you could reprice the traditional advertising investments costs much higher that $12.16 per visitor. For this dealer, it could be as high as $18 per visitor.

Stop Kicking The Adwords Dog

This example is a start to a much larger discussion about budget allocations and being present in the Zero Moment of Truth.  Obviously, this case illustrates the efficiency of driving website traffic from Adwords.  Adwords is often maligned and I hear dealers claim that conversion costs and bidding was too high.  Really?  Compared to what?  Not dealer stimulus costs for sure.

When someone types in the words “Used Cars”, “Used Toyota Camry”, or “Used Cars For Sale” do you really not want to be on page one?  When you consider the money dealers spend on stimulus and the “expensive” website traffic that it generates, it is time to rethink being there 100% of the time during ZMOT.

I don’t want to imply that setting up a high converting Adwords campaign is easy.  It takes time to create the right combination of keywords and landing pages to create conversions.  However challenging Adwords may be, it is no excuse not to invest in the time to get it right.

Since consumers are being influenced by over 18 different digital assets BEFORE they contact the dealership, I would challenge every dealer to rethink their ZMOT strategy.  How many of those 18 influences are controled by you?  How is your dealership’s visibility during ZMOT.

Brian Pasch, CEO
PCG Digital Marketing
Text PCGedu to 75674 get information on our upcoming conferences
Brian Pasch