Lehighton, PA, April 14, 2021 — Dealer World, a full-service advertising agency for franchise and independent car dealers, today announced that well-known automotive industry veteran Arnold Tijerina is joining the company as Director of Business Development.

As Director of Business Development, Tijerina will oversee sales and assist in developing strategic partnerships.

Tijerina brings over 19 years of automotive industry experience to Dealer World, including holding just about every sales and management position at auto dealerships. He also served as a successful Internet Sales Director for two large dealer groups in Southern California that were selling more than 1,000 units per month each at the time of his tenure.

An active and respected member of the automotive community, Tijerina is known for his expertise in digital marketing and social media. He is a highly sought-after speaker for industry events and has been involved in over 50 conferences arranging agendas and consulting on speaker applications.

Tijerina is the founder/owner of Storytailer and for the last eight years has worked with many vendors in the automotive industry overseeing their content marketing and social media and has been responsible for the syndication of dozens of blogs in top industry publications. He is also the owner of DealerElite, an online community with almost 12,000 vetted automotive industry professionals.

Commenting on the addition of Tijerina to the team Troy Spring, Dealer World CEO stated, “As we continue to grow at the pace we have been year after year, adding Arnold to the team just seemed natural. He brings years of sales experience to the table that matches our culture of not really selling anything. We think very much alike when it comes to simply finding dealers that need help and helping them. That has always been our core value. Because our values align so well, my growth projections were adjusted by another 20% the second Arnold agreed to join the Dealer World team.”

Dealer World offers a truly unique and winning experience and understands the car business because its employees have worked in or managed dealerships. All clients' automotive advertising needs are under one roof, and each department is managed by an industry expert. From online media to offline media, there is no need for a dealership to outsource advertising to different vendors.

“I’m excited to join the Dealer World family and look forward to assisting in the company’s growth. I have a strong belief that Dealer World’s services bring value to dealers and am excited to have the opportunity to be a part of that growth.” Tijerina stated.

About Dealer World
Based in Lehighton, Pennsylvania, Dealer World is a flat-fee, full-service advertising and performance agency that provides franchise and independent dealerships with best-in-class digital marketing, social media, and traditional advertising solutions. Founded in 2009, Dealer World has a proven track record of providing exceptional customer service while helping dealers cut costs, drive more traffic and increase sales. For more information, contact us today or call Arnold Tijerina at (951) 490-8000 or email him at arnold@mydealerworld.com

So it’s been a long time since I wrote a blog (for myself, that is) but after attending a recent conference and watching a kid yell "I found a Pokémon!" then promptly walking into a wall then watching adult auto industry attendees, vendors and speakers choose to go Pokémon hunting rather than network with industry colleagues and dealers, it got me thinking. First, yes, I downloaded the app just to see what all of the fuss was about. My Pokémon Go experience lasted all of about 15 minutes. I’ve seen people argue that Pokémon Go is silly and a waste of time while also seeing others relay the benefits of the game including physical exercise, exploring one’s neighborhood and connecting with new people with (at least one) similar interest.

I probably wouldn’t have been even interested in exploring the app at all but for the fact that a client created a clever ad that tied into their business message and we started exploring ways in which we could exploit this trendy craze. Who knows how long this game’s popularity will last but, for now, it’s the hottest thing around. Playing to trending things is nothing new and if you can leverage it in a way that supports your message or drives business, I’m all for it (sans tragedies, politics and the other taboo topics).

In my research, I found that there are things called “lures” in the game. You get these by catching Pokémon and doing various things BUT you can also purchase them for $1 each through the app. These “lures” are like catnip to Pokémon and the area in which the lure is set shows up within the game to other players. Of course, seeing as the goal of the game is catching Pokémon, it’s easy to understand why dropping a lure (which lasts 30 minutes) would attract nearby players. For $1 per half-hour, a dealership could pretty much leverage lures to the tune of $20 per day (given a 10-hour business day) and get a fair share of explorers. [EDIT: A fellow automotive colleague and self-professed Pokémon Go addict informed me that lures can only be used at already established Pokéstops. I do know that there are businesses that have been designated as such so this strategy would only work if your dealership were already a Pokéstop apparently. The overall intent of the article is discuss the marketing opportunity soon to be available as described later in this article.]

There are also things called Pokéstops and gyms which naturally attract players but Niantic (the game's creator) decides where these Pokéstops are located. Of course, the concentration of Pokémon or the ability to train them (level them up) make these popular places for players. While actual user numbers haven’t been released, I’ve seen articles that report that daily use of Pokémon Go is extremely close to surpassing the daily use of Twitter. That is huge.

Well, it looks like (unsurprisingly) that Pokémon Go is going to make it very easy for dealerships (or any business) to leverage their game to drive foot traffic to their location. Of course, a company that’s pulling in $1,000,000 (yes million) per day just through in-app purchases decided to commercialize by extending B2B sponsorship opportunities. It’s reportedly always been in their plans but, due to the super-fast popularity (including a 50% increase in Nintendo share price), those plans have been expedited. Soon, businesses (read: dealerships) will be able to pay to be a “sponsored location” which would (hypothetically) make the business an uber-popular place to visit for Pokémon Go players.

Seeing as the game's developer, Niantic, is a spin-off owned by Google and the game engine itself uses Google Maps for the GPS function within the game (i.e. finding Pokémon) it’s no surprise that the revenue trigger (i.e. what needs to happen for revenue to be produced) has been altered from the traditional cost-per-click to one of cost-per-VISIT. Yup, you read that right.

Now, knowing that you’d be charged based on how many Pokémon Go players show up at your dealership, the question now becomes… Is that something you’d want to pay for? Are these people worth having around, running around your lot searching for these cartoon characters while staring at computer screens?

I was told of at least one dealer group that’s already running a promotion leveraging Pokémon Go by running a contest in which players explore the lot and, when they find a Pokémon, screenshotting the Pokémon at the dealership then sharing it to social media including Instagram and naming the dealership. This is a new promotion (just like the game) so I don’t know how it’ll work out for them but I wish them well.

In my opinion, whether a dealership should become a "sponsored location" will depend on several things – the dealership's demographic and whether they want people running around looking for Pokémon rather than buying a car (I mean, even people really there to buy a car are staring at their phone showrooming you so you probably wouldn’t know the difference between the two unless one of them is 10 years old). The opposite side of that argument is that a busy lot snowballs and attracts other buyers. I mean, we do use inflatable gorillas and wavy tube men, right? Now you can have Pokémon hunters attracting others and forgo the gorilla. (I wonder if the gorillas and way tube men qualify for unemployment or food stamps.)

All of that being said, we don’t yet know what the “cost-per-visit” will be but my guess is that it will be determined just like any other Google advertising – based on bids. Get into an auto mall and that might get expensive. It could offer the kids something to do while the parents are shopping or you could see the parents hunting Pokémon WITH their kids. If you subscribe to the “happy, sense of community, getting out and meeting people” philosophy, it could be a way to make a name for yourself (or become a more popular destination) within your community. Of course, being a sponsored location probably won’t end when you lock the doors. There could easily be people jumping your blocker cars to explore your closed dealership just to hunt Pokémon. I may know of someone that might possibly have broke into a miniature golf course just to catch a Pokémon… but that’s just a story I was told so I totally have plausible deniability… besides I would plead the fifth anyways.

So what do you think? I’d love to hear from dealers and/or vendors on their thoughts as to whether this sponsored location option about to come around through Niantic, Nintendo, and Google via Pokémon Go is one that a dealership should consider.

Do I believe that it will make the dealership a popular place to visit? Yes. Do I think that it would increase foot traffic? Yes.

The real question is whether it is foot traffic that a dealership would want.

According to Business Insider, Facebook CEO Mark Zuckerberg announced today that Facebook is working on - finally - implementing a feature users have been clamoring for for years - the “dislike” button. In the interview, Zuckerberg explained that “what [people] really want is the ability to express empathy. Not every moment is a good moment” and that the addition of the dislike button was to allow users “an option to express feelings other than ‘liking.’”
 

While his sentiment - and goals - are good, I believe that Facebook is about to open a big giant can of whoop-ass. This action could easily become the equivalent of opening Pandora’s box - or Face-mageddon.
 

Let me explain.
 

I get it. Someone posts about a death in the family, an illness, an injury or just a bad life experience. We’ve all seen those and hesitate to interact using the “like” button ‘cause who wants to “like” someone’s tragedy? Facebook’s thought-process probably followed the lines of “if we give users a way to interact with those types of posts in a way that shows empathy (as Zuckerberg said) then.. well.. people will interact with more posts… which gives us more data. Don’t think for a moment that every article you share, post you like, comment you make or status you interact with in ANY WAY isn’t translated into Facebook’s mysterious algorithm that determines what is shown to you in your news feeds. In addition, I’m fairly certain it is also integrated into your Facebook user profile data… permanently.
 

Here are a few scenarios in which a dislike button is bad.
 

Right now, Facebook can only tell what type of content you interact with. It doesn’t know your personal feelings about that content unless you comment in a positive or negative way. There is already software designed to automatically identify positive vs negative sentiment. With the introduction of a “dislike” button, Facebook will now be able to better understand not only that you interacted with the post but also how you FELT about it.
 

Why is this important?
 

Let’s look at things that people post on Facebook… sports, religion, politics, guns… all things that could be very polarizing or controversial topics. We’ve all seen posts turn into bitter arguments. Heck, one of the most popular memes has got to be this one:
 

We love us some drama. Don’t deny it. Facebook is like one huge reality show except the actors are actually people you know.
 

Back to that list. Let’s go with the easy one first… sports. Are you a fan of (insert team name here)? If not, every time your friends post something positive about that team, you may feel inclined to hit that “dislike” button. Not only will this probably annoy your friends (especially if the “dislikes” outweigh the “likes”) but now Facebook knows that you more than likely do not like (inserted team). How will your friends know that you disliked their post? Well, you can already view the people that “like” your posts so I would guess it’s safe to assume that you’ll also be able to view the people that “dislike” it as well.
 

You see where I’m going? Religion. Politics. Gun Control. Gay Marriage. Kim Davis. Abortion. Hunting. Confederate Flags. Prayer in schools. Civil rights. Whomever’s Lives Matter (this week), Legalized drugs, Immigration Policies… this list could continue but I think you get my point.
 

Not only does a “dislike” button offer the option of inserting a passive-aggressive “vote”, if you will, on the subject matter rather than chiming in but it can also provide valuable data about YOU to Facebook. Instead of being forced to actually GIVE your opinion on a controversial topic, now you’ll simply be able to click a button and subtly share that opinion. I can’t wait to see friend’s calling other friends out in comments such as “Hey [friend], why’d you dislike this? You suck!” etc.
 

What about (God forbid!) someone “dislikes” something your BUSINESS (i.e. Facebook page) posts?
 

It’s really a pretty genius move on Facebook’s part. It’s users have been asking for this forever… so now they’re giving it you them… and they can collect more data, keep you on Facebook longer and provide you with more content you like. Once it figures out you don’t like [insert team name, political figure, movement, etc here], it simple won’t show you that content any longer. Facebook will become a happy place full of Skittles, unicorns, puppies and motivational quotes… unless, that is, you don’t like Skittles, unicorns, puppies and motivational quotes. You know all of those “I’m going to flood Facebook with cartoon pictures to drown out all of the negativity” posts? Well, now you won’t have to anymore ‘cause Facebook will be your personal screener. Sort of like that poor guy who gets to taste all of the king’s food before the king eats it to check to see if it’s poisoned.
 

Perhaps advertisers will soon be able to start targeting “People who don’t like Donald Trump” or “People against gay marriage.” Even scarier is how ELSE could Facebook monetize this data. Can you imagine a world in which employers, insurance companies, government agencies, etc. could access this information? I can. And no, I’m not a paranoid conspiracy theorist. What I am, however, is a realist. Facebook is a public company that needs to find ways to monetize itself. It does that mainly through Facebook ads at the moment. That being said, we all know that data is money… and we certainly give it data. Lots of it.
 

Now they’ll be able to combine CONTEXT with ACTIONS and that’s a slippery slope into creating a more perfect data profile of a user which, of course, allows them to, at the very least, open up new ways for advertisers to better target their audiences. You better believe that Facebook will - and already is - keeping track of everything you do on it’s site. I’m sure that buried someplace in some Terms of Service document, by using Facebook, you’ve given them ownership of the data they collect about you. Now they’ll just get better insight (cough.. data) into your thoughts and beliefs as well.
 

Like one friend of mine said when I posted the article this blog refers to in the beginning, “ Oh, it’s about to get fun again.”
 

Yes, it is.

According to Business Insider, Facebook CEO Mark Zuckerberg announced today that Facebook is working on - finally - implementing a feature users have been clamoring for for years - the “dislike” button. In the interview, Zuckerberg explained that “what [people] really want is the ability to express empathy. Not every moment is a good moment” and that the addition of the dislike button was to allow users “an option to express feelings other than ‘liking.’”
 

While his sentiment - and goals - are good, I believe that Facebook is about to open a big giant can of whoop-ass. This action could easily become the equivalent of opening Pandora’s box - or Face-mageddon.
 

Let me explain.
 

I get it. Someone posts about a death in the family, an illness, an injury or just a bad life experience. We’ve all seen those and hesitate to interact using the “like” button ‘cause who wants to “like” someone’s tragedy? Facebook’s thought-process probably followed the lines of “if we give users a way to interact with those types of posts in a way that shows empathy (as Zuckerberg said) then.. well.. people will interact with more posts… which gives us more data. Don’t think for a moment that every article you share, post you like, comment you make or status you interact with in ANY WAY isn’t translated into Facebook’s mysterious algorithm that determines what is shown to you in your news feeds. In addition, I’m fairly certain it is also integrated into your Facebook user profile data… permanently.
 

Here are a few scenarios in which a dislike button is bad.
 

Right now, Facebook can only tell what type of content you interact with. It doesn’t know your personal feelings about that content unless you comment in a positive or negative way. There is already software designed to automatically identify positive vs negative sentiment. With the introduction of a “dislike” button, Facebook will now be able to better understand not only that you interacted with the post but also how you FELT about it.
 

Why is this important?
 

Let’s look at things that people post on Facebook… sports, religion, politics, guns… all things that could be very polarizing or controversial topics. We’ve all seen posts turn into bitter arguments. Heck, one of the most popular memes has got to be this one:
 

We love us some drama. Don’t deny it. Facebook is like one huge reality show except the actors are actually people you know.
 

Back to that list. Let’s go with the easy one first… sports. Are you a fan of (insert team name here)? If not, every time your friends post something positive about that team, you may feel inclined to hit that “dislike” button. Not only will this probably annoy your friends (especially if the “dislikes” outweigh the “likes”) but now Facebook knows that you more than likely do not like (inserted team). How will your friends know that you disliked their post? Well, you can already view the people that “like” your posts so I would guess it’s safe to assume that you’ll also be able to view the people that “dislike” it as well.
 

You see where I’m going? Religion. Politics. Gun Control. Gay Marriage. Kim Davis. Abortion. Hunting. Confederate Flags. Prayer in schools. Civil rights. Whomever’s Lives Matter (this week), Legalized drugs, Immigration Policies… this list could continue but I think you get my point.
 

Not only does a “dislike” button offer the option of inserting a passive-aggressive “vote”, if you will, on the subject matter rather than chiming in but it can also provide valuable data about YOU to Facebook. Instead of being forced to actually GIVE your opinion on a controversial topic, now you’ll simply be able to click a button and subtly share that opinion. I can’t wait to see friend’s calling other friends out in comments such as “Hey [friend], why’d you dislike this? You suck!” etc.
 

What about (God forbid!) someone “dislikes” something your BUSINESS (i.e. Facebook page) posts?
 

It’s really a pretty genius move on Facebook’s part. It’s users have been asking for this forever… so now they’re giving it you them… and they can collect more data, keep you on Facebook longer and provide you with more content you like. Once it figures out you don’t like [insert team name, political figure, movement, etc here], it simple won’t show you that content any longer. Facebook will become a happy place full of Skittles, unicorns, puppies and motivational quotes… unless, that is, you don’t like Skittles, unicorns, puppies and motivational quotes. You know all of those “I’m going to flood Facebook with cartoon pictures to drown out all of the negativity” posts? Well, now you won’t have to anymore ‘cause Facebook will be your personal screener. Sort of like that poor guy who gets to taste all of the king’s food before the king eats it to check to see if it’s poisoned.
 

Perhaps advertisers will soon be able to start targeting “People who don’t like Donald Trump” or “People against gay marriage.” Even scarier is how ELSE could Facebook monetize this data. Can you imagine a world in which employers, insurance companies, government agencies, etc. could access this information? I can. And no, I’m not a paranoid conspiracy theorist. What I am, however, is a realist. Facebook is a public company that needs to find ways to monetize itself. It does that mainly through Facebook ads at the moment. That being said, we all know that data is money… and we certainly give it data. Lots of it.
 

Now they’ll be able to combine CONTEXT with ACTIONS and that’s a slippery slope into creating a more perfect data profile of a user which, of course, allows them to, at the very least, open up new ways for advertisers to better target their audiences. You better believe that Facebook will - and already is - keeping track of everything you do on it’s site. I’m sure that buried someplace in some Terms of Service document, by using Facebook, you’ve given them ownership of the data they collect about you. Now they’ll just get better insight (cough.. data) into your thoughts and beliefs as well.
 

Like one friend of mine said when I posted the article this blog refers to in the beginning, “ Oh, it’s about to get fun again.”
 

Yes, it is.

Just like in the blockbuster series “The Lord of the Rings”, the Eye of Mordor is always open. Until now, its focus has been on larger battles and more interesting things. Then a Hobbit found a golden ring and slipped it on his finger. And the Eye started paying attention to this little being that had avoided the Eye’s gaze… until now.

The intersection of advertising, marketing, and compliance is not easy to navigate. It seems as if each week, rulings are being rendered from one of the myriad of regulatory bodies making it more difficult for dealers to know what they should – and should not – be doing in regards to social media in order to stay compliant. In an effort to bring clarity to an increasingly confusing and misunderstood topic, I sat down with Jim Radogna, the president of Dealer Compliance Consultants, to get some answers.

 

Arnold Tijerina: I believe dealers aren’t vigilant enough ensuring that social media performed on behalf of the dealership meets the same compliance rules and standards that all of their other advertising requires. It’s sort of like an afterthought to them. What are your thoughts?

Jim Radogna: Very true. First, many dealers aren’t aware that advertising regulations apply to social media every bit as much as traditional media. Advertising regulations don’t go away despite the fact that social media tends to be a low-key, casual type of communication. In fact, The FTC recently updated its document Dot Com Disclosures: Information About Online Advertising. The primary focus of the publication, which was first issued in 2000, is to inform advertisers that consumer protection laws and the requirement to provide clear and conspicuous disclosures applies to the online world in addition to the offline world.

So in a nutshell, if inventory is posted or prices/payments are quoted on social media it’s likely that the posts will be deemed to be advertisements and will be subject to state and federal disclosure and truth in advertising regulations. Lack of space is no excuse either. Even if you’re advertising on Twitter and are limited to 140 characters, you must include a clear link to any necessary disclosures.

Next, even if the dealer is aware of these facts, it’s likely that dealership employees and/or vendors posting to social media do not have the same level of awareness.

AT: I’ve interacted with some dealers who operate under strict compliance conformity across all advertising – including social media – and others that don’t feel the need to adhere to the same rules when it comes to Facebook, Twitter, Pinterest, etc. It certainly wouldn’t seem to be unreasonable to assume that most dealers know compliance rules for their advertising. Why do you think they view social media differently?

JR: Until recently, virtually all enforcement actions for non-compliant advertising have been focused on traditional media, so this is a brand new area. In my experience, most dealers have a limited understanding of what constitutes “advertising” in the eyes of the powers that be. When dealers place an ad in the local newspaper, on the radio or TV, it’s pretty evident to them that they’re advertising and that they need to be diligent in following state and local compliance guidelines. But they don’t tend to think of social media as formal “advertising” because their intention isn’t to advertise their products and services on the social networks as much as to engage with customers, brand themselves and showcase their inventory. It really is an innocent mistake in many instances. The problem is that any time they mention prices, payments, interest rates, or the availability of financing etc. – anywhere – certain disclosure requirements are triggered.

So, a dealer or ad agency that is diligent about being compliant in their advertising may have their attorneys or a compliance consultant, like myself, review every one of their ads, mailers, TV commercials, and radio spots before publication, but not even think about having their social media posts reviewed because they simply don’t realize that these are considered “advertising”.

Another area where dealers are vulnerable on social media is transfer from traditional media. Here are a few examples: The dealer may have a full page print ad in their local paper that is fully compliant, but when they post a reduced-size pdf of the ad on Facebook, all of a sudden the fully-legible and compliant disclosure on the bottom of the newspaper ad is now unreadable. Instead of being 10-point type, it’s now 4-point type because of the size reduction. Another example is the TV commercial that’s posted on YouTube and shared on the social networks. Again, the disclosure on the bottom of the screen may be easily readable on TV but becomes indecipherable on a computer or mobile device.

AT: A recent FTC ruling regarding personal bias disclosure across all social media platforms seems to have lead some dealers into believing that simply adding a notation that the content is an “Ad” or “Sponsored” – whether in the ad or with the use of hashtags such as #ad and/or #sponsored – is enough to be compliant. To my knowledge, while the FTC ruling is certainly applicable when it comes to employees sharing dealership offers and specials on their personal social networks, it doesn’t negate obligation by the dealer to add necessary disclaimers. Do you agree?

JR: Absolutely. Dealers may face liability if employees use social media to promote their employer’s services or products without disclosing the employment relationship. The FTC requires the disclosure of all “material connections.” These connections can be any relationship that could affect the credibility a consumer gives to statements, such as an employment or business relationship. So if employees, friends, family or vendors post on a dealer’s behalf, they should clearly disclose any relationship they have with the company. It’s all about transparency and full disclosure.

AT: As social media use by dealers grow, what are the most important things that dealers should be aware of in regards to how they use social media?

JR: There are a number of legal considerations that every company should be aware of when establishing their social media policies and procedures, such as social media use in employment decisions; posting of online reviews, testimonials and endorsements; ‘fake’ and paid-for reviews; advertising on social media; potential overtime claims; harassment, discrimination and defamation claims; copyright and privacy issues.

AT: Should dealers be concerned by how their employee’s use social media and, if so, how do you recommend that dealerships protect themselves and/or decrease liability in this regard?

JR: It’s important for dealers to craft a social media policy that’s both practical and legally defensible. They can protect themselves by insisting that participants in their social media programs comply with the law and training them how to do it. The FTC specifically says these steps may limit potential liability and will be considered in any prosecution. According to FTC guidelines, “The Commission agrees that the establishment of appropriate procedures would warrant consideration in its decision as to whether law enforcement action would be an appropriate use of agency resources. The Commission is not aware of any instance in which an enforcement action was brought against a company for the actions of a single ‘rogue’ employee who violated established company policy that adequately covered the conduct in question.”

AT: The FTC has been increasing the attention it is paying to business and social media and has recently been vocal about their intentions to enforce compliance regardless of where the advertisement resides specifically mentioning social media. How do you believe this increased action and attention by the FTC will affect dealers in the future in regards to social media?

JR: What’s become abundantly clear through recent federal and state advertising enforcement actions against dealers is that regulators are trolling through the digital world to find dealer violations. For instance, the FTC has cited many ads recently from websites and YouTube. It stands to reason that social networks are their next logical target. Let’s face it, it’s far easier for regulators to perform digital searches for violations than to read countless newspaper ads or listen to radio commercials.

My suggestion is to train every employee and every vendor that posts to the dealer’s social networks or may post on the dealer’s behalf on their own networks. Next, constantly audit all posts, either internally or by utilizing a qualified professional, to ensure compliance. Dealers are ultimately responsible the actions of their employees and any vendors they hire.

AT: Thank you, Jim. I appreciate your taking the time to help bring more clarity about this topic to dealers.

About Jim Radogna

Before founding Dealer Compliance Consultants, Jim Radogna developed a strong background in dealership operations, having spent over 15 years in dealership management. His experience includes working in diversified roles including sales manager, F&I director, general manager, and training director. In addition, he served as compliance officer for a large auto group, where he developed and integrated a comprehensive compliance program. Being well-versed in all aspects of dealership operations, Jim and his team have used their knowledge and industry experience to develop unique, no-nonsense compliance and reputation management solutions for automobile dealerships of all sizes. These programs are designed to not only protect dealerships from liability but also greatly enhance the company’s reputation, increase profitability through consistent processes, and increase customer satisfaction and retention.

Jim is a sought-after speaker and frequent contributor to several automotive industry publications including Dealer Magazine, WardsAuto, Auto Dealer Monthly, DrivingSales Dealership Innovation Guide, AutoSuccess, and F&I Magazine.

Just like in the blockbuster series “The Lord of the Rings”, the Eye of Mordor is always open. Until now, its focus has been on larger battles and more interesting things. Then a Hobbit found a golden ring and slipped it on his finger. And the Eye started paying attention to this little being that had avoided the Eye’s gaze… until now.

The intersection of advertising, marketing, and compliance is not easy to navigate. It seems as if each week, rulings are being rendered from one of the myriad of regulatory bodies making it more difficult for dealers to know what they should – and should not – be doing in regards to social media in order to stay compliant. In an effort to bring clarity to an increasingly confusing and misunderstood topic, I sat down with Jim Radogna, the president of Dealer Compliance Consultants, to get some answers.

 

Arnold Tijerina: I believe dealers aren’t vigilant enough ensuring that social media performed on behalf of the dealership meets the same compliance rules and standards that all of their other advertising requires. It’s sort of like an afterthought to them. What are your thoughts?

Jim Radogna: Very true. First, many dealers aren’t aware that advertising regulations apply to social media every bit as much as traditional media. Advertising regulations don’t go away despite the fact that social media tends to be a low-key, casual type of communication. In fact, The FTC recently updated its document Dot Com Disclosures: Information About Online Advertising. The primary focus of the publication, which was first issued in 2000, is to inform advertisers that consumer protection laws and the requirement to provide clear and conspicuous disclosures applies to the online world in addition to the offline world.

So in a nutshell, if inventory is posted or prices/payments are quoted on social media it’s likely that the posts will be deemed to be advertisements and will be subject to state and federal disclosure and truth in advertising regulations. Lack of space is no excuse either. Even if you’re advertising on Twitter and are limited to 140 characters, you must include a clear link to any necessary disclosures.

Next, even if the dealer is aware of these facts, it’s likely that dealership employees and/or vendors posting to social media do not have the same level of awareness.

AT: I’ve interacted with some dealers who operate under strict compliance conformity across all advertising – including social media – and others that don’t feel the need to adhere to the same rules when it comes to Facebook, Twitter, Pinterest, etc. It certainly wouldn’t seem to be unreasonable to assume that most dealers know compliance rules for their advertising. Why do you think they view social media differently?

JR: Until recently, virtually all enforcement actions for non-compliant advertising have been focused on traditional media, so this is a brand new area. In my experience, most dealers have a limited understanding of what constitutes “advertising” in the eyes of the powers that be. When dealers place an ad in the local newspaper, on the radio or TV, it’s pretty evident to them that they’re advertising and that they need to be diligent in following state and local compliance guidelines. But they don’t tend to think of social media as formal “advertising” because their intention isn’t to advertise their products and services on the social networks as much as to engage with customers, brand themselves and showcase their inventory. It really is an innocent mistake in many instances. The problem is that any time they mention prices, payments, interest rates, or the availability of financing etc. – anywhere – certain disclosure requirements are triggered.

So, a dealer or ad agency that is diligent about being compliant in their advertising may have their attorneys or a compliance consultant, like myself, review every one of their ads, mailers, TV commercials, and radio spots before publication, but not even think about having their social media posts reviewed because they simply don’t realize that these are considered “advertising”.

Another area where dealers are vulnerable on social media is transfer from traditional media. Here are a few examples: The dealer may have a full page print ad in their local paper that is fully compliant, but when they post a reduced-size pdf of the ad on Facebook, all of a sudden the fully-legible and compliant disclosure on the bottom of the newspaper ad is now unreadable. Instead of being 10-point type, it’s now 4-point type because of the size reduction. Another example is the TV commercial that’s posted on YouTube and shared on the social networks. Again, the disclosure on the bottom of the screen may be easily readable on TV but becomes indecipherable on a computer or mobile device.

AT: A recent FTC ruling regarding personal bias disclosure across all social media platforms seems to have lead some dealers into believing that simply adding a notation that the content is an “Ad” or “Sponsored” – whether in the ad or with the use of hashtags such as #ad and/or #sponsored – is enough to be compliant. To my knowledge, while the FTC ruling is certainly applicable when it comes to employees sharing dealership offers and specials on their personal social networks, it doesn’t negate obligation by the dealer to add necessary disclaimers. Do you agree?

JR: Absolutely. Dealers may face liability if employees use social media to promote their employer’s services or products without disclosing the employment relationship. The FTC requires the disclosure of all “material connections.” These connections can be any relationship that could affect the credibility a consumer gives to statements, such as an employment or business relationship. So if employees, friends, family or vendors post on a dealer’s behalf, they should clearly disclose any relationship they have with the company. It’s all about transparency and full disclosure.

AT: As social media use by dealers grow, what are the most important things that dealers should be aware of in regards to how they use social media?

JR: There are a number of legal considerations that every company should be aware of when establishing their social media policies and procedures, such as social media use in employment decisions; posting of online reviews, testimonials and endorsements; ‘fake’ and paid-for reviews; advertising on social media; potential overtime claims; harassment, discrimination and defamation claims; copyright and privacy issues.

AT: Should dealers be concerned by how their employee’s use social media and, if so, how do you recommend that dealerships protect themselves and/or decrease liability in this regard?

JR: It’s important for dealers to craft a social media policy that’s both practical and legally defensible. They can protect themselves by insisting that participants in their social media programs comply with the law and training them how to do it. The FTC specifically says these steps may limit potential liability and will be considered in any prosecution. According to FTC guidelines, “The Commission agrees that the establishment of appropriate procedures would warrant consideration in its decision as to whether law enforcement action would be an appropriate use of agency resources. The Commission is not aware of any instance in which an enforcement action was brought against a company for the actions of a single ‘rogue’ employee who violated established company policy that adequately covered the conduct in question.”

AT: The FTC has been increasing the attention it is paying to business and social media and has recently been vocal about their intentions to enforce compliance regardless of where the advertisement resides specifically mentioning social media. How do you believe this increased action and attention by the FTC will affect dealers in the future in regards to social media?

JR: What’s become abundantly clear through recent federal and state advertising enforcement actions against dealers is that regulators are trolling through the digital world to find dealer violations. For instance, the FTC has cited many ads recently from websites and YouTube. It stands to reason that social networks are their next logical target. Let’s face it, it’s far easier for regulators to perform digital searches for violations than to read countless newspaper ads or listen to radio commercials.

My suggestion is to train every employee and every vendor that posts to the dealer’s social networks or may post on the dealer’s behalf on their own networks. Next, constantly audit all posts, either internally or by utilizing a qualified professional, to ensure compliance. Dealers are ultimately responsible the actions of their employees and any vendors they hire.

AT: Thank you, Jim. I appreciate your taking the time to help bring more clarity about this topic to dealers.

About Jim Radogna

Before founding Dealer Compliance Consultants, Jim Radogna developed a strong background in dealership operations, having spent over 15 years in dealership management. His experience includes working in diversified roles including sales manager, F&I director, general manager, and training director. In addition, he served as compliance officer for a large auto group, where he developed and integrated a comprehensive compliance program. Being well-versed in all aspects of dealership operations, Jim and his team have used their knowledge and industry experience to develop unique, no-nonsense compliance and reputation management solutions for automobile dealerships of all sizes. These programs are designed to not only protect dealerships from liability but also greatly enhance the company’s reputation, increase profitability through consistent processes, and increase customer satisfaction and retention.

Jim is a sought-after speaker and frequent contributor to several automotive industry publications including Dealer Magazine, WardsAuto, Auto Dealer Monthly, DrivingSales Dealership Innovation Guide, AutoSuccess, and F&I Magazine.

I came across a recent article on ComputerWorld about GM's China R&D Division's reveal of a mobile app named DiDi Plate. In summary, here's how the app works:

1. While in your car, you use your mobile phone to take a picture of the license plate of the car in front of you.
2. After the plate is scanned, it gives you the ability to text the driver/owner of the vehicle.

Some potential uses that director of GM's China R&D Division, John Du, shares are:

1. "...a male driver uses Didi Plate to scan and then message a woman driving in front of him. He asks her for a date, which she quickly accepts."
2. "...a woman's car is blocked in a parking lot, so she scans the plate of the car that boxed her in and tells the driver to move the vehicle."
3. and, for bonus points, you can "Message people to tell them they're terrible drivers."

He even explained that they have "adapted the app to work with Google Glass. Just stare at the plate and it scans it and brings up the persons online profile." There are so many fails about this app and potentials for abuse I could go on forever but let's just cover the very basics here in the interest of brevity.

• Some genius at General Motors created an app that you use WHILE DRIVING to TAKE PICTURES and then TEXT MESSAGE people. Seriously?
• I'm sure every woman (or man) would completely welcome unsolicited text message propositions from complete strangers while driving around town. What happened to the old fashioned catcalls of yesteryear? You know the wolf whistles and "hey babe" that men yell to attractive women passing by. That worked fine, didn't it? This is the digital equivalent of that. It's like one of those dating services where all the attractive women get bombarded with messages from lonely men (or vice versa). So much for your cell phone battery life.
• Now, instead of just flipping off the idiot who cut you off or screaming obscenities at them that they may or may not hear, you'll be able to ensure that they understand exactly what you say by simply text messaging them. Maybe you can send a selfie of you flipping them off accompanied by some choice words. Of course, when you text message someone using this app it is a) obvious that you are in the vicinity and b) your phone number is displayed on their phone. Now all of those unstable drivers who cannot control their temper will have even more opportunity to participate in a little road rage. Anybody up for the Roadside Fight Club? (It's OK as long as you don't talk about it.)

This is the most boneheaded, stupidest, insane, irresponsible, crazy, dangerous (I have a lot more adjectives for this) app ever conceived by anyone much less an automotive manufacturer's R&D division. Yeah, it's only in China so that makes it OK, right? They have too many people anyways. Perhaps this is GM's way of contributing to world overpopulation. At least they gave it an appropriate name.. Didi. I don't know what that means in China but all I can think of when I hear this in context of this app is Carlos Menica's signature phrase:

I came across a recent article on ComputerWorld about GM's China R&D Division's reveal of a mobile app named DiDi Plate. In summary, here's how the app works:

1. While in your car, you use your mobile phone to take a picture of the license plate of the car in front of you.
2. After the plate is scanned, it gives you the ability to text the driver/owner of the vehicle.

Some potential uses that director of GM's China R&D Division, John Du, shares are:

1. "...a male driver uses Didi Plate to scan and then message a woman driving in front of him. He asks her for a date, which she quickly accepts."
2. "...a woman's car is blocked in a parking lot, so she scans the plate of the car that boxed her in and tells the driver to move the vehicle."
3. and, for bonus points, you can "Message people to tell them they're terrible drivers."

He even explained that they have "adapted the app to work with Google Glass. Just stare at the plate and it scans it and brings up the persons online profile." There are so many fails about this app and potentials for abuse I could go on forever but let's just cover the very basics here in the interest of brevity.

• Some genius at General Motors created an app that you use WHILE DRIVING to TAKE PICTURES and then TEXT MESSAGE people. Seriously?
• I'm sure every woman (or man) would completely welcome unsolicited text message propositions from complete strangers while driving around town. What happened to the old fashioned catcalls of yesteryear? You know the wolf whistles and "hey babe" that men yell to attractive women passing by. That worked fine, didn't it? This is the digital equivalent of that. It's like one of those dating services where all the attractive women get bombarded with messages from lonely men (or vice versa). So much for your cell phone battery life.
• Now, instead of just flipping off the idiot who cut you off or screaming obscenities at them that they may or may not hear, you'll be able to ensure that they understand exactly what you say by simply text messaging them. Maybe you can send a selfie of you flipping them off accompanied by some choice words. Of course, when you text message someone using this app it is a) obvious that you are in the vicinity and b) your phone number is displayed on their phone. Now all of those unstable drivers who cannot control their temper will have even more opportunity to participate in a little road rage. Anybody up for the Roadside Fight Club? (It's OK as long as you don't talk about it.)

This is the most boneheaded, stupidest, insane, irresponsible, crazy, dangerous (I have a lot more adjectives for this) app ever conceived by anyone much less an automotive manufacturer's R&D division. Yeah, it's only in China so that makes it OK, right? They have too many people anyways. Perhaps this is GM's way of contributing to world overpopulation. At least they gave it an appropriate name.. Didi. I don't know what that means in China but all I can think of when I hear this in context of this app is Carlos Menica's signature phrase:

Twitter recently announced the rollout of two new features: multiple tags of people in a photo and multiple photos per tweet. These two new features will allow Twitter users to tag up to 10 people in a photo in a single tweet without affecting the 140-character limit. This is extremely valuable to twitter users, including dealerships, as there are many times that tagging multiple Twitter users with simple @ mentions takes up a considerable amount of characters within a tweet. The ability to tag people in tweets will allow you to have the opportunity to alert up to 10 people while still maintaining a legible tweet.

The new multiple photo feature gives users the ability to include up to four photos in a single tweet which is then automatically turned into a collage. This will allow dealers to better showcase vehicles utilizing the Twitter social platform. Dealers who strategically use Twitter to target in-market car shoppers will be better able to display their vehicles to potential buyers using the Twitter platform. It’s long been considered best practice to use multiple pictures to market inventory. However, if you are in conversation with a car buyer in your market on Twitter, up till now you could only tweet a single photo so your only alternative was to either stick with one photo or send multiple tweets.

Twitter users should welcome these new features, as it will allow for the inclusion of more people in a Twitter conversation without detracting from the core message. One must simply ensure that a photo is included in any conversation that a user wishes to have with multiple people.

If your dealership hasn’t been using Twitter as a prospecting tool, you should really consider learning how this easy and quick method of interacting with people in your area can lead to more sales. 

Twitter recently announced the rollout of two new features: multiple tags of people in a photo and multiple photos per tweet. These two new features will allow Twitter users to tag up to 10 people in a photo in a single tweet without affecting the 140-character limit. This is extremely valuable to twitter users, including dealerships, as there are many times that tagging multiple Twitter users with simple @ mentions takes up a considerable amount of characters within a tweet. The ability to tag people in tweets will allow you to have the opportunity to alert up to 10 people while still maintaining a legible tweet.

The new multiple photo feature gives users the ability to include up to four photos in a single tweet which is then automatically turned into a collage. This will allow dealers to better showcase vehicles utilizing the Twitter social platform. Dealers who strategically use Twitter to target in-market car shoppers will be better able to display their vehicles to potential buyers using the Twitter platform. It’s long been considered best practice to use multiple pictures to market inventory. However, if you are in conversation with a car buyer in your market on Twitter, up till now you could only tweet a single photo so your only alternative was to either stick with one photo or send multiple tweets.

Twitter users should welcome these new features, as it will allow for the inclusion of more people in a Twitter conversation without detracting from the core message. One must simply ensure that a photo is included in any conversation that a user wishes to have with multiple people.

If your dealership hasn’t been using Twitter as a prospecting tool, you should really consider learning how this easy and quick method of interacting with people in your area can lead to more sales.