Let me open this article by saying that automotive advertising platforms like Autotrader.com, Cars.com, and the Automotive Advertising Network (AAN) provide marketing opportunities that should be considered in a comprehensive dealership marketing strategy. In fact all three companies were awarded Dealer Satisfaction Awards this year by DrivingSales.com in the Used Car Advertising category.

Car dealers need to evaluate existing and new methodologies to connect consumers with the cars that they have for sale. The Internet has become more expensive to attract clicks than ever before as more dealers participate in Google Adwords and similar online marketing services.

When I look at local competition in the search engines for a car dealer, one consistent competitor appears. Dealers are under attack by their own OEM automotive advertising campaigns.

This can come from national advertising campaigns or Tier 2 regional advertising campaigns, and I have some examples to share below.

Vehicle Detail Pages With OEM Ads

Let me give you an example of what gets my blood boiling.

A dealer makes an investment to list their cars on automotive advertising websites for many reasons. One reason is that consumers, outside of their normal area of responsibility or PMA, may connect with a car that they have in stock. The key point here is that for out of area shoppers, their zip code would normally be a part of another dealer's PMA.

If you look at this example below, a Tier 2 Banner ad runs on the top and right side of this dealer's Vehicle Detail Page (VDP). The other areas are also advertising leaks, but not associated with a GM advertising campaign.

That's another topic called Dealer Centricity Scores that you should engage.

When you click on the top Silverado HD Banner or the right side Silverado banner, you are taken off-page to a Tier 2 Chevy website design for lead collection. If a consumer engages with this Tier 2 website, and completes a lead form, the lead most likely will not be sent to the dealer listed on this page, rather it will go to the dealer covering their zip code.

Does anyone have a problem with this model?

So the OEM endorsed advertising campaign or Tier 2 created advertising campaign, is working against this one dealer for any consumer outside of his market. It seems to me that this is just counter productive and is using the dealers inventory against him.

If a dealer is paying to list this car, on this site, why would he want an interactive Ajax banner ad running, that catches the consumer's attention, to drive them to another Chevy website?

Could you say that this dealer's advertising investment is funneling leads to his local competitors?

This is not limited to Cars.com as you can see from this Autotrader.com VDP. Once again, a national OEM sponsored banner campaign is taking prime real estate to drive consumers to the national Cadillac website.

Anytime a consumer gets to a national site, the dealer can not be assured that the lead will be routed to their CRM system. It's all based on zip code or consumer choice but the action was based on this dealer's advertising investment.

Inspect Automotive Advertising Investments

I'm not sure if any other dealers agree with me that this a topic that should be discussed at OEM Marketing meetings. A bigger issue to remind car dealers is to inspect their automotive advertising investments. When you take the time to inspect how your brand is being marketed online, many light bulbs start to go off.

Let me open this article by saying that automotive advertising platforms like Autotrader.com, Cars.com, and the Automotive Advertising Network (AAN) provide marketing opportunities that should be considered in a comprehensive dealership marketing strategy. In fact all three companies were awarded Dealer Satisfaction Awards this year by DrivingSales.com in the Used Car Advertising category.

Car dealers need to evaluate existing and new methodologies to connect consumers with the cars that they have for sale. The Internet has become more expensive to attract clicks than ever before as more dealers participate in Google Adwords and similar online marketing services.

When I look at local competition in the search engines for a car dealer, one consistent competitor appears. Dealers are under attack by their own OEM automotive advertising campaigns.

This can come from national advertising campaigns or Tier 2 regional advertising campaigns, and I have some examples to share below.

Vehicle Detail Pages With OEM Ads

Let me give you an example of what gets my blood boiling.

A dealer makes an investment to list their cars on automotive advertising websites for many reasons. One reason is that consumers, outside of their normal area of responsibility or PMA, may connect with a car that they have in stock. The key point here is that for out of area shoppers, their zip code would normally be a part of another dealer's PMA.

If you look at this example below, a Tier 2 Banner ad runs on the top and right side of this dealer's Vehicle Detail Page (VDP). The other areas are also advertising leaks, but not associated with a GM advertising campaign.

That's another topic called Dealer Centricity Scores that you should engage.

When you click on the top Silverado HD Banner or the right side Silverado banner, you are taken off-page to a Tier 2 Chevy website design for lead collection. If a consumer engages with this Tier 2 website, and completes a lead form, the lead most likely will not be sent to the dealer listed on this page, rather it will go to the dealer covering their zip code.

Does anyone have a problem with this model?

So the OEM endorsed advertising campaign or Tier 2 created advertising campaign, is working against this one dealer for any consumer outside of his market. It seems to me that this is just counter productive and is using the dealers inventory against him.

If a dealer is paying to list this car, on this site, why would he want an interactive Ajax banner ad running, that catches the consumer's attention, to drive them to another Chevy website?

Could you say that this dealer's advertising investment is funneling leads to his local competitors?

This is not limited to Cars.com as you can see from this Autotrader.com VDP. Once again, a national OEM sponsored banner campaign is taking prime real estate to drive consumers to the national Cadillac website.

Anytime a consumer gets to a national site, the dealer can not be assured that the lead will be routed to their CRM system. It's all based on zip code or consumer choice but the action was based on this dealer's advertising investment.

Inspect Automotive Advertising Investments

I'm not sure if any other dealers agree with me that this a topic that should be discussed at OEM Marketing meetings. A bigger issue to remind car dealers is to inspect their automotive advertising investments. When you take the time to inspect how your brand is being marketed online, many light bulbs start to go off.

I have been blessed with many opportunities to speak at 20 Groups organized by NCM and NADA. Typically, the meetings are attended by dealer principals of the same OEM franchise in non-competing markets. General Managers are present when the dealer can not attend. These meetings, scheduled 3 to 4 times a year, develop a support network that dealers can tap throughout the year.

At these meetings, dealers can compare their performance to their peers in non-competing markets. The dealers share best practices and encourage those who have "weak" numbers to improve by next meeting. The concept, when passionate dealers make up these networks, results in powerful support systems and clear communication channels for best practices.
 

Welcome To A Group Of 1

For Internet Sales Managers, eCommerce Directors, and BDC Managers many must participate in a 1 Group. In most cases they have to rely on themselves to stay current with the latest strategies in dealership sales and marketing practices. They are not given the budget to attend Digital 20 Groups or educational events that are specifically designed for their area of responsibility.

The employees that are on the front lines of the greatest changes in consumer communications are without a budget and without peer advice on best practices. They do not have composite data to compare metrics that apply to their area of responsibility. How many leads should each employee handle? What is a good closing ratio? How many leads a month should I expect from Autotrader.com? These questions, and many others, go without being answered.

In many cases, these same key employees have to beg to attend an automotive education conference. Finding that $1,500 in a budget is just too much for some dealers. Some employees find solace on website communities like www.DrivingSales.com but the majority are left to navigate the tsunami of change on their own.
 

A Change in 20 Group Meetings

I have been working with 20 Group organizers to create a new Hybrid 20 Group Meeting Format where dealer principals and eCommerce directors attend a two day meeting together. The format engages both the dealer and the eCommerce director with workshops on digital marketing, internet process, social media, and marketing strategies to compete online. The results have been just outstanding.

Many dealers have stated that this new Hybrid 20 Group Meeting Format is "The best 20 Group Meeting" that they ever attended.

Jared Hamilton can attest to the positive feedback we received when He, Joe Webb, and I conducted this Hybrid model for a 20 Group in Atlanta in February. It was magic!

My take-away from the initial tests is that Dealer Principals and eCommerce Directors need to attend educational conferences TOGETHER.

Currently, dealer principals are finding it difficult to bring back accurate data about ideas and strategies shared at their 20 group meeting. When they attend together there is no degradation in the message and opportunity.
 

Travel To Orlando As a Team & Learn Together

Until your 20 Group can implement the new Hybrid Format, I suggest that dealers and their eCommerce Director get down to Orlando for the 2nd Annual Automotive Marketing Boot Camp. The Boot Camp is being held at the Hilton Orlando from April 16-18th.

Attending together will yield unprecedented skills transfer and winning business strategies that you can take home an implement. Let's end the "1 Group" mentality and work as a team on your future marketing success.

Registration information can be found at: http://www.automotivemarketingbootcamp.com.









 

I have been blessed with many opportunities to speak at 20 Groups organized by NCM and NADA. Typically, the meetings are attended by dealer principals of the same OEM franchise in non-competing markets. General Managers are present when the dealer can not attend. These meetings, scheduled 3 to 4 times a year, develop a support network that dealers can tap throughout the year.

At these meetings, dealers can compare their performance to their peers in non-competing markets. The dealers share best practices and encourage those who have "weak" numbers to improve by next meeting. The concept, when passionate dealers make up these networks, results in powerful support systems and clear communication channels for best practices.
 

Welcome To A Group Of 1

For Internet Sales Managers, eCommerce Directors, and BDC Managers many must participate in a 1 Group. In most cases they have to rely on themselves to stay current with the latest strategies in dealership sales and marketing practices. They are not given the budget to attend Digital 20 Groups or educational events that are specifically designed for their area of responsibility.

The employees that are on the front lines of the greatest changes in consumer communications are without a budget and without peer advice on best practices. They do not have composite data to compare metrics that apply to their area of responsibility. How many leads should each employee handle? What is a good closing ratio? How many leads a month should I expect from Autotrader.com? These questions, and many others, go without being answered.

In many cases, these same key employees have to beg to attend an automotive education conference. Finding that $1,500 in a budget is just too much for some dealers. Some employees find solace on website communities like www.DrivingSales.com but the majority are left to navigate the tsunami of change on their own.
 

A Change in 20 Group Meetings

I have been working with 20 Group organizers to create a new Hybrid 20 Group Meeting Format where dealer principals and eCommerce directors attend a two day meeting together. The format engages both the dealer and the eCommerce director with workshops on digital marketing, internet process, social media, and marketing strategies to compete online. The results have been just outstanding.

Many dealers have stated that this new Hybrid 20 Group Meeting Format is "The best 20 Group Meeting" that they ever attended.

Jared Hamilton can attest to the positive feedback we received when He, Joe Webb, and I conducted this Hybrid model for a 20 Group in Atlanta in February. It was magic!

My take-away from the initial tests is that Dealer Principals and eCommerce Directors need to attend educational conferences TOGETHER.

Currently, dealer principals are finding it difficult to bring back accurate data about ideas and strategies shared at their 20 group meeting. When they attend together there is no degradation in the message and opportunity.
 

Travel To Orlando As a Team & Learn Together

Until your 20 Group can implement the new Hybrid Format, I suggest that dealers and their eCommerce Director get down to Orlando for the 2nd Annual Automotive Marketing Boot Camp. The Boot Camp is being held at the Hilton Orlando from April 16-18th.

Attending together will yield unprecedented skills transfer and winning business strategies that you can take home an implement. Let's end the "1 Group" mentality and work as a team on your future marketing success.

Registration information can be found at: http://www.automotivemarketingbootcamp.com.









 

Google posted an update on their Adwords website regarding Conversion Optimization settings. This may be news to many dealers who run their own Adwords campaign (Automotive SEM) so I am re-posting some information provided on their blog.

Keep in mind that "conversion" for Google tracks responses via forms submission, which would not include phone calls that are generated by PPC campaigns.  This is one reason why dealers using PPC should include tracking phone numbers to capture all activity related to PPC clicks.

Since consumers call dealers more often than they submit leads, you just have to keep in mind that Google conversion "numbers" can be just a fraction of the true conversion metrics.

Setting Google Adwords Conversion Optimization On

The Conversion Optimizer is an AdWords feature that uses your AdWords Conversion Tracking data to get you more conversions at a lower cost. It optimizes your placement in each ad auction to avoid unprofitable clicks and gets you as many profitable clicks as possible.

How Conversion Optimization Works

With the Conversion Optimizer, you bid using a maximum CPA, which is the most you're willing to pay for each conversion (such as a purchase or signup), or a Target CPA, which is the average amount you'd like to pay for a conversion.

Using historical information about your campaign, the Conversion Optimizer automatically finds the optimal equivalent cost-per-click (CPC) bid for your ad each time it's eligible to appear. You still pay per click, but you no longer need to adjust your bids manually to reach your CPA goals and can benefit from improved ROI.

To calculate the optimal equivalent CPC bid, the Conversion Optimizer first calculates a predicted conversion rate for each auction. The Conversion Optimizer takes many factors into account, including your ad's conversion history, the keyword's broad match query, the user's location, and the conversion rates of Google's search and partner sites on the Display Network. The feature then generates an ad rank by combining your CPA bid, quality score and predicted conversion rate.

Improving your performance

Many advertisers using Conversion Optimizer have achieved double-digit percentage increases in conversions, while paying the same price or less for each conversion.

To begin using the Conversion Optimizer, you must have AdWords Conversion tracking enabled, and your campaign must have received at least 15 conversions in the last 30 days. Also, the campaign must have been receiving conversions at a similar rate for at least a few days.

Google recommends you run conversion tracking for at least two weeks before trying the conversion optimizer no matter what your volume of conversions is (more if you don't have a high volume of conversions).

I hope you found this helpful!  Google Adwords should be a part of an comprehensive Automotive Advertising strategy.  When properly setup, Adwords can be a great sure for leads; sales, service and parts.

Brian

Brian Pasch, CEO

PCG Digital Marketing

See you in Orlando, April 16-18th at the 2nd Annual Automotive Marketing Boot Camp

Google posted an update on their Adwords website regarding Conversion Optimization settings. This may be news to many dealers who run their own Adwords campaign (Automotive SEM) so I am re-posting some information provided on their blog.

Keep in mind that "conversion" for Google tracks responses via forms submission, which would not include phone calls that are generated by PPC campaigns.  This is one reason why dealers using PPC should include tracking phone numbers to capture all activity related to PPC clicks.

Since consumers call dealers more often than they submit leads, you just have to keep in mind that Google conversion "numbers" can be just a fraction of the true conversion metrics.

Setting Google Adwords Conversion Optimization On

The Conversion Optimizer is an AdWords feature that uses your AdWords Conversion Tracking data to get you more conversions at a lower cost. It optimizes your placement in each ad auction to avoid unprofitable clicks and gets you as many profitable clicks as possible.

How Conversion Optimization Works

With the Conversion Optimizer, you bid using a maximum CPA, which is the most you're willing to pay for each conversion (such as a purchase or signup), or a Target CPA, which is the average amount you'd like to pay for a conversion.

Using historical information about your campaign, the Conversion Optimizer automatically finds the optimal equivalent cost-per-click (CPC) bid for your ad each time it's eligible to appear. You still pay per click, but you no longer need to adjust your bids manually to reach your CPA goals and can benefit from improved ROI.

To calculate the optimal equivalent CPC bid, the Conversion Optimizer first calculates a predicted conversion rate for each auction. The Conversion Optimizer takes many factors into account, including your ad's conversion history, the keyword's broad match query, the user's location, and the conversion rates of Google's search and partner sites on the Display Network. The feature then generates an ad rank by combining your CPA bid, quality score and predicted conversion rate.

Improving your performance

Many advertisers using Conversion Optimizer have achieved double-digit percentage increases in conversions, while paying the same price or less for each conversion.

To begin using the Conversion Optimizer, you must have AdWords Conversion tracking enabled, and your campaign must have received at least 15 conversions in the last 30 days. Also, the campaign must have been receiving conversions at a similar rate for at least a few days.

Google recommends you run conversion tracking for at least two weeks before trying the conversion optimizer no matter what your volume of conversions is (more if you don't have a high volume of conversions).

I hope you found this helpful!  Google Adwords should be a part of an comprehensive Automotive Advertising strategy.  When properly setup, Adwords can be a great sure for leads; sales, service and parts.

Brian

Brian Pasch, CEO

PCG Digital Marketing

See you in Orlando, April 16-18th at the 2nd Annual Automotive Marketing Boot Camp

Jimmy Vee and Travis Miller To Deliver Keynote Presentation

The 2011 Automotive Marketing Boot Camp welcomes Jimmy Vee and Travis Miller on Monday morning April 18th as Keynote Presenters in Orlando.

Jimmy Vee and Travis Miller are the nation’s leading experts on attracting customers, authors of the best selling book Gravitational Marketing: The Science of Attracting Customers and the founders of the Rich Dealers Institute.

Jim and Travis have been helping dealers attract customers, drive traffic and increase sales for over a decade. In 2004 they created the Rich Dealers Institute for busy dealers who want to stand out and sell more without spending more. It is the place for fun and profit in the car business.

Collectively their campaigns have directly resulted in the sale of over 2 million vehicles. Every month they create record shattering automotive promotions and bring together some of the brightest and most successful dealers, authors, entrepreneurs and business people to participate in fun and insanely profitable think-tank, mastermind environments.

Jim and Travis have spoken all around the world about their special brand of customer attraction and have been featured in Entrepreneur Magazine, Investor’s Business Daily, Ripley’s Believe It Or Not, Forbes.com, CNBC, Fox Business, Advertising Age, Direct Marketing News, Businessweek, Brandweek, top automotive industry publications, leading marketing industry newsletters and hundreds of radio stations and newspapers around the country.

Gravitational Marketing - Read it!

If you’re an entrepreneur, business owner, or sales professional, Gravitational Marketing offers a simple method for attracting customers without the hassle of traditional manual sales labor.

If you want to sell more and work less, this book exposes the principles of easily and effortlessly attracting customers without cold calling, prospecting, or begging for business.

With Gravitational Marketing, you can finally stop chasing customers and let them come to you.

Orlando Keynote Address

Their Keynote Address is scheduled for 8:00 am on Monday April 18th and will be live broadcast on www.DrivingSalesTV.com to a worldwide audience.

DrivingSales.com is the largest social network for the Automotive industry.

Forward thinking car dealers who would like to attend the 2011 Automotive Marketing Boot Camp can register online by visiting: http://www.automotivemarketingbootcamp.com/paypal/

Jimmy Vee and Travis Miller To Deliver Keynote Presentation

The 2011 Automotive Marketing Boot Camp welcomes Jimmy Vee and Travis Miller on Monday morning April 18th as Keynote Presenters in Orlando.

Jimmy Vee and Travis Miller are the nation’s leading experts on attracting customers, authors of the best selling book Gravitational Marketing: The Science of Attracting Customers and the founders of the Rich Dealers Institute.

Jim and Travis have been helping dealers attract customers, drive traffic and increase sales for over a decade. In 2004 they created the Rich Dealers Institute for busy dealers who want to stand out and sell more without spending more. It is the place for fun and profit in the car business.

Collectively their campaigns have directly resulted in the sale of over 2 million vehicles. Every month they create record shattering automotive promotions and bring together some of the brightest and most successful dealers, authors, entrepreneurs and business people to participate in fun and insanely profitable think-tank, mastermind environments.

Jim and Travis have spoken all around the world about their special brand of customer attraction and have been featured in Entrepreneur Magazine, Investor’s Business Daily, Ripley’s Believe It Or Not, Forbes.com, CNBC, Fox Business, Advertising Age, Direct Marketing News, Businessweek, Brandweek, top automotive industry publications, leading marketing industry newsletters and hundreds of radio stations and newspapers around the country.

Gravitational Marketing - Read it!

If you’re an entrepreneur, business owner, or sales professional, Gravitational Marketing offers a simple method for attracting customers without the hassle of traditional manual sales labor.

If you want to sell more and work less, this book exposes the principles of easily and effortlessly attracting customers without cold calling, prospecting, or begging for business.

With Gravitational Marketing, you can finally stop chasing customers and let them come to you.

Orlando Keynote Address

Their Keynote Address is scheduled for 8:00 am on Monday April 18th and will be live broadcast on www.DrivingSalesTV.com to a worldwide audience.

DrivingSales.com is the largest social network for the Automotive industry.

Forward thinking car dealers who would like to attend the 2011 Automotive Marketing Boot Camp can register online by visiting: http://www.automotivemarketingbootcamp.com/paypal/

As I conduct training seminars and webinars for the automotive industry, I often ask dealers what is their current mix between traditional automotive advertising and digital automotive advertising.

What is your mix?  Are you at 10%, 20%, 30%, or over 75%.  Take a minute to share your mix here on DrivingSales.com in the comments area below.

To come up with a good approximation of your "mix", in the traditional advertising category I would place radio, TV, print publications, newspaper, printed yellow pages, billboards, and direct mail costs.

In the digital advertising category I would place your website costs, Google Adwords or similar Pay-Per-Click models, digital display advertising, re-marketing, social media, online videos, third party leads, OEM leads, Search Engine Optimization (SEO) services, and inventory advertising platforms like Autotrader.com and the Automotive Advertising Network (AAN).

Why Is The Range So Large?

The responses I get from car dealers range from 10% digital to 95% digital. This large swing reflects the tsunami of change that has engulfed the automotive industry in the last 10 years.

These massive changes are not limited to the automotive sector. All business owners are being faced with the challenge of being open to reconsider if the yellow pages, radio, TV, and newspaper are connecting their brand with the majority of in market buyers.

Dealers Need Digital Marketing Confidence

Recently I spoke with a dealer who had just purchased an existing franchise store that need a complete renovation. He shared all the costs associated with the refit of the building and his upcoming opening. He wanted to turn around this store and make it profitable location.

The conversation we had was focused on how he could make the biggest impact on the market with this new point. Intermixed with the conversation was frequent reminders of how much he was investing in the store, how much this place needed a capital investment, and how much he wanted to make this work.

When I asked him on what portion of his budget was allocated to digital marketing, the answer surprising. Aside from his costs to setup his new website, he had not budgeted for any other digital marketing of the dealership.

His advertising plans were solely radio, TV, and print, and I won't share what he planned to spend. When I suggested an initial investment of $3,000 a month in digital marketing strategies, he said that he didn't have that much to spend.

Welcome to 2011 and the wide gap in knowledge and confidence that digital marketing is a core strategy for automotive retailing.

Working Toward a Reasonable Change

It is easy to say that a car dealer that is only spending 10% in digital marketing is spending too little on new media since over 90% of car buyers use the Internet to research a car. It may also be safe to say that a dealer who eliminates all radio, TV, newspaper, and direct mail are missing a segment of their local market that is influenced by these channels.

Ignoring the extremes, I would like to suggest that to bigger opportunity is to move the majority of car dealers that under utilize digital marketing to the middle. From a survey conducting by PCG Digital Marketing with dealers across the country, the current average "allocation" for digital investments is 20-25% of a dealers total advertising budget.

I would like to see the average dealer investment in digital marketing move to 50% in the next year.

Those that say 50% is still too little, I'll be working on another industry move in 2012! We can't parallel park the Titanic in Manhattan without some patience. Moving digital spending to 50% would be considered a massive change but one that this industry needs to embrace.

This reallocation of traditional marketing investments will not happen without a massive effort to reeducated the dealer community. Proper education on the strategies and opportunities that digital marketing can provide will help make those steps to 50% + with confidence.

Today, dealers are not moving because of fear or they just don't know better. Neither position is attractive to an entrepreneur.

Automotive Advertising Education

We can assume that dealers will make this move on their own but there will be a tremendous opportunity cost for those that take the slow path to 50%; an that still is not the end game. Since first responders are rewarded in search, the sooner dealers make this move, the more they will be rewarded.

This move will need a coordinated effort by industry leaders, vendors, and educational agencies to educate dealers on all of the new media opportunities and marketing strategies for automotive advertising.

The DrivingSales University is one such program that will help dealers achieve greater confidence in digital marketing and innovative dealership operations. Dealer principals need to be able to clearly differentiate and measure the benefits of SEO, SEM, social media, display advertising, and inventory syndication.

Every time I conduct a seminar at a 20 Group meeting or at an automotive conference, light bulbs go off in the audience. Dealers are truly thankful to be shown, in plain English, why their lack of digital marketing investments is hurting their brand. We need to coordinate more "light bulb" experiences at 20 Groups, conferences, and regional teaching events.

Automotive Marketing Conference

One of those opportunities for education is the 2011 Automotive Marketing Boot Camp in Orlando, April 16th-18th organized by my company PCG Digital Marketing. The Boot Camp will be held at the beautiful Hilton Orlando hotel and has attracted a wonderful team of industry leaders and dealership employees to teach.

Dealers spending less than 50% of your total advertising budget on digital marketing and new media, need to attend and find out what is working for dealers that have made that have crossed that line.

If dealers wants to increase their dominant market position, they should attend to learn that latest strategies for digital marketing and social media from industry leaders.

Bring More Than One Person

I would also like to suggest that at least 2 people from each dealership should attend. Why? Because the best opportunity for change occurs when the dealer principals or GM learns side by side with their eCommerce Director or Internet Sales manager.

Too many things can get lost in translation when one of these two roles are missing. The good news is that attendees and educators at the Boot Camp will be willing to share exactly what is working and how they are measuring the ROI of that investment.

Dealers can register for the Boot Camp and make the decision to invest in education and the future of their dealership today. The event website is located at: http://www.automotivemarketingbootcamp.com

DrivingSalesTV.com will also be recording the two keynote addresses live from the Boot Camp.

As I conduct training seminars and webinars for the automotive industry, I often ask dealers what is their current mix between traditional automotive advertising and digital automotive advertising.

What is your mix?  Are you at 10%, 20%, 30%, or over 75%.  Take a minute to share your mix here on DrivingSales.com in the comments area below.

To come up with a good approximation of your "mix", in the traditional advertising category I would place radio, TV, print publications, newspaper, printed yellow pages, billboards, and direct mail costs.

In the digital advertising category I would place your website costs, Google Adwords or similar Pay-Per-Click models, digital display advertising, re-marketing, social media, online videos, third party leads, OEM leads, Search Engine Optimization (SEO) services, and inventory advertising platforms like Autotrader.com and the Automotive Advertising Network (AAN).

Why Is The Range So Large?

The responses I get from car dealers range from 10% digital to 95% digital. This large swing reflects the tsunami of change that has engulfed the automotive industry in the last 10 years.

These massive changes are not limited to the automotive sector. All business owners are being faced with the challenge of being open to reconsider if the yellow pages, radio, TV, and newspaper are connecting their brand with the majority of in market buyers.

Dealers Need Digital Marketing Confidence

Recently I spoke with a dealer who had just purchased an existing franchise store that need a complete renovation. He shared all the costs associated with the refit of the building and his upcoming opening. He wanted to turn around this store and make it profitable location.

The conversation we had was focused on how he could make the biggest impact on the market with this new point. Intermixed with the conversation was frequent reminders of how much he was investing in the store, how much this place needed a capital investment, and how much he wanted to make this work.

When I asked him on what portion of his budget was allocated to digital marketing, the answer surprising. Aside from his costs to setup his new website, he had not budgeted for any other digital marketing of the dealership.

His advertising plans were solely radio, TV, and print, and I won't share what he planned to spend. When I suggested an initial investment of $3,000 a month in digital marketing strategies, he said that he didn't have that much to spend.

Welcome to 2011 and the wide gap in knowledge and confidence that digital marketing is a core strategy for automotive retailing.

Working Toward a Reasonable Change

It is easy to say that a car dealer that is only spending 10% in digital marketing is spending too little on new media since over 90% of car buyers use the Internet to research a car. It may also be safe to say that a dealer who eliminates all radio, TV, newspaper, and direct mail are missing a segment of their local market that is influenced by these channels.

Ignoring the extremes, I would like to suggest that to bigger opportunity is to move the majority of car dealers that under utilize digital marketing to the middle. From a survey conducting by PCG Digital Marketing with dealers across the country, the current average "allocation" for digital investments is 20-25% of a dealers total advertising budget.

I would like to see the average dealer investment in digital marketing move to 50% in the next year.

Those that say 50% is still too little, I'll be working on another industry move in 2012! We can't parallel park the Titanic in Manhattan without some patience. Moving digital spending to 50% would be considered a massive change but one that this industry needs to embrace.

This reallocation of traditional marketing investments will not happen without a massive effort to reeducated the dealer community. Proper education on the strategies and opportunities that digital marketing can provide will help make those steps to 50% + with confidence.

Today, dealers are not moving because of fear or they just don't know better. Neither position is attractive to an entrepreneur.

Automotive Advertising Education

We can assume that dealers will make this move on their own but there will be a tremendous opportunity cost for those that take the slow path to 50%; an that still is not the end game. Since first responders are rewarded in search, the sooner dealers make this move, the more they will be rewarded.

This move will need a coordinated effort by industry leaders, vendors, and educational agencies to educate dealers on all of the new media opportunities and marketing strategies for automotive advertising.

The DrivingSales University is one such program that will help dealers achieve greater confidence in digital marketing and innovative dealership operations. Dealer principals need to be able to clearly differentiate and measure the benefits of SEO, SEM, social media, display advertising, and inventory syndication.

Every time I conduct a seminar at a 20 Group meeting or at an automotive conference, light bulbs go off in the audience. Dealers are truly thankful to be shown, in plain English, why their lack of digital marketing investments is hurting their brand. We need to coordinate more "light bulb" experiences at 20 Groups, conferences, and regional teaching events.

Automotive Marketing Conference

One of those opportunities for education is the 2011 Automotive Marketing Boot Camp in Orlando, April 16th-18th organized by my company PCG Digital Marketing. The Boot Camp will be held at the beautiful Hilton Orlando hotel and has attracted a wonderful team of industry leaders and dealership employees to teach.

Dealers spending less than 50% of your total advertising budget on digital marketing and new media, need to attend and find out what is working for dealers that have made that have crossed that line.

If dealers wants to increase their dominant market position, they should attend to learn that latest strategies for digital marketing and social media from industry leaders.

Bring More Than One Person

I would also like to suggest that at least 2 people from each dealership should attend. Why? Because the best opportunity for change occurs when the dealer principals or GM learns side by side with their eCommerce Director or Internet Sales manager.

Too many things can get lost in translation when one of these two roles are missing. The good news is that attendees and educators at the Boot Camp will be willing to share exactly what is working and how they are measuring the ROI of that investment.

Dealers can register for the Boot Camp and make the decision to invest in education and the future of their dealership today. The event website is located at: http://www.automotivemarketingbootcamp.com

DrivingSalesTV.com will also be recording the two keynote addresses live from the Boot Camp.