Google and Facebook, Watch Out! There’s someone approaching in the rear-view mirror, and it’s Amazon.

Don’t worry about Amazon pursuing automotive retail--think expensive land and expensive cattle (aka cars). As far as the desire to pursue automotive advertising--think cloud ready and margin friendly.

The duopoly of Google and Facebook will fast become a triopoly as Amazon joins the mix.

Quick thinking retailers will follow fast in the footsteps of Dean Evans and the team at Hyundai as they set the pace. As an extremely experienced digital marketer with a resume that includes Chief Marketing Officer at Dealer.com and Subaru, CEO & President at Lotlinx and, currently, CMO at Hyundai, Evans knows what is going on in the digital space. In fact, he recently received the accolade of Automotive News’ All-Star for Marketing which was in large part because of his work with Amazon.

Hyundai is presently connected with Alexa. Amazon’s smart speaker, to help consumers start their car, turn on their AC and even charge their electric car through the Amazon Alexa home device. Separately, the Hyundai Shopper Assurance program –delivered via the Amazon platform--provides consumers with a place to review Hyundai products, view inventory and to schedule in home test drives.

https://www.amazon.com/adlp/hyundai

It’s just the beginning. Are you and your dealership ready?

Local Search Group CEO & Founder Jim Flint shares his advice on Super Bowl advertising and how dealerships can best take advantage of that audience without breaking the bank.

A key to implementation and execution in Google Ads’ space is to secure no less than 80% impression share for your name in the geographies where you sell and service vehicles.

Many dealers ask what would happen if I didn’t buy my name. Or better yet what would happen if I didn’t spend any advertising money or, more often than not, what if I stopped advertising on Autotrader or any other listing services?

The reason most dealerships don’t take the risk isn’t because of cost savings but rather because of the competition in our industry.

Check out your Google Auction Insights and see which of your competitors are riding your name already. It is more expensive for your competitor to “pretend” to be you for searching consumers than it does for you to dominate brand searches.

Don’t rest on your laurels, however, as choosing not to participate simply means that you are making it that much easier (and less expensive) for your competitor to succeed in their conquest campaign and win customers that could have been yours.

Relevance takes the prize in the Google machine. Better ROI at a lower cost in a crowded category wins every time.

A cold turkey test is not for the faint of heart and, if you’re bold enough to take the chance, there is no doubt you will still sell cars. However, in a competitive landscape like automotive retail, it makes common and good financial sense to protect and keep what’s yours -- your dealership brand name

Try the cold Turkey Test in February if you’d like, then get ready for March. With 5 Fridays and 5 Saturdays in March, it sets up to be a big sales month!

$5 million for a Super Bowl spot in 2019. That’s what the big brands are paying for huge visibility. There is arguably no better way to reach 100+ million people.

All in, there were 5 automotive OEM’s in the mix. Audi delivered details on their upcoming line of electric vehicles (EV). In the next three years they will bring three new EV’s to market.

Speaking of 3’s. How could or--better yet— should a Tier 3 dealership play in the Super Bowl advertising space?  At the right price and with the right message and support, they arguably should.

First things first: 2019 is over. Start planning for 2020 now.

Fox will televise Super Bowl LIV from Miami. Fox televised Super Bowl 2017 from Houston, and Local Search Group placed regional spots on mobile devices. The efficiency was stunning on a CPM basis, which some argue should be common currency for Automotive Marketing. Valuations for marketing ultimately level out as the number of viewers are determined; however, you won’t know until you ask about the regional Fox over-the-top solution and determine how 2020 looks to be coming together. Certainly, the growth in over-the-top and App Utilization will continue to drive media spends and cost.

The goal for any agency’s dealer clients should be to get them exposure to where the people are. In an environment where local advertising matters, there will be decidedly different advertisements that work to deliver their message during THE most watched EVENT of next year.

The reach is comparatively less, but so is the cost.

When talking about the right people at the right time on a CPM basis, it all of a sudden makes sense for a dealership to deliver a local Super Bowl spot. In the end, knowing that the audience you are efficiently spending the money to reach is yours makes all the difference.

San Francisco is famous for fog. The city’s given a nickname to its fog - Karl. Karl the fog even has an Instagram account with 243k followers.

 As I traveled back from the NADA Show 2019 held in San Francisco, I’m reminded that our industry resides in a fog of Digital Retailing.

I met with many capable and reputable vendors while at the event--often per their request, --and while we move closer to Digital Retailing, it doesn’t appear that we’re approaching the finish line (as much as some would like us to otherwise believe).

The typical Digital Retailing demo that dealers see involves a sequence of quick clicks, a price point and the vendor hitting the “Easy” button.   As Lee Corso, of College Game-Day fame, might say, “Not So Fast My Friend.”

Most demos for digital retailing products, at present, only take a quick request for an accessory addition or an extended warranty product to make the whole process collapse. Add finance rates, lease residuals and APR calculations to the mix and the possibilities explode as consumers look for a penny perfect solution.

When consumers accustomed to a check out price, don’t get that penny-perfect experience, the resulting friction will make the idea of shaving with sandpaper seem like a soothing experience.

We know that the digital retailing technology is ready and that consumers are comfortable with it. I’d even argue that dealers are prepared for it (albeit hesitant). The issue to me is the fog of Big Data and the corresponding intricate integrations. Big dollars are at stake—for customers, dealers, vendors, and data exchanges alike.

There will be winners and losers. The service levels for customers and to dealers on this will be tactical, technical and not unlike what we’ve seen in the internet decade that’s transpired since the Great Recession of 2008.

Since 2008 the business model for most Internet service providers has been to grow to critical mass and then merge or be acquired by their larger brethren. Then, many ISP’s, albeit not all, watch as the need for quarterly earnings overtake Research and Development costs. Service levels dip as savings are identified and adjustments are made. The cycle after acquisition usually takes 18 months to play out before a true metric of customer service for a given company shows its face.

And therein may lie the opportunity for the entrepreneurs or even the Amazons amongst us. There’s seemingly little value in establishing an enterprise as an add-on to an internet site, but there’s little doubt that that is where it will reasonably reside--at least initially.

As such, I’m happy to sit through any presentation that a vendor would like to deliver or with any retailer that’s purportedly figured this out. In fact, I’m eagerly awaiting the invitation.

Because, while the industry and I may have left San Francisco, Karl and the associated fog remain in place.

The concept of common currency is such a great idea. Except that for the most part, people want their own currencies. Dealership employees want their own pay plans. 180 currencies are used in 195 countries across the world. And even Bitcoin is trying to establish a different currency at some level.

The common currency for marketing metrics for dealers could be CPM (cost per thousand impressions).

CPM’s a great level set, but there’s a reason why it hasn’t received widespread adoption and/or utilization. Like other Hulu and YouTube wannabes, Disney will deliver its own platform. In addition, ESPN, AT&T and Xfinity seem to be down an additional path to advise and sell you on over-the-top advertising.

And on the other side, Amazon and Netflix are starting to crank out more content than ABC, CBS and Fox, and you’ve got to wonder if we’re coming together or fracturing at unprecedented levels?

We’re fracturing.

With the inherent, instant, internet competition, don’t look for there to be a union of the masses anytime soon. We can watch what we want when we want on our phones. The cable box of the past is now the smart phone in our hands.

The common currency of marketing won’t be reliably available any sooner than when 16,000+ franchised dealers and 20,000 independent dealers across the US agree to the adoption of similar accounting standards and practices.

Don’t dream the impossible dream. Find someone that understands the VALUE of the advertising you buy and who’s able to share how to measure performance through results.

We’re known for knowing the value of advertising, and through the years, we’ve become very familiar with our values.

Value and Values. Two different things.

Local Search Group’s values do much more than establish the monetary worth of something. Our Values--summed up in the 7 C’s below--help govern our thoughts and beliefs-- and these are values that any organization or dealership can adopt to improve their dealership’s efficiency as well as their company culture.

Communication

As an agency we communicate on behalf of our clients to consumers. It’s the most important thing we do.

Change

The world moves quickly. Google, Facebook and other technologies move exceedingly faster than the automotive industry does. What are we doing to keep up without changing for change’s sake?

Coat of the Armadillo

Thick skin applies just as much to digital strategies as it does to communicating in real-time, whether that be with managers, colleagues or consumers. The car business can be stressful. Good interpersonal relationship skills are imperative to maintaining happy employees and customers.  

Consistency

Look for the repeatability of an event and a way to improve the event in the future. One of the most watched events, the Super Bowl, contains elements of consistency from our perspective. Each year there’s a host city; there’s a halftime performer, and there’s two teams that play. Sure those things might be different--but the process for the NFL remains the same.

Competition

It’s a out there. How do we recognize our environment and gain an edge for our dealer clients?

Clients

Focus first and foremost on customers. Respond quickly. Be the “now” part of a “now” business and be results driven.

Charity

The largest generation of current consumers choose businesses that support what is important to them. What is your dealership doing to “give back?” Our charity of choice is the SPCA.

At the dealership we can spend so much time working on the value of the products and services  we provide that we can lose sight of our values. Knowing both will help you hire, attract and retain more of the right employees to help you take care of your customers.

Of all the recent changes made by Google, Impression Share bidding is one of my favorites. And its importance can’t be understated.

Especially so if you believe in the common currency of CPM’s (cost per thousand impressions). Sure, Google’s helped us bid on time of day, type of device and geography for the longest. All of this tells us where someone is in the moments that matter; however, a bona fide marketer wants to know the interest level and the market size of the intended audience.

Searches convey intent. Impressions are available to those that are interested. As such, knowing that I can bid on Impression Share through Google Ads only means that I can get the right ads in front of the right people at the right times in the right locations more frequently.

It all works together, but our goal for your make, your model and your market is what we affectionately refer to as the 80-50-50-25 rule. It reflects what impression share we believe drives the most efficient models for your geography. Taking on Dealer Name, Dealer Search, Make/Model and Used Cars respectively in the google campaign building business of Impression Share helps us deliver the best prospects.

It’s far from automated, but as Google continues to make changes to Google Ads, it’s important to be on the leading edge. Prioritizing “Impression Share” as a bidding strategy is a big key to success in Google’s quickly developing automotive landscape.

Heading into the New Year, even the speed of speed seems to be picking up speed.

Commercials compress. Attention spans shorten. Faster is better. Learn it quickly. Make the adjustment. Get to where you are going sooner.

Significant business strides will be made with Over The Top (OTT) and Artificial Intelligence (AI) and Artificial Reality (AR) and Digital Retailing (DR) this year.

Some might call them keys to success, but at the same time, many others won’t define or gather the critical mass to command the concepts. When you’re responsible, how then do you orchestrate the human elements required to operationally implement them?

We want the waiter to help guide us through our entire alphabet soup of confusion.

This we know though--we want to eat the soup while it’s hot. Knowing that “now” matters in a society that so values speed. If the page doesn’t load in 3 seconds, consumers leave. Same for you. IDK (I Don’t Know)  turns into a search, and if not delivered, it’s so BRB (Be Right Back). Get going. Seriously. Now. Fail. Fast. It’s BLTN (Better Late Than Never), but it better be quick, too.

Not unlike the Doctor that needs something now, we reach out and shout “Stat!” True to its own definition, “Stats” are a shortcut, too. “Stat” comes from the longer Latin word statum and means immediately. In a world of Big Data, we need the “Stats” to get us to where we’re headed.

ROI matters, “Stat.” What are your sales metrics, “Stat?” Appointments, Shows, Turn Ratios, Gross Profits? “Stat!” Do you have a game plan for Digital Retailing?

Find one soon, for whatever you do, you’re going to need to do it “Stat”!