The Silent Partner Marketing
Should Dealerships Ignore The OEM And Have Two Websites?
It's a debate that we hear every single day in dealerships:
"Our OEM website SUCKS but we have to have it. So maybe we should have two..."
It's the topic of our new video segment we're producing for dealers here on DrivingSales. I hope you all find value in it.
If you want some more fire and some more controversial content...make sure to follow me on Facebook!
POSTED BY
Kyle Reyes is President and CEO of The Silent Partner Marketing. He's also an acclaimed Keynote Speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook, LinkedIn and Snapchat (@dasilentpartner).
The Silent Partner Marketing
Nobody Wants To Work For A Living Any More
I’m going to blame this one on the entitlement culture that’s been created. All of a sudden, nobody wants to actually hustle for a living these days. But everyone sure does like to bitch about how bad business is.
In the last six months, I’ve kept a running tally of how many points of contact I tried to make with assorted “sales people” (anyone who relies on your business to pay their bills). Here’s what I came up with.
· 14 out of 16 contractors didn’t call or email me back.
· 3 out of 5 car guys didn’t call or email me back.
· 4 out of 4 plumbers didn’t call or email me back.
· 4 out of 5 tree service companies didn’t call or email me back.
· 6 out of 6 mulch companies didn’t call or email me back.
The numbers blow my mind. And keep in mind, in many of these cases – I made at least two points of contact…email and phone.
Yet constantly, nonstop, I’m hearing people talk about how “bad things are”.
Things are spectacular for my agency. Want to know why? We actually call people back. We actually give a damn about customer service. We actually focus on providing the same level of experience for people that we’d want.
Know who else things seem to be great for? Every single one of the “sales guys” who ended up calling me back. THEIR business is off the hook.
The irony is that the busy women and men are the people who are making the time to get back to people.
Oh, wait – that’s not irony. That’s how shit works in a world where you have to hustle harder than everyone else to provide for your families.
The moral of the story? Nobody wants to work for a living any more. Which is why it should be extraordinarily easy for you to KILL IT.
POSTED BY
Kyle Reyes is President and CEO of The Silent Partner Marketing. He's also an acclaimed Keynote Speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook, LinkedIn and Snapchat (@dasilentpartner).
7 Comments
DrivingSales
I have noticed the same thing. It is almost as if the roles have been reversed, like I have to sell my money to company. The customer has to put forth the effort to make the sale, and not the sales person. For me, customer servie makes a huge difference, I will pay a few dollars more to a company or business who makes themselves available to me, and who calls me back.
Walla Walla Valley Honda
Funny you should bring this up. I've been waiting over a month for a plumber to make a couple of changes in our kitchen, another month for an electrician and please don't get me started on the tile guy.
DrivingSales
Bob, in my experience, there has always been an element of that in the the construction industry. However, it is not only seaping into other industries, and the construction industry seems to be getting worse.
HERC Rentals
I am going thru that now. Local business are complaining about a slow down and I am trying to do a complete home remodel and willing to hire the first company that shows up.
Grey Motors
Non stop problem of exactly this. ...no one calls you back....period. I wonder how these people stay in business. Why even bother to show up to take notes and acquire information when you have no intention of following up with a quote? ...crazy.
ACT Auto Staffing & ACTautostaffing.com
Kyle, you actually hit on 2 subjects, 1- No one wants to work 2- Why people who follow through are sucessful. I mentor constanly young and muture people on both of these subjects and I share with them what I learned from Stuart Wilde, the spritual business guru taught me 20 years ago: If you just do what you say you will do, in the time you say you will, for the price you quoted, you will have more business than you will know what to do with because 90% won't.
Dealers Marketing Network
While there are indeed lazy people and poor business people that do not follow up, many organizations lack the elements to recruit, train, and retain good, loyal, dedicated staff. This is evident in the car business. It clear from the way we treat employees, to the poor quality managers that owners put up with, to a lack of respect for their customers. All that contributes to continuing the problem. It's alway easier to blame others than see our own issues and correct them. We have become a society that would prefer to treat the symptoms rather than implementing the cure.
The Silent Partner Marketing
Facebook Live Just Made A Move To Compete With Cable
It's a big shift that's ultimately going to have huge implications for traditional advertising.
It's a move that has been years in the making.
And it's a play that's sending Facebook right for the jugular of Periscope.
Today, Facebook rolled out a dual-broadcast feature.
It means that two people can be part of the same live stream at the same time now. Think of the potential here. News-style interviews. Debates. Dual person tutorials.
We've seen social media push more and more in the direction of "citizen journalism". As a matter of fact, Facebook live has become quite the hot topic, with Facebook announcing it has plans underway to prevent abuse of the platform such as the live streaming of crime.
The ability to broadcast live from multiple locations pits the platform against two competitors - Periscope and Blab.
About six months ago, we hosted a live conversation with the CEO of Blab, who talked about the success of the platform in bringing people together across the world in a live, interactive way. In our conversation at that point, we predicted a strong shift in the expansion of live streaming. Turns out we were right.
It was just last August that Facebook rolled out live. At that point, it was only available to verified journalists and public figures. By December of 2015, it had expanded to everyone. And as Facebook saw usage skyrocket, they went all in.
The media giant added a team of hundreds of engineers to work on incorporating everything from streaming reactions and video filters to live broadcast maps and targeted audiences.
It's not Facebook's first move to try and crush the competition. Instagram (which is owned by Facebook) recently rolled out it's own version of "stories" to compete with Snapchat.
What will the latest move mean for Facebook's competitors? Innovation, if we've learned anything about the natural progression of social media.
What will Facebook's new dual streaming capabilities mean for YOUR competition? It all depends on how YOU use it...
Kyle Reyes is President and CEO of The Silent Partner Marketing. He’s also an acclaimed keynote speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook, LinkedIn and Snapchat @dasilentpartner.
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The Silent Partner Marketing
Technology Has Disrupted Millennial Communication – And That’s Spectacular
This is one of those moments where I’m going to eat the words I wrote 18 months ago.
In a previous article, I talked about how technology has killed millennial communication. Bloomberg Business loved it. And while I still stand by my assessment that many millennials don’t know how to look someone in the eye and give them a solid handshake, I’m going to take a step back.
It’s not that millennials don’t know how to communicate. It’s simply that they’ve evolved. And evolution has both good sides and bad sides.
First, let’s look at the stats.
According to a Nielsen study, 83 percent of millennials say they sleep with their smartphones. (I think 17% of them overslept and missed the study).
A Cisco study found that 56 percent of millennials won't accept jobs from companies that ban social media.
An Odesk study found that 89 percent of millennials would prefer to choose when and where they work rather than being in a 9-to-5 position, and 45 percent would rather be able to work from home than make more money.
An Intrepid study found that 48 percent say word-of-mouth (specifically social media) influences their purchasing decisions over TV ads. 63% stay updated on brands through social networks.
A study by Millennial Branding found that 50 percent of college millennials say they don't need a physical classroom. 53 percent believe online colleges are reputable. And 39% view the future of education as being virtual.
How prepared are they to enter the workforce? A 2013 study (which might as well be 100 years ago at this point) commissioned by Bentley University found that 35 percent of business leaders assigned a score of "C" or lower on preparedness to recent college grads they've hired. And get this - 37 percent of those grads gave themselves the same grade range.
A 2013 State of St. Louis Workforce study found that a lack of communication skills and poor work ethic, along with a lack of critical thinking and problem solving skills were the biggest shortcomings of the job applicants - far outpacing a lack of technical skills such as math and computer.
How did this happen??
It's not rocket science, folks. You've probably seen the videos on YouTube. Babies sitting on mom's lap...trying to "swipe" the pages on the magazine that mom is holding as if she were using an iPad.
Entire coffee shops filled with people sitting together and ignoring each other as they text on their smart phone.
People who don't know how to maintain eye contact.
20-somethings who don't know how to properly shake your hand (hint - always touch webbing and never let your wrist go limp).
People who have no interest in attending their class reunion, as I wrote about previously,because they already know what everyone in their class has been doing.
Doorbells? What are those? "Text u when i get there"
Landline? Never heard of it. Text me, bro.
Rock concerts where people don't hold up lighters, they hold up cell phones.
Presidents who can't give a speech without a teleprompter.
People falling in front of trains don't get a hand...they get YouTubed.
Yes, it's a stereotype of an entire generation and how they communicate.
But there’s another reality of it that we need to discuss. Which is that in some ways, millennials know how to communicate more efficiently than any other generation.
They are adept at integrating digital communication and influencer marketing with their one-on-one engagements to achieve greater results in a shorter time frame, in many cases.
Take a look at the study from Adobe. It found that at work, millennials put more stock in interpersonal interaction than digital interaction. Although 81 percent of millennials said "state of the art technology" was more important to a perfect workplace than perks, a full 55 percent of them said they value in-person communication over digital.
Now check this out. 46 percent of those same millennial respondents expected their peers to value IM and texts over in-person communication…but the real number was only 11 percent.
Older generations often use the example of couples who are out to dinner at a restaurant and ignoring each other.
“They are looking at their phones and not even talking to each other!”
True. Very true. But the reality of it is that if you took that same couple and replaced them with older people without cell phones, chances are they’d still be ignoring each other. They’d just be eavesdropping on the table next to them instead of engaging with a world wide audience at their fingertips.
So perhaps it’s time you lay off the millennials and start taking a page out of their book – er – iPhone. You might just learn a lesson in efficiency. Just don’t expect them all to know how to shake your hand when you thank them.
Kyle Reyes is President and CEO of The Silent Partner Marketing. He’s also an acclaimed keynote speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook, LinkedIn and Snapchat @dasilentpartner.
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The Silent Partner Marketing
Your Team Screwed Up With The “Happy Father’s Day” Email
It’s inevitable. Every. Single. Holiday. Your BDC or sales team sends me a Happy (insert special day) automated email. And, of course, asks me for a referral.
It’s not just the automotive industry. They just happen to be the worst.
I tend to not get as many on Father’s Day, because it actually requires a salesperson take note of the fact that I’m a dad. It’s more common on Thanksgiving, Christmas, New Year’s, etc.
But it’s incredibly frustrating – and problematic – for two reasons:
- As soon as you, in the same paragraph, ask for the referral, you’ve immediately thrown authenticity to the wind and proven that you’re self-centered enough to make the wishes more about a sale than an actual thought of the customer.
- It generally shows a lack of personalization – and isn’t that the entire point of the follow-up process?
Don't get me wrong. I appreciate you thinking about me.
Or, in most cases, not forgetting about me is perhaps more of an accurate statement.
Come on now - you know exactly what I'm talking about. You're going through your email list or scrolling through your contacts when sending a mass text going, "did I miss anyone?"
How about making me feel like I'm an important customer...not just another customer?
Your customers are thinking it. Hell, you are probably thinking it too. And now you're shaking your head in agreement because you realize what a bozo move you've been pulling on every major (or minor) holiday.
So please, stop the mass texts and emails right now, because nobody cares. They just DON'T.
So at the very least, personalize it. Or remove the damn “send me your referrals”.
Focus on building actual relationships – not BS, self-serving and completely transparent relationships.
Find a different reason to contact them on a regular basis - just because.
Drop by the office with some cupcakes on National Cupcake Day just because and tell your customers you wanted to let them know how much you appreciate them.
Call them out of the blue to see how their family is doing.
Send them an email to see how work is going.
Text them a random thought.
But copying me on a mass email wishing me a Happy Father’s Day? Really - you shouldn't have.
POSTED BY
Kyle Reyes is President and CEO of The Silent Partner Marketing. He's also an acclaimed Keynote Speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook, LinkedIn and Snapchat (@dasilentpartner).
1 Comment
Founder - Sellchology Sales Training
[insert original poster's name here],
Great point and wonderful observations about the lack of personalization we see in marketing / communicating with our customers. Not only do we see these terrible practices of blasting out messages withour concern for the audience's interest or desire to receive it, we also don't often clear up any formatting issues, so the customer gets a [insert vehicle] coding message in their email. How much more clear could we be that we don't actually care about them?
Thanks Kyle for the topic!
The Silent Partner Marketing
I Wrote A Letter To College Crybabies and Fox News Called
In an age of ever increasing noise thanks to all things digital and social media, dealerships – and many industries – are finding it harder and harder to cut through the noise.
And when it comes to so many businesses, while they might understand the idea of engaging content, they often all but rule out public relations.
As a matter of fact, the thought of many business owners of having to deal with the media usually conjures up images of investigations and nosey reporters.
I get it, I do. I’ve worked in BOTH the world of automotive AND the world of journalism, where I was a news producer for nearly 10 years.
But public relations can be a massively powerful tool. ESPECIALLY when you combine it with a strong content marketing strategy.
Take, for example, a piece I wrote a couple of months ago – An Open Letter To College Crybabies from a CEO, picked up and published by New Boston Post.
As a marketer, I preach to my clients constantly about knowing your demographic. So at first glance, you might read the piece and imagine that I’m targeting college students. But the truth is just the opposite. The piece resonated with countless business owners across the country. AND with the media, because everyone seems to be talking about – and trying to understand – millennials.
Within three days, there were hundreds of thousands of shares and millions of eyeballs on the piece. Media appearances and radio interviews all across the country. A live interview on Fox and Friends (and of course countless eyerolls from liberals who hate Fox). And more than 30,000 emails and messages – the vast majority of which were overwhelmingly supportive.
There are a couple of powerful lessons that came from this, and I hope you’ll take note:
- Engage with your target demographic. Know what they’re talking about and understand that social media isn’t about talking TO people – it’s about having conversations WITH them.
- Don’t fear the media. Yes, after everyone from Fox & Friends and Steve Crowder to Varney and Company and Barstool Sports started talking about it, I dealt with a lot of idiots anonymously posting crap about myself and the company. But in the end, it’s all about an economy of scale. The positive that comes out of controlling a narrative is very, very good.
With that, I’m sure some of you are at least a little interested in the piece that started the firestorm.
I’d LOVE your thoughts on it in the comments below. Enjoy!
----
Dear College Students,
I remember the stress of college. The anxiety of papers due. The uncertainty of relationships. The concerns about what I was going to do after graduation.
I get it. It’s tough.
I also remember professors who challenged our perceived notions of “right” and “wrong.” I recall being exposed to movies, books and papers that I massively disagreed with. Looking back, I can visualize the heated debates between people with different perspectives. I can almost hear the yelling, the screaming, the passion and the CHALLENGES.
You’re studying and learning during the Industrial Revolution of our generation. It’s exciting. It’s encouraging. It’s liberating. And yet somehow, it’s also leading to your wussification.
Before you get all offended and run to your “safe place,” understand that I pulled that word right out of one of your trusted resources of knowledge – urbandictionary.com.
Here’s the first hit for the word:
wussification (verb): The act of turning one into a wussy.
The mother has been wussifying her children from young age.
The wussification of American children is notable.
I’m sorry. I hope you didn’t mistake this letter to be one that would tell you how wonderful you are and that you’re going to make the world a wonderful place. No, my friends, that’s not what this letter is at all. This is an open letter to all those of you who are whining your way through college looking for a safe place and an entitled hall pass.
I come with a very simple message. When you cast off that safety blanket and enter into the real world, this thing called life is going to slap you faster than you can say, “Do you want fries with that?”
I recently saw an article about these so-called “marginalized students” at the University of Arizona issuing 19 pages of demands.
Then, of course, the students at Emory University who needed counseling because they didn’t feel “safe” when they saw writing in chalk that said “Trump 2016.”
To all those of you looking for your “safe place,” I have to wonder: How the hell do you walk out of your dorm (or your parents’ basement) without getting hit by a bus every day?
So on behalf of CEO’s across the country, I’d like to share with you a few lessons that you might want to learn before graduation.
1. The Business World Doesn’t Give A Damn About You
No, really – it’s true. You saw something on the internet that you found offensive? You’ve got the sniffles? Your boyfriend broke up with you? Well, that sucks. Deal with it. I expect you to get your work done on time. Hit traffic that made you late for the fourth time this week? You should have learned after the first time that you needed to leave your house early.
Listen, even the best bosses have their breaking points. Excuses might fly in college, but they’re NOT going to fly when we’re paying you to actually get things done.
2. The Only Safe Place Is Your Home
In the real world – and especially the business world – we’re going to challenge you. We’re going to push you. We’re going to demand that you consider other perspectives. We’re going to rip your ideas to shreds from time to time. And we’re going to insist that you play nicely with others to find ideas that actually work and implement them.
We’re going to get really pissed when you don’t deliver, and we’re going to get even more pissed when you cost us money because you weren’t willing to hustle hard enough to get the job done. And if you slack off enough, there’s no “bell curve” that’s going to save your ass from a big fat pink slip. Lucky for you there are enough people working in the unemployment office who’ve also been wussified by the system to make sure that even though you were fired for not showing up to work, you’ll probably still get to collect unemployment and sit on your ass.
3. There’s No Such Thing As “Free”
I get it. You’ve been told that money grows on trees, that education should be free for all and that everything in life should be handed to you on a silver platter.
But welcome to the big kids’ playground. You want that health insurance? It’s going to cost you. Oh, you don’t want it? That will cost you too. You want an apartment? A house? A car? Believe it or not, you need to actually come up with some money for that! Oh, and you can quit your whining about taxes. Because SOMEONE has to pay for all of that “free” stuff – and now it’s you, sucker.
4. If You Don’t Want To Be A Victim, Then Don’t Be
In college, any time your feelings were hurt, you were a victim. If you were challenged, the challenger was a “bigot” and you were the poor person who had their feelings hurt. Here in the real world, we expect you to be challenged and to understand that humility is just as important as bravado. Selflessness is more important that selfishness. The content of who you are as a person is more important than the color of your skin or your socio-economic background or your sex or your weight or your religious affiliation.
5. Success Is Hard Work
We’re not going to give you five breaks a day. You’re going to have to work nights and weekends from time to time. You want to make “the big bucks”? Then consider a nine-hour workday to be a part-time job. You’re most likely NOT going to graduate college and find a six-figure job. Hell, you’re going to be lucky if you find ANY job … and you should be grateful when you find it. Grateful … and prepared to work like a maniac to get ahead. Because in the real world, you don’t get a pass just because mommy and daddy are paying your bills.
So, ladies and gentlemen, enjoy the remainder of your time being gentle little snowflakes. Revel in the time you have at the world’s most expensive daycares across the country. Because soon, you’ll be in OUR world. And it’s about to get real.
Sincerely,
Kyle S. Reyes
President/CEO
POSTED BY
Kyle Reyes is President and CEO of The Silent Partner Marketing. He's also an acclaimed Keynote Speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook, LinkedIn and Snapchat (@dasilentpartner).
3 Comments
Dixon Motors
The message may have been a little harsh however it was all truth. Free and fair is fantasy land stuff. Work smart and hard, communicate well, listen will, and have enough of a moral compass that not everyone thinks you are a jerk or refuses to work or do business with you.
AutoAlert
Well said and a conversation I have been having with my kids for the past 20 years!!
The Silent Partner Marketing
This Study About Millennials And Booze Will Help You Sell More Cars
We all know that drinking and driving don’t mix. But drinking and car shopping? Perhaps that’s a different story.
Check this out. A new study called “Behind The Bottle: An Exploration of Trends in the Spirits Category” found many millennials buy expensive booze so they can post pictures of themselves drinking “cool” brands on Facebook, Instagram and Snapchat. They say it impresses their friends and helps them gain social equity.
In the same study, 42 percent of adults aged 21-and-up say that digital media helps them “get ideas and recommendations of what spirits to buy”. Only 24 percent cited traditional media including TV, print and radio to influence their alcohol purchase. The number one factor? “Word of mouth” which weighed in a 59 percent.
According to the study, 28 percent of millennials endorsed the statement “I sometimes order a premium brand just to impress my peers,” compared to only 11 percent of Baby Boomers.
Apply the mindset to the automotive world now. It’s interesting data when it comes to the thought process of many dealerships. Take, for example, this story that a dealer shared with us last week.
A 28-year-old guy came into the showroom and was looking at vehicles on the floor. The sales guy assumed, based on his age and appearance, that the buyer would be looking for a lower end vehicle.
Imagine his surprise when the guy ended up buying a fully loaded Mustang.
The guy’s reasoning? “I know it’s not very practical in New England, but damn am I going to look cool on Snapchat in this thing.”
In order to understand the buyer, we need to understand their desires. In the case of this particular buyer, social equity was massively important.
In fact, he went so far as to tell the dealer he came into the showroom because he had seen some of the dealership videos that friends who purchased from there shared on social media. The fact that the buyer was Snapchatting and posting on Facebook from the lot should have been a tip off for the sales team.
As the press release pertaining to the booze and millennial study puts it, “knowledge of spirits is becoming social currency among millenials.”
But isn’t knowledge of products as a whole social currency? God knows it is in the world of automotive.
Remember, the road to the sale for the millennial is often a different road than you’re use to taking. They don’t just want to be sold – they want to be engaged. They want to feel good about doing business with you.
But most importantly? They want you to provide an experience – from social to the showroom floor – that is convenient for them and fits their expectations.
POSTED BY
Kyle Reyes is President and CEO of The Silent Partner Marketing. He's also an acclaimed Keynote Speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook LinkedIn and Snapchat (@dasilentpartner).
This Study About Millennials And Booze Will Help You Sell More Cars We all know that drinking and driving don’t mix. But drinking and car shopping? Perhaps that’s a different story. Check this out. A new study called “Behind The Bottle: An Exploration of Trends in the Spirits Category” found many millennials buy expensive booze so they can post pictures of themselves drinking “cool” brands on Facebook, Instagram and Snapchat. They say it impresses their friends and helps them gain social equity. In the same study, 42 percent of adults aged 21-and-up say that digital media helps them “get ideas and recommendations of what spirits to buy”. Only 24 percent cited traditional media including TV, print and radio to influence their alcohol purchase. The number one factor? “Word of mouth” which weighed in a 59 percent. According to the study, 28 percent of millennials endorsed the statement “I sometimes order a premium brand just to impress my peers,” compared to only 11 percent of Baby Boomers. Apply the mindset to the automotive world now. It’s interesting data when it comes to the thought process of many dealerships. Take, for example, this story that a dealer shared with us last week. A 28-year-old guy came into the showroom and was looking at vehicles on the floor. The sales guy assumed, based on his age and appearance, that the buyer would be looking for a lower end vehicle. Imagine his surprise when the guy ended up buying a fully loaded Mustang. The guy’s reasoning? “I know it’s not very practical in New England, but damn am I going to look cool on Snapchat in this thing.” In order to understand the buyer, we need to understand their desires. In the case of this particular buyer, social equity was massively important. In fact, he went so far as to tell the dealer he came into the showroom because he had seen some of the dealership videos that friends who purchased from there shared on social media. The fact that the buyer was Snapchatting and posting on Facebook from the lot should have been a tip off for the sales team. As the press release pertaining to the booze and millennial study puts it, “knowledge of spirits is becoming social currency among millenials.” But isn’t knowledge of products as a whole social currency? God knows it is in the world of automotive. Remember, the road to the sale for the millennial is often a different road than you’re use to taking. They don’t just want to be sold – they want to be engaged. They want to feel good about doing business with you. But most importantly? They want you to provide an experience – from social to the showroom floor – that is convenient for them and fits their expectations. POSTED BY Kyle Reyes is President and CEO of The Silent Partner Marketing. He's also an acclaimed Keynote Speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook LinkedIn and Snapchat (@dasilentpartner).
4 Comments
Mile High Motors
I agree 100%, i fall into the millennial category and this really hit home with me. An insight to myself id even go as far to say. One of the biggest factors for me before buying a vehicle is internet interaction, and most people my age only care about the appearance not practicability. I'm actually working on my dealerships website to become more interactive. I'm not sure if you read comments here but i'd love to contribute my insight on millennials and the car dealership industry since i have connections with both. Who would i contact?
The Silent Partner Marketing
Drop me an email - kyle@thesilentpartnermarketing.com.
Stream Automotive
Dealer Guy - while I agree with a lot of what you say in regards to gaining insight with age and maturity, I think you're missing the point. If you don't adapt and identify with the millenial mindset and sell to them on their terms, MOST dealers will suffer. Perhaps not with your brand(s) in your market RIGHT NOW, but ulimately we must strive as an industry to allow our new customers to follow the path of least resistance to our stores and into our customer databases.
The Silent Partner Marketing
Hey Dealerships – Your Ad Agency Is Laughing All The Way To The Bank
I should probably start with a disclaimer. This article is going to piss off other advertising and marketing agencies. Especially those that “specialize” in the world of “automotive”.
It’s going to make Dealers angry. It’s going to frustrate BDC managers.
But perhaps most of all, it’s probably going to have you shaking your head in agreement…because FINALLY someone is talking about that which you’ve suspected.
Your ad agency is taking you, Mr. and Ms. Automotive, for a ride.
I’m talking about display advertising. You know, all of those banners that you’re spending tens of thousands of dollars a month on.
You’ve long suspected that something wasn’t right. Not just because of your ridiculously, painfully atrocious CTR that your ad agency insists is well above “industry average”. But you’ve suspected it because you have fat fingers. And you’re constantly accidentally clicking on the ads while trying to find the damn (x) button to close the ad so you can just read your article.
You’re not alone. The entire business model of display advertising will soon be forced to take a knee.
A new report from PageFair and Priori Data shows that nearly 420 million people worldwide, or one in five smartphone users, is now using ad blocking software on their cellphones. That’s an increase of 90% over last year.
It’s a huge number. But more important is the fact that it’s indicative of a trend.
Listen, we work in a LOT of different industries…and I can tell you that for as advanced as the world of automotive believes it is, it’s not. While many industries started shifting away from banner ads more than a year ago…you guys are throwing cash at these companies as if they were a world class stripper in Vegas. And just like in Vegas, it’s leaving you wondering why you’ve got nothing to show for your money besides frustration and an empty wallet.
So for just a minute, let’s pretend we aren’t selling cars. Let’s pretend we are just every day people in the market to buy a car….surfing the internet from our smart phones. Perhaps a change in context will make you just pissed enough that you finally start looking at why you’re throwing away money.
Let’s dive into the secrets behind why so many marketers are still selling you something that stopped working a couple of years ago.
Be where the eyeballs are. It’s a message that I beat our clients over the head with. It’s why we’re making a massive land grab on Snapchat. It’s why we pushed our clients to be insanely aggressive with Facebook and Instagram Dark Posts. You need to be where the eyeballs are. A few weeks ago, I appeared on Fox and Friends to discuss millennials – which is an absolutely massive “generation” that dealerships are struggling to figure out how to market to. These are eyeballs you NEED to get in front of.
But here’s the problem. There are many people who skew the “eyeballs” to make it look like they are actually where they are NOT.
For example, I’ve seen companies make presentations showing the 3.2 million impressions that a banner ad made…but not report on the fact that only 9 people clicked on the ad. So make sure you know where the eyeballs are – but understand how to make sure they look at you.
Viewers are fatigued. It seems like every day, there’s a new study showing that readers on the web glaze over banner ads. As you scroll past them, they’ve become an “impression”. Did you see it? Probably not. Interestingly an “impression” doesn’t actually mean that a person saw it – only that it was sent to your computer.
The Internet Advertising Bureau defines “impression” as “a measurement of responses from an ad delivery system to an ad request from the user’s browser”.
What does that mean? Well, combined with the fact that viewers suffer from fatigue…and now that we know an “impression” doesn’t necessarily mean someone sees it…we see a recipe for fraud.
How about these two studies? Adobe found that 33% of internet users find display ads to be completely intolerable.
Even worse - BannerSnack reports that: 61% of users say they click ads just because they don’t want to be interrupted while reading content, 57% are afraid of receiving SPAM from advertisers or getting a virus, and 54% of users don’t click banner ads because they don’t trust them.
Another study found that just 2.8% of participants thought ads on a given website were relevant.
That sure doesn’t bode well for the goal of “conversions”.
Fraudulent clicks cost you – big. You can read all over about how companies hire other companies or individuals to “click” ads – something that costs you (or your client) money.
But have you heard about the “one by one”? Probably not. It’s where advertisers compress ads into one pixel by one pixel squares which are literally impossible to see but can serve up massive impressions. Then malware is used to send people to sites they never planned on visiting.
How about the less illegal and more obnoxious problem here? That’s right – the accidental click.
You’ve all done it when your fat thumb pressed the wrong thing. So you cost the business you ended up on a couple of bucks for accidentally clicking their ad.
But while doing so, you also drove down their Google Quality Score because you spent no time on the website and drove up their bounce rate…which, of course, will result in a higher cost per click for their future ads.
Yes, this is also happening to your business. Be aware.
Be where the eyeballs are. Understand what the trends are predicting when it comes to consumers. And start making your ad buying decisions not based on metrics alone, but based on your experiences as a consumer as well.
Kyle S. Reyes is President and CEO of The Silent Partner Marketing. He's also an acclaimed Keynote Speaker on entrepreneurship, leadership, marketing and social media. You can find him on Facebook and on Snapchat @dasilentpartner.
15 Comments
Kelley Buick Gmc
Kyle this is good food for thought....finally someone brought this up. I did not know that you could block these ads as well .
Overtake
hey kyle, good info here.. I didn't know ad blocking on mobile was a thing. What's a good one to use? also, are you saying dealers can pay to be in snapchat feeds? That would be cool. Could you reformat this article? super tough to read b/c of the spacing!
Dealers Marketing Network
I’m not disputing the content of your blog post, but I do not feel that Ad Agencies or Marketing companies are out to deceive auto dealers, but they work in a tough environment and often don’t get clear direction from their clients. This means the ad agency will run the same sort of digital banners and TV commercials that dealers have done for the last few decades. Measuring effectiveness with view and click stats doesn’t tell the whole story. The key is the “message” in those banners. If it’s just a price ad, or “see us for a good deal”, then for the most part these are a waste of time and money.
Your stats also indicate and confirm that most online consumers ignore banner ads so putting a big budget into digital banners, pop-ups, and text ads is often a big waste of money.
I believe the most effective marketing programs provide a hybrid-solution that integrates digital, social and local engagement strategies, but unfortunately most dealers don’t have the desire, resources, or will to implement these types of programs.
The Silent Partner Marketing
Thanks Mark.
Christian - they cannot pay to be in Snapchat feeds, but they CAN create custom geofilters or explore other types of Snapchat advertising...in addition to creating their own identity on there. As far as spacing goes, you've got me....looks totally normal on my screens. Happy to email you a hard copy. Here's some info on ad blockers: http://www.nytimes.com/2015/10/01/technology/personaltech/ad-blockers-mobile-iphone-browsers.html?_r=0
Mark - I'd agree about the lack of direction. But I'd also suggest that it's the responsibility of the agency to guide in that direction. Not all agencies operate in a shady manner, clearly, but let's keep in mind that many...including the two big "3rd party inventory companies" (we all know the two I'm talking about!) are known for skewing metrics to best showcase what looks good for them. And for the record, I entirely agree with you regarding hybrid marketing!
Force Marketing
Great article Kyle. Curious, what do you consider to be the "industry average" CTR and if you were a dealer, how would you define a successful display ad campaign?
Speed Shift Media
Interesting article. However, your premise for ad agencies deceiving dealers is based on impressions metrics for display ads and how agencies will pump that up. Haven't auto dealerships moved to a CPC model - even for display ads? Essentially going from "eyeballs everywhere" to "engagement everywhere". Doesn't that make impressions irrelevant make metric much more difficult to "pump up"? Lastly, on a similar vein, I invite you to read a blog article from our VP "Why Do Dealerships still Run Display Ads Even Though They Suck"
Speed Shift Media
Oops, Bad Grammar! I meant to say "Doesn't that make impressions irrelevant as CPC performance metrics are much more difficult to 'pump up'?"
Dealer Insights
The bigger problem isn't display versus other mediums, even though I agree with Kyle about the problems with display. The challenge is that most dealers aren't properly measuring the effectiveness of their digital marketing spend. Display or otherwise.
Like Kyle said, measuring impressions is worthless. Even CTR is a poor measurement. You should be measuring what those visitors did when they landed on your site. Did they view VDPs? Make a phone call? Did they convert on a lead form? View the map or directions page, etc? Measuring these types of macro and micro conversions and then assigning a value to them lets you distill a digital vendor or medium into a score that can be tracked over time. It also gives you a way to compare mediums such as display versus PPC, versus email, etc to see which gives you the best bang for your buck.
Now, let me add my experience in working with dealers and writing software to track the effectiveness of display and other mediums. I sampled a few of my dealers that are using display along with PPC and display was absolutely one of the poorest performer for last month. For the exact same budget, display generated 1/7'th of the website conversions that PPC did and 1/2 of the number of VDP views as PPC. Same story when you drill into how many contact us, maps, reviews, testimonial pages were viewed. Display just doesn't perform as well as many other mediums. It does drive traffic and conversions, but at the prices I've seen, it's just not cost effective. Maybe if you get it cheap enough it would make more sense.
That being said...there are even worst offenders out there. Some of the expensive classified sites perform even worse. And many dealers will argue that they are getting a brand lift from display. I'm not convinced of that, but as they say; your mileage may vary.
The Silent Partner Marketing
@Jonathan Bast - thank you. And candidly, it depends on who you ask. I've seen some companies touting "industry average" at .08%...others at .25%. Here's an interesting resource. As far as a "successful" display ad campaign, it depends on the goal and how qualified the traffic is. For example, if you're designing a custom audience through Facebook and Instagram Dark Posts and then remarketing to them from the website across the Google ad network, then a more true measurement of success would be (for example) appointments booked as a direct result on the service side...or leads generated...or, by other metrics, time from this demo spent on site.
The Silent Partner Marketing
@Renold Liu - take another look. I do in fact argue against impressions, but you'll note I also argue that the CPC model is flawed because of the obtrusiveness of so many ads that create false clicks.
The Silent Partner Marketing
@Mark Hoffman - you seem like a guy I'd drink with. Spectacular contribution - spot on.
Strathcom Media
Very interesting article. This is why I tell dealers Display advertising is literally the Billboards of the digital space. A good agency should let you know that direct response on Display ads is not high, and to stick to it for branded campaigns only, if at all.
To your point about spend the money where the eyeballs are, I would go one step further and say spend the money where your dealership will get the best ROI. Snapchat might be great for a Honda store, but might not be the right fit for a Buick dealership. Each marketer and dealer should evaluate the returns on their investments and if a certain marketplace or advertising medium is not stacking up, cut it, reallocate and reevaluate.
Paar Media Group
Interesting article. Man of my dealership clients were talking about this today. Paar Media Group is an automotive agency although I have to disagree with the agency being the issue. The issue here is one company owning and capitilizing on all dealerships. Example, most automotive digital ads and display ads are ran by one company that owns Autotrader, Haystak, etc. They have multiple dealers in one region competing against each other for the same customers and one company placing those display and digital ads. WHAT DO YOU THINK IS GOING TO HAPPEN?
I just had this conversation the other day with one of my clients. If were competing for the same customers in the same region and the same company is placing those ads someone is going to suffer. One month they may favor the one dealership and vise versa.
This is not an advertising or marketing agency issue. We protect our clients and look out for the best interest of the dealership. Not only, we will not take two competing dealerships in the same market.
The digital world is powerful and can be risky if not careful. Finding a reputable digital marketing agency is key.
Great article Kyle, it has grabbed the attention of many.
Edgewood Systems
I agree with your assessment ( and love the data backing it up).
Let us not forget that Dealers have / had the same problem with newspaper ads - people turned the page and ignored them. How many people really scanned all the new / used cars listed in the full pagers ?
The first thing I pulled and threw away was the Auto ad section, followed by any other insert advertising ( which on Sundays was at least a pound of paper ).
Now I have foregone newsprint but I read the 'digital replica'. Again I click right past the ads.
You cannot make people read ads of any form if they do not want to.
Mike
4 Comments
Brad Paschal
Fixed Ops Director
Most OEMs are lacking when it comes to SEO/SEM certified people
Brad Paschal
Fixed Ops Director
Having two websites totally throws off your local search ecosystem aka How Google finds you
Regan Hinchcliffe
sMedia
Hey Kyle, I don't agree with this.
Organically, yes there may be two websites that users are seeing but the website the resources are put into will show up first and guess which link users will click, the first one. I have direct experience with dealers with two sites and know if they do things right, their traffic to their OEM based site is almost negligible compared to their preferred one. They still get leads from the OEM site and their inventory is still on there, it's just not where they want to invest their dollars in bringing people to - because a lot of the times, they don't convert the traffic in a way that provides strong ROI.
Dealer's are typically heavy into SEM campaigns that are driving traffic to their preferred site which also decreases the likelihood that the users will find themselves on the "forgotten one" and even less so if a strong retargeting campaign is implemented. A step further would be dynamic, year, make and model SEM campaigns driving VDP traffic of users not even looking for specific dealership sites. Ultimately, the "user experience" argument doesn't really apply at this point.
If dealers are confident that they can get a second website that will convert their traffic driving investments to leads or "engaged users" (a metric we use to analyze user behaviour on VDP's which predict sales) at a much higher percentage than their OEM sites are able to achieve, it's a no brainer. Why would they waste their money driving traffic to a site that converts 20% or less of it's users to spending at least 60 seconds on a VDP when they can be driving traffic to a site that converts at 30-50%?
In our experience, OEM based sites are also light years behind the technological curve. It's hard for these dealers to "work with what they have" because they may not even know what they need ask of their OEM company to increase conversions and if they do, it could be like pulling teeth to get anything meaningful accomplished. A company that's forced on to dealerships in our experience doesn't seem to have the same "edge" as the scrappy disrupters that have to be extremely adaptive, quick and technologically advanced to earn the business.
Another thing to look at is competitive advantage. If two dealers of the same brand are competing in the same market - why would they both want the same website? How does that give an advantage to either of them? They are trying to compete with and be different than each other to gain a leg up.
Let me know your thoughts.
Regan
VP Accounts
sMedia.ca
Tarry Shebesta
PureCars
The other problem with using just an OEM website is that the OEM can block you from using tools or products that convert better than what the OEM wants you to use. Very sad. I thought the goal was to sell cars. I guess controlling the dealer and picking which vendors should win, regardless of how well they perform is top priority. Any dealer with more than one point should focus on promoting a group site to maximize sales opportunities.