Facebook is trying very hard to become a "one stop shop" for consumers and let's face it,they already have the user base. The question remains as to whether or not Consumers will utilize this feature. Most of my own personal FB interactions do come from mobile. I believe that there are many like me. I prefer other location based services as can choose whether to show those interactions to FB or not. Those who are on Foursquare or Yelp will (I believe) be reluctant to give up their Mayorships and Dukedoms. That being said, I amnot the norm FB's entry into this verticalwill have an impact and early adopters will have an advantage.

its all going to come down to adoption. If this feature catches fire, and the users alter their behavior and grab hold of "nearby" then this will have a huge impact on optimizing your local presence online. ITs strange to think we are talking here about facebook SEO now... just think of what will happen when facebook introduces a real search engine. so much to do and so little time!

Each user is different and they have chosen/will choose which platform they prefer. Personally I struggle to use LinkedIn as a communications tool as an example, but some in my network prefer it over Twitter or FB. FB, via moves like this, just seems to stay ahead of the curve, or at least it adapts quickly to others ideas. Good post Lindsey.

I have used the "check in" feature on Facebook only a few times. A majority of mine are from the third party applications that push to Facebook. Now will this new feature show dealerships immediately or will the results become better as more of our friends use it? If that is the case, how effective can it be with such low engagement? I like the idea but feel the third party applications can still give it a boost if integrated. Thoughts?

Chris, the application will become more useful and accurate as more people use it, which is certainly what they're hoping for. There are still sooooooo many people who haven't branched out into the social media extravaganza - they're stil only on Facebook. Making this a one stop shop, as Bryan said, is certainly positioning them to be the (only) powerhouse. I wonder if this application will be more prevalent with an older generation as opposed to the younger tykes, as many of the youth are already spread across multiple third party sites.

I'm with Jared on this one...it's going to take time for people to adapt to it. Not sure if it will take off since there are so many different medias to hit on when checking into a location. One thing that you hit on is getting reviews on Facebook. One more place to ask for it and will in the long run, get more likes on your page which is a great thing.

I'm really curious to see if this Facebook offering will turn out to be a Google Buzz or a Google+. It took Google a significant bomb in the form of Buzz to learn what their product needed to be and WHEN it needed to be. Do you think that this 'Nearby' location app is ready for us and are we ready for it? Should be interesting to watch! I think the most important question for dealers is this: whether Facebook Nearby is a hit or not, is it worth the time for my store to be there or not?

I remember using Google for the first time and actually finding what I was looking for. The other Search Engines of the time took several attempts and multiple pages to even get close to returning what I wanted. Google was the Internet game changer at that time for users. "Nearby" has the same potential to move us into the next generation of using the Internet, where the web is actually able to tell us what we want before we even knew we wanted it. Keep in mind that the Facebook social graph is A LOT more than just check-ins. It knows what pages you have liked, what websites you have shared, the music you like, your age, your marital status, etc.. If the underlining algorithm is well thought out and isn't intrusive or "creepy", this could be the next game changer for the Internet and the automotive industry as it evolves. This type of application WILL happen. As mentioned by Jared and Tommy, it just remains to be seen if this is the right implementation at the right time to generate widespread adoption. So even if there isn't an immediate impact to a dealer's bottom line, the more socially involved that dealers become now the better it will pay off in the future. Thanks for the post Lindsey!

Mike you bring up many good points here. One of the overriding factors could be the relevance FB can bring that other platforms cannot. It still amazes me that some people have no clue how much info they freely give on FB.

Facebook is trying very hard to become a "one stop shop" for consumers and let's face it,they already have the user base. The question remains as to whether or not Consumers will utilize this feature. Most of my own personal FB interactions do come from mobile. I believe that there are many like me. I prefer other location based services as can choose whether to show those interactions to FB or not. Those who are on Foursquare or Yelp will (I believe) be reluctant to give up their Mayorships and Dukedoms. That being said, I amnot the norm FB's entry into this verticalwill have an impact and early adopters will have an advantage.

its all going to come down to adoption. If this feature catches fire, and the users alter their behavior and grab hold of "nearby" then this will have a huge impact on optimizing your local presence online. ITs strange to think we are talking here about facebook SEO now... just think of what will happen when facebook introduces a real search engine. so much to do and so little time!

Each user is different and they have chosen/will choose which platform they prefer. Personally I struggle to use LinkedIn as a communications tool as an example, but some in my network prefer it over Twitter or FB. FB, via moves like this, just seems to stay ahead of the curve, or at least it adapts quickly to others ideas. Good post Lindsey.

I have used the "check in" feature on Facebook only a few times. A majority of mine are from the third party applications that push to Facebook. Now will this new feature show dealerships immediately or will the results become better as more of our friends use it? If that is the case, how effective can it be with such low engagement? I like the idea but feel the third party applications can still give it a boost if integrated. Thoughts?

Chris, the application will become more useful and accurate as more people use it, which is certainly what they're hoping for. There are still sooooooo many people who haven't branched out into the social media extravaganza - they're stil only on Facebook. Making this a one stop shop, as Bryan said, is certainly positioning them to be the (only) powerhouse. I wonder if this application will be more prevalent with an older generation as opposed to the younger tykes, as many of the youth are already spread across multiple third party sites.

I'm with Jared on this one...it's going to take time for people to adapt to it. Not sure if it will take off since there are so many different medias to hit on when checking into a location. One thing that you hit on is getting reviews on Facebook. One more place to ask for it and will in the long run, get more likes on your page which is a great thing.

I'm really curious to see if this Facebook offering will turn out to be a Google Buzz or a Google+. It took Google a significant bomb in the form of Buzz to learn what their product needed to be and WHEN it needed to be. Do you think that this 'Nearby' location app is ready for us and are we ready for it? Should be interesting to watch! I think the most important question for dealers is this: whether Facebook Nearby is a hit or not, is it worth the time for my store to be there or not?

I remember using Google for the first time and actually finding what I was looking for. The other Search Engines of the time took several attempts and multiple pages to even get close to returning what I wanted. Google was the Internet game changer at that time for users. "Nearby" has the same potential to move us into the next generation of using the Internet, where the web is actually able to tell us what we want before we even knew we wanted it. Keep in mind that the Facebook social graph is A LOT more than just check-ins. It knows what pages you have liked, what websites you have shared, the music you like, your age, your marital status, etc.. If the underlining algorithm is well thought out and isn't intrusive or "creepy", this could be the next game changer for the Internet and the automotive industry as it evolves. This type of application WILL happen. As mentioned by Jared and Tommy, it just remains to be seen if this is the right implementation at the right time to generate widespread adoption. So even if there isn't an immediate impact to a dealer's bottom line, the more socially involved that dealers become now the better it will pay off in the future. Thanks for the post Lindsey!

Mike you bring up many good points here. One of the overriding factors could be the relevance FB can bring that other platforms cannot. It still amazes me that some people have no clue how much info they freely give on FB.

Great analysis of both studies Lindsey. They are both very valid perspectives. I will venture to say that social will never take over traditional search and third-party expert reviews for the consumer unless we as our brand representatives start directly engaging more with our consumers in these various platforms. Once engaged, I see it as nothing different as being on the telephone or live chat from our website. It is an extension but the question is who is going to say hello to whom first? I see it as sitting on a park bench next to a stranger and I notice a VW key hanging off of their backpack. I could sit there and wonder what type of VW they drive, never say a word and ten minutes later we part ways. Or, I could engage in conversation without being promotional and ten minutes later find out they have been shopping for two weeks for their next vehicle and just haven’t made the move yet. Having a genuine conversation about their needs can leave a positive impression about your brand and you. More than likely they will spread the word and value the information you gave them as a brand representative and just maybe take some sort of action by visiting your marketplace or maybe even purchasing. There are certainly many variables that many may want to measure to prove the true ROI of social but I am not convinced it should be this complicated. It also makes me think of an article you wrote shortly after NADA regarding "getting out of what you put in." I am curious to hear what others think. Great read Lindsey as always. Thank you.

Thanks for your feedback, Chris. You are absolutely right. The effectiveness of social media depends on what you're using it for and how you are measuring it's success. When you put it on par with the other tools you use in the overall strategy, its production is a function of the effort you put into it. Great tie in!

Social Media should not be used for direct selling. Look at the key word "SOCIAL". Dealers should use this media to expose their "social" status. In other words, social media is all about the reputation. So this medium is to be used for INDIRECT selling via the exposed reputation of the dealer. Plastering an ad or inventory on Facebook WILL TURN PEOPLE AWAY! If the dealer decides to go public on Facebook, Twitter, etc, and wants to be successful with it, the dealer must protect its reputation by focusing on customer excellence and satisfaction as its #1 priority. When the dealer takes care of its customer, the customer would share their experience on social media (dealer should encourage and/or give incentives to share their experience). The customer has just now helped the dealer to build their reputation by sharing their positive comments to all of the customer's friends PLUS the fans on the dealer page. THIS is how a dealer can sell more cars in the 21st century.

Lindsey- excellent article. We find that many OEMs and dealers see social as the new shiny object, but really do not understand how to apply, manage, leverage, and infuse it into their marketing mix. Everyday we see articles on "do's and dont's" in social media marketing but I am not sure any of us really have a complete grasp on this. (I equate it to a water balloon- you grip it here, and it squeezes out somewhere else). We have also seen a shift in the mentality from some OEMs believing that social is the answer to their shredded marketing budgets due to its low/no cost. What they are ultimately finding out is that it is not the replacement for lead gen sources that they had previously utilized. Also, one comment from the "dont's" camp: too many companies make the mistake of trying to 'sell' their stuff via their Facebook sites, as an example, and are also getting underwhelming results. One analyst maybe said it best, stating "There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop, but it was like trying to sell stuff to people while they’re hanging out with their friends at the bar.” 'nuff said.

Great article Lindsey - very thorough. Now that I'm in the market to buy a car for the first time in 6 years, I can say that social media has made an impact on influencing the brands - which I in turn - begin researching online. Word of mouth has been important for me - I asked a good friend how the experience was at a local dealership where she purchased from. SM may influence at some point of the buying process, but as for research, I didn't open up Facebook to begin searching anything about a specific vehicle. I did however spend some time on an amazing automotive blog that offered a ton a great comparison information between the models I was considering. To be fair, I may not be considered the average shopper as well. I've often wondered what the same process may look like through the eyes of shoppers who are not active on Facebook & other SM sites. The obvious answer is that they're simply missing out on the social recommendations. (Which for many - is very important these days, plus its so easy to get)

Please send me a private email with all of the names of the people that still think the "Internet" is a fad. I have an inflatable gorilla and a clown costume for sale.

Interesting article. First thing I found interesting was that the studies were coming up with numbers that could point towards roi from SM. Something that other platforms have complained about as lacking in the SM platform(although other platforms have a real lack of true numbers to back their roi). The other thing I find really interesting is the strategies or lack of strategies taking place in the automotive industry. More specifically what dealerships are doing. It reminds me a lot of when I was in "internet marketing" and you would be talking to a small business about their website and they would say my nephew-a senior in high school-built it. It was pretty obvious that they were just trying to get something out there and didn't understand the platform or the opportunity to increase their market share. While the exact strategy is not as clear with SM, the ultimate outcome, increased sales and brand loyalty makes SM a platform that needs to be utilized better than it has by most dealers.

Thanks for the comments, Jeff. That's an interesting point that you bring up mentioned that people see social media as a replacement for their other lead generators. It's not. It's simply a supplemental tool that dealers can use. As you stated, the interenet is rampant with do's and don'ts of social media, which can be incredibly helpful, but without a strategy to incorporate those do's and don'ts, the information becomes just a bunch of mental clutter.

Word of mouth is key within social media, and beneficial for both people (as they learn from their friends what they may or may not be interested in) as well as the brands (who can profit off of their customers' advocacy). It makes sense that people get that positive experience when utilizing social media as a place for conversational exchange, but for the people who are trying to use social media as a dedicated research tool, it's not as effective. Thanks for the comments.

Matt, you're totally right. People know that social media is important in some way which is why they jump in, but the eager beavers haven't always fleshed out their purpose, goals, and direction for utilizing the platform. I remember Jeff Cryder in particular saying at one time that his one piece of advice would be don't jump head first into social media, you have to think through it. I think both dealers and OEMs haven't made sense of the space yet, which makes it that much more in the customers' hands to decide how they want to interact with the brands.

Ha! That's great Rob!

Social Media is the old "over the fence" conversation that used to occur within the smaller confines of one's immediate geography. However, even though new channels are allowing us to expand our reach, that doesn't mean that the conversation should change. If anything, it should remain even more focused on that one thing that makes each of us want to engage with others; They are knowledgable and a good listener. Focusing on that across Social Platforms will enhance the validity of your traditional Push Marketing strategies, not replace it. For every conversation you see on your page there are lirally hundred perhaps thousands that you don't. Some may be occuring on-line, while others are still over the fence or at the water cooler. Either way, when my "Brand" is brought up, having the familiarity and trust of those Social Media Fans or Friends will (in my opinion) yeild higher returns.

Mathew (and Jeff) , while I agree that social media is not a sales tool, the idea that you shouldn't be selling at all on social media is just not correct. There is research (ForeSeeResults 2010 and others) that shows that the #1 reason people follow a business page on Facebook: to receive special offers and incentives. So if a dealers is going to post what the consumers say they want, he would post (on occasion) special offers and incentives - isn't that selling to a degree? not in an e-commerce sense of course, but certainly I think more direct selling as opposed to branding.

Lindsey, a great review. It shows the challenge of looking at a single study and making comprehensive conclusions from that alone. It also shows I think the challenges of conducting good research. Vague questions such as "do you use the Internet to buy clothes" lead to answers such as: "no silly, I use a credit card". So vague questions such as "do people use social media to buy cars" are virtually impossible to answer definitively until we carefully define the question, which might be looking at whether consumers use social media in the purchase process, or as an aid in research , or to gather opinions from friends, and so on.

Great explanation, Brent, you are spot on. To further clarify the differences between the AutoTrader and Dealer.com research on where they lie in understanding the role of social media in the car buying purpose. Where Dealer.com is looking at social in terms of customers being involved in the conversations online, listening to their friends and family's conversation about car shopping, and being influenced at that level, AutoTrader poses their study in the space that customers are using social platforms as research tools, actively asking for feedback and looking up information within the social platform for information that might sway their decision making in the car shopping cycle. Again, these are two very different frames for the role of social media on the automotive shopping cycle and the main reason for differences in the number. The variability in how the questions are posed and their subsequent responses all flow from this main difference. Both are important perspectives in our search to keep up with this fast-moving trend. After talking further with those at AutoTrader.com more involved with the study, they point out that the study was not confined to using social media for the purchase of a vehicle but how it was used by vehicle purchasers in their shopping process.

You know, most people go on impulse shopping splurges just because of commercials seen on the media. Look at the Honda Acura as an example. A great car (equipped with state-of-the-art parts) paired with a great commercial that shows it of as a really great car (which it is) could very well turn it to a big selling point.

people are probably making the same mistake that they did at the time of the dot com boom. Online retail is not a new product its a new way to sell existing products so of course sales will go up due to convenience and access etc but it would never be a new product and consequently lead to all those stratospheric valuations and swanky offices and Ivy league college employees. Similarly social media is a substitute for the social structures of the last few decades. The social structure then was friends, neighbors, uncles and cousins, the local pub, travel companions, colleagues and people who came to worship at the same place. The amount of face time has gone down as interactions are shifting to the online world of social media. So now that dealers and OEMS and car companies know that one way to influence the buyer is traditional advertising on TV and etc the other is to make their presence on SM more vibrant and use it to understand problems rather than actual selling. Because if you solve problems new sales will come

Great analysis of both studies Lindsey. They are both very valid perspectives. I will venture to say that social will never take over traditional search and third-party expert reviews for the consumer unless we as our brand representatives start directly engaging more with our consumers in these various platforms. Once engaged, I see it as nothing different as being on the telephone or live chat from our website. It is an extension but the question is who is going to say hello to whom first? I see it as sitting on a park bench next to a stranger and I notice a VW key hanging off of their backpack. I could sit there and wonder what type of VW they drive, never say a word and ten minutes later we part ways. Or, I could engage in conversation without being promotional and ten minutes later find out they have been shopping for two weeks for their next vehicle and just haven’t made the move yet. Having a genuine conversation about their needs can leave a positive impression about your brand and you. More than likely they will spread the word and value the information you gave them as a brand representative and just maybe take some sort of action by visiting your marketplace or maybe even purchasing. There are certainly many variables that many may want to measure to prove the true ROI of social but I am not convinced it should be this complicated. It also makes me think of an article you wrote shortly after NADA regarding "getting out of what you put in." I am curious to hear what others think. Great read Lindsey as always. Thank you.

Thanks for your feedback, Chris. You are absolutely right. The effectiveness of social media depends on what you're using it for and how you are measuring it's success. When you put it on par with the other tools you use in the overall strategy, its production is a function of the effort you put into it. Great tie in!

Social Media should not be used for direct selling. Look at the key word "SOCIAL". Dealers should use this media to expose their "social" status. In other words, social media is all about the reputation. So this medium is to be used for INDIRECT selling via the exposed reputation of the dealer. Plastering an ad or inventory on Facebook WILL TURN PEOPLE AWAY! If the dealer decides to go public on Facebook, Twitter, etc, and wants to be successful with it, the dealer must protect its reputation by focusing on customer excellence and satisfaction as its #1 priority. When the dealer takes care of its customer, the customer would share their experience on social media (dealer should encourage and/or give incentives to share their experience). The customer has just now helped the dealer to build their reputation by sharing their positive comments to all of the customer's friends PLUS the fans on the dealer page. THIS is how a dealer can sell more cars in the 21st century.

Lindsey- excellent article. We find that many OEMs and dealers see social as the new shiny object, but really do not understand how to apply, manage, leverage, and infuse it into their marketing mix. Everyday we see articles on "do's and dont's" in social media marketing but I am not sure any of us really have a complete grasp on this. (I equate it to a water balloon- you grip it here, and it squeezes out somewhere else). We have also seen a shift in the mentality from some OEMs believing that social is the answer to their shredded marketing budgets due to its low/no cost. What they are ultimately finding out is that it is not the replacement for lead gen sources that they had previously utilized. Also, one comment from the "dont's" camp: too many companies make the mistake of trying to 'sell' their stuff via their Facebook sites, as an example, and are also getting underwhelming results. One analyst maybe said it best, stating "There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop, but it was like trying to sell stuff to people while they’re hanging out with their friends at the bar.” 'nuff said.

Great article Lindsey - very thorough. Now that I'm in the market to buy a car for the first time in 6 years, I can say that social media has made an impact on influencing the brands - which I in turn - begin researching online. Word of mouth has been important for me - I asked a good friend how the experience was at a local dealership where she purchased from. SM may influence at some point of the buying process, but as for research, I didn't open up Facebook to begin searching anything about a specific vehicle. I did however spend some time on an amazing automotive blog that offered a ton a great comparison information between the models I was considering. To be fair, I may not be considered the average shopper as well. I've often wondered what the same process may look like through the eyes of shoppers who are not active on Facebook & other SM sites. The obvious answer is that they're simply missing out on the social recommendations. (Which for many - is very important these days, plus its so easy to get)

Please send me a private email with all of the names of the people that still think the "Internet" is a fad. I have an inflatable gorilla and a clown costume for sale.

Interesting article. First thing I found interesting was that the studies were coming up with numbers that could point towards roi from SM. Something that other platforms have complained about as lacking in the SM platform(although other platforms have a real lack of true numbers to back their roi). The other thing I find really interesting is the strategies or lack of strategies taking place in the automotive industry. More specifically what dealerships are doing. It reminds me a lot of when I was in "internet marketing" and you would be talking to a small business about their website and they would say my nephew-a senior in high school-built it. It was pretty obvious that they were just trying to get something out there and didn't understand the platform or the opportunity to increase their market share. While the exact strategy is not as clear with SM, the ultimate outcome, increased sales and brand loyalty makes SM a platform that needs to be utilized better than it has by most dealers.

Thanks for the comments, Jeff. That's an interesting point that you bring up mentioned that people see social media as a replacement for their other lead generators. It's not. It's simply a supplemental tool that dealers can use. As you stated, the interenet is rampant with do's and don'ts of social media, which can be incredibly helpful, but without a strategy to incorporate those do's and don'ts, the information becomes just a bunch of mental clutter.

Word of mouth is key within social media, and beneficial for both people (as they learn from their friends what they may or may not be interested in) as well as the brands (who can profit off of their customers' advocacy). It makes sense that people get that positive experience when utilizing social media as a place for conversational exchange, but for the people who are trying to use social media as a dedicated research tool, it's not as effective. Thanks for the comments.

Matt, you're totally right. People know that social media is important in some way which is why they jump in, but the eager beavers haven't always fleshed out their purpose, goals, and direction for utilizing the platform. I remember Jeff Cryder in particular saying at one time that his one piece of advice would be don't jump head first into social media, you have to think through it. I think both dealers and OEMs haven't made sense of the space yet, which makes it that much more in the customers' hands to decide how they want to interact with the brands.

Ha! That's great Rob!

Social Media is the old "over the fence" conversation that used to occur within the smaller confines of one's immediate geography. However, even though new channels are allowing us to expand our reach, that doesn't mean that the conversation should change. If anything, it should remain even more focused on that one thing that makes each of us want to engage with others; They are knowledgable and a good listener. Focusing on that across Social Platforms will enhance the validity of your traditional Push Marketing strategies, not replace it. For every conversation you see on your page there are lirally hundred perhaps thousands that you don't. Some may be occuring on-line, while others are still over the fence or at the water cooler. Either way, when my "Brand" is brought up, having the familiarity and trust of those Social Media Fans or Friends will (in my opinion) yeild higher returns.

Mathew (and Jeff) , while I agree that social media is not a sales tool, the idea that you shouldn't be selling at all on social media is just not correct. There is research (ForeSeeResults 2010 and others) that shows that the #1 reason people follow a business page on Facebook: to receive special offers and incentives. So if a dealers is going to post what the consumers say they want, he would post (on occasion) special offers and incentives - isn't that selling to a degree? not in an e-commerce sense of course, but certainly I think more direct selling as opposed to branding.

Lindsey, a great review. It shows the challenge of looking at a single study and making comprehensive conclusions from that alone. It also shows I think the challenges of conducting good research. Vague questions such as "do you use the Internet to buy clothes" lead to answers such as: "no silly, I use a credit card". So vague questions such as "do people use social media to buy cars" are virtually impossible to answer definitively until we carefully define the question, which might be looking at whether consumers use social media in the purchase process, or as an aid in research , or to gather opinions from friends, and so on.

Great explanation, Brent, you are spot on. To further clarify the differences between the AutoTrader and Dealer.com research on where they lie in understanding the role of social media in the car buying purpose. Where Dealer.com is looking at social in terms of customers being involved in the conversations online, listening to their friends and family's conversation about car shopping, and being influenced at that level, AutoTrader poses their study in the space that customers are using social platforms as research tools, actively asking for feedback and looking up information within the social platform for information that might sway their decision making in the car shopping cycle. Again, these are two very different frames for the role of social media on the automotive shopping cycle and the main reason for differences in the number. The variability in how the questions are posed and their subsequent responses all flow from this main difference. Both are important perspectives in our search to keep up with this fast-moving trend. After talking further with those at AutoTrader.com more involved with the study, they point out that the study was not confined to using social media for the purchase of a vehicle but how it was used by vehicle purchasers in their shopping process.

You know, most people go on impulse shopping splurges just because of commercials seen on the media. Look at the Honda Acura as an example. A great car (equipped with state-of-the-art parts) paired with a great commercial that shows it of as a really great car (which it is) could very well turn it to a big selling point.

people are probably making the same mistake that they did at the time of the dot com boom. Online retail is not a new product its a new way to sell existing products so of course sales will go up due to convenience and access etc but it would never be a new product and consequently lead to all those stratospheric valuations and swanky offices and Ivy league college employees. Similarly social media is a substitute for the social structures of the last few decades. The social structure then was friends, neighbors, uncles and cousins, the local pub, travel companions, colleagues and people who came to worship at the same place. The amount of face time has gone down as interactions are shifting to the online world of social media. So now that dealers and OEMS and car companies know that one way to influence the buyer is traditional advertising on TV and etc the other is to make their presence on SM more vibrant and use it to understand problems rather than actual selling. Because if you solve problems new sales will come