CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
Technology is constantly changing the playing field in business; especially advertising. Most people in the industry are always looking for the next big thing and automotive dealers are always looking for the next "silver bullet". But sometimes you have to take a look backwards to keep ahead of the curve.
As new advertising tools are introduced it effects older technologies. Most people regard these older platforms as becoming obsolete... but are they in every case? A good example is Netflix. If you don't already know, they offer "on-demand" streaming of thousands of movies and shows to computers, t.v.'s, video game & media systems, laptops and various mobile devices. Many people have already canceled their cable or satellite subscriptions and use Netflix instead.
What makes this such a great example is that it creates two advertising opportunities for car dealers in 2 directions! One possibility is that it might create the opening for pre-roll commercials to captive audiences, like you would see on youtube right before you watch a video.
But how does this relate to old technology? Well lets say you canceled your Satellite in favor of Netflix. It's great until you want to watch the local news, sports or the latest episode of survivor. The cheap and easy solution which many people have already figured out is doing what folks have done since the age of the honeymooners. That's right, t.v. antenna's! What's even better is that now most major networks are broadcast in digital HD! Plus if you own a newer television (if it's an HD you probably do) it has a built in digital tuner so you don't need one of those boxes.
So again, as an automotive advertiser how can you take advantage of this old tech? One thing is local programming has been ignored for years by many people who had satellites. But more importantly, a whole new demographic is going to be watching these stations now! It's not just going to be housewives or the retired. All of these converts will only be able to get local programming via antenna, which means they will only see local dealers who are on the air.