The Television Bureau of Advertising announced last week that television revenue fell by 27.6% in the first quarter. Adding to that, spending in the automotive category of local broadcast TV fell a whopping 52.1% in the first quarter of the year.

Has the economy finally forced local automotive dealers to rethink their television advertising budgets? I hope so. Television is a traditional medium that offers questionable

Traditionally holding the top spot among individual spenders, autos are hitting local stations’ revenues particularly hard. While bad for local broadcast stations, I think there is some silver lining to this dark cloud. Has the economy finally forced local automotive dealers to rethink their television advertising budgets? I hope so.

Television is a traditional medium that offers questionable ROI or tracking ability. In today’s world, dealerships are looking to advertise more and spend less. This isn’t going to happen with TV ads. Autos have long loved this medium where they can catch consumers’ attention, usually at the expense of their dignity. Am I calling for an end of “Crazy Eddie’s Used Cars” commercials where Eddie literally saws something in half to demonstrate their slashed prices? Kind of. While TV spots can useful for dealers, there are so many other ways (more ROI and tracking friendly ways) to reach targets. Only you know what works for your dealership, but some mediums I think will gain traction are:

• Email marketing
• Using YouTube to launch commercials
• Social Media
• Direct Phone calls to customers (especially for service work)
• Targeted PPC campaigns
• Radio
• SEO

So what are you doing with your ad budget?

• You have staff with time to spare. Lots of time. Managing online marketing campaigns takes time and planning to ensure success. If you don’t have the time to manage budgets and tweak ad copy, don’t bother. You’ll end up costing yourself more in the long run.
• You (or your staff) have experience running campaigns. Dealerships aren’t in the position to be guinea pigs for trial campaigns. You need experience working with the major search engines and writing effective ad copy to run a solid campaign; otherwise valuable time and money could be wasted.
•  You know your business. I know this seems like a given, but in order to build a list of keywords that will convert for your dealership you must know what people are searching for to find you. Of course “manufacturer + DMA” is a start, but what other keywords drive traffic to your site? Professionally run campaigns typically begin with hundreds (or even thousands) of keywords, and are narrowed down over time to keep the best converting terms.
• You have measurements and goals set to keep the campaign accountable and on-track. Clear metrics defining campaign success are imperative. If analytics aren’t in place and conversion rates aren’t tracked then there is no way to see if bringing the advertising in-house actually saved money. This is a key point for all advertising, whether in house or out.

1. Companies like Lexus and Toyota have spent a great deal of time and money building their brands. How likely is it that they’ll let their brands be diluted by allowing others to use their trademarks without a fight?
2. Cost per click is likely to go up if more companies are allowed to use the terms. This is mainly going to be an issue for Toyota and BMW, as they’re the brands who currently enforce their trademarks. Good for Google, maybe not so good for everyone else?
3. Used car dealers or dealers with multiple brands to sell will finally be able to run a PPC campaign for specific inventory.

Many auto dealers are having to make drastic cuts in their advertising budgets. The most cost effective advertising medium today is the internet, but many dealers are unsure how to get the most out of their internet advertising.

That's why, together with the American International Automobile Dealers Association (AIADA), Auto Dealer Traffic is offering a special webinar to learn real world best practices that can immediately impact your business. Auto Dealer Traffic is the Affinity Partner of the AIADA.

This FREE 30 minute webinar will offer strategies to help dealers more effectively execute internet marketing strategies and how to effectively spend their internet budget. We'll cover:

• Online inventory
• How is inventory displayed in classifieds
• Where are your efforts focust
• Getting the most real leads online

The strategies we'll cover will help dealers get the most from their internet marekting and help cut advertising spend.

Date: Tuesday, June 16, 2009 - 2:00PM EDT

Moderators: Todd Swickard, CEO & Founder of Auto Dealer Traffic and Tanesha Bennett, Director of Sales for Auto Dealer Traffic

To register now, click here.

With Google’s recent launch of its “search options” feature, the web is buzzing.  Since this is still new technology, I’m still unsure what I think about it or exactly what the ramifications of these new options could be. For those who haven’t heard, Google is now allowing users to filter their searches by categories of results (ie: video, reviews, and forums), recency, as well as through the “wonder wheel” – which shows related searches.  You can also opt to see images or more text in the results.

Personally, I’m a fan of the Wonder Wheel.  Through this, user can see related searches. It’s really a visual aid to see how different related topics are clustered together. When you click on any spoke of the wheel, it then causes that search term to be at the center. Now I know this technique isn’t new, but I don’t know anyone else who has given it such a high profile by inserting it on the main search page.

So, as an example, say gas shoots back up to $4/gallon. As a user, I google “hybrid cars”.  I can now see related searches like “hybrid vehicles list” and clearly see different hybrid models – and even find out about the energy tax credit associated with buying a hybrid.  I can also select to see images from the page, and check out pictures of each model.

I’m also really interested in testing out the recency filter.  At its Searchology event, Google admitted that its #1 problem with search was “finding the most recent information”. Understandably, real-time search is still largely unsolved.  Obviously, even with its new recent results filter, the recent results are only as “real-time” as Google can get. I wonder how this will affect vehicle listings on dealer sites?  Will site updates and date tags affect organic listings? I guess we’ll find out soon enough…

Even with the questions surrounding real-time searches, Google has taken a step forward in pioneering this new display and filtering of search results.  The real thing to watch now is to see what SEO and web development firms take notice and alter their strategies to take advantage.

 

I came across this timeline of changes the major search engines have gone through over the past 10 years or so.

What struck me is that Google has been keeping it simple since the beginning – and they continue to be the dominant player online.

We can learn from this. Google is a great example of how to keep things simple. This KISS philosophy (keep it simple, silly) should also be applied to your business. Google’s success is because they concentrate on their core “search” capabilities, and don’t let themselves get distracted like their competitors do, with “overcrowding” their information. They keep their focus on what’s really important in what they provide: SEARCH.

What’s your business? What can you eliminate so that you can be focused on your most important capability?

I was reading this article the other day and was shocked by its statistics.  The industry pressures dealers to advertise online, but this study really showcases a flaw of many people’s Internet marketing campaigns: they have no clue if it’s really working because they didn’t take the time to benchmark where they were when they started, and they aren’t using analytics to track the current status of the campaign once it’s in motion.

Before businesses decide to do anything aggressive online you must first determine what defines success for your online efforts? While this question sounds basic, it deserves some thought and attention.  Is success increasing the number of unique visitors? Just getting consumers to call or submit information? Placing an order?  Before even thinking about starting your campaign you need to know what success means in real, quantifiable language.  Otherwise you, and your marketing partner, will be doomed to failure from the get-go.

This shouldn’t be new news – in fact, I’ve said it before, right in this very blog: Once your campaign is kicked off, you better be tracking it. While this sounds like common sense, the Media Post study says that less than half (47%) of marketing professionals say they currently use analytics to measure online campaign results.  What’s the point of having all those “cool analytics” if you have no idea where you came from and where you are now, and where you plan to be tomorrow. You’ve got to have a documented benchmark in order to show measurable results.

I believe the lack of campaign ROI is because of these reasons stated above. I think businesses are finally realizing these issues with lack of planning and goal setting now, after jumping on so many Internet marketing programs that they forgot the fundamentals. As, businesses actually start to document their progress, I think we will see an increased ROI across the board.

Have you set your benchmarks?

The economy blows. It says so in every newspaper you open.

In this tough economy, fewer people are buying - and those that are buying are doing their homework. That means online research: making sure they're choosing the right car for their needs, at the right price, from a dealer they trust. The days of customers driving around to different dealerships to check out prices are long gone.

Search results can make or break you in this economy.

Here are five tips for your SEO campaign:

1. Get local. Most people purchase within a 50 mile radius of where they live. Buy for local search. Include maps. Show people that you're nearby for a look.
2. Don't just optimize your home page. A good SEO agency will try to bring people to your home page, but they'll also optimize the other pages in your site to improve results.
3. Put your inventory to work. Each page of inventory should include title tags and META data. Each should occupy a unique URL, so that each page can rank independently. Imagine the results you’ll get if every single one of your cars shows up for a search term. If your SEO agency doesn’t know how to do this, find one that does.
4. Check your results and adjust your SEO strategy. SEO is always evolving. Different terms may be the ones to get the best results. Make sure your agency provides you with analytics. Ask them what they’re doing to get you and keep you at the top of the rankings.
5. Make sure your website is inviting. After all, if they get to your site and then can’t find what they need there, it’s a totally wasted effort. Inviting also means the overall feel should generate trust. Take a good look at your site and see: would you buy from you? Why? Now more than ever, this needs to be defined and addressed on every page of your site.

Take a good look at your own site for the five points above. Rate your site with 0-20 points for how well you do on each point. That’s your effectiveness percentage. And in this market, anything below 80% is asking for trouble.

How well did YOU do?

If it sounds too good to be true, then it probably is.

Remember what it was like in automotive Internet marketing before programs like AdWords? I do. Even six or seven years ago, it was a much simpler time for dealerships looking to get in on the action of the big, new world of online marketing. Back then, you had a choice of only a few providers, and little competition for keywords.

Nowadays, there is a new online marketing firm popping up hourly and intense competition in keyword bidding. With so many choices for an online marketing provider, how can you know who to trust?

I've laid out a few of the basics:

1. If they sound too good to be true, then they probably are. If you get a sales rep coming into your dealership promising you #1 rankings on Google or thousands of clicks on your PPC campaign, don't fall for it. IN the world of SEO, there are no guarantees for ranking placement - and you should be wary of any provider that tells you otherwise. Likewise with PPC campaigns. If a company is guaranteeing a certain amount of clicks per month, are they really driving qualified leads to your site?  A million hits to your dealertship website won't help you at all if none of those visitors are in-market shoppers.
2. In regards to SEO, be sure your provider is submitting you to the search engines on a regular basis. Search engines change their algorithms all the time, and if you just submit your site once and forget about it, your organic rankings will suffer. Look for a partner who is qualified by the various search engines (i.e., Google Reseller, Yahoo Ambassador, etc.) A reputable SEO provider will be able to give you an audit of your current website and talk about strategies to improve your organic rankings.
3. Beware of agencies that pitco only SEO or SEM campaigns as the solution to all your traffic problems. A single, prolonged approach to Internet marketing will only take you so far. You need a multi-level approach to online marketing to truly be effective. A good mix of SEO, SEM, and online display will give your dealership maximum exposure. Find an Internet marketing agency that can coordinate an entire campaign to fit your needs.
4. Select a provider that "gets" the auto industry. Dealerships are unique and need a provider that understands how their business works - one that specializes in the industry. An automotive-focused agency knows what kinds of keywords your dealership needs to focus on, and an experienced agency will know staticstics on what kinds of keywords convert.
5. What kind of reporting does the provider offer? Great internet marekting campaigns need real time reporting in order to adjust underperforming strategies before it's too late. Work with a company that offers transparency, instead of just taking your marketing budget and telling you they spent it on a campaign. You should be able to view a list of your most popular keywords, as well as a search engine ranking report monthly to see your ROI.

The Internet marketing arena is changing daily, and dealerships need to work with a provider that is ahead of the curve. Finding a true Internet marketing provider will increase conversions to your site, as well as let your team do what they do best: sell!

If you have any other tips for selecting an agency, please share them on my blog.