Selling to the Car Dealer in a Multiplatform World Selling to the Car Dealer in a Multiplatform World

Paul Accinno President and CEO WorldDealer Inc. Paul Accinno President and CEO WorldDealer Inc.

Agenda President/CEO – WorldDealer, Inc. –Provides online and offline automotive marketing solutions including advertising services, websites, lead management and CRM, call center services and systems administration and auto portals for TV stations. President/CEO – JW Messner, Inc. –Formerly GM’s largest LMG agency EVP Sales/Marketing – The Boucher Group –Top 100 Auto Dealer Group Zone Manager – Ford Motor Company –Field Marketing Group Background

Agenda Selling to the Dealer in a Multi-Platform World –Understanding the Purchase Process –How Do Dealers Spend Their Ad Dollars –Why Don’t Dealers Buy Broadcast TV Media Convergence...Getting Started Getting Ready To Pitch Agenda

Title The Purchase Funnel Purchase Process

Agenda The research has shown that the purchase process begins within six months from the eventual acquisition. The Purchase Funnel Time Inc. Automotive Purchase Process ©December 2005 Purchase Process

Agenda Three Distinct Stages emerge as the intenders pass through the purchase process The Purchase Funnel Time Inc. Automotive Purchase Process ©December 2005 Purchase Process

Agenda “Needs Phase” (6 months – 4 months) Intenders are accessing the models that are available for basic consumer needs and desires — size, space and styling. The Purchase Funnel Time Inc. Automotive Purchase Process ©December 2005 Purchase Process

Agenda “Features Phase” (3 months – 2 months) - Intenders have narrowed their choices and are now comparing models within a single segment focusing on product features. The Purchase Funnel Time Inc. Automotive Purchase Process ©December 2005 Purchase Process

Agenda “Price Phase” (final month) - Vehicle cost becomes paramount as the intender visits dealerships (usually for the first time) and makes final comparisons that lead to purchase. The Purchase Funnel Time Inc. Automotive Purchase Process ©December 2005 Purchase Process

Agenda Title Media Usage In The Funnel Purchase Process The most powerful convergence media combination!

Automotive Internet Users (AIU)

Agenda A record high 67 percent of new-vehicle buyers use the Internet in their vehicle shopping process in New Automotive Internet Users J.D. Power and Associates 2005 New Autoshopper.com Study Purchase Process

Agenda Nearly all (89%) of these consumers visit a search engine or portal (such as AOL, Google, MSN and Yahoo!) as part of their shopping process. New Automotive Internet Users J.D. Power and Associates 2005 New Autoshopper.com Study Purchase Process

Agenda 77% of these consumers visit at least one Independent Web Site and typically visit this type of site first in their vehicle shopping process. New Automotive Internet Users J.D. Power and Associates 2005 New Autoshopper.com Study Purchase Process

Agenda “The Internet now helps to lead more late- model, used-vehicle buyers to the vehicles they purchase than traditional newspaper and magazine classified ads combined.” Used Automotive Internet Users J.D. Power and Associates 2005 New Autoshopper.com Study Purchase Process

Agenda 53% Used Internet In Shopping Process 24.3% Internet Impacted Seller Selection 90% Visited And Independent Site 52% Of Purchasers > Dealer Site Primary Source Used Automotive Internet Users Purchase Process Dennis Galbraith, senior director of research at J.D. Power and Associates

How Do Dealers Spend Their Ad Dollars Ad Spending

Newspaper still has “Lion’s Share” –76% of New Vehicle Budget –Newspaper Association of America (NAA) reports 7 consecutive quarters of used car classified revenue loss Internet is 14% of new vehicle dealer spending with 1/3 involved in SEM (PPC) advertising Spending Trends Ad Spending CNW Research, NAA and The Cobalt Group

Agenda Spending Trends Ad Spending TVRadio DM NP 11% 15% 7% 14% NADA Industry Analysis Division, 2005 Past 10 Years

Media Usage in the Purchase Funnel If TV + Internet is the most powerful combo...why do dealers spend so much in radio? We need to educate! Spending Trends Ad Spending

Spending Trends Ad Spending

Why Don’t Dealers Buy TV?

Agenda 1.Fear and Habit –They need help breaking the Print Habit! 2.TV Buys Are Too Expensive –Show them the research (TV + Web) 3.TV Buys Are Too Complicated –Presentation Skills...keep it simple 4.TV Production Is Too Expensive –Include in buy 5.TV Production Is Too Complicated –Don’t make it such a big deal...have spec creative 6.I’m Paying For Coverage I Don’t Need –Cable Argument...get Polk Data to show dealer who’s selling units in his area Why Don’t Dealers Buy TV?

Agenda 7. Location...Location...Location Cost in Major Metro’s is prohibitive. Help dealers with creative schedules using shorter lengths, shorter flghts. 8. It’s Not My Job! –It’s the Ad Group’s Job...WRONG...if they piggy backed the ad group...they would see how effective this strategy is! 9.Local Ad Agencies –Tend to be Print of Radio skewed 10. Planning/Stewardship –Not understanding the simplicity and beauty of the base annual buy Why Don’t Dealers Buy TV?

Automotive Retail Media Convergence...Getting In The Game!

Agenda How Committed Are You? –3 rd Party Plug & Play –Partial Integration of Multi-Platform Elements –Fully Integrated Station/Dealer Solution Build In House Strategic Partner Getting In The Game

Third Party Plug In with Automotive Content Build A Vehicle Basic Plug & Play Solution

Factory Videos, Dealer Spots Or Animation Third Party Plug In w/ Grounded Stock Partial Integration

Station Commercials Direct Consumers To Auto Section Link On Your Website. Commercials Tag Participating Dealers Auto Section Link Auto Section Content Integration Full Integration

Auto Section Home Page AutoChannel provides consumers with multiple access points to dealer’s inventory. Auto Section provides consumers with multiple access points to dealer’s inventory.

Auto Section Home Page AutoChannel provides consumers with multiple access points to dealer’s inventory. Auto Section provides consumers with multiple access points to dealer’s inventory. Make/Model/Zip Code Search Takes Consumers to Results Page in One Step!

Auto Section Home Page AutoChannel provides consumers with multiple access points to dealer’s inventory. Auto Section provides consumers with multiple access points to dealer’s inventory. Make/Model/Zip Code Search Takes Consumers to Results Page in One Step! On Line Ads Take Consumer to Specially Designed Co-Branded Dealer Sites

AutoChannel provides consumers with multiple access points to dealer’s inventory. Dealer Search Takes Consumers to Specially Designed Co-Branded Dealer Sites Auto Section Home Page Auto Section provides consumers with multiple access points to dealer’s inventory. Make/Model/Zip Code Search Takes Consumers to Results Page in One Step! On Line Ads Take Consumer to Specially Designed Co-Branded Dealer Sites

Zip Code Search Brings Consumers to Search Results Page Maintain Station Identity Throughout Your Auto Section

Vehicle Details Page Consumer Has Option to Call Dealership Using Toll Free Tracking Number

Vehicle Details Page Consumer Has Option to Call Dealership Using Toll Free Tracking Number Submit Quote Form

Vehicle Details Page Consumer Has Option to Call Dealership Using Toll Free Tracking Number Submit Quote Form Calculate Payments

Vehicle Details Page Consumer Has Option to Call Dealership Using Toll Free Tracking Number Print Trackable Page to Bring to Dealership Submit Quote Form Calculate Payments

Consumer Has Option to Call Dealership Using Toll Free Tracking Number Print Trackable Page to Bring to Dealership Or Visit Custom Designed Co-Branded Dealer Website Submit Quote Form Calculate Payments Vehicle Details Page

Elements of Your Co-Branded Dealer Site –About Us Contact Us Directions – Incentives Factory – New Vehicles Search Find My Car Trade Appraiser –Used Vehicles Search Find My Car Trade Appraiser – Calculator Forward/Reverse – Finance Application – Call Tracking

Co-Branded Dealer Website

Searchable Inventory Ads

Used Car Classified Section Allows Consumers and Independent Dealers to list Vehicles. Brings more viewers to site.

Dealer Association Model Station Home Page Ad Group Content Assoc. Tower Ad Association Landing Page Customer Searches For Vehicle or Dealer If Dealer Then Co-Branded Dealer Website If Vehicle Then Results Page w/ Vehicle Requested By Zip Code Customer Views Vehicle’s Details Page Dealer Receives Lead Customer Views Vehicle’s Details Page Dealer Receives Lead Search Inventory Ad Assoc. 30 Spot

Managing Expectations

Merchandising The Model Positioning Your Model Audience Delivery Lead Delivery Online/Offline Traffic Muti-Platform

Getting Ready To Pitch

Agenda Managers/AE Training...Learn the Biz –Bring A Dealer To Lunch Day Be Creative...Make Something Happen –Compressed Flights –Limited Dayparts –Shorter Units –Frequency VS Reach –Spec Creative “Drive Traffic To Their Showroom Through Their Website” Act Like You’re Ready

Next Steps

Agenda Find A Strategic Partner –Must Be Flexible –More Interested In Promoting Your Brand –Assistance With Packages and Dealers Visits Next Steps

Agenda Find A Strategic Partner Get Training For Your Sales Staff –Selling Skills and Automotive Tackle the Logistics Early –Packages Develop one’s that work for your station and make sure AE’s and Management are on the same page! –Inventory Make sure dealer schedules will clear...they don’t like being bumped! –Geography Assign “Dealer Row’s” by AE so they can easily call on dealers...not based on who currently handles what account! Next Steps

Paul Accinno Paul Accinno