1. 1 1 Ralph Paglia; Orlando, FL – April 23, 2008 Using digital marketing tools to buy Internet, radio, newspaper and TV advertising more cost effectively than ever before… Learn how to buy $125 prime drive time radio spots for less than $10 each! Enterprising dealers in all areas of the country are discovering that multiple web-based services allow them to bid and buy conventional radio, TV and newspaper advertising in their local market at a fraction of the cost when purchased through conventional methods. Discover how you can regain or expand your competitive advantage by learning how to use the web to buy both online advertising and conventional media at far lower costs than ever before available to car dealers.

2. 2 2 INTRODUCTIONS: Ralph Paglia ADP Dealer Services Director - Digital Marketing OEM and National Accounts Recognized industry expert in Automotive Digital Marketing, Advertising, Lead Management and CRM Process design Responsible for driving 144,000+ leads to single-point dealer in 2 years and developing a team that sold 4,000+ Vehicles to Internet Leads in 2006. Strategic marketing planner and consultant to car companies, dealer groups and national enterprise automotive organizations Deep history of developing Digital Marketing strategies and tactical CRM implementation blueprints for dealers and car companies Managed first retail automotive pilot program for Google Audio while in beta testing while at Courtesy Chevrolet in 2005, 2006 and 2007 Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal Ralph Paglia Cell: 505.301.6369 ralph_paglia@adp.com

3. 3 3 Ralph Paglia; Orlando, FL – April 23, 2008 What are many ISM’s seeking? Respect and Relevance within the Dealership Credibility with DP, GM and Management Team Recognition of Professionalism and Skill sets acquired Logical Allocation of Budget and Resources needed to get results Tools Needed and the freedom to use them when appropriate Self Actualization from being given the control to achieve results Respect from Sales Managers Is this how they see the ISM in your store?

4. 4 4 “Many dealers say they are reducing — or even eliminating — their advertising budgets and shifting ad spending online from print, broadcast and outdoor outlets.” Poll: Dealers scrounge for cuts Retailers slash costs by cutting staff, inventory, vendors and advertising David Kushma David Kushma Automotive News April 14, 2008

5. 5 5 Digital Marketing and Advertising Relevance Information Source Most Important to Vehicle Purchase Influencers

6. 6 6 Ralph Paglia; Orlando, FL – April 23, 2008

7. 7 7 Marketing & Sales Funnel Still Exists Consideration Purchase Awareness Familiarity Visit Dealer → Make them aware of your vehicles and dealership → Show them that your model and dealership is for them → Convince them to consider your model and dealership → Convince them to shop your dealership → Convince them to purchase your vehicle The Goals

8. 8 8 Different media channels are more effective at distinct stages of the shopping funnel Consideration Purchase Awareness Familiarity Visit Dealer Marketing Channel TV Ads Radio Ads Digital Advertising Newspapers Outdoor

9. 9 9 Ralph Paglia; Orlando, FL – April 23, 2008 Integrated Marketing Use Multiple Media Channels to Communicate the Same Messaging More Effectively

10. Google search query used from a Phoenix location… “phoenix ford dealers”

11. Sponsored Links (paid search listings) are displayed at top and right side of search results page…

12. 12 Ford Dealer listings on local search maps are shown when a community name is used in search query… “Local Business Results”

13. Organic (free) web site Links are listed in the middle/left/lower section of the search query results page…

14. Ford Dealer Display Advertisement placed on FordF150.net site

15. Ford Dealer Display Advertisement placed on 2009 Ford F-150 section inside FordF150.net

16. 16 Offline Media Trends… Striving Towards Web Advertising Trends “Publisher” Viewership Explosion of online content Advertisers can’t find shoppers Publishers can’t find advertisers  Emulate Web Advertising Strategies in Selected Areas

17. Digital channels emerging that provide cost efficient access to local media buying for car dealers… Providing opportunity for innovative dealers to gain a competitive advantage. Digital channels emerging that provide cost efficient access to local media buying for car dealers… Providing opportunity for innovative dealers to gain a competitive advantage.

19. Available through Digital Advertising Program from ADP Dealer Services

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22. 22 Ralph Paglia; Orlando, FL – April 23, 2008 Buying Radio Spots in Phoenix, we ran 4,961 Thirty Second commercials at a total cost of $10,635 resulting in a cost per spot at less than $2.15 each… The equivalent average cost per spot buying the same Dayparts and reach through local radio media salespeople would have been over $50 per spot… How can that be?

23. 23 Ralph Paglia; Orlando, FL – April 23, 2008 When we check on Albuquerque for Rich Ford, we find 24 Radio Stations have provided Google with direct access to On-Air inventory…

24. 24 Ralph Paglia; Orlando, FL – April 23, 2008 What would be available to Rich Ford if we wanted all the inventory we could get, running Radio Spots 24 hours a day, bidding on a $5.00 CPM listeners basis?

25. 25 Ralph Paglia; Orlando, FL – April 23, 2008 Running Radio Spots 24 hours a day, we would pay $1.59 on a CPM basis to get 8,042 30 second spots on 24 radio stations at a total campaign cost of $10,611… This comes out to a net cost of $1.32 per Spot

26. 26 Ralph Paglia; Orlando, FL – April 23, 2008 What if we Ran Rich Ford’s Radio Spots ONLY DURING PRIME DRIVE TIME, Monday through Friday, paying on a CPM basis… On 24 Albuquerque & Santa Fe Radio Stations? How Many Prime Drive Time Spots can we get, and at What Cost per Spot on Local Radio Stations?

27. 27 Ralph Paglia; Orlando, FL – April 23, 2008 Running Radio Spots ONLY DURING PRIME DRIVE TIME, on 23 Radio Stations in Albuquerque/Santa Fe market, paying on a $2.13 CPM basis, we estimate that the dealer would get 3,335 spots at a $8,932 total campaign cost, which comes out to $2.68 Average Cost per Prime Drive Time Spot… Dealer currently pays over $85 for equivalent spots through historical sales channels

28. 28 Ralph Paglia; Orlando, FL – April 23, 2008 Normally we would check the box “I already have an ad” and then upload our 30 second radio spots to be pushed directly into each stations rotation software and then broadcast… But, when I first prepared these slides, I still needed to get the spots (and permission) from Dennis Snyder at Rich Ford!

29. 29 Ralph Paglia; Orlando, FL – April 23, 2008 We saved the campaign and went to Dennis Snyder to supply the 30 second spots he wanted to run so we can upload them into the ADP Digital Advertising system and pull the trigger…

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39. 39 Ralph Paglia; Orlando, FL – April 23, 2008 100% Drive Time Dayparts Dayparts

40. 40 Ralph Paglia; Orlando, FL – April 23, 2008 Back to the Campaign Summary Screen, we see that bidding on local newspaper advertising is also available…

41. 41 Ralph Paglia; Orlando, FL – April 23, 2008 Digital Marketing Print Ads… Let’s see if we could save Rich Ford any money on buying newspaper display ads.

42. 42 Ralph Paglia; Orlando, FL – April 23, 2008 In this initial section, we are going to check for any newspapers in Rich Ford’s market area that may have signed up to participate in this program...

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44. 44 Ralph Paglia; Orlando, FL – April 23, 2008 A step-by-step process allows us to select the section of the newspaper we would like our advertisement to appear in…

45. 45 Ralph Paglia; Orlando, FL – April 23, 2008 Next, we select the size of Newspaper Ad we want to run. In this case we know that Rich Ford likes to own the whole page

46. We bid on the Saturday editions… We bid on the Sunday editions…

47. In this example, $951.85 on Saturday (we “low balled” the newspaper bid) At $1,324.92 for a Full Page, we low balled the Sunday bid as well.

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49. 49 Ralph Paglia; Orlando, FL – April 23, 2008 Next, we enter a short description, then save the Newspaper campaign...

50. 50 Ralph Paglia; Orlando, FL – April 23, 2008 Just like the Radio campaign, we get a summary description and links to edit the Newspaper campaign later on...

51. 51 In less than an hour, we set up Site Targeted Online Display Ads, Search Engine Ads, Radio Ad Campaigns on 24 stations, and a Saturday/Sunday Full Page Newspaper Ad Campaign…

52. 52 Ralph Paglia; Orlando, FL – April 23, 2008 In Dallas, TX we used Digital Advertising to drive traffic to CBS’s DFWvehicles.com to supplement their TV, Radio and Outdoor advertising campaigns that utilized their own media channels… Exceptionally high click-through rates reflect the synergies achieved with Integrated Marketing campaigns that utilize on and offline media

53. 53 Ralph Paglia; Orlando, FL – April 23, 2008 Dealership Results?

54. 54 Ralph Paglia; Orlando, FL – April 23, 2008 Rich Ford Digital Marketing Implementation Albuquerque - Santa Fe, NM Market January, February and March 2008 Ford Dealer Pilot & Proof Of Concept Digital Campaigns Managed by: Ralph Paglia Director – Digital Marketing Ford/ADP Digital Advertising Team Digital Audio Campaigns (local radio) Digital Audio Campaigns (local radio) Site Placement Targeted Campaigns Site Placement Targeted Campaigns Keyword Search Advertising Campaigns Keyword Search Advertising Campaigns

55. 55 ADP Digital Advertising for Dealers Case Study #1 – Paid Search and Web Site Display Advertising ADP Digital Advertising for Dealers Case Study #1 – Paid Search and Web Site Display Advertising Digital Ad Media Purchases…………………$ 6,389.72 Media Management Services…...…………..$ 1,277.94 Account Services……………………………..$ 495.00 ---------------- Total Digital Ad Invoice…………….……$ 8,162.66 Net Cost Per Thousand Impressions…$ 0.31 Net Cost Per Visitor……………………...$ 2.13 Digital Ad Media Purchases…………………$ 6,389.72 Media Management Services…...…………..$ 1,277.94 Account Services……………………………..$ 495.00 ---------------- Total Digital Ad Invoice…………….……$ 8,162.66 Net Cost Per Thousand Impressions…$ 0.31 Net Cost Per Visitor……………………...$ 2.13 PLEASE NOTE: This Case Study is being used as a real world example, your results will vary from these because no two advertising campaigns generate identical results!

56. 56 ADP Digital Advertising for Dealers Case Study #2 – Digital Audio Campaigns (Local Radio) ADP Digital Advertising for Dealers Case Study #2 – Digital Audio Campaigns (Local Radio) Local Radio Station Media Purchases………$ 7,453.32 Media Management Services…...……….…..$ 1,490.66 Account Services………………………….…..$ 495.00 ---------------- Total Digital Ad Invoice…….………$ 9,438.98 Net Cost Per Drive Time Spot……..$ 5.80 Net Cost Per 1,000 Listeners………$ 3.27 Local Radio Station Media Purchases………$ 7,453.32 Media Management Services…...……….…..$ 1,490.66 Account Services………………………….…..$ 495.00 ---------------- Total Digital Ad Invoice…….………$ 9,438.98 Net Cost Per Drive Time Spot……..$ 5.80 Net Cost Per 1,000 Listeners………$ 3.27 PLEASE NOTE: This Case Study is being used as a real world example, your results will vary from these because no two advertising campaigns generate identical results!

57. 57 Ralph Paglia; Orlando, FL – April 23, 2008 PLEASE NOTE: This Case Study is being used as a real world example, your results will vary from these because no two advertising campaigns generate identical results!

58. 58 Ralph Paglia; Orlando, FL – April 23, 2008 Previous Month before Digital Ad Campaigns (Nov 21-Dec 29) = Same Days Tracked Website 800 Sales Line = 272 Total Calls Rich Ford Results

59. 59 Ralph Paglia; Orlando, FL – April 23, 2008 Digital Advertising Campaigns (Jan 21-Feb 29) = Same Days Tracked Website 800 Sales Line = 476 total Calls Rich Ford Results 75% Increase in Sales Calls From Dealer Web Site 75% Increase in Sales Calls From Dealer Web Site

60. 60 Ralph Paglia; Orlando, FL – April 23, 2008 Rich Ford 2008 Results: #1 in sales volume for their region in February 2008 January-February 2008 Sales Performance: –120 TOTAL NEW CARS 31.9% increase from 2007 –217 TOTAL NEW TRUCKS 2.8% increase from 2007

61. Digital Marketing Call To Action Go to www.ADPdigitalAdvertising.com and get a no-charge Search Marketing Analysis sponsored by the ADP Digital Marketing Team… An ADP Digital Advertising Team specialist will review results with you.www.ADPdigitalAdvertising.com

62. 62 The ADP Digital Advertising Program is designed to leverage each dealer’s existing search engine rankings by researching the “organic” or natural listings that dealers do not pay for, before buying any paid search listings. By first testing the most important search words and phrases, the relevant keywords used by local in-market car buyers that already show the dealer prominently listed, can be excluded from those that the dealer pays for. This strategy allows ADP to bid on only the most effective keywords that the dealer is not already getting for free, then shift the remaining budget to display advertising on web sites used by the dealer’s local customers. Eliminating the practice of bidding on the wrong keywords or Geotargeting outside the dealer’s effective market area allows ADP to provide dealers with a blended online advertising approach that maximizes the showroom, phone and dealer website sales opportunities generated. Why do we ask dealers to register at SEMdealer.com before we recommend any digital advertising?

63. 63 Ralph Paglia; Orlando, FL – April 23, 2008 Thank You for Attending! Ralph Paglia Three ways that we can help: 1.Sell you a a rod and reel 2.Teach you how to fish 3.Cook dinner for you ralph_paglia@adp.com Cell: 505-301-6369 www.AutoDigitalMarketing.com www.AutoDigitalMarketing.com Forum: Presentation File Exchange www.AutoDigitalMarketing.com