1. 1 1 Ralph Paglia; Seattle, WA – July 17, 2008 Ralph Paglia Director - Digital Marketing ADP Dealer Services How to use digital marketing tools to buy Internet, radio, and TV advertising more cost-effectively than ever before How to immediately outsmart your competition by directing shoppers to your Web site, to your inventory, to your dealership!

2. 2 2 Ralph Paglia; Seattle, WA – July 17, 2008 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 Phoenix dealer in 2 years and developing a team that sold 4,000+ cars 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; Seattle, WA – July 17, 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? Is this how they see the ISM in your store?

4. 4 4 Ralph Paglia; Seattle, WA – July 17, 2008 “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 Ralph Paglia; Seattle, WA – July 17, 2008 “Which one of these information sources was most important when making decisions about buying your first vehicle?” Source: Polk Center for Automotive Studies

6. 6 6 Ralph Paglia; Seattle, WA – July 17, 2008 A Harris Interactive survey of people who considered themselves “very” or “extremely knowledgeable” about cars found that 63% had used the Internet as a resource for their most recent car purchase, while magazines— presumably enthusiast titles—were a distant second, at 33%. Newspapers ranked only slightly ahead of TV. Who are the vehicle and dealership decision influencers that so many car buyers describe as being “friends” and “parents”?

7. 7 7 Ralph Paglia; Seattle, WA – July 17, 2008 “Which one of these information sources was most important when making decisions about buying your vehicle?” Source: Polk Center for Automotive Studies Why is the Automotive Industry shifting billions of dollars away from offline media into online digital advertising strategies and media?

8. 8 8 Ralph Paglia; Seattle, WA – July 17, 2008 Today’s Biggest Dealer Advertising Challenge Overspending on Newspaper, Radio, Outdoor & Mail Relative to Usage Source: NADA The Average Car Dealer’s Advertising Spend Does Not Match The Car Buying Consumer’s Media Consumption Behaviors… Average Dealer Advertising Spend vs. Consumer Media Consumption D e a l e r A d B u d g e t E f f i c i e n c y G a p

9. 9 9 Ralph Paglia; Seattle, WA – July 17, 2008 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

10. “I’m gonna get me one today… Oh Yeah!”

11. 11 Ralph Paglia; Seattle, WA – July 17, 2008 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

12. 12 Ralph Paglia; Seattle, WA – July 17, 2008 Integrated Marketing Use Multiple Media Channels to Communicate the Same Messaging More Effectively

13. “Selling a car is just like fishing, Wilbur…”

14. Ralph Paglia; Dallas, TX – June 12, 2008 Google search query used from a Phoenix location… “phoenix ford dealers”

15. Ralph Paglia; Dallas, TX – June 12, 2008 Sponsored Links (paid search listings) are displayed at top and right side of search results page…

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

17. Ralph Paglia; Dallas, TX – June 12, 2008 Organic (free) web site Links are listed in the middle/left/lower section of the search query results page…

18. Ralph Paglia; Dallas, TX – June 12, 2008 Ford Dealer Display Advertisement placed on FordF150.net site

19. Ralph Paglia; Dallas, TX – June 12, 2008 Ford Dealer Display Advertisement placed on 2009 Ford F-150 section inside FordF150.net

20. 20 Ralph Paglia; Seattle, WA – July 17, 2008 Offline Media Trends… Striving To Become More Like 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

21. Ralph Paglia; Dallas, TX – June 12, 2008 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.

22. Ralph Paglia; Dallas, TX – June 12, 2008

23. Available through Digital Advertising Program from ADP Dealer Services

24. 24 Ralph Paglia; Seattle, WA – July 17, 2008

25. 25 Ralph Paglia; Seattle, WA – July 17, 2008 Do you advertise in San Francisco? Reach more San Francisco customers by advertising in newspapers! We've made it easy to choose from 20 San Francisco area newspapers (from the San Francisco Chronicle to the El Mensajero). Create an ad in minutes, and set a price that's right for you. Learn more | Dismiss this message Learn moreDismiss this message

26. 26 Ralph Paglia; Seattle, WA – July 17, 2008 Get local with Google Print Ads Trying to reach customers in Phoenix? We have 14 Phoenix area newspapers from the Arizona Republic to the Navajo-Hopi Observer. We'll even help design and run a newspaper ad campaign with you, based on your goals! Learn more | Dismiss this message Learn moreDismiss this message

27. 27 Ralph Paglia; Seattle, WA – July 17, 2008

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30. 30 Ralph Paglia; Seattle, WA – July 17, 2008 http://www.google.com/adwords/tvads/promotions/acm.html

31. http://services.google.com/tvads/demos/hpdemo/

32. 32 Ralph Paglia; Seattle, WA – July 17, 2008

33. “Help! Help! This Guy’s trying to rob me…”

34. Re-activate Google Audio Ads. Since you last advertised with Audio Ads, we've introduced new tracking and targeting features. Now you can track phone calls, website traffic, conversions, revenue, and more metrics generated by your radio campaign. You can access over 1600 FM and AM radio stations, including stations in local regions as well as Top 10 stations in the largest US markets. Get help from an Audio specialist | Dismiss this message Get help from an Audio specialist Dismiss this message Re-activate Google Audio Ads. Since you last advertised with Audio Ads, we've introduced new tracking and targeting features. Now you can track phone calls, website traffic, conversions, revenue, and more metrics generated by your radio campaign. You can access over 1600 FM and AM radio stations, including stations in local regions as well as Top 10 stations in the largest US markets. Get help from an Audio specialist | Dismiss this message Get help from an Audio specialist Dismiss this message

35. 35 Ralph Paglia; Seattle, WA – July 17, 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?

36. 36 Ralph Paglia; Seattle, WA – July 17, 2008 When we check on Albuquerque for Rich Ford, we find 24 Radio Stations have provided Google with direct access to On-Air inventory…

37. 37 Ralph Paglia; Seattle, WA – July 17, 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?

38. 38 Ralph Paglia; Seattle, WA – July 17, 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

39. 39 Ralph Paglia; Seattle, WA – July 17, 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?

40. 40 Ralph Paglia; Seattle, WA – July 17, 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

41. 41 Ralph Paglia; Seattle, WA – July 17, 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!

42. 42 Ralph Paglia; Seattle, WA – July 17, 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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53. 53 Ralph Paglia; Seattle, WA – July 17, 2008 100% Drive Time Dayparts Dayparts

54. 54 Ralph Paglia; Seattle, WA – July 17, 2008 Back to the Campaign Summary Screen, we see that bidding on local newspaper advertising is also available…

55. 55 Ralph Paglia; Seattle, WA – July 17, 2008 Digital Marketing Print Ads… Let’s see if we could save Rich Ford any money on buying newspaper display ads.

56. 56 Ralph Paglia; Seattle, WA – July 17, 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...

57. 57 Ralph Paglia; Seattle, WA – July 17, 2008

58. 58 Ralph Paglia; Seattle, WA – July 17, 2008 A step-by-step process allows us to select the section of the newspaper we would like our advertisement to appear in…

59. 59 Ralph Paglia; Seattle, WA – July 17, 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

60. Ralph Paglia; Dallas, TX – June 12, 2008 We bid on the Saturday editions… We bid on the Sunday editions…

61. Ralph Paglia; Dallas, TX – June 12, 2008 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.

63. 63 Ralph Paglia; Seattle, WA – July 17, 2008 Next, we enter a short description, then save the Newspaper campaign...

64. Just like the Radio campaign, we get a summary description and links to edit the Newspaper campaign later on...

65. 65 Ralph Paglia; Seattle, WA – July 17, 2008 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…

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67. Dealership Results?

68. 68 Ralph Paglia; Seattle, WA – July 17, 2008 Rich Ford Digital Advertising 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

69. 69 Ralph Paglia; Seattle, WA – July 17, 2008 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: Case Study, your results will vary because no two advertising campaigns generate identical results!

70. 70 Ralph Paglia; Seattle, WA – July 17, 2008 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: Case Study, your results will vary because no two advertising campaigns generate identical results!

71. 71 Ralph Paglia; Seattle, WA – July 17, 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!

72. 72 Ralph Paglia; Seattle, WA – July 17, 2008 Previous Month before Digital Ad Campaigns (Nov 21-Dec 29) = Same Days Tracked Website 800 Sales Line = 272 Total Calls Rich Ford Results PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!

73. 73 Ralph Paglia; Seattle, WA – July 17, 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

74. 74 Ralph Paglia; Seattle, WA – July 17, 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 PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!

75. Ralph Paglia; Seattle, WA – July 17, 2008 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 PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!

76. 76 Ralph Paglia; Seattle, WA – July 17, 2008 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?

77. 77 Ralph Paglia; Seattle, WA – July 17, 2008 Thank You for Attending the KBB eNetwork Brunch! Three ways that ADP can help: 1.Sell you a a rod and reel (Tools) 2.Teach you how to fish (Assistance) 3.Cook dinner for you (We do it for you) www.SEMDealer.com Ralph Paglia ralph_paglia@adp.com Cell: 505-301-6369 www.AutoDigitalMarketing.com www.AutoDigitalMarketing.com Forum: Presentation File Exchange www.AutoDigitalMarketing.com

78. 78 Ralph Paglia; Seattle, WA – July 17, 2008