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CONTACT US SALE TODAY! SERVICE REMINDER 4:30 PM TODAY NEW INVENTORY CHECK OUT OUR Dealership Survival Guide for the Mobile Revolution How Mobile Is Changing Digital Advertising

How mobile is changing digital advertising

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How Mobile Is Changing Digital AdvertisingCONTACT U

S

SA

LE

TO

DA

Y!

SERVICEREMINDER

4:30 PMTODAY

NEW INVENTORY

CHECK OUT OUR

Dealership Survival Guide for the Mobile Revolution

How Mobile Is Changing Digital Advertising

© 2015 Naked Lime Marketing. All rights reserved. XXXXXXX

855.NKD.LIME | nakedlime.com 2

How Mobile Is Changing Digital Advertising

In late April 2015, Google significantly changed its mobile search algorithm. The potentially wide-sweeping effects of that change earned it the nickname “Mobilegeddon.”

Now, when consumers perform a Google search on their mobile devices, they see websites that meet Google’s criteria for being

“mobile-friendly” before they see websites that don’t.

According to Google, the algorithm change reflects changes in how consumers use their mobile devices for online activities:

• Today, eight out of 10 adults own a smartphone, and three out of four smartphone owners use mobile devices to access the internet.1

• Nearly 80 percent of smartphone owners use their devices to shop. And, 82 percent of mobile shoppers rely on search results to help determine who they will shop from.2

• By 2018, mobile shopping is estimated to generate more than $600 billion – roughly the total size of the global e-commerce market in 2013.3

Combined, these changes in Google’s mobile search algorithm and shopping habits mean dealerships may lose a significant piece of the e-commerce pie if they don’t make mobile-optimized marketing efforts a bigger priority.

To avoid losing that business, dealers need more than a mobile-friendly website. If they embrace mobile marketing fully, they deliver more relevant messages to consumers on their mobile devices.

Luckily for dealers, a few mobile-optimized search advertising options can do exactly that. Dealerships that don’t adopt these options are sending customers straight to dealerships that really “go mobile.”

“82% of mobile shoppers rely on search results to help determine who they will shop from.”

© 2015 Naked Lime Marketing. All rights reserved. XXXXXXX

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How Mobile Is Changing Digital Advertising

Before the World Was WirelessTraditionally, dealerships advertised locally on radio stations and in newspapers. Along with television, these were the primary channels available to reach local customers.

As technology advanced, consumers began using the internet and digital channels to research vehicles and services. So, dealerships began allocating some of their advertising budget to digital advertising to meet consumers where they were searching.

In 2014, the average dealership spent about a quarter of its advertising budget on digital advertising.4 Search advertising on Google and other search engines made up a significant chunk of that digital ad budget.

However, the dealership’s digital search advertising efforts created campaigns that displayed the same information across desktops and mobile devices. If Mobilegeddon is teaching dealers anything, it’s that consumers access the internet with different types of devices, and they want their digital experiences tailored to those devices.

That’s why some dealerships are going beyond having a mobile-friendly website. They also are using mobile-optimized search advertising to strengthen their digital advertising efforts. These ads are more tailored to a mobile experience and can capture more attention.

Dealers aren’t alone in using more mobile ads to win more mobile shoppers. A survey from eMarketer predicts that retailers will spend more than $28 billion this year on mobile ads, including search advertising. Over time, eMarketer’s research shows spending on these mobile-friendly ads will increase exponentially.5

Why spend so much money on search advertising campaigns that are optimized for viewing on a mobile device? Data from Google’s

“The Mobile Playbook” shows that consumers searching online using their mobile devices want to take action on relevant ads.

“ If Mobilegeddon is teaching dealers anything, it’s that consumers access the internet with different types of devices, and they want their digital experiences tailored to those devices.”

© 2015 Naked Lime Marketing. All rights reserved. XXXXXXX

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How Mobile Is Changing Digital Advertising

• Half of all mobile searches result in a potentially profitable exchange between consumers and brands. About 48 percent of mobile users call a store after finding it through a mobile search – and 51 percent of mobile searchers simply visit that store.

• Of calls to the store after a mobile search, 80 percent happen within five hours of the initial search.6

Essentially, mobile shoppers are paying attention to organic and paid search results when they perform online searches. When they find a relevant result, they’re ready to take action as soon as possible. That means they’re using their mobile devices to help them find and buy the right product or service from a local store in real time.

Consumers’ use of mobile devices also is changing their expectations for how retailers respond, including dealerships. Now, mobile consumers want a more immediate response and expect dealers to be ready to engage with them.

Yet, most retailers are not fully meeting these new consumer expectations. Only 37 percent of brands respond to online leads within an hour of receiving them. It takes 24 percent of brands longer than 24 hours to respond to an online lead. And about 23 percent never respond at all.7

For brands that engage quickly, the payoff is real. The Harvard Business Review found that companies that contacted potential customers within an hour of receiving a request for more information

“were nearly seven times as likely to qualify the lead… as those that tried to contact the customer even an hour later – and more than 60 times as likely as companies that waited 24 hours or longer.”

Mobile consumers are ready to take action. They are less likely to submit a contact form on a website and then wait for a response. Instead of waiting patiently, they may find another nearby dealership that’s ready to do business with them right now.

“Now, mobile consumers want a more immediate response and expect dealers to be ready to engage with them.”

© 2015 Naked Lime Marketing. All rights reserved. XXXXXXX

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How Mobile Is Changing Digital Advertising

A Tale of Two DealershipsSo, how does advertising for mobile devices really affect dealerships? Let’s look at two dealerships battling for customers in the same area.

Dealership A: The ResistanceDealership A is an average dealer using mobile in an average way to achieve average results.

After Mobilegeddon, Dealership A updated its digital presence to a mobile-friendly website that uses responsive design to shrink the dealer’s desktop site to work on mobile devices.

About 25 percent of the dealership’s advertising budget goes to digital marketing, including search advertising. However, its search advertising isn’t optimized for mobile devices.

Consumers on their desktops, smartphones, and tablets all see the same search ads. In general, those ads use calls-to-action (CTA) geared more toward driving desktop users to submit a lead form on dealership’s website.

Dealership A personnel are expected to evaluate the leads and follow up with potential customers. However, staff is not expected to respond to a mobile user’s lead form or request for information any faster than responding to a desktop user – and sometimes, that can take a day.

Dealership A doesn’t see much difference in mobile traffic before Mobilegeddon or after. Although potential customers can find the dealership’s website when they search using mobile devices, the dealership’s bottom line doesn’t increase from capturing more mobile shoppers.

Dealership B: The MobilizerDealership B has fully embraced mobile-optimized search advertising to reach and attract potential customers to its store – and away from the competition.

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How Mobile Is Changing Digital Advertising

Before Mobilegeddon, Dealership B updated its website to fully adapt to consumers’ devices. Now when consumers use their mobile devices to visit the dealership’s website, they are presented with what they’re most looking for – the dealership map, clickable contact phone numbers, and simple inventory listings.

During that update to the dealership’s website, the general manager also evaluated the dealership’s advertising budget. The dealership decided to change its advertising to focus more on digital ads, including search advertising optimized for mobile devices.

Now, half of its budget is dedicated to digital advertising. The extra budget allows the dealership to devote time and resources to develop search advertising options that provide mobile-specific CTAs.

Dealership B uses two kinds of mobile-optimized search ads that Google offers:

1. Call-only campaigns allow consumers who see the ad to call the dealership directly from their smartphones.

2. Text ads allow the dealership to display a phone number and other relevant dealership contact information in the ad for consumers to tap on their touch screens.

Since the dealership’s mobile search ads are designed to drive consumers to call, the dealership’s personnel know they need to be ready to handle those calls and turn potential customers into service appointments and test drives.

Winner of the Mobile Revolution

When comparing these two dealerships, the victor is clear.

Dealership B is drawing more and more potential customers away from Dealership A by putting out relevant ads that turn up in mobile searches. Although both dealerships have mobile-friendly websites, only Dealership B has mobile-optimized search advertising. When it comes to mobile users and winning their business, Dealership B beats Dealership A with its mobile ads.

“When it comes to mobile users and winning their business, Dealership B beats Dealership A with its mobile ads.”

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How Mobile Is Changing Digital Advertising

So, how can dealerships pull off a mobile domination similar to Dealership B’s?

Some dealerships will have the internal resources to create, track, manage, and adapt digital search advertising for mobile devices. Some may not.

Dealerships lacking the digital know-how can look outside to get help. Instead of purchasing a tool, they can work with a service provider to develop the right mobile-optimized ads to reach the right customer.

To find the right service provider, dealers should look for one that takes a hands-on approach and offers expertise to guide dealers toward getting the best return on their investment. The right provider also should have deep industry knowledge and understand best practices for developing mobile-optimized search advertising campaigns, such as keyword optimization and location targeting.

The best service providers also should be transparent and flexible in their services offered. As dealers’ needs for mobile ads change, the provider should explain the best options and adjust the budget. They also should provide reports on how the dealership’s ads perform, so the dealer can determine whether to spend more on one kind of ad and less on another.

ConclusionConsumers are on their mobile devices more and more each year, and they aren’t just playing games or hanging out on social media. As consumers become more comfortable, even dependent, on their mobile devices, they also are going mobile for shopping and other e-commerce activity.

At the same time, some dealers also are capitalizing on consumers’ use of mobile devices and strengthening their approach by creating mobile-optimized search ads. Mobile search advertising can create new opportunities for dealerships, such as generating more phone calls and high-quality leads for their sales and service personnel.

“The best service providers also should be transparent and flexible in their services offered.”

© 2015 Naked Lime Marketing. All rights reserved. XXXXXXX

855.NKD.LIME | nakedlime.com 8

How Mobile Is Changing Digital Advertising

To fully master mobile search advertising, some dealerships are turning to service providers for help. Combined with the right input and guidance from experts, dealerships are able to adapt their mobile strategies to find what works best for their dealership in their area.

Ultimately, dealerships are using mobile search advertising to win more mobile shoppers online – and that means winning more customers from their real-life competition.

To learn more about Naked Lime’s services, call

855.NKD.LIME, email [email protected],

or visit nakedlime.com.

1 Tech Crunch http://techcrunch.com/2015/01/12/80-of-all-online-adults-now-own-a-smartphone-less-than-10-use-wearables/

2 Search Engine Watch http://searchenginewatch.com/sew/how-to/2398397/call-only-ads-5-reasons-why-they-should-be-part-of-your-ppc-strategy

3 Business Insider / Goldman Sachs http://www.businessinsider.com/us-e-commerce-growth-is-now-far-outpacing-overall-retail-sales-2014-4)

4 NADA Data 2014 (released in 2015)

5 eMarketer http://www.emarketer.com/Article/Mobile-Will-Account-72-of-US-Digital-Ad-Spend-by-2019/1012258

6 Google, The Mobile Playbook http://www.themobileplaybook.com/en-us/#/chapter1_3

7 Harvard Business Review https://hbr.org/2011/03/the-short-life-of-online-sales-leads/ar/1