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8/8/2019 Automotive Digital Marketing; Tier 3 (Dealer) Advertising
http://slidepdf.com/reader/full/automotive-digital-marketing-tier-3-dealer-advertising 1/28
2010 Dealer Digital Advertising ProgramDavid Schoonover
02/22/10
8/8/2019 Automotive Digital Marketing; Tier 3 (Dealer) Advertising
http://slidepdf.com/reader/full/automotive-digital-marketing-tier-3-dealer-advertising 2/28
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TABLE OF CONTENTS
1. Executive Summary2. Objectives
3. Budget
4. Timeline
5. Program Benefits
6. Strategy
7. Current State
8. Competition
9. Case Studies
10. Dealer Process Flow11. Communications Plan
12. KMA Coordination13. Current Publishing Partners
14. Billing Process
15. Measurement
16. Creative Development
17. Dealer Package
18. Field& Dealer Training
8/8/2019 Automotive Digital Marketing; Tier 3 (Dealer) Advertising
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1. EXECUTIVE SUMMARY
Establish a Tier 3 dealer digital advertising program, inclusive of
display ads, search, and social media
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2. OBJECTIVES
Provide Kia dealers with a mechanism to extend their traditional(TV, print, radio) advertising Online
Increase Kia brand continuity and ability to extend sales eventsand launch communications
Improve dealer profitability through reduced costs
± Dealers don¶t know what they should be paying for digital services. By havingKMA involved, we can µwatchdog¶ on their behalf
Achieve net zero cost program for KMA
Provide subject matter expertise at the regional and dealer level to foster growth and program development: self-funded by program revenues
Educate dealers how to advertise in the digital age, and provide themwith online ad development tools necessary to complete the task
Improved coordination and consistency for T1, T2, T3 advertising efforts
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3. BUDGET
Assumptions: ± 30% dealer participation (Kia Responsible)
± $4,200 Avg Monthly Dealer Ad budget
Total, Year 1 $622,180.00Earn Back Credits $541,793.80
Net KMA Cost, Year 1 $80,396.20
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4. TIMING
EAD 60 days from development to signature RFP 90 days incl. Q&A (draft 30, vendor response 30, Q&A 30)
Vendor Selection 45 days (21 days vendor pres, 24 for decision)
Contract 60 days (author, negotiate and execute)
Systems Dev 120 days
Total time to launch = 375 days
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5. PROGRAM BENEFITS
Plan, develop and deliver a Digital Marketing Program ± Competitive advantages
± Retail digital marketing expertise
± Digital advertising capabilities to Kia dealers in the USA
± Kia Sales Region based resources; Digital Marketing Consultants (DMCs)
± Visit dealerships to consult, implement & execute to immediately impact Digital
Marketing and Lead Management effectiveness ± Attend KMA Sales Region¶s relevant meetings, provide training to KMA
Region staff and become their KMA Sales Region¶s ³Go To´ resource
± Facilitate KMA Sales Region planning, scheduling, dealer participation andexecution of quarterly Kia Dealer Digital Marketing Summits
± Educate and guide dealers towards transitioning an appropriate portion of their monthly advertising budgets into KMA endorsed digital advertising solutions
± Execute direct phone contact and email communications with targeted dealers
Increase dealer competitive position by adding their capabilities
Adds additional lead generation mechanism
Further leverage and expand upon Kia programs (eLeads and Website)
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6. STRATEGY
± Leverage Kia iMarketing Dealer Services infrastructure
± Increase dealer knowledge base through significant teaminvolvement
± Install market-level flexibility to fully maximize local-marketconditions, politics, economy, events, etc.
Fix Dealer Site andSEO Optimize
Paid Search Display Ads Social Media
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7. CURRENT STATE
AUTOTRADER ELEADS TRAINING AND CLOSE RATES
DEALER ACTIONS AND REQUESTS
KIA DEALERS ARE LARGELY ON THEIR OWN
DEALER DIGITAL SPEND BY OEM
eMarketer.com ³Cross-channel online marketing used to target differentareas of the purchase funnel makes an effective combination.´
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Dealer Feedback: ± ³Digital Advertising dollars are the best money we spend.´ Large Midwest
Group Marketing Director
± ³My problem is I just don¶t have the right guys for all this stuff, I¶m trying to run
a business here and if I fall behind by 60 days«I¶m lost. I need this help.´
General Manager of a Market Leading Ford Dealership
7. CURRENT STATE
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8. COMPETITION
All major OEM¶s have a T3 digital advertising program (exceptHyundai and Kia)
1. Ford: Long term leadership, large team, digital dedication andsignificant allocation of human and financial resources since
19972. Honda: Excellent business process (a stable of the company)
3. GM: Substantial funding, full program. Downside is that they payfor everything for their dealers, the dealers don¶t have a financialstake thus they are not as engaged. Large company creates lack
of coordination4. VW ± funds and dedication
5. Subaru ± Scrappy and excellent and niche marketing, plus notscared of unpopular niches such as GLBT
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8. COMPETITION con¶t
All major OEM¶s have a T3 digital advertising program (exceptHyundai and Kia)
6. Nissan ± live regional trainers
7. Chrysler ± minimal program. Just launched PAP promotionalallowance program which provides a higher rate of co-op creditsfor digital advertising. No other guidelines or services.
7. Toyota ± highly fragmented internal organization (GST, SET)leads to non-centralized strategy
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APPENDIX
1. Case Studies2. Dealer Process Flow
3. Communications Plan
12. KMA Coordination
13. Current Publishing Partners
14. Billing Process
15. Measurement
16. Creative Development
17. Dealer Package
18. Field& Dealer Training
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Digital Advertising Campaigns using 2 types:
1. Site Placement Targeted Campaigns
2. Keyword Search Advertising Campaigns
Albuquerque - Santa Fe, NM Market
Dealership Digital Advertising Pilot & Proof Of Concept
Dealership Digital Advertising Case Study
9. CASE STUDIES
8/8/2019 Automotive Digital Marketing; Tier 3 (Dealer) Advertising
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Digital Advertising for DealersCase Study ± Paid Search and Web Site Display Advertising
PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
3 Month Campaign
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BEFORE Digital Advertising
PHONE VOLUMEPrevious Month beforeDigital Ad Campaigns
(Nov 21-Dec 29) = Same Days TrackedWebsite 800 Sales Line = 272 Total Calls
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AFTER Digital Advertising Implemented
PHONE VOLUMEDigital Advertising Campaigns(Jan 21-Feb 29) = Same Days Tracked
Website 800 Sales Line = 476 total Calls
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10. DEALER PROCESS FLOW
ADP creates a KIA specific DA information and enrollment portal ± Defines KIA DA enrollment process for the dealer
± Addresses FAQs
± Dedicated line to track inbound phone activity
± Automated and manual KIA branded follow-up email communications
± KIA repository email account to capture any communications for future review such as [email protected]
Virtual and or onsite DA presentations
Local area resources for in-store DA presentations, planning,clarifications and enrollment
1-800-XXXXX
www.KIADigitalAdvertising.com
Support Co-Op and IDA claim submission
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11. COMMUNICATIONS PLAN
Internal ± Introduce the field team in a Field Communication
(Regional Digital Dealer Training Managers)
± KIA District Manager Conference Calls and Meetings
± Emphasize the need for their support
± Introduce the KIA DA Launch Kit including presentations and supportmaterials
Dealer announcement prior to the Sportage Launch
± Website (iMarketing, or ADP provided like Cobalt?)
± Phone number
± Letter from Michael
Roll Out
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12. KMA COORDINATION
± Tier 1 In-Market plan
± I+
± D&G
± Reprise Search
± AD Kia.com
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13. PROPOSED PUBLISHING PARTNERS
± Google; Search Engine and Content Network ± Yahoo!; Search Engine and Display Advertising Network
± Microsoft; Search Engine Advertising Network
± Specif ic Media; Display Advertising
± Jumpstart Automotive Media; Display Advertising
± Outsell; Digital eNewsletter & fully staffed Chat services
± Kelley Blue Book; Display Advertising within KBB.com
± DoubleClick; Digital Advertising hosting, trafficking andtracking technology
± Liquidus SpotSense; video advertising. ± DealerRater.com; Certified Dealer program for online
reputation management and social marketing
± Liquid Motors; Online classified listings and inventorymanagement tools
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14. BILLING PROCESS
The process will follow the current Proxicom e-Leads structure: ± ADP will manage contracts, billing and payments for all
advertising publishers
± ADP will provide Kia on a monthly basis with a statement of charges by dealer
± KMA will bill dealers via the parts statement
± KMA will pay ADP once dealer payments are collected, thusmaintaining a positive cash flow
± The billing rate will be 1:1, thus except for startup costs, KMAbudgets will reflect a $0 net cost.
± ADP will retain in a Kia µbank account¶ a 10% credit (from adbuys only, not the monthly dealer admin fee). That credit willbe used to fund the RDDTM¶s.
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15. MEASUREMENT
Kia Digital Advertising Program for Dealers; KMA Cost Recovery Analysis and Profor ma
Assumptions
Kia Advertising Co-Op will require that Digital Advertising be purchased by dealers through the Kia Digital Advertising Program in order for campaigns to be Co-Op Program Eligible. ADP currently works directly with, andrecommends NSI for KMA Dealer Advertising Co-Op program management services.
30% Dealer Participation
$4,200 Average Monthly Digital Ad Media Budget (current ADP DA average for 500+ dealers)
Kia Motor America responsible for enrolling 30% of dealer network into program participation.
Eligible KiaDealers
Dealer NetworkParticipation
Net ParticipatingDealer Count
Average MonthlyDealer DA
BudgetMonthly DA
Media Buy Total
Monthly KMAEarn-Back
CreditsAnnual KMA
Earn-Back Credits
642 29% 186 $2,425 $451,487 $5,417,838 $45,149 $541,783.80
Kia First Year Program Costs from "Breakdown" Worksheet
Kia Regional Digital Marketing Consultant Annual Cost (year 1): $543,200.00
Kia Digital Advertising Program Development and Set Up Costs (one time): $78,980.00
Total Year 1 Costs (from ADP): $622,180.00
Less - Annual KMA Earn-Back Credits: $541,783.80Net KMA Cost for Year 1 of Program: $80,396.20
© Copyright 2009 ADP Dealer Services - Kia Motor America Confidential
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17. DEALER PACKAGES
C onceptual Packages
Package One
Utilizes Google Search to capture a buyer¶s attention when they areactively using the internet to research, find or buy their nextvehicle. Drives additional sales by reaching out to your bestprospects and customers with our monthly eNewsletter.
Includes:
Custom Search Engine Marketing Campaign
eNewsletter
Designated Virtual Marketing Representative
Monthly Reporting
Package Price: $2,000/Mo
Package Two
Leverage both Google Search and Yahoo Search along withbanners on KBB to catch the attention of buyers researchingtheir next car and the value of their trade.
Includes Package One Plus:
Yahoo Search
Banner advertisement on KBB.com
Two banner ads for messages/ vehicles/offerings (ie. Ford Fusion,F150)
Floodlight tags on your website to track post impression activity
Monthly Reporting
Package Price: $4,000/Mo
Package Three
This blended approach targets consumers during the active stages of research plus utilizes our ad network and behavioral targetingto advertise to shoppers when they are using the web for news,entertainment or information.
Includes Package Two Plus:
Your dealerships advertisement on our premier ad network
Behavioral targeting and retargeting to in-market shoppers
Floodlight tags on your website to track post impression activity
Monthly Reporting
Package Price: $8,000/Mo
Package Four
Dominate your competition by maximizing nearly the entire reach of the internet along while putting your dealership in the front of consumer minds by capitalizing on site retargeting.
Includes Package Three Plus:
Ad Display Network: choice of one: Automotive Behavioral
Targeting, NetCast or AutoCast products
One set of Custom banners per quarter
Two Custom microsites
Monthly Reporting
Package Price: $15,000+/Mo (depending upon market size)
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18. FIELD AND DEALER TRAINING
± ADP to provide 1 fulltime dedicated resource per Region and1 dedicated Program Manager to:
± Become the RDDTM (Regional Dealer Digital Training Manager)or the Regional SME for all things Digital
± Facilitate Internal and External training sessions/seminars to
increase awareness and engagement ± Execute in-dealership visits and mystery shops to speak to
what's happening now with the opportunities being generatedand provide practical insight to improve key vital statistics suchas:
± Lead response rates
± Lead response times ± Initial and cumulative closing ratios
± DA program participation and ongoing engagement.
± Digital portal utilization by the Dealers
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ABOUT ADP
Division of Automatic Data Processing, Inc. 30+ Years Automotive Industry Experience
Projects with all major OEMs
25,000+ clients
DMS, Digital Marketing, Relationship Management, Networking, &Telecommunications Products & Services
Partnered with industry leaders, including Google, Omniture, KellyBlue Book, Specific Media and more
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ISSUES
Single Source Justification I+ to review dealer package offerings
Add ADP to terminated dealers eMail
ADP to provide first cut at contract
Determine financial responsibility for terminated dealers
Pixel tagging Kia.com
Officially add to co-op program
Establish desks at the regions for RDDTM¶s
Dealer agreements
Legal to negotiate contract terms
Procurement to negotiate trainer and other rates
Update ADP proposal w/Kia travel policy numbers