John Potter VP Interactive Revenue Development Director Radio Training Academy [email protected] Automotive: Part III Internet’s Effect on Advertising

John PotterVP Interactive Revenue DevelopmentDirector Radio Training [email protected]

Automotive: Part IIIInternet’s Effect on Advertising

1. Automotive slow down2. Auto ad budgets3. Where dealers are

advertising4. Lead buying5. Win back the bucks

1. Automotive slow down2. Auto ad budgets3. Where dealers are

advertising4. Lead buying5. Win back the bucks

Here’s What We’ll Cover…Here’s What We’ll Cover…

Goal’s For Today

FFF ErrorFFF Error

• Foreign• Fuel• Financing

• Foreign• Fuel• Financing

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Automotive Drives AmericaAutomotive Drives America

• $924 billion in sales in 2007• 23% of total retail sales in the US• 1.3 million employees• Another 6.6 million related

employees• US Largest ad category - $19.8

Billion

• $924 billion in sales in 2007• 23% of total retail sales in the US• 1.3 million employees• Another 6.6 million related

employees• US Largest ad category - $19.8

Billion

Automotive WebinarSources: US Dept. of Commerce, 2008; University of Michigan; Advertising Age, June, 2007


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20062007

2008P

1011121314151617

Total US Units SoldIn Millions

A Sales Slowdown

16.516.1

15.7

Sources: JD Power & Associates, January, 2008


• Domestic off 15.5% in August– GM down 20%– Ford down 26%

• YTD industry down 11.2%• Pickups and SUVs are stalled• Chrysler no longer leasing• Toyota & Honda short on small

vehicles• Nissan up 14%

• Domestic off 15.5% in August– GM down 20%– Ford down 26%

• YTD industry down 11.2%• Pickups and SUVs are stalled• Chrysler no longer leasing• Toyota & Honda short on small

vehicles• Nissan up 14%

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A Sales Slowdown

Sources: New York Times, September, 2008


Ad spending down 6.1% through May

Down UpToyota GMFord ChryslerHondaNissan

Ad spending down 6.1% through May

Down UpToyota GMFord ChryslerHondaNissan

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A Sales Slowdown

Sources: Advertising Age

Turning To The InternetTurning To The Internet

• GM moving half of its $3 billion• Hyundai’s VP Marketing: “Online

may be more important than spot.”

• Audi more than doubled online advertising

• GM moving half of its $3 billion• Hyundai’s VP Marketing: “Online

may be more important than spot.”

• Audi more than doubled online advertising

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Moving Traditional Ad Budgets

Sources: Advertising Age, August, 2008; e-Market, June, 2008;


Automotive Webinar


Sources: Advertising Age, August, 2008; e-Market, June, 2008;

Total Internet

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

-6.1%

21.6%


• 2.1 billion automotive online impressions in July

• 5.5% of all Internet impressions in the US

• 2.1 billion automotive online impressions in July

• 5.5% of all Internet impressions in the US

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Sources: Nielsen NetRatings, July, 2008


• 80% of consumers consult the Internet at least once during the car-buying process (up from 71% in 2006, 64% in 2004)

• Internet reviews are replacing recommendations from family and friends

• 78% of Internet users who read an online review said it influenced their purchase decision

• 40% of leads are from the Internet

• 80% of consumers consult the Internet at least once during the car-buying process (up from 71% in 2006, 64% in 2004)

• Internet reviews are replacing recommendations from family and friends

• 78% of Internet users who read an online review said it influenced their purchase decision

• 40% of leads are from the Internet

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Sources: Capgemini, 2008; comScore/Kelsey Group, 2008; RAB, 2008

Online Advertising TypesOnline Advertising Types

• Classifieds– New– Used

• Display (banner ads)• Search / Keywords• Rich Media

– Video– Audio– Animation

• Promotions• Micro-sites• Lead Generation

• Classifieds– New– Used

• Display (banner ads)• Search / Keywords• Rich Media

– Video– Audio– Animation

• Promotions• Micro-sites• Lead Generation

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Classifieds – NewClassifieds – New

Classifieds – UsedClassifieds – Used

Classifieds – LocalClassifieds – LocalCBS Dallas

Classifieds – LocalClassifieds – LocalColumbus

Fizmo

Classifieds – LocalClassifieds – LocalMineola, TX

Classifieds – LocalClassifieds – LocalWOOD-TV, Grand Rapids

Classifieds – LocalClassifieds – LocalColumbus Dispatch

Classifieds – LocalClassifieds – LocalVehix –White Label

Display AdsDisplay Ads

Search / Keywords

Search / KeywordsClear Channel

Rich MediaRich Media

PromotionsPromotions

Micro-sitesMicro-sites

Lead GenerationLead Generation

• Automotive sites collect leads• Sell to dealers

– Screened• Address check• Phone check• 3rd Party check

– Not screened– Exclusive– Non-exclusive

• $25 per lead average

• Automotive sites collect leads• Sell to dealers

– Screened• Address check• Phone check• 3rd Party check

– Not screened– Exclusive– Non-exclusive

• $25 per lead average

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Marty JohnsonInternet ManagerNelson Auto Group





• Classifieds sites• Paid leads sites• Factory site• Dealer site

• Classifieds sites• Paid leads sites• Factory site• Dealer site

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Win Back The BucksWin Back The Bucks

• Promote the value of your on-air product• Use marketing information• Develop an automotive Internet strategy

– Online advertising– Online classifieds– Online search / keywords– Online promotions

• Contests• Micro-sites• Custom ideas (virtual test drive, “find the key” video

game, online used car auction…)

– Online directory

• Promote the value of your on-air product• Use marketing information• Develop an automotive Internet strategy

– Online advertising– Online classifieds– Online search / keywords– Online promotions

• Contests• Micro-sites• Custom ideas (virtual test drive, “find the key” video

game, online used car auction…)

– Online directory

Recapturing Auto Dollars

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RAB ResourcesRAB Resources








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John Potter VP Interactive Revenue Development Director Radio Training Academy [email protected] Automotive: Part III Internet’s Effect on Advertising