Automotive Advertising Agencies And Auto Dealers Should Prepare For The Possible Bankruptcy Of GM and Chrysler April 13, 2009
Posted by everycarlisted in : Uncategorized , trackbackDomestic new car automobile dealers have already reduced their automotive advertising budgets to maintain profitability at reduced sales levels for both new cars and used cars. Unfortunately, the added burden on General Motors and Chrysler dealers of what appears to be an inevitable bankruptcy – structured Chapter 11 or otherwise – has forced auto dealers to reconsider placing any automotive advertising at all. Both General Motors and Chrysler dealers have been cautioned by their automotive advertising agencies that they need to maintain their presence in the market if they hope to survive after the restructuring takes place.
As the President of Ad Agency Online, L.L.C., (AAOL), and host of an automotive advertising social networking / resource portal – http://adagencyonline.net , I have advised my affiliated automotive advertising agencies to prepare for the bankruptcy of both General Motors and Chrysler in a more constructive manner. I suggest that auto dealers should maintain their market presence by shifting their automotive advertising to more targeted Internet based media and/or internal marketing solutions over radio, T.V. and print. Automotive advertising agencies are already pushing their auto dealer clients onto the World Wide Web. The efficiencies of Internet marketing over conventional advertising have been proven, however the inevitability of the bankruptcy of GM and Chrysler suggests even stricter control of every advertising dollar.
Several new automotive advertising applications have been featured on AdAgencyOnline.Net that provides the control and proven R.O.I. needed in today’s troubled times. One example of a leveraged online platform to post an auto dealer’s new car and used car inventory for free is http://everycarlisted.com/. The site follows the proven business model of the Yellow Pages that provides a free posting for all auto dealers with the option to enhance their exposure on the site to cut through the clutter of the competition. The explosive growth of EveryCarListed has proven the wisdom of their free offer to post new cars and used cars by auto dealers as well as consumers in their “For Sale By Owner” section.
In addition to marketing applications automotive advertising agencies are being challenged to deliver more for less for their auto dealer clients from their existing online investments. The solution suggested by AdAgencyOnline.Net is to integrate newly developed conversion tools to maximize the amount of sales being generated by the auto dealer’s web sites. These applications function as an online transaction tool capable of accommodating an Internet sale from beginning to end rather than being limited to simply making appointments.
Internal marketing applications have also been recommended by AdAgencyOnline.Net to maximize the efficiency of established selling processes at an auto dealership. Sales and service opportunities from an auto dealership’s data base can be by created with automated follow up email and/or direct mail to existing customers in both sales and service for new and pre-owned vehicles. The resulting savings in marketing costs is complemented by the additional revenue earned by the auto dealer’s fixed operations.
Local conquest sales are another area that AdAgencyOnline.Net has advised their affiliated automotive advertising agencies to focus on. The need for consumers to get their best deal has shifted customer loyalty from the product to the “deal of the day.” Email applications are a cost effective way to target area residents that may not exist in an auto dealer’s data base. Several “Do It Yourself” email platforms exist that can draw from available “opt-in” email data bases to deliver a customizable email blast. In addition to the short term R.O.I. realized by direct sales and service generated by the campaign the auto dealer is able to maintain their market presence with the volume of messages delivered in the subject line viewed by the recipients.
In summation; it is important to recognize that bankuptcy is not the end, but rather the beginning for those that plan for it. In my opinion both GM and Chrylser will survive the recent trauma in the auto industry; as will their retail auto dealers. Granted, they may not be the same as they were before but the only constant in the auto industry is change and this situation will prove that. The key is to survive and thrive by maintaining “top of the mind awareness” for customers when they are ready to buy a car and to serve them better than the competition when they do. The solutions suggested above should help you do that.
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