The Internet And Automotive Advertising Applications Are The Future April 7, 2009
Posted by everycarlisted in : Uncategorized , trackbackAutomotive advertising professionals recognize that a shrinking economy has forced a reduction in new vehicle sales. The resulting consolidation in the auto industry in an attempt to maintain profitability at these lower sales levels has not been limited to auto dealerships. Cost cutting measures for existing retail operations include reductions in inventory, staff, advertising / marketing and key vendor expenses across all departments. Unfortunately, even with all of these cuts the fixed and semi-variable expenses associated with most retail operations will still not generate a profit at current sales levels. When combined with the reduced gross profit per unit in new vehicle sales as a result of the distressed nature of the auto industry it is obvious that a new business model must be applied for auto dealers and auto industry vendors to survive.
Internet based solutions for online car shoppers that replicate “real world” selling processes, coupled with the leveraged resources developed by a wide variety of vendor applications, have provided an answer to those that recognize that the only constant in the auto industry is change. The change that surfaced to offer a shrinking auto industry the best R.O.I. for auto dealers, and the best shopping experience for a used car buyer or a new car buyer, can be found on the World Wide Web. The brick and mortar dealership of yesterday has relinquished its hold on the shopping experience to their online showrooms where new car buyers and used car buyers have turned to get their best deal without the sales hype that drove them onto the Internet Super Highway to shop for a vehicle.
Leveraged online automotive advertising resources, including inventory based websites like EveryCarListed.Com, provide a cost effective way for auto dealers to post their inventory online. Car buyers see EveryCarListed.Com as a “one site stop” where they can get the best deal on a used car and even on a new car. The “free” listings offered to auto dealers have allowed their automotive advertising agencies to extend the online presence of their dealer clients and it represents an online inventory that dwarfs any individual auto dealer or auto dealer group. Similarly, the free listings for consumers in the site’s “For Sale By Owner” section have attracted consumers to the site who may also be looking to buy a car. As a result, EveryCarListed.Com creates a “win-win” scenario for all parties since the site often develops more sales for an auto dealership than they can generate from their own website; and it is hard to beat free.
In addition, cutting edge automotive advertising applications can now replicate real world selling processes including the ability to meet and greet a customer the minute that they visit an online showroom. Live chat and newly developed two way video platforms billed as “customer interaction” tools can accommodate a complete online transaction or simply make an appointment after assisting the online car shopper to narrow down their search to buy a used car or a new car.
Video applications have been developed that automatically convert all of the pictures on an auto dealer’s website into a professional video presentation creating a virtual version of a feature benefit presentation. The videos are then placed onto the auto dealer’s virtual showroom and they can be pushed through You Tube to the search engines to further extend the auto dealer’s foot print on the WWW.
Direct marketing applications that automatically create email and direct mail campaigns pulled from an auto dealer’s database, or a central database of opt in email addresses in the areas surrounding an auto dealership, are other examples of technology driven solutions that are part of the changing landscape of automotive advertising. These changes in the way that auto dealers advertise and sell used cars, new cars and service evidence the resiliency of the auto industry and they represent the future of the auto industry.
Comments»
Pretty spot-on, Meg. The prevalence of cost-cutting does not need to be mentions, it is widely accepted. During lean times, all businesses must make tough decisions or go out of business. The key is to make the RIGHT decisions. I obvioulsy have a bias, but it is also widely established Internet Marketing is not only the most cost-effective, but it is also the purest form of advertising from an accountability standpoint.
During this time, most dealers react incorrectly, cutting everything, including Internet advertising and usually staff. Internet staff could be the lifeline of the dealership, but too often they are viewed as a luxury (to be utilized only in fat times) or a “necessary evil”. Still too many dealers refuse to endorse the Internet sales thing.
The only way to survive in this environment is to have a committed dealer, a well-trained staff, an Internet Director who is technically proficient, and a strong stomach. I don’t think that will change much down the road as more and more people use online research to refine their search and complete as much as possible before coming to the brick and mortar sire.
Internet Departments are nothing more than a second front door to the dealership. Once that is understood and embraced, more stores will be profitable today and tomorrow.