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John Potter VP Interactive Revenue Development Director Radio Training Academy jpotter@rab.com PowerPoint Presentation
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John Potter VP Interactive Revenue Development Director Radio Training Academy jpotter@rab.com
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  1. Automotive: Part III Internet’s Effect on Advertising John Potter VP Interactive Revenue Development Director Radio Training Academy jpotter@rab.com

  2. Here’s What We’ll Cover… • Automotive slow down • Auto ad budgets • Where dealers are advertising • Lead buying • Win back the bucks Goal’s For Today

  3. FFF Error • Foreign • Fuel • Financing Automotive Webinar

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

  5. Automotive Drives America A Sales Slowdown Total US Units Sold In Millions 16.5 16.1 15.7 Sources: JD Power & Associates, January, 2008 Automotive Webinar

  6. Automotive Drives America A Sales Slowdown • 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% Sources: New York Times, September, 2008 Automotive Webinar

  7. Automotive Drives America A Sales Slowdown Ad spending down 6.1% through May DownUp Toyota GM Ford Chrysler Honda Nissan Sources: Advertising Age Automotive Webinar

  8. Turning To The Internet Moving Traditional Ad Budgets • GM moving half of its $3 billion • Hyundai’s VP Marketing: “Online may be more important than spot.” • Audi more than doubled online advertising Sources: Advertising Age, August, 2008; e-Market, June, 2008; Automotive Webinar

  9. Turning To The Internet Moving Traditional Ad Budgets 21.6% -6.1% Sources: Advertising Age, August, 2008; e-Market, June, 2008; Automotive Webinar

  10. Turning To The Internet Moving Traditional Ad Budgets • 2.1 billion automotive online impressions in July • 5.5% of all Internet impressions in the US Sources: Nielsen NetRatings, July, 2008 Automotive Webinar

  11. Turning To The Internet Moving Traditional Ad Budgets • 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 Sources: Capgemini, 2008; comScore/Kelsey Group, 2008; RAB, 2008 Automotive Webinar

  12. Online Advertising Types • Classifieds • New • Used • Display (banner ads) • Search / Keywords • Rich Media • Video • Audio • Animation • Promotions • Micro-sites • Lead Generation Automotive Webinar

  13. Classifieds – New

  14. Classifieds – Used

  15. CBS Dallas Classifieds – Local

  16. Classifieds – Local Columbus Fizmo

  17. Mineola, TX Classifieds – Local

  18. WOOD-TV,Grand Rapids Classifieds – Local

  19. Columbus Dispatch Classifieds – Local

  20. Vehix –White Label Classifieds – Local

  21. Display Ads

  22. Clear Channel Search / Keywords

  23. Rich Media

  24. Promotions

  25. Micro-sites

  26. Lead 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 Webinar

  27. Lead Generation Marty Johnson Internet Manager Nelson Auto Group

  28. Lead Generation

  29. Lead Generation

  30. Lead Generation

  31. Lead Generation • Classifieds sites • Paid leads sites • Factory site • Dealer site Automotive Webinar

  32. Win Back The Bucks Recapturing Auto Dollars • 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 Automotive Webinar

  33. RAB Resources

  34. RAB Resources

  35. RAB Resources

  36. RAB Resources

  37. RAB Resources

  38. RAB Resources

  39. RAB Resources

  40. RAB Resources

  41. Thank you for joining us! You will be receiving an e-mail with a link to download a PDF copy of these slides, glossary Please share your thoughts in the evaluation form RAB Member Response 1-800-232-3131; member_response@rab.com John Potter jpotter@rab.com Automotive Webinar