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2010 Dealer Digital Advertising Program

David Schoonover
02/22/10
TABLE OF CONTENTS
1. Executive Summary
12. KMA Coordination
2. Objectives
13. Current Publishing Partners
3. Budget
14. Billing Process
4. Timeline
15. Measurement
5. Program Benefits
16. Creative Development
6. Strategy
17. Dealer Package
7. Current State
18. Field& Dealer Training
8. Competition
9. Case Studies
10. Dealer Process Flow
11. Communications Plan

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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 events
and launch communications
• Improve dealer profitability through reduced costs
– Dealers don’t know what they should be paying for digital services. By having
KMA involved, we can ‘watchdog’ 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 them
with 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 $622,180.00


Earn 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 “Go To” resource
– Facilitate KMA Sales Region planning, scheduling, dealer participation and
execution 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 team
involvement
– Install market-level flexibility to fully maximize local-market
conditions, politics, economy, events, etc.

Fix Dealer Site and Paid Search Display Ads Social Media
SEO Optimize

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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 “Cross-channel online marketing used to target different
areas of the purchase funnel makes an effective combination.”

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7. CURRENT STATE

• Dealer Feedback:
– “Digital Advertising dollars are the best money we spend.” Large Midwest
Group Marketing Director
– “My 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
8. COMPETITION

• All major OEM’s have a T3 digital advertising program (except


Hyundai and Kia)

1. Ford: Long term leadership, large team, digital dedication and


significant allocation of human and financial resources since
1997
2. Honda: Excellent business process (a stable of the company)
3. GM: Substantial funding, full program. Downside is that they pay
for everything for their dealers, the dealers don’t have a financial
stake thus they are not as engaged. Large company creates lack
of coordination
4. VW – funds and dedication
5. Subaru – Scrappy and excellent and niche marketing, plus not
scared of unpopular niches such as GLBT

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8. COMPETITION con’t

• All major OEM’s have a T3 digital advertising program (except


Hyundai and Kia)

6. Nissan – live regional trainers


7. Chrysler – minimal program. Just launched PAP promotional
allowance program which provides a higher rate of co-op credits
for 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 Studies
2. 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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9. CASE STUDIES
Dealership Digital Advertising Case Study
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


Digital Advertising for Dealers
Case Study – Paid Search and Web Site Display Advertising

3 Month Campaign

PLEASE NOTE: Case Study, your results will vary because no two advertising campaigns generate identical results!
BEFORE Digital Advertising

PHONE VOLUME
Previous Month before
Digital Ad Campaigns
(Nov 21-Dec 29) = Same Days Tracked
Website 800 Sales Line = 272 Total Calls
AFTER Digital Advertising Implemented

PHONE VOLUME
Digital Advertising Campaigns
(Jan 21-Feb 29) = Same Days Tracked
Website 800 Sales Line = 476 total Calls
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 da@kiarddtm.com
• 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 support
materials

• 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
– Specific 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 and
tracking technology
– Liquidus SpotSense; video advertising.
– DealerRater.com; Certified Dealer program for online
reputation management and social marketing
– Liquid Motors; Online classified listings and inventory
management 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, thus
maintaining a positive cash flow

– The billing rate will be 1:1, thus except for startup costs, KMA
budgets will reflect a $0 net cost.
– ADP will retain in a Kia ‘bank account’ a 10% credit (from ad
buys only, not the monthly dealer admin fee). That credit will
be used to fund the RDDTM’s.

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15. MEASUREMENT

Kia Digital Advertising Program for Dealers; KMA Cost Recovery Analysis and Proforma
 
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, and
Assumption recommends NSI for KMA Dealer Advertising Co-Op program management services.  
s
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.  
   
Average Monthly Monthly KMA
Eligible Kia Dealer Network Net Participating Dealer DA Monthly DA Earn-Back Annual KMA
Dealers Participation Dealer Count Budget Media Buy Total   Credits 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: $541,783.80
  Net KMA Cost for Year 1 of Program: $80,396.20
© Copyright 2009 ADP Dealer Services - Kia Motor America Confidential

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16. CREATIVE DEVELOPMENT
– Virtual Marketing Representative (VMR) & Advertising Campaign Administrator
– Approved campaign services and templates
– Keyword Lists
– Text based Search Advertising sponsored links
– Dealer specific geo-targeting for campaigns
– Up to 5 animated display advertisements per month
– Extensive library of Kia dealer advertisement templates
– Customization for dealer specific text, messaging and links
– At KMA request, creative will be generated and added to the KDAP ad
template library.
– 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 “Go To” resource
– Facilitate KMA Sales Region planning, scheduling, dealer participation and
execution 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
– Process Map, timing

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17. DEALER PACKAGES
Conceptual Packages

Package One Package Three


Utilizes Google Search to capture a buyer’s attention when they are This blended approach targets consumers during the active stages of
actively using the internet to research, find or buy their next research plus utilizes our ad network and behavioral targeting
vehicle. Drives additional sales by reaching out to your best to advertise to shoppers when they are using the web for news,
prospects and customers with our monthly eNewsletter. entertainment or information.
Includes: Includes Package Two Plus:
• Custom Search Engine Marketing Campaign • Your dealerships advertisement on our premier ad network
• eNewsletter • Behavioral targeting and retargeting to in-market shoppers
• Designated Virtual Marketing Representative • Floodlight tags on your website to track post impression activity
• Monthly Reporting • Monthly Reporting
Package Price: $2,000/Mo Package Price: $8,000/Mo

Package Two Package Four


Leverage both Google Search and Yahoo Search along with Dominate your competition by maximizing nearly the entire reach of
banners on KBB to catch the attention of buyers researching the internet along while putting your dealership in the front of
their next car and the value of their trade. consumer minds by capitalizing on site retargeting.
Includes Package One Plus: Includes Package Three Plus:
• Yahoo Search • Ad Display Network: choice of one: Automotive Behavioral
• Banner advertisement on KBB.com Targeting, NetCast or AutoCast products
• Two banner ads for messages/ vehicles/offerings (ie. Ford Fusion, • One set of Custom banners per quarter
F150) • Two Custom microsites
• Floodlight tags on your website to track post impression activity • Monthly Reporting
• Monthly Reporting Package Price: $15,000+/Mo (depending upon market size)
Package Price: $4,000/Mo

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18. FIELD AND DEALER TRAINING

– ADP to provide 1 fulltime dedicated resource per Region and


1 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 generated
and provide practical insight to improve key vital statistics such
as:
– 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, Kelly
Blue 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

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