ATLANTA -

AutoTrader.com declared today that it is taking co-op compliance for online advertising to “the next level” with make-based new-vehicle advertising packages, a new display advertising unit and dedicated specialists to assist dealers.

With the majority of new-models buyers utilizing the Internet as their leading source during the shopping process, the company said it believes these changes will enable dealers to extend their new-vehicle presence on the site and connect with those shoppers.

AutoTrader.com is enhancing its co-op assistance with the following new offerings:

—New “New-Car” Packaging: Officials pointed out that co-op compliance is based on brand exclusivity, so they think it’s important for dealers to be able to differentiate their online spending by vehicle make. To accommodate this condition and make it easier for dealers to utilize co-op funds, AutoTrader.com revised its new-model advertising solution packages to be eligible for purchase and provision by vehicle brand.  

—New Display Advertising Unit: While there are variations in which online advertising options are eligible for co-op spending, the site reiterated one constant is display advertising. New for this year, the site is making an additional “skyscraper” ad unit available to dealers who subscribe to the top new-vehicle advertising package. The site contends this new unit is dynamic and should pull in vehicles that closely match the user’s search. 

—Dedicated OEM Tier III Co-Op Specialists: In 2012, dedicated specialists will be partnering with AutoTrader’s sales team to identify OEM Tier III opportunities for new-vehicle and franchised dealer customers. The site highlighted these experts are both knowledgeable and experienced with OEM programs and can add significant value to the consultative services AutoTrader.com provides its dealer customers. 

According to company estimates, co-op business represents a more than $2 billion marketplace. Unfortunately, the site calculated that a significant portion of co-op funds go unused every year.

While most co-op dollars are spent on traditional media, the Internet is the leading source new-car buyers utilize to shop for their next vehicle, according to AutoTrader.

The 2011 Automotive Buyer Influence Study, which surveyed more than 4,000 new and used vehicle buyers, showed that of the 11.5 hours new-vehicle buyers spend online, they spend the most time — 3.5 hours — on third-party sites such as AutoTrader.com. 

“At AutoTrader.com, our goal is to support our dealer’s online advertising efforts, and the ability to utilize co-op funds for their advertising on AutoTrader.com will help them extend their reach with the millions of new-car shoppers who visit our site each month,” explained Chip Perry, president and chief executive officer.

“We’ve taken numerous steps this year to take our co-op compliance to the next level, and we will continue to work closely with our dealer customers to determine what they need for each brand they represent and help them get all of the co-op reimbursements they’ve earned,” Perry continued.

AutoTrader’s foray in to offering co-op assistance began nearly five years ago when the company began creating custom solutions for various OEM partners.

Currently, the site has custom co-op solutions for General Motors, BMW and Mini, which are the direct result of exclusive OEM Tier III partnerships. These custom solutions can provide additional branding and merchandising solutions tailored specifically for each brand.

One dealership that has seen great success using co-op dollars for their advertising on the site is Woody Folsom Automotive in Hazelhurst, Ga.

Working closely with an AutoTrader.com representative, the dealership was able to extend its reach and grow sales by using co-op dollars to increase their new-vehicle advertising on the site.

“Our AutoTrader.com rep came in and showed us how we could be using co-op funds for advertising our new cars online, and we were able to significantly grow our business without increasing our out-of-pocket expenses,” stated Billy Gregory, general manager at Woody Folsom Automotive.

“Instead of just advertising used cars on AutoTrader.com, using co-op dollars enabled us to feature our new car inventory and double our advertising throughout the state and country,” Gregory continued.

“Before that, we were selling more used cars, but our new car sales increased so much that we’re selling almost as many new cars as used,” he went on to say. “Last year, our GMCs were up 64 percent, Buicks were up 26 percent and Chevys were up over 50 percent. In fact, 2011 was the first time we’ve ever sold over 1,000 new vehicles, and the only thing that we changed was increasing our new car advertising on AutoTrader.com — something that wouldn’t have been possible without using co-op money.”

Perry added, “It’s critical that dealers have a robust Internet marketing strategy and being able to utilize co-op funds for their online spend will help them achieve that goal. With the changes in packaging, new display advertising options and dedicated specialists, dealers should be able to more easily take advantage of co-op dollars for their advertising on AutoTrader.com.”