ATLANTA -

As the world of digital marketing continues to grow, dealers are being presented with a multitude of additional options to advertise and get their store’s name out to consumers.

And with this expansion, the world of advertising and marketing firms is changing, as well.

In fact, AutoTrader.com’s Jeff Perkins says ad firms all over the country are shifting their practices and becoming more of a “consultative partner” to dealers.

The director of consumer marketing for the site further explained this point, noting, “Digital marketing is more complex than it’s ever been. Today, dealers have everything from the large third- party sites like AutoTrader.com and Cars.com; smaller local websites, search engine marketing; social
media sites; mobile advertising; and of course, the dealer’s own website.”

The Evolving Dealer/Ad Firm Relationship

And as the dealer/ad firm relationship continues to evolve, some agencies are changing how they do business, according to Perkins.

Furthermore, as the need for automotive marketing grows, some are taking advantage of the possibilities.

“There are certainly a lot of agencies popping up that specialize in car dealerships. This is due to a shift in the kinds of services agencies are now able to provide to dealers,” Perkins asserted.

“In the past, agencies might have done an ad buy or some creative for a dealer. But, the revenue to the agency was inconsistent from month-to-month. Now, technology has opened up new ways for agencies to make consistent revenue on a monthly basis,” he continued.

Providing an example, he noted that many agencies are selling search engine marketing services that help dealers buy keywords on Google.

“This has become a very good business for agencies, as many dealers are increasing their spend on search engines and don’t have the in-house expertise,” he added. “Agencies are then using their search engine marketing capabilities as a way to get their foot in the door and then sell other advertising services.”

And it seems that with the rise of tools such as search engine optimization and search engine marketing, dealer-advertising firm relationships will potentially last longer and be more in-depth.

Perkins stressed that with dealers and ad agencies, “it’s all about relationships.”

“If our customers aren’t successful, then we’re not successful. For ad agencies to keep the dealers they have, they will also have to put the dealership business in front of the profit of the agency. If they can do this, they should be successful,” he noted.

And as these relationships expand, gone are the days where ad agencies would put a dealership ad in the paper or online and the deed was done.

Offering his take, Perkins explained, “Technology has given agencies new tools to create subscriptions-type services with their customers. Agencies used to bill based on a percentage of media spend or how much time it would take to design a print or TV ad.

“But SEM services can create recurring revenue streams, which is good for the agencies. However, dealers have to determine whether these agency solutions are driving the results,” stressing that as the dealer-ad firm relationship continues to evolve, stores have to be careful their efforts are producing results.

“For example, we talk with a lot of dealers who sign on with an agency and then dramatically increase their investment in SEM. They see an immediate increase in website traffic. So, they continue to spend more and more in SEM,” Perkins began.

“Obviously, this is good for an agency that charges the dealer a percentage of SEM spend. But, is it really good for the dealer’s business? We’ve done some analysis with our dealer customers and found that some of these SEM campaigns can drive a lot of unqualified shoppers to the dealership website,” he continued.

So, how can dealers avoid this? AutoTrader.com officials recommend that dealers “focus less on the total number of visitors coming to their website, and more on the quality of the visitor.”

This can be done by looking at metrics like time on site and page views, which can show a dealer which visitors are more serious about their site and store.

Another important factor is the “bounce rate,” Perkins added.

 “Bounce rate indicates that you drove a shopper to your site who immediately leaves. Many times, a dealer can actually reduce their SEM spending and get more qualified shoppers to their site,” he noted.

Can Dealers Do it on Their Own?

And with the realm of digital marketing growing each day, is it possible for dealers to handle their marketing needs in-house?

Perkins says this “depends on the dealer.”

“From what we see with our customers, having an agency is not a predicator of success. Many of our dealers that use agencies are very successful. Other dealers do everything in-house and have equal success,” he noted.

That said, Perkins pointed out that dealers have to stay up-to-date and remain alert and on top of their marketing efforts.

“Whether or not a dealer uses an agency, it is critical for dealers to spend marketing dollars as efficiently and effectively as possible. Dealers have to constantly look at their ROI and make sure their investments are driving qualified shoppers into the dealership,” he shared. “You don’t necessarily need an agency to do this. But, in certain cases, it can help.”

Crucial Marketing Avenues

And as marketing avenues continue to grow, AutoTrader.com took a little time to tell Auto Remarketing what it sees as some of the most crucial marketing tools dealers should be taking advantage of, as well as the most profitable.

First, Perkins noted that a dealership’s website should be brought to the forefront of its marketing efforts.

“Overall, dealerships need to do a better job of creating a compelling experience for shoppers once they arrive on their website,” Perkins asserted.

“One thing to recognize is that before a shopper gets to the dealer’s website, they’ve shopped on another website (such as an OEM site or third-party site) and have probably already learned about the make/model they want. What shoppers need to see on the dealer’s site is what the dealership has to offer,” he continued.

What makes that dealership special? Why do business with them? These are both questions officials stress dealers should be able to answer with their website.

Perkins also noted that is important to catch a shopper’s eye right away.

“One thing agencies, or anyone working with dealers, should do is encourage them to design their site in a way that really captures shoppers at the point of entry,” he explained.

And moving on to the second most important marketing tactic for dealers, according to AutoTrader, Perkins stressed what he calls consistency throughout “touch points.”

“It’s crucial that dealers are consistent with their marketing message across all the different touch points they have with shoppers. Shoppers are constantly bombarded with advertising. For dealers to maximize the impact of their advertising with car shoppers, they need to be consistent across all mediums,” he explained.

“If a dealer has a completely different message on their website, on their TV ads, on their third-party listings, etc., it dilutes the overall effectiveness of their marketing. Shoppers will have a hard time understanding who the dealer is and what they have to offer,” Perkins concluded, stressing how important consistency is to reputation management.

The Role of Social Media

As the social media phenomenon grows, are advertising and marketing firms going to take a bigger role in helping dealers with this new fad, or will this fall mostly to the dealership staff?

In answering this question, Perkins noted, “Ultimately, it doesn’t matter if it’s an outside firm or internal resources. Social media is something that dealers need to pay attention to.”

But more importantly, Perkins said dealers have to understand that social sites are not about selling, but relationships.

“So, if dealers try to sell cars on Facebook, chances are they are not going to be successful. That’s just not what Facebook is designed for,” Perkins added.

That said, he also noted that dealers may have some success connecting with shoppers after they purchase a car and “keeping them engaged with the dealership for the long term.”

Perkins continued: "Social sites may not help you sell a shopper the first car, but it may help sell the second and third."

He also stressed that consumer reviews play a large role in social media success.

“Over 70 percent of shoppers look at reviews before buying a product or service. Shoppers that post negative reviews about a dealership can have a devastating impact. Dealers need to constantly monitor review sites and quickly address any negative consumer reviews in a respectful way,” Perkins said.

“Also, dealers should thank consumers who post positive reviews,” he added.