Q&A with Cox Automotive’s Jared Rowe

In the latest installment of the annual Power 300 issue of Auto Remarketing, we go behind the scenes with some of the leading companies in the used-car space and their top executives with a few Q&A features.

Next up in this series is Jared Rowe.

 

 

Auto Remarketing: I’m a channel-flipper, particularly during the fall when college football starts and I’m flipping from game to game. How does a dealer get around the tendencies of folks like me who might not “stay in one place” while watching TV?

Jared Rowe: Car dealers have historically relied heavily on local TV ad time. TV’s once superior advertising value has been hindered by On-demand, Streaming and Picture-in-Picture technology that allows consumers to de-select advertising.

So, it is not as simple as a TV ad buy anymore. Dealers have to find an effective advertising mix in order to reach their desired audiences. To successfully target audiences — such as football fans — dealers need to reach them across many networks and platforms.

Fortunately, a robust array of digital options has emerged — such as SEO, SEM, retargeting and social media — that complement and work well with traditional advertising to add efficiency and predictability back into a dealer’s advertising toolkit.

AR: I imagine it’s tempting for a dealer to play on current events in their advertising (i.e. an “election”-themed TV ad for a dealership). But given the saturation of these events — both from a news coverage and advertising perspective — do you recommend dealers take this route, or do consumers need a break from those messages?

JR: Besieged by the massive influx of election campaign advertisements, I expect customers will tend to tune out TV commercials altogether during this period, especially if the election ads become increasingly negative.

Patriotic messages in support of America always play well, but steer clear of direct affiliations or election-themed ads that may alienate more people than they attract — unless that affiliation is an authentic part of a dealership’s brand identity and market strategy.

Consumers will appreciate dealers who deliver rhetoric-free, no-nonsense, value-based messaging during this high-density media period.

AR: These election, back-to-school and Olympic ads will occupy the attention of some valuable target demographics that dealers would otherwise not be able to reach (i.e. back-to-school commercials that command the attention of families). What are some ways around this for dealers?

JR: Dealers can move ad dollars from mass media into digital advertising to work around this challenge and increase consumer impressions. One of the key benefits to this digital shift is the ability to more narrowly segment and target specific audiences with tailored messages. For example, dealers might repurpose their TV ad spend during these periods and channel it toward retargeting through SEM or AdWords. YouTube video spends and digital radio spends on sites like Pandora and Spotify would be other good options. Dealers can also increase their focus on SEO, either internally if their dealership has the proper talent to address this art form or externally with their website provider or other vendors that specialize in SEO.

Also, social media is having a bigger impact than ever before on car purchase behavior. Social appears to closely influence a shopper's consideration set. People are going to social media to get opinions on vehicles, information on their local dealership and negotiation tips.

And I’d be remiss not to mention increasing paid ads on third-party car shopping sites ike Autotrader and KBB.com because they are targeted, auto-specific and not susceptible to the mass media frenzy. When looking at third-party sites, 73 percent of all online car buyers use Autotrader or Kelley Blue Book, including 3 out of 4 hard-to-reach millennials.

AR: What are some ways dealers turn “lemons into lemonade” from the fact that their ad space is limited?

JR: A comprehensive digital strategy goes beyond advertising and helps amplify the dealer’s authentic brand message and story. The digital space gives dealers more ways to identify and promote what’s unique and special about the way they do business. Autotrader has recently launched a dealer differentiation tool that allows dealerships to brand themselves online and share their unique selling proposition that is most relevant to their customer’s desired shopping experience. Whether it’s calling out flexible financing options for credit-challenged buyers or promoting their award-winning service department to an owner who’s holding on to a luxury vehicle.

Having a greater online presence may also encourage shoppers to conduct challenging parts of the car-buying journey online, such as applying for financing (Make My Deal) or researching trade-in values (KBB ICO), removing friction from the process for both parties. This allows the dealer to focus on meeting the consumer’s needs, which increases satisfaction and efficiency.