Our strategy is to connect dealers to the 85% of car buyers that visit a search engine or portal as part of their shopping process. AutoUSA represents auto dealers on hundreds of automotive websites and through the use of world class technology we ensure the delivery of qualified buyers to help dealers gain market share in this down market.
We want to ensure dealers know that we can greatly improve the effectiveness and simplicity of their digital ad spend. AutoUSA is the best way to be exposed to all of the online car buyers through the use of a single service. With AutoUSA, dealers can immediately start having conversations with potential online car buyers.
Our sales focus is to deliver products to dealers that allow them the opportunity to grow their online sales with a significant positive ROI.
There is definite opportunity for AutoUSA with the current trend among dealers to allocate more of their marketing dollars to digital media. While we expect that the average dealer’s total marketing budget will continue to shrink, we strongly believe the percentage of spend on digital media will continue to grow. Unlike the traditional media spend, with AutoUSA and digital media, a dealer can easily measure its effectiveness and track ROI.
The industry is still at depression sales levels but appears to be stabilizing. We are optimistic that next year could be improved to the 11M SAAR levels. Dealers are re-stocking inventory after Cash For Clunkers and I think that as a whole, the industry believes that the worst is behind us. As well, the industry is moving towards greater transparency in the sales process for the consumer. For instance, online websites have embraced the fact that customers would like to see actual inventory displayed online and are increasingly allowing dealers to post both their new and used car inventory.
AutoUSA has partnered with websites like KelleyBlueBook.com, AOL.com, Overstock.com and others, to promote dealers actual inventory. We only charge dealers when a customer either calls the dealership or sends an e-lead. This pay-for-performance model replaces the old subscription model which is not always aligned with the online activity. For example, while inventories were still low following Cash For Clunkers, the old fixed subscription fee still stayed the same.
The new model uses a unique technology platform that combines a state-of-the-art search function with applied intelligence gained from millions of customer queries and transactions to present vehicles that best match each consumer’s search criteria and desired vehicle characteristics. It allows consumers to confidently find specific vehicles while shopping for a new or used car. AutoUSA offers these leads to auto retailers through a pay-for-performance business model in which dealers are only charged when a consumer engages via email or phone on a VIN specific vehicle. The pay-per-lead program allows dealers to better manage their vehicle marketing expenses and purchase leads at a fraction of the cost. AutoUSA has signed hundreds of dealers on this new model.
6. WHAT DO HAVE TO SAY ABOUT SOCIAL MEDIA?
AutoUSA works with different digital partners and many of them have a focus on social networking. These kinds of sites are powerful because they directly address consumers and their groups.
With the advent of social media and web 2.0 there is a lot that can be done with online marketing but clearly third party leads still play a very important part in the marketing mix. When it comes to online marketing, it’s never been an “either/or” situation. If dealers want to generate a high volume of Internet leads, they need a comprehensive strategy that drives business in the door in as many ways as possible.
Another important aspect of social media is the Dealer to Dealer social networking. Dealerships are rapidly catching up with the rise in popularity of social networking, including automotive-specific online communities. They’re places where auto retailers can connect with other others dealers and vendors to discuss management issues, share best practices, interact with experts and keep up on industry news.
It’s a quick and easy way to find information that will help dealers better manage business and increase sales. They can even use these sites to build their own reputation by finding information and resources for customers.
These dealer-oriented networking communities include DrivingSales.com, Auto Dealer People, Dealer Refresh, Automotive Digital Marketing and Auttr.com. You can register for free and, after creating a profile, start interacting with other members one-on-one, and through discussion forums and groups.
One thing DrivingSales.com is doing right now that is very valuable is a survey for dealers to rate their vendors. Dealers can go to: http://www.drivingsales.com/surveys/rate_vendors/survey1.