Where is Automotive Marketing headed?

First, a note from your local newspaper...

Hi Mr. Dealer,

It's your old pal here, the local daily paper. I feel like we don't spend as much time together as we used to. In fact, I feel that way about a lot of my old friends. Many homes have cancelled their subscriptions to me in the past year or so--something about the economy and they get their news from other sources. Others still pick me up off the driveway but I lay unopened on their kitchen table until they eventually throw me away. But, as we both know, you have to advertise in the local paper-what else will help keep your name in the public eye?

Sincerely,

Your Town Daily

Daily and Sunday Circulation Declines Percent declines in circulation by six-month period

See the complete story with this graphic here.

In all sincerity I do believe there is a place for ALL marketing-the big media stuff, the more targeted messages, online, on the air and in the mailbox...heck even to your phone. However, it's time to move past the 1980's in many cases.

Every day I talk to someone who let's me know how many years longer than me they've been in the business and how in the glory days all a successful sale needed was 100,000 newspaper inserts. They didn't even need prizes to get 1000 people to the lot. We are so far from the glory days that this type of advertising is an antique.

So where is Automotive Marketing headed? In the future it's going to be about personalized specific messages & relationships. As someone who has built a career off of saturation type-flood the market mail-it's a weird thing to say but it's the truth.

Over the next few days I'll be going through a few of these new ideas & technologies. Some, I hope you will have at least heard of--maybe you're already using them, and hopefully there will be one or new idea for you to check out.

In the meantime...

What is one change you've made this year with your marketing that has increased your response?

How much are ups costing you?

A colleague got an email today from a competitor. This competitor was touting 11x17 tri-fold self mailers for "cheap." The price really wasn't all that cheap but you do get something free with purchase! Boy does that sound familiar :) With the market as it is it's important that the money you are spending on marketing is actually bringing in results. Some dealers are religious about collecting data about what brought people into the dealership, others go by a gut feel. The gut can be a dangerous thing. Through our recent MarketVision data we can prove that the 11x17 tri-fold is, simply, the worst direct mail product on the market (an average sale yields a .046% response)...yet so many dealers call asking for it because it's cheap. But is it? How do you find out?

• First, you have to know the true traffic count of the sale. Many dealers use the registration cards that most companies send out to do this, make sure you note if they came in from the mailer on the card though. Not every up through the door is from the mailer. If you or the sales guys struggle doing this with every person that comes in you can also utilize MarketVision to get a precise count.
• Second, do some basic math. If you need help with this--do not call me. Even with a calculator I still manage to mess up the most simple math problem! Figure out how much each up cost you on the sale. (Total sale price divided by number of ups). Once you have that number you'll know how much the mailer actually cost you.

In some markets the 11x17 tri-folds can still be effective. These are typically very rural markets with little to no aggressive direct mail marketing. In these markets the tri-fold is still a great value! In markets that have seen this product since Pat Gunning was a child, it may be time to start looking at the more sophisticated products. You'll only know what's best for you when you do the math for your store. Happy calculating!