The Impact of Internet Marketing to Automobile Dealers
The first place serious buyers go when shopping for a new vehicle is the Internet. A new study by JD Power and Associates found that of the 62% of new-vehicle buyers who use the Internet while shopping for a car, 88% will visit automotive web sites before going into a dealership for a test drive. “Nearly one in three new car purchases in the U.S. will be an Internet-generated sale by 2006.”
According to NADA Industry Analysis, auto dealers, on average, spend $450 on traditional advertising per one car sold, while the average cost per car sold using Internet advertising is only $200. Despite these resounding numbers, many auto dealers still dedicate only a fraction of their advertising budgets to Internet-generated leads. According to the NADA, in 2001, the average dealership generated 13% of new car sales from Internet leads, but dedicated only 5% of its advertising budget to Internet marketing and advertising.
Utilizing the Internet as a marketing tool allows dealers access to savvy, serious car shoppers—not just a passive audience watching a television commercial or listening to a radio ad. These shoppers are a lot more knowledgeable. They have all the time in the world to study every car online. According to the study by J.D. Power, an automotive Internet user visits an average of seven different Web sites before making a purchase.
The Internet also brings people to your dealership from greater distances. Internet leads generate sales revenue that would not otherwise be captured on the showroom floor. Some customers simply live too far away from dealerships, while others may be unaware of a particular store without being referred by a lead provider. By the same token, auto dealers can utilize Internet leads to defend their existing sales territories. Because the Internet has liberated consumers from being geographical captives, dealers should avoid the unrealistic belief that locals will automatically shop at their dealerships.
The speed at which Internet-based service companies generate leads keeps dealers on their toes. A study by Aston Martin Jaguar Land Rover of North America (AMJLR) attests to how critical it is for dealers to launch a quick response to hot Internet sales leads. AMJLR reported that user-friendly Web sites and an immediate response to sales leads directly influenced undecided car shoppers to buy AMJLR cars instead of other luxury vehicles. The study concluded, “An incremental sale may be generated when a superior online shopping experience is combined with a seamless transition to the offline retail purchase arena.”
It’s clear that all signs point to the Internet as the premier starting point for serious car shoppers. Smart dealers will want to catch them at the starting line. While the Internet is the first place consumers go when they want to buy a car, their final step takes place in the showroom, when they get to take it out for a test drive.
Internet Marketing is a combination of several website traffic acquisition and retention methods:
Search Engine Optimization, or SEO- In this method we optimize your website with Meta-tag information which basically is code that is read by search engine retrieval methods and can assist in "organic" or non-Pay-Per-Click search query results. We also submit your site to appropriate web directories which prove relevant and beneficial to your area(s) of practice.
Pay-Per-Click, or PPC- Just as it sounds, you bid on particular keyword phrases for optimal placement in search query results. For instance, if you are a Lexus dealer in Houston, to bid on the term "Houston car dealer " would not be the most cost-effective choice. However, "Lexus Houston ", which is searched for on average 3200 times per month may prove very profitable for you as this is a highly targeted keyword phrase for a particular brand vehicle and demographic area.
Search Engine Marketing- This is the strategy of combining both SEO and PPC to provide the most effective overall solution. We can also combine this with your email and newsletter campaigns for a total Internet Marketing Solution.
Internet Marketing has been our specialty since 1996. We know what works and we know the strategies involved. We offer effective, goal oriented solutions personally tailored to your individual needs, long/short term goals and budget constraints.
Please contact us at your convenience to discuss the opportunities an effective Internet Marketing strategy can provide to your growing business.
James Smoot
3clx.com
407.765.3335
js@3clx.com
