technology

Consumers Like Video So Much They’re Paying More To Watch It

by Tim James

Video, and especially mobile video, is fast becoming the media of choice for consumers of all ages. From the cable-free movie, to online streaming services, to the latest and greatest phone apps storming the scene, we are all consuming data at a record pace. According to a white paper by Cisco, mobile data has increased in size nearly 30 times since the year 2000. And mobile video accounts for 55 percent of all data traffic.

Today, consumers are increasing data plans with their cellular phone companies so as to consume more video – and they’re doing so willingly — according to a recent article on Mashable. The article reports the massive growth of the mobile live-streaming app, Meerkat. With Twitter entering the live-streaming market Monday via their recent acquisition of Periscope, smartphone users are finding more ways to share video with each other than ever before. In fact, in less than 24 hours, Periscope broke into the top 50 apps on the iTunes app store illustrating the remarkable demand for video content. And, according to the article, “wireless carriers have invested more the $1 trillion in the last few years to build out networks capable of serving massive amounts of data and high speeds.”

And as far as video itself — Almost every major social media application has integrated video into their platforms. Why? Because that’s what their users want. Videos are given more organic reach on Facebook. Platforms are opening up their APIs to allow for video embedding. User-generated video content is exploding. And consumers have made it very clear that they like video content so much that they are willing to increase their cellular phone budgets so as to consume more of it. If this is the case, then why not market to them in their format of choice?

Back in the day, most people read physical newspapers and watched local television… and that’s where car dealers advertised. For lack of subscribers, newspapers moved online, or went out of business. And then, as streaming video services became a more popular (and less expensive) alternative, people started ditching cable.

None of us knows what the future will bring. Change will come, but we don’t know what or when. All we do know for certain is that right now… video is where consumers have placed their attention. And not just video, but especially in mobile format. If only for that single reason, that’s the content car dealers should be producing. Take a look at your marketing and see how you can improve on your video content. It would also be wise to ensure that your web content and any video is mobile ready, so this new generation of consumers can access and even share your content.

Jameson Irish Whiskey Takes Video Marketing to the Next Level

by Brian Cox

Jameson Irish Whiskey has taken video marketing on Instagram to another level – “the first brand to successfully utilize 3D video for advertisements on Instagram and Facebook,” according to a recent article in the Independent.

The video itself is very simple, and suggests that you slide a shot to your friend. It then proceeds to slide a shot glass of whiskey towards you, the viewer, which then appears to come off the page. It’s rather clever how they were able to create the illusion of 3D on a non-3D platform.

 

https://instagram.com/p/0LZMCKq-Ys/

 

According to many studies, brands are increasing their content marketing budgets to include more video marketing. Social media platforms, such as Facebook, Twitter and YouTube, are going to war to become the World’s premier video platforms, something that YouTube has enjoyed for years.

As is the case with any marketing, the ability for advertisers to cut through the noise with video marketing will continue to increase in importance. In addition, marketers should not rely on a single platform to host their videos. Regardless of who ends up winning this battle for viewership, consumers will still have their preferences. Believe it or not, some people still use MySpace, and other platforms that many abandoned long ago. This is why it’s important to ensure that your content is on all of the sites YOUR consumers visit. You never know where your next sale will begin their journey. Bear in mind, however, that to accomplish this you will either need spend a lot of time posting your video to each individual site. Or you can go the route of automation to get it done more efficiently.

Successful video marketing today demands entertaining and creative video that engages your audience. It’s not simply about having video content; it’s having the right video content. That can only be accomplished with a solid strategy that’s executed consistently.

Even a micro-video should have the same concepts behind its creation – creative, outside the box thinking – it should be engaging. What makes these type of videos a success is not any different from the winning formula for any videos — whether it be a “Why Buy from Me,” company culture-type video, or a vehicle walk-around video.

You only have a short period of time to catch and keep a consumer’s attention. Make sure that you use that time wisely and you’ll find an increase in views and conversions.

The Most Important Metric In Gauging Video ROI

by Tim James

The question most pondered by businesses when advertising is perhaps the most important:

“What is my ROI?”

It doesn’t matter whether we’re discussing television ads, radio, 3rd party leads,

that gorilla on top of your building, or the contest you’re running on social media; all roads lead back to the ability to answer that one simple question. Dealers and their vendors use call tracking numbers, unique landing pages, and a plethora of reports to justify the monthly expense of any given marketing campaign. Some dealers swear that a product or service works, while others might complain that it does not.

In the case of video marketing, if you don’t believe or are unsure about its effectiveness, there’s one simple metric that you should take a look at:

Inventory turn.

You’re already keeping track of this. You know the average length of time a new or used car sits on your lot. You might even hold your used car manager accountable for this. This isn’t something that sits in the pile with all of the other reports. It’s something that is vital to the dealership’s profitability and, more importantly, the bottom line. Flooring costs can get quite expensive. The longer a car is kept in stock, the less profit it’ll make. In terms of time alone, that vehicle is depreciating daily. That’s where video marketing comes in. It can make your vehicle stand out and engage online shoppers better than any other form of media.

If you have a comprehensive video marketing strategy in place and are executing on that strategy (taking the videos, making them engaging, getting them on all of the key touchpoints), take a look at your inventory turn to gauge its effectiveness. What was it before video marketing? What is it now?

The bottom line is that any dealership marketing strategy has one simple goal: selling more cars. Video marketing done right will speed up your average inventory turn. And the ONLY way it can accomplish that is by bringing in more customers who are buying your vehicles more quickly. And that’s the only answer that matters.

Personalized Video on Bottles of Beer?

by Brian Cox

While QR codes haven’t exactly gone mainstream for a variety of reasons, one company has found a creative way to use them. Argentinian beer company, Andes, has started incorporating unique QR codes onto its bottles that allow buyers to record video messages through an app. They can then pass along the message to whomever they wish, simply by giving them the bottle.

 

 

QR codes are simple and easy to make. In fact, you can generate one online for free. The reason they may not have caught on is because the user needs to download an app to scan them with. If and when cell phone companies integrate this scanning capability into the native operating system, they could easily become more useful and popular.

However, this new video capability adds a whole new level of creativity. Businesses could use this in many creative ways to better connect with customers. As an example, car dealerships typically attach branded keychains to the keys of a vehicle before delivering the car to the customer. Oftentimes, those keychains get discarded when the customer finds a personalized keychain more to their liking. Imagine, however, if the dealership’s keychain happened to have a video message via a QR code printed onto the keychain. It could offer something such as instructions and information on available manufacturer vehicle roadside assistance for new or CPO vehicle sales. The consumer may find value in keeping the keychain in the event of emergencies. This then increases the exposure and life of the keychain itself for the dealer. Or perhaps the dealer principal could record “Thank you” messages to every customer that purchases a vehicle. Salespeople could record video messages with their contact information and, perhaps, a referral offer.

Video marketing for dealers seems to have been pigeonholed into inventory marketing and branding. The point is that video can be used in many creative ways to offer value to, connect with and stay top-of-mind with your customers. I guarantee that the customer stuck on the side of the road in need of assistance would appreciate the ease with which they could use the QR code video to access information to get help.

If you get more creative incorporating brand, product and personalized messaging into your video marketing, consumers will pay more attention to them. While QR codes and this new form of video may not end up taking off, there will always be ways in which to distribute videos conveniently. Be creative. Think outside the box. Don’t limit your video marketing to just inventory. Generate video content that will continue to offer value to a consumer beyond a transaction. You will find consumers appreciate your efforts and thereby reap the benefits.

Why “Just Do It” Is A Waste Of Time

by Tim James

In this high tech age, there are numerous tasks that an Internet or eCommerce Director has to tackle in order to correctly market their dealership and its inventory. In the past, you were doing a great job if you were writing custom detailed vehicle descriptions and taking multiple photos of your pre-owned vehicles. You were a superstar if you were also doing these things for your new vehicles. Then video entered the picture. Some dealers embraced video and used data feeds to syndicate video, vehicle descriptions and photos to their website and other third-party sites. Forward thinkers also uploaded the videos with proper tags and descriptions to YouTube.

However, with the fast pace of advancing technology, the number of consumer touch-points keeps growing and it has become an almost overwhelming task to keep up and still try to sell cars.

But one thing hasn’t changed, the key to a successful marketing strategy is getting the right content, in front of the right shopper, on the right touch-point, and at the right time of the buying cycle. The more exposure you get for your content, the more impact that content is going to have on your sales. Content that’s not seen is worthless.

I remember a story from not too long ago about one of the largest volume dealers in the world. This dealer was manually uploading their inventory to their website and every third party website for over 10 stores – one by one – daily. They chose to pay someone $100+ per DAY, rather than use automation and data distribution technology to accomplish the same task at a cost of just $150 per MONTH.

I’m starting to see a lot of this same mentality today with video. Many dealerships have gone out and purchased some great video production tools, and are doing a great job producing some very good video content. They are then manually uploading their content to YouTube and manually embedding links on as many touch-points as they have the time and ability to do so (not all touch-points allow a manual upload). They would rather invest hours of their time to manually place their content on fewer touch-points, than use automation and data distribution technology to accomplish the same task (with more touch-points) for just a couple hundred dollars a month.

I believe that many dealers, managers and Internet directors understand the importance of having their dealership and inventory positioned properly and in as many places online as possible. The problem I see is two-fold: They either don’t understand that technology exists that could transform their Internet marketing and sales without putting an undue burden on their staff. Or they don’t believe that the investment in this technology will produce results.

I can guarantee you this. If you’re simply doing it for the sake of doing it, you’re wasting your time. If nobody sees the content you create, it might as well not exist. The fact is video is “content,” just like any of the other “content” that you utilize to market your dealership and inventory. You don’t spend your day manually cutting and pasting your other content on multiple touch-points all day long — manually uploading photos, and manually writing vehicle descriptions over and over. Why on earth would you try to manually manage your video syndication when producing the content can be time consuming enough.

If you focus your efforts on ensuring that you have great video content, and then utilize technology to get that content on as many of the sites consumers view in the car buying process as possible, then you will be significantly more likely to have the right content, on the right touch-point, in front of the right consumer, at the right time of the buying cycle. This is the only thing that’s going to engage more shoppers and increase sales.

Nike’s old slogan of “Just Do It” needs to be revised when applied to successful marketing strategies today to “Just Do It Right.”

Don’t Get Distracted by Gadgets and Gizmos: Master the Basics to Succeed

by Brian Cox

For years, dealers have been inundated with technology. Salespeople from every vendor in the automotive space are continuously calling to present the latest and greatest product that is going to supercharge your sales. Great salespeople can convince a dealer or general manager to try products. Some of these products are excellent and could actually help … if you understand how to use them to their full potential.

There are some dealers that have both the time and expertise to devote to learning and using technology. But, sadly, that’s not realistic for many dealerships. To the vendors presenting their products, it may seem easy. However, if the product or service isn’t used to its full capabilities, chances are good that a dealer doesn’t stay a client very long.

If you are one of the rare dealerships or auto groups that has a tech-savvy employee who understands the products and services, and also has the time to use and implement them, you are ahead of the game. If, however, you aren’t in a position to hire or give someone these responsibilities, chances are that all of the gadgets and gizmos that sound wonderful will end up collecting dust. In any profession, continuous practice in the basics of your profession can assist you in growing and developing more advanced techniques.

As a dealership, there are certain basic services that are necessary. You need a DMS and CRM to track customers, vehicles and transactions. You also need a website that consumers can visit and gain information from. And, in order to capture the attention of online car shoppers, you must have the ability to distribute your inventory to your website and all your third-party sites, in a way that provides maximum exposure and appeal.

Technology continues to develop at the speed of light and is almost impossible to keep up with. It’s really not that long ago that many dealers did not see the need for a website, let along photo and video descriptions and a digital marketing strategy! However, the fact is that over time, the early adopters had a huge advantage over those who didn’t use technology to create exposure for their dealership and inventory.

The bottom line is there are a HUGE amount of gadgets, gizmos, who’s-its and what’s its available to help enhance your presence with today’s vehicle shoppers, both on and offline. It can be overwhelming to know where to start, and what’s important. If you want to do it yourself and don’t have the budget to hire someone internally, or an outside resource, take a step back and think about learning, practicing and mastering the basics before graduating to more advanced technologies. Otherwise you just may find yourself in a cave surrounded by thingamabobs wondering what they do!

Car Shopping: The Dating Game

by Tim James

For many car owners, their vehicles become an extension of their lives, a partner, and something that they have a true emotional bond with. In most places, cars are necessary to life. We use them to get to work, visit friends and family and take our kids to football practice. According to an article on the Tempo blog, a study done by Harvard Health Watch found that, on average, a person spends 37,935 hours driving during a lifetime – over 4 years of their lives. It’s no wonder that consumers build an emotional connection with their vehicles.

A time will come for nearly every consumer when a new vehicle is necessary. Perhaps because of an expanding family, an accident, or the fact that the age and condition of a current vehicle necessitates it. These can be emotional times for people, and can be an important thing for us to consider in the buying process — the fact that some consumers have emotional attachments to their current vehicle and are looking for their next “partner,” if you will.

Brands lure consumers to their vehicles with original content designed to generate interest in their make. It is then your job to take that and transition it to interest in a specific vehicle. Think of it like speed dating. The car lots of the world are now represented online with every dealership of every make representing potential suitors. However, few do a good job of representing their potential “dates.” The consumer wades through countless profiles and descriptions trying to find their next “partner.” The process becomes frustrating as the consumer’s search narrow in, become more specific, yet they are met with numerous profiles that all virtually look the same. You have the same 35 to 50 photos as everyone else, the same list of features, and the same buttons with the same calls to action as everyone else. Why should the shopper choose you?

The point is that successful dealers make it as easy as possible for a car shopper to start the love connection with THEIR car by telling the vehicle’s story through images, narratives descriptions and, most importantly, a good unique video.

But that’s not all. Let’s take the dating analogy again — Perhaps match.com isn’t the ideal place for you to meet that next special someone. It’s certainly not the only dating site in existence. To position your dealership’s inventory to have the best chance of success, you need to make sure that you are on as many dating sites as possible. Ensuring that your car has the best chance of getting chosen involves developing a strategy that reaches the right shopper on the right touch-point at the right time in their buying cycle. With the right strategy, you will appeal to the fundamental emotional relationship that most shoppers are searching for (it’s not just a car to them) and successfully match more shoppers with their next “partner” than you will by simply trying to motivate the shopper with “price”.

Don’t Let Your Video Become a Flash In the Pan

by Brian Cox

There’s no doubt that video marketing, in general, has become increasingly important in today’s world. Google has the search market cornered which is why, as marketers, it is important to pay close attention to the changes they make. However, did you know it’s even more important to pay attention to the second largest search engine in the world? You might think that I’m referring to Bing but, in fact, the second largest search engine is YouTube. Thus the importance of video for SEO.

Dealerships have increasingly embraced video in various degrees for years – from simple stitched videos to professionally created live walkarounds. There’s no doubt that consumers love video. In fact Google’s recent automotive study indicates that over 80 percent of car shoppers will watch a vehicle video and then take immediate action.

The challenges that face car dealerships when it comes to creating videos are the same as they have always been – time and money. There are many solutions that exist for car dealerships in video marketing. I’m fairly certain that you would agree that ANY video is better than no video. And you may even believe that all video is equal. Well, with this blog, I hope to help dispel those erroneous thoughts.

Let’s start with the fact that live video is the most effective (which it is). I don’t think any dealer would deny that, in a perfect world, they would have video walkarounds for every one of their vehicles. The infrastructure and format of your video is just as, if not more important than the quality of it. Some providers use flash-based video which allows them to offer video services to their dealer clients at a lower price point… and, on the surface, there is no visible difference between a flash video and a real video. In reality, however, there are huge differences.

Flash videos are self-contained videos that require a player (like Adobe Flash Player) or a compatible web browser with a plugin. It wasn’t too long ago that flash video was the de facto standard. Technology, however, has changed. Consumers are increasingly accessing the Internet and websites using mobile devices. Guess what’s not compatible with those? You got it, flash video. In fact, in mid-July of this year, Google itself announced that it would start issuing warnings to people attempting to access websites containing flash with the statement “Uses flash. May not work on your device.” Chances are really good that a consumer coming across a website or video that receives this message will probably not continue, but rather seek their answers elsewhere.

Your website will certainly not benefit from video if your audience is not viewing it. In fact, flash video isn’t supported by any Apple device, nor Android versions 4.1 or higher, according to Google. These devices account for a HUGE share of the mobile market. Flash video is also not compatible with some third party inventory sites, and it also has problems with syndication to social networks and other touch points that consumers are on.

Real video, on the other hand, offers a few very important distinctions as web developers gravitate towards such things as HTML5 with mobile capabilities and syndication. According to the Interactive Advertising Bureau, “Nearly half of the U.S. population has a mobile phone with Internet access, and one out of five page views on the web happen on a mobile device – a number that is growing every month.” Needless to say, if you are using flash, you are already costing yourself 20 percent of potential traffic.

As a dealer, how do you know what kind of video you have? The answer is if your videos are syndicated across the web, viewable on a mobile device or tablet and the search engines can see them, you are doing the right thing and have real video. If not, you most likely have flash.

One of the largest advantages to real video is semantic search. Search engines don’t have the capability of indexing flash video. Real video, properly tagged and built using a semantic structure, can be indexed. Not only can they be crawled by search engines, but the search engines will read each video as an individual web page. This increases your page rankings. Last, but certainly not least, real video has the ability to be syndicated everywhere. All of those touch points that consumers use when vehicle shopping can display your video and increase the reach and impact of your video marketing. Of course more exposure brings more traffic viewing your inventory. And the more traffic your inventory receives, the more leads, conversions and sales you’ll see.

The bottom line is that flash video is a bad solution for video marketers. Flash video may be cheaper than real video, but what are you losing in the end? Just because it’s a shiny object and looks pretty, doesn’t mean that you should be using it. Real video offers businesses the ability to have a bigger footprint with their video marketing. It increases the effective of any marketing and the likelihood that a consumer will want to AND have the ability to watch it. This is the whole exposure aspect of real video plus real syndication. It equals more traffic, which equals more leads. The few dollars you may save by going the flash video route will pale in comparison to the profit you’ll lose from customers who never see your video or visit your dealership.

Mastering the Migration from Traditional to Digital Marketing

Auto dealers leverage dynamic digital media to maximize online presence and profits

Posted by Brian Cox on December 13, 2011

Gone are the days when the big three of traditional media marketing—newspaper, radio, and television—had exclusive dibs on every last penny of a dealership’s marketing budget.  True, those old-school mediums still hold a place in a dealership’s overall marketing spend.  But, make no mistake—they’re fast being reduced to a lesser role as the majority of marketing dollars are being earmarked for digital and social media initiatives at dealerships of all sizes across the country.

The seismic shift from traditional marketing to digital marketing is being driven by progressive, forward-thinking dealerships, who are tipping the scales in favor of stores that take calculated and strategic steps to capitalize on digital marketing’s vast reach, immediacy, and cost-effective benefits.

“Digital marketing is eclipsing traditional media,” said John Roth, internet director at Roseville Toyota-Scion in Sacramento, CA—northern California’s largest Toyota-certified pre-owned store.  “It completed the waxing stage—and traditional media is waning.”  Roth notes that over the last five years, the dealership has shifted from a mix of 20 percent electronic and 80 percent traditional media marketing to approximately 60 percent digital marketing and about 40 percent traditional.  “Up to 70 percent of our dealership’s sales can be attributed to web-based media, digital and social media, Facebook, and Twitter.  Five to 10 years ago, it was the other way around—30 percent from digital and 70 percent from newspaper, radio, and TV advertising,” said Roth.

Why make the shift from traditional media to a digital media marketing focus?  “It’s the same reason why we did away with the horse and buggy and got into transportation in automobiles,” said Roth.  “The writing is on the wall.  It’s the 21st century, and this is the way we’re doing business.”

 Whatever the size, inventory, or location of your dealership—whether it’s a family-run Mom-and-Pop operation or a sprawling franchise mega store—incorporating digital and social media ventures into your overall marketing mix is flat-out crucial to a dealership’s ability to compete and survive in today’s environment.

Digital marketing boasts a host of attributes.  It’s affordable.  It’s immediate.  And it’s more targeted, more trackable, and can deliver more substantial value to your dealership by facilitating true interactive engagement and building long-term relationships with your customers.  Online marketing offers countless, ongoing opportunities for personalized, one-to-one communication and genuine give-and-take interaction with your customers—while at the same time spreading the word, far and wide, about your dealership through strategic content syndication in the digital realm.

“We started the transition from traditional to digital marketing in 2009—because that’s the future,” said Mark Cowart, general manager of Car City West in Des Moines, IA, a dealership with a five-star rating on Google Places.  “There’s no benefit to newspaper anymore.  I’m not doing any print.  I’m getting rid of radio.  We’ll have 10 percent TV ads and 90 percent digital marketing.  We drive 70 percent of my customers through digital,” he said.  “The number of people who shop online before they buy a car has grown considerably—and soon roughly 90 to 95 percent of people who own a computer will be shopping the Internet before they walk into a store to buy a car,” he added.  When it comes to adopting digital marketing, Cowart said, “I have no fear factor to it.  I want to be the creator, the innovator—I don’t want to be the follower.  If you’re not in the digital marketing and social media game, you’re hurting your profits.”

Your customers and potential customers are in the digital space daily—and that’s where your dealership has to be.

Behold.  The next frontier is here.  And it is digital.

Brian Cox is president and CEO at Dealer Impact Systems and can be reached at b.cox@dealerimpact.com or at (877) 334-9638.