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Mary Connelly Automotive News / December 4, 2006 Dealers know they need to market online. But some have made more progress on the Web than others. "The Internet is taking over," says Bill Jacobs, who owns eight dealerships in suburban Chicago. "If I could figure out how to advertise more effectively on the Internet, we would do that. Our industry and our stores personally haven't figured out how to do that yet." Despite his difficulties with the Web, Jacobs says he is spending more to advertise online and on cable TV. By contrast, he says he has cut his newspaper ad budget by about 20 percent over the past two to three years. He expects to trim even more in 2007. Classifieds look alike Newspaper readership is declining, Jacobs notes. And, he says, automotive classifieds often look alike. Thomas Vann, a Chrysler group dealer in Hillsdale, Mich., has gone Jacobs one better. Nearly a decade ago, he stopped advertising in newspapers. "Dealers have been so dishonest for so long on car ads, customers don't believe them," Vann says. "You have dealers who say, 'No gimmicks, no hassles, but you can get the (Dodge) Durango for $88 a month.' No, you can't." Vann says he "put all my eggs into the Internet basket." About three years ago, he says, he resumed advertising in newspapers for a month. But he dropped the effort when the ads got no response. In October, Vann says, he began limited advertising in free weekly shoppers to promote his store's move into subprime financing. "I want to see if the newspaper can play some role with people who have no (Internet) connectivity," he says. Folsom Chevrolet, near Sacramento, Calif., has parlayed its abandonment of newspaper advertising into a new business. Late last year, the dealership launched a Web site to display new and used vehicles it previously promoted in newspaper ads. It heavily advertised the site, which is separate from the store's overall Web site, on local radio stations. Photos, data, links The site provides nine photos of each vehicle, plus full window-sticker information. Its listings include Kelley Blue Book price data and direct links to Carfax used-vehicle reports. David Shirley, Folsom Chevrolet's general manager, says he helped form a new company, Dealer Adworks, which is marketing the dealership's proprietary Internet technology. He says 20 dealers are customers. Says Shirley: "Bottom line, it's definitely a better net profit." |
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