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A New Spin on the AutoTrader Buy-a-Thon

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joe.pistell

joe.pistell

Uncle Joe
Apr 7, 2009
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#1
Why in the world is 'Trader (Cox Enterprises) buying up gigantic Automotive Internet properties like KBB.com, vAuto and HomeNet? Obviously, sellers are driven by possible Tax law changes, but, what's motivating the "fat finger" at 'Trader HQ?

It's very possible that Goolge's going to eat their lunch and render them a 2nd class citizen. It's happening in other verticals, take a look at: Google <--a search for a Garmin GPS

The presentation looks like:
Garmin nüvi 295W - Automotive GPS receiver - TFT - widescreen - ...
39 reviews
nüvi 295W offers a new take on an old favorite with Wi-Fi connectivity, a 3-megapixel camera with auto-focus, a dual-orientation screen that ...
Amazon.com - $89.00 Walmart - $89.00 Newegg.com - $100.00
Online stores from $87 -
Nearby stores

​
If I'm an auto classified site or lead reseller, that display would give me the willies. Google
looks for product groups that shoppers use Google as the epicenter of their product search (like electronics). It's Google's mission to deliver the finest shopping experience possible, this empowers the Google engineers "hard code" a specific search result when someone uses the matching make/model based search.

Go ahead, click the google link. See where it goes (and make pretend you're looking at a Ford Escape Page) Garmin nüvi 295W - Automotive GPS receiver - TFT - widescreen - 480 x 272 - color

Gulp... talk about game changer!


Granted, there are a lot of variables in our biz, but, you can't deny the facts... Google-ing and buying a car are meant for each other. This fact alone will drive Google to conquer our space.

"Ok... So what?" you say.
If all makes, models and all trims are one one side and all known automobile dealers are on the other, all a Google product manager has to do is to connect the dots. Google adds reviews and local search and viola!

I say 'Trader is buying Auto Internet Properties to diverse it's revenue stream and amass tools to make it's site become more of an authority to Google (and it's shoppers).





Bookmark this page and let's come back in 2013 to see if it's happened.
 
Last edited:
#3
Interesting thoughts on ATC. I personally see them as trying to branch out and become another all in one type solution. Hypothetically, f they were to snap up one more company that could build websites and maybe even a CRM company, they are then walking into dealers saying...

"With us you get the classified leads and listings and leads we have always provided. Now we can offer you an inventory listing solution that integrates instantly (instead of at night or the next day) with ATC, a pricing tool (vAuto) to keep you ahead of your competitors, a CRM, and a website, all for the bundled price of "?$". With your websites and ATC listings we can also give you Fast Ads video solution.

As a single solution they are easy cut out if not providing the results, but when they are also your pricing tool, inventory provider, CRM, and website provider, dealers will have a much tougher time dropping them.

Who knows, I could be completely off here, I just see them as trying to embed themselves as deep and wide into the dealership as possible.
 
#4
Aj

In Canada dealers who use Autotrader Canada (different company) have their websites provided for them as well as the advertising solution in a bundle and they dominate the marketing. I agree that these purchases could amount to an integrated automotive advertising and marketing platform. For example, if they bought VinSolutions who has a CRM then they would have an end to end solution for car dealers.

The reason why I built the Automotive Advertising Network (AAN) was to create an integrated marketing platform based on SEO strategies and social media to be leveraged by the best automotive website providers and I have a number of them integrated today. Car dealers can benefit from an integrated solution of websites and marketing tools, and if this is the direction that AT is taking, then we have similar paths and visions.
 
#5
That's one hell of a layout Google has with their Products page. It would need some works to adapt to used cars though.

I've had the opportunity several time to sit with Google and each tie they say that will are NOT getting into the automotive side of listing vehicles from any approach. of course that could change overnight.

I will sat though - if Google did something like this for cars - that would be a strong offering for the consumer. I like it!
 
#7
Obviously, ATC came to the conclusion recently that simply being an aggregator of vehicle listings is not only a very limited business endeavor, it might also lead them to extinction. As Joe says, when Google decides to "connect the dots" - and it's really not a question of if, but when - ATC (and Cars.com) become irrelevant. So the logical setup (to keep those dollars flowing in from the dealers) is to provide other services, and bundle them in a way that makes it attractive to the dealer (that's the hard part). Inventory management, pricing tool, perhaps throw in CRM, social media, who knows? Only time will tell, but if the current level and volume of complaints and cynicism are any indication, they may be in for an up hill and difficult battle. :shakehd:
 
#8
JoePistell said:
Why in the world is 'Trader (Cox Enterprises) buying up gigantic Automotive Internet properties like KBB.com, vAuto and HomeNet? Obviously, sellers are driven by possible Tax law changes, but, what's motivating the "fat finger" at 'Trader HQ?

It's very possible that Goolge's going to eat their lunch and render them a 2nd class citizen. It's happening in other verticals, take a look at: Google <--a search for a Garmin GPS

The presentation looks like:

Garmin nüvi 295W - Automotive GPS receiver - TFT - widescreen - ...
39 reviews
nüvi 295W offers a new take on an old favorite with Wi-Fi connectivity, a 3-megapixel camera with auto-focus, a dual-orientation screen that ...
Amazon.com - $89.00 Walmart - $89.00 Newegg.com - $100.00
Online stores from $87 -
Nearby stores

If I'm an auto classified site or lead reseller, that display would give me the willies. Google
looks for product groups that shoppers use Google as the epicenter of their product search (like electronics). It's Google's mission to deliver the finest shopping experience possible, this empowers the Google engineers "hard code" a specific search result when someone uses the matching make/model based search.

Go ahead, click the google link. See where it goes (and make pretend you're looking at a Ford Escape Page) Garmin nüvi 295W - Automotive GPS receiver - TFT - widescreen - 480 x 272 - color

Gulp... talk about game changer!


Granted, there are a lot of variables in our biz, but, you can't deny the facts... Google-ing and buying a car are meant for each other. This fact alone will drive Google to conquer our space.

"Ok... So what?" you say.
If all makes, models and all trims are one one side and all known automobile dealers are on the other, all a Google product manager has to do is to connect the dots. Google adds reviews and local search and viola!

I say 'Trader is buying Auto Internet Properties to diverse it's revenue stream and amass tools to make it's site become more of an authority to Google (and it's shoppers).





Bookmark this page and let's come back in 2013 to see if it's happened.
Click to expand...


I'm getting closer to the beast. The train is coming... Reminder! You heard it here first!
 
#10
brianpasch said:
Aj

In Canada dealers who use Autotrader Canada (different company) have their websites provided for them as well as the advertising solution in a bundle and they dominate the marketing. I agree that these purchases could amount to an integrated automotive advertising and marketing platform. For example, if they bought VinSolutions who has a CRM then they would have an end to end solution for car dealers.

The reason why I built the Automotive Advertising Network (AAN) was to create an integrated marketing platform based on SEO strategies and social media to be leveraged by the best automotive website providers and I have a number of them integrated today. Car dealers can benefit from an integrated solution of websites and marketing tools, and if this is the direction that AT is taking, then we have similar paths and visions.
Click to expand...

You pretty much hit the nail on the head Brian. I hear this from a lot of my fellow Canucks "We spend $5000 a month on advertising with Trader so they pretty much just give us the website"... Great pitch for Trader.

Once a dealer is on the complete package, they have tied up a huge percentage of the advertising budget with them.

In Canada Trader is the main player. I don't know the percentage but I would assume 90% of franchised stores are advertising their inventory with them.
 
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