Can Search Engine Marketing Destroy Your Dealers Budget?

[Joe Pistell]

IMO, the Internet Manager is too busy to learn and execute SEO and PPC.

List all the tasks that an Internet Manager (IM) has. Lil' dealer IM does all tasks, mega dealer IM has teams that execute tasks.

I say... Back to Basics.
Our photos suck.
Our options lists are rarely complete.
Our Veh. description writeups are empty, or, the same for all units.

Sexy, high quailty Photos sell cars, not the dark, inconsistant, fuzzy crap I see everywhere (my store included)

VIN driven options lists are only 60% of the option data. Bullet lists of options are rarely complete. If you have a used unit with a 6disc changer and rear DVD and no one knows about it, thats like cutting your phone lines and flushing gross down the toilet (when you finally do get a phone up).

Colorful, personal writeups sell cars, not not bullet lists.

IMO, 98% of all IM's need to focus on the basics of Internet Marketing before they move on and conquer PPC and SEO. Hire it out if you don't have the basics down perfectly.

Just my $0.02
Joe

 

[Alex Jefferson]

Jamie,
I have been contacted several times by a Reach Local representative and I assure you I understand the basics of SEO and SEM. The reason for looking at an outside SEM company was from a time standpoint like Joe stated.
However, I think there was some misunderstand in part by your representative and how the program was initially presented to me. This actually prompted them to call me and re-explain the program after I submitted my first post.
Since you’re on here, let me verify something else. I was updated and told that Reach Local does not get a bulk discount but they do have a "special relationship" with Google because they bring them so much business. Meaning, Reach Local has patented technology that is supposed to be more advanced than anything else out there.
Here is my basic understanding of the program. You (Reach Local) have a patented technology that allows a computer generated system to determine the best keywords to use and automatically adjust and learn as time goes on. You (Reach Local) would buy a keyword for 92 cents and resell it to us for 94 cents and so on. This is the part that continues to confuse me if you don't charge any monthly management fees because in that example that would only be $40.00. Unless you are jacking up the keywords prices a huge amount. I must say that is not the way it is being presented.

 

[Ken H.]

"Meaning, Reach Local has patented technology that is supposed to be more advanced than anything else out there." - regarding this line, I don't want to bore you with too many facts, but therre are over 40 companies claiming this and they all have somewhat of a case. The technologies range from outdated, to moderately performing to spectacular. There are industry experts that just evaluate the vendors of these systems and rate their overall performance.

If you find a good platform to work with (I'm not advocating one over the other - you need to do your own research and come to your own conclusions), you will easily outperform someone doing their program themselves. I now this last statement will upset some, but it is a fact. The ad systems and variables have gotten complicated and these sophisticated systems really deliver improved performance and results.

As fas as Reach Local's pricing model, it seems readily apparent to me that they are building their service fee into the cost of a campaign by building out the costs for the adwords based on a percentage. The question is what is the mark-up percentage they are using? Hopefully, they'll be able to tell us so we can use the information in assessing thier service.

 

[B-Man]

"They get at least 3 clicks a month from me - it is my favorite way to check their sites out! They get a few more from people I've trained to also click on them each month...our GM's love spending their money too!" -Alex of Checkered Flag

@alex: I'm glad you and your GM's have such high moral standing. I'm off to go click a couple of your ads.

 

[Alex Jefferson]

Jamie,
Thanks for calling me personally.
Great information and it all makes much more sense now.
I will be in touch.

 

[B-Man]

@alex From Proctor: Reach Local does not buy clicks in bulk and sell them back to you. They put a ~20% surcharge on the click before they report it back to you in their reporting system so you never SEE the fees. It is absolutely impossible to buy clicks from Google in bulk and resell them. There are too many variables at any given time to even know what a click costs. Time of day, competition, quality score all impact the cost of a click.

 

[Wayne Anderson]

Good comments Joe!

Setting up a quality SEM campaign can been done without hiring a vendor. It takes about 6-10 hours total if you do it right. I haven't touched mine in 6 months and regularily get $.68 / click. My only limit is what my owner is willing to pay.

And I agree with Mitch, SEO & SEM are very 2000ish. We need to look beyond. But like Joe says, the basics are so important.

On a side note, I was looking at Suzuki of Wichita and got to say I'm highly impressed with everything they do. Their owner's passion bleeds through the pages. I'm envious.

 

[Alex Snyder (blog)]

B-Man...where are the clicks?

 

[Ron Northbird]

Good Article,
My 2 or 3 cents:
I can see how if you decide to build a search campaign and let auto pilot take over this can lead to a wasted internet budget and a burned dealer. I personally would prefer to pay a marketing agency with a set monthly fee to build a custom automotive search campaign, monitor it and can offer accountable results when ever I so desire to see them. I would definitely stay away from any company offering multiple sales rep BS stories on how they can do anything without a fee.

The upside to using a automotive focused marketing agney allows the people or person in the dealership to assist with providing the correct information about what the dealership wants to place in text ads and allow them to do what they do best. Sell cars, in case you're wondering, instead of looking at numbers and keywords.

As for Search Marketing being the savior of your dealership well it definitely won't do this or kill the third party providers but one thing that is certain is search marketing is here to stay. I also must add that dealerships must realize people are like water and will always look for the fastest route to find what it is they are looking for whether it's a car or a quick trip to the grocery store if you don't provide the consumer a quick avenue to find their next vehicle, compare prices, or allow them to do research during the buying process I can guarantee your competitor across the street is, and if you're spending 10k a month on full page newspaper ads why not shrink the news ad to a half or 3/4 page and use the remaining portion on search marketing to provide this quick link and offer the searching consumer the details needed to make an educated buying decision. Just a thought...

 

[B-Man]

@alex Of Checkered Flag: I guess you missed the sarcasm.