During a recent management retreat, a colleague introduced the group to the Internet’s fastest growing Social Networking site, Pinterest.com. Pinterest (pronounced pin-terest, not pin-interest) has burst onto the Internet with growth rates we haven’t seen since Facebook. Traffic has jumped to almost 11 million visitors in mid-December, nearly 40 times where it was only six months ago. Pinterest is now in the top 7 social networks on the web, with 59% of its users being women ages 25-44.

During the brief demonstration I watched, I initially didn’t understand the mission of the site, or rather, why it would drive consumer eyeballs. I learned that you needed to “apply for admission” which could take weeks, or you could find another Pinterest user and have them invite you. Just like learning about every other social network, you’ll never truly understand it until you immerse yourself (which is what I did). While I was figuring out the value proposition Pinterest offered, I also showed the site to my wife and her sister. Their instant addiction caused me to embark on a journey to find out more about this site, and potentially how it might help my customers (you, the car dealer).

If you visit the site, you will notice that the majority of content relates to food, home decorating, crafts, and child-related ideas. I took a stab at creating a man’s version of the site, including my interests in cool cars, vintage guitars, and outdoor barbecuing. I was pleasantly surprised that when I searched for related “Pins” and “Boards”, I found there were many others with similar interests.

Pinterest is all about pictures, not so much about words. When you find an interesting picture on the web, you “Pin” the picture and it is attached to your profile. You can also have “Boards”, which are subject-related collections of Pins. I have Boards for “Cool Cars”, “Vintage Guitars”, etc. Every time I find a picture of a cool car, I “Pin” the picture and put in on the “Cool Cars” Board. You can also “Re-Pin” someone else’s Pin, which propagates that content across the web. You can also simply “like” someone else’s Pin, which just shows you liked it, but didn’t feel compelled to Re-Pin it.

Since a major component of a dealer’s social marketing strategy should be to build a social network, and join in on the conversations, I would think a progressive dealer would start a profile for their store, and simply “Pin” new or used car photos for special or unique items. You might also “Pin” pictures of cool aftermarket or OEM accessories, perhaps alone or as part of a customer’s vehicle. You should be careful not to be too self-promoting, or you will be unlikely to attract many followers. Instead, only show the very new, or very special, models or products, and simply try to create interest. Creativity attracts interest on the site, by adding unique titles and high-quality photographs; you can increase the traffic to your profile. Be forewarned, Pinterest has rules where they discourage overt self-promotion, and you wouldn’t want to start your experience getting blacklisted.

You could also search the site for related “Pins” for makes/models that you carry, and “Re- Pin” those items and maybe add a comment with your thoughts. Again, don’t add a comment that could be in any way considered self-promoting but instead add an interesting fact about the benefits of the car’s make/model. You should also begin “following” other Pinners with similar interests, or anyone who starts following you. Like all social media sights, networking is key. Another idea would be to use your knowledge and statistics about the users on the site, and gear some of your boards to them. For example, since the majority of Pinterest users are women, create Boards that appeal to women and direct them back to your profile to increase views of your Boards.

You could create a Board for your local community with pinned pictures of your community involvement, Little League teams you’ve sponsored, and your passion for your surroundings. You could create a Board with pictures of cool home garages, pictures of interesting driving destinations, or even pictures of vehicle interior customizations. Once again, creativity is key on this site.

The goal is to create Boards that reflect the personality and culture of the dealership, and the interests of the owner. As in all social marketing programs, you are trying to personally connect, in many cases one-on-one with other people with similar interests. If they feel a personal connection with you, they may eventually decide to become your customer, since people like doing business with friends.

I’ll admit, it took me a while to get my hands wrapped around this new site, but the growth stats are incredible. Effective Digital Marketing Strategy says to promote your business where people are spending their time online, so Pinterest definitely fits the bill. This site will force you to be a little more creative, and a little more subdued in your approach, but the exposure and payoff in the long run should be worth it. Chances are most dealers will read this article and move on, so your opportunity to be an early entrant could give you a nice head start.

Good luck, and please let me know how I can help!

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I recall 15 years ago having conversations with dealers regarding the importance and necessity of deploying a dealer branded website. Today, dealers are now battling that same argument around the deployment of a dealer branded consumer mobile website / application.

Are dealer branded consumer apps a necessity or a nuisance?

Importance of mobile

With over 4.5 billion mobile subscribers in the US alone, dealers would have a hard time finding an argument against the importance of deploying a mobile strategy. As a key touch point that connects consumers to businesses, dealers need to consider that deploying a dealer branded consumer mobile app in their dealership is not only a necessity but also a cost effective way of increasing customer loyalty and ultimately driving repeat business.

Why are consumer apps important?

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There is a divide in the SEO community between behaviors that are considered unethical and those that are merely pushing the rules to the limit. As a dealer, you have the opportunity to choose who performs your SEO and what tactics they use to enhance your rankings. It’s up to you to make sure that your SEO’s tactics fall in line with Google’s quality guidelines in order to maintain a long term ranking strategy.

As with any industry, unethical behavior is a grey area. Everyone has an opinion about what is acceptable and what is not – the key is to educate yourself enough to be able to make your own judgments. However, I’d like to make the argument that an SEO should know, understand and abide by the quality guidelines set forth by the search engines in performing optimization services. In my book, not doing so quite often constitutes unethical behavior.

Gaming the Search Engines

The quantity and quality of links pointing to your site have a direct impact on your rankings. As a result, many SEOs will attempt to inflate rankings by participating in link schemes. Popular methods include purchasing links from third parties or creating a portfolio of websites solely intended to boost client rankings. The latter method is fairly prevalent in the automotive industry, so I’ll explain in more detail.

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I read this article on Searchengineland.com the other morning. The basic point is this: brick-and-mortar stores that have ecommerce websites (so that they can conduct actual click-to-sale transactions online from their paid search advertising) receive $6 worth of OFFLINE, IN-STORE sales from their paid search spending for every $1 they receive in click-to-sale revenue online.

I find that to be a truly startling statistic. If a brick-and-mortar business that sells online is only looking at click-to-sale ROI, are they under-counting the return on their paid search by a factor of 600%?

The ramifications for car dealers are tremendous. If you are only evaluating your PPC from the website leads and subsequent sales that your ad budget is generating, you may be dramatically mis-evaluating your program and mis-allocating your marketing budget.

According to NADA Data 2011, only 24% of the average franchise dealer’s 2010 marketing budget is Internet-related spending. The average dealer spent $6,600 per month in online advertising in 2010.

Here’s a quick breakdown of Dealer Spending by Marketing Channel in 2010.

As you can see, while online spending is higher than any other single channel, it is still not even a quarter of a typical dealer’s total spend. I wonder if dealers aren’t spending more online because they are under-valuing the return on their paid search budgets by only tracking form submissions. I always recommend to our dealers that if you are doing paid search advertising, you should ABSOLUTELY use call tracking so that you can account for the phone calls you’re driving with your ad spend.

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In February 2010 Google made a presentation to a select group of industry leaders about their foray into automotive lead generation. I was not in attendance but I was briefed on the program at the show. I never heard any more about the details until today’s post in Automotive News.

I am sure that Google has briefed the major automotive vendors that run Adwords campaign for thousands of car dealers about this change. However the larger community needs to know about this major shift in new car lead generation strategies.

In my opinion, this is a major SHIFT for the Google Automotive team which has not gone into direct vehicle lead generation until now. I look forward to interviewing and discussing this new program with the Google Automotive Team at the 2012 Digital Marketing Strategies Conference.

Lead Generation Is Not New For Google

Google has been running lead generation campaigns for other vertical markets, like mortgages. If you look at the screen capture below, Google is running their own PPC ads to capture leads:

These ads are labeled “Comparison Ads” and these ads are competing with other PPC lead collectors. When a consumer clicks on the PPC Comparison Ad for mortgages, a landing page for lead collection is displayed:

Lead Generation For Dealers

According to the Automotive News article written by David Barkholz:

“Google will establish a Web page for vehicle shoppers. Dealers will bid, through a Google auction, to be one of about three dealers listed on the page when shoppers fill out a discounted price request for, say, a 2012 Toyota Camry with some specifications. The shoppers choose which of the listed dealers will receive the lead and provide the price…”

This will be a game changer for businesses that use PPC for lead generation. Companies like Edmunds, Autotrader, and new comers like TrueCar that all use PPC as part of their lead generation strategy for new car buyers will be impacted.

Competition for new car leads just got more interesting, and for some, maybe more expensive.

This offering will need to be examined in greater detail when this official launches this in the Bay Area. We will have more details on this new offering after we get a briefing from the automotive team at Google.

How do you see this impacting your dealership?

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