Your advertising is an investment to deliver a message to a target audience. (people / population) Not everyone is properly pre-qualified. Rather then delivering a message to a target audience, choose instead to deliver to a target household.

1. Investing Advertising Budgets
for Automotive Accounts
The Scientific Approach

2. To Determine how best to
allocate any advertising budget …
first identify any waste.
“50% of my advertising budget
is wasted – Trouble is-
I don’t know which half.”
-John Wannamaker
Truth is your waste % maybe
between 50% and 80%.
YOUR BUDGET
% OF WASTE
EVAPORATES

3. Problem One
Every Medium has a different way of measuring their audience
Newspaper & Magazines........(ABC) Audit Bureau of Circulation
Radio / TV ................................................................................Nielsen
Outdoor ..........................................................................Out of Home
Direct Mail ..........................................................“Return to Sender”
Internet ..........................................................................Impressions
Every medium and its respective audience suffer from not
being effectively pre-qualified.
How the audience receives their information and geography isn’t enough.

4. Theory
Your advertising is an investment
to deliver a message to a target audience.
(people/population)
Not everyone is properly pre-qualified.
Rather then delivering a message
to a target audience, choose instead
to deliver to a target household.

5. You can get critical household counts for the following:
Any Zip Code
Any Area of Interest
Anywhere in the Country
This can be compared to any
geographic map presented by any medium.
Print—Circulation
Radio—Listenership
TV/Cable—Viewership
Outdoor—Traffic Count
Internet—Impressions

6. You are now able to compare
all media investments
to each other.
Household count is the
common denominator.
Then compare media household(s)
to Automotive Sale(s) households
for any geography.

7. 2011 Census NJ Population 8,800,000
2011 Census NJ Household Count 3,500,000
(Driveways)
2012 NJ Car NJ Dealerships 474
Auto Outlook New Car Sales 440,000
Used Car Sales 210,000
Total Sales 650,000
Ratio of Households to Dealership Sales New 1:8
Used 1:16
Total 1:5
Math on NJ Dealer Sales

8. Statistical Probability of any
Medium’s audience (household count) to purchase a car
thru a Dealership in New Jersey in 2013.
1:16*+
One in Sixteen
Households will purchase
a Used Car this year.
1:5*
One in Five
Households will purchase
a Car this year.
1:8*
One in Eight
Households will purchase
a New Car this year.
*Thru a Dealership
**Plus approx 200,000 thru private sales & 200,000 thru used car lots.

9. Math on Traditional Media (A)
Media Audience Budget # of Web Assets
Star Ledger 70,000 $2,800 1 nj.com
Trenton Times 37,000 $4,200
Princeton Packet 19,600 $1,200
Comcast Princeton Zone 59,000 $7,000 1 comcast.net
Plus Middlesex Zone 49,000
Billboard 15,900 $7,000
250,000 $20,000 ($80 cpm) 2
1/5 the
households 50,000 (A) $20,000 ($400 cpm)
Vehicles
per month 4,175
Divided by 15%
Est. Honda Mkt. Sales 626

10. Math on Online Media (B)
Medium Audience Budget # of Web Assets
Video SEO N/A $400 1 (Google)
Auto Digital Inventory N/A $1200 30 Websites
300 Directories
BullsEye SEM 15,000 $4000 1 (Google/Bing/Yahoo)
Auto Digital Network 250,000 $4500 Up to 150 Websites
Certified Response 45,800 $6000
Network Marketing
(Database Marketing)
310,000 $16,000($51 cpm) +340 Web assets
Divided by 2 150,000 (B) $16,000($162 cpm) +340 Web Assets
(For any reason)
Aggressively pursue pre-qualified prospects thru their desktop computers, laptops, tablets,
smart phones using geo-targeting, behavioral targeting and retargeting.
Desktop
Laptop
Tablet
Smart Phone

11. Traditional vs. Online
Out of the market place
Traditional
(A) (B)
$20,000
per month
$400 CPM
50,100 auto
prospects
Web assets 2
Online
$16,000
per month
(20% less)
$51 CPM
(87% less)
+310,000
auto prospects
(500% MORE)
+340 Web assets
> 40 auto relevant
> +300 local geography
> conquest keywords
> shop inventory
Research
Shop
Buy
Sold
Interest in
Traditional Declining
#1 medium
for research
GrowingAnd Declining

12. Position of Dealerships (2 Generations Ago)
If I make this investment...how many vehicles will I sell?
Position of Dealership (Renews Generation)
If I make this investment...
• How much floor traffic will I log on my up sheets?
• How many phones calls can I track?
• How many coupons were redeemed?
• How many TV’s did we give away?
Position of Dealership (moving forward)
-I want to make an investment to the most pre-qualified prospects one solution at a time, (pending budget
still exists) then adding a 2nd, 3rd, and so on until diversity is achieved and the budget is reached.
-The more pre-qualified the prospect (media solution audience) the better walk-in variable, phone call volume,
website traffic, page views, time spent, new visit rate, bounce rate, goals completed, booked service appointments,
parts ordered, coupons downloaded, request a quotes, visits to map/direction/hours page.