AutoDealerMD Advertising Lift Software

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What Are The Six Biggest Concerns Dealers Have Managing Their Advertising?

Advertising is not what it used to be - - SEO, CPM, GRP, SEM, CPC, DMA, Native advertising, reputation management, above the fold (in print and digital), far forward right, skyscraper, road blocking, etc., etc.

Managing advertising is tough.  In the summer of 2016 AutoDealerMD surveyed auto dealers from 105 different U.S. markets.  And asked the question –  
                                                  What are your biggest advertising concerns?

 Here's what they told us their biggest concerns were:


#1:  How to Manage and Measure Advertising Effectiveness?
Up until 10 to 15 years ago, measuring advertising effectiveness was accomplished one tactic at a time.  The customer journey was pretty simple – watch an ad on TV or see an ad in the newspaper then come in for a test drive.  No more.  By our count there are now eighteen – yes, 18 – different categories of advertising.  And the average car dealer participates in 10 of these different tactics.  How do you measure effectiveness in this new media-optioned world?  Large advertisers have turned to marketing mix optimization and attribution to answer this question.  Prior to AutoDealerMD this technology was not affordable by even the largest dealerships.  Today you can get answers to actively manage the effectiveness of your advertising.

Always-On Advertising Performance Management.  

#2:  Can I Make Better Advertising Mix Decisions?
So your dealership is investing in 10 different advertising tactics, with 30 + vendors.  And you want to do what?  Manage advertising mix?  Here is what we have learned and what none of your media vendors will tell you:  You can’t manage advertising one tactic at a time, much less one vendor at a time.  Your advertising today performs more like a symphony - - with each tactic potentially building (or degrading) the effectiveness of your overall advertising budget.  Mix is a really big deal - - proper mix decisions can generate $2 in gross margin for every dollar of advertising - - bad decisions can make every ad dollar a “loss leader” - -that’s right we have worked with dealers where we found advertising budgets that were only returning 90 cents of gross margin for every dollar of advertising. 

Advertising Mix Decisions Matter – A Lot!  

 #3:  How do I Get Better Control Over My Advertising Budget?
Forty percent (40%) of auto dealers told us they are convinced they are over-spending.  But cutting budgets “in the dark” isn’t typically the best strategy.  AutoDealerMD has proven software that has been applied in a broad set of applications that give you the information and guidance needed to control and often cut your budget without consequence.  It’s a two-step process – (1) use our ad effectiveness models to determine the overall contribution advertising is making to vehicle sales in your operation and (2) re-allocate dollars between tactics and vendors based on the contribution that each is making to vehicle sales.  No need to go through lead conversion ratios. 

AutoDealerMD Models Directly Link Advertising to Vehicle Sales.

#4:  Do You Have a Proven Way to Reduce Advertising Waste (and Improve My Return on Investment)?
John Wannamaker, retail magnate, stated hundred years ago – “I know half my advertising is not working, I just don’t know which half”.  Trust us – Wannamaker was an optimist.  In our work with auto dealers we have found as much as two-thirds of advertising under-performs; and a significant share of ad dollars (20% to more than 35% of dollars) return LESS than the dealer spends - - in other words, those ad dollars are losing the dealership money.

Reduce Advertising Waste - FAST

#5:  Can You Suggest How to Deal with the Increased Complexity of Managing My Advertising?
The complexity of the media infrastructure is daunting.  A senior marketing professor at Arizona State University stated that “50% of his advertising course syllabus changes EVERY year”.  Is it any wonder that complexity is the number two concern?  To make things worse we find that the average car dealer works with 30 advertising vendors EVERY month.  Over the course of a couple of years there are north of 100 vendors in the advertising mix.  Crazy, right?   AutoDealerMD software reduces the complexity through standard advertising category assignments - - allowing the dealership to focus on the vendors that are driving overall effectiveness (or those vendors that are under-performing. 

Blast Advertising Complexity Using AutoDealerMD's Cloud-Based Software

#6:  How Should I Deal with the Multitudes of Media Sales Reps that Come Knocking On My Door?

The average dealership has 82 sales calls per month – EIGHTY TWO!  Media sales reps come in selling one or two single solution answers to complex advertising problems - - they devise dashboards that “prove” how well their single solution is working - - even though they know and you know that today’s buyer enters your dealership most often after receiving multiple messages from multiple channels.  Our AutoDealerMD professional staff all came from (and left) this world – trying to pitch you on their channel, their tactic to the exclusion all others.  Truth be told – media sales reps have NO IDEA whether their solution is getting real results or NOT.  AutoDealerMD makes sense out of this noise – bringing clarity and a single metric to each of your advertising tactics – simple “How many Gross Margin Dollars (from vehicle sales) did each drive”.  Media sales reps (that are smart) embrace our feedback and begin to work for you to improve the return and effectiveness of your advertising. 

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