Automotive News - February 4, 2008 - (Page 32) 32 • FEBRUARY 4, 2008 The online dealer INSIGHT Dealers discover social networking sites MySpace, YouTube, others help reach sales prospects Ralph Kisiel rkisiel@crain.com T One of White Allen Volkswagen’s YouTube videos shows a character in a cheap gorilla costume. he Web sites MySpace, Facebook, YouTube and LinkedIn weren’t created with auto dealers in mind. But dealers are finding that the popular social networking sites offer an appealing new way to reach sales prospects. J.D. Power and Associates calls these sites the “new frontier” of dealership marketing. Dealers hope that the videos, personal profiles and blogs they contribute to the sites prove so engaging that members will share them with hundreds — or thousands — of other users. Neither Power nor the sites track how many dealerships post such content. “But they definitely are doing it,” says Arianne Walker, director of automotive marketing and media research for J.D. Power. “It’s a great opportunity because it’s essentially free advertising,” Walker told Automotive News. Content that is funny and entertaining is “important to get that viral effect, to get people to pass it around,” she says. Dealers who engage in social networking online say it’s valuable to make themselves known to users of the popular sites, even those who are not now shopping for a new vehicle. Video village Percentage of new-vehicle buyers who say they watch videos on popular social networking Web sites YouTube: 30% MySpace: 17% Facebook: 7% LinkedIn: 3% Source: J.D. Power and Associates Gorilla tactics White Allen Volkswagen in Dayton, Ohio, has uploaded three videos on YouTube. One portrays a young guy in a white Volvo who pulls up to two friends standing next to a Volkswagen Rabbit. He says: “Dude, check out my new car.” One of the friends replies, “Nice car, man, but it’s still not a Volkswagen.” He clicks his key fob to open the It’s our business to protect yours.® Auto Dealers— Are you looking for ways to help increase the bottom line? Come and hear Federated’s National Accounts Risk Manager, Dave Cameron as he presents: rear hatch of his Rabbit. Out crawls someone in a cheap gorilla costume, who smacks the Volvo driver in the face with a cream pie. Two attractive girls stroll by. “Hey, guys, nice Volkswagen,” says one, who flicks a dollop of whipped cream from the Volvo driver’s face and licks her finger. The 30-second video ends with an image of three VW models at the dealership. The voiceover says: “No need to get embarrassed anymore. White Allen Volkswagen has three Volkswagens under $17,000.” The dealership shot and aired the video as a local TV spot. More than 500 YouTube users have viewed the video since it went online, says David Idell, director of Internet operations for White Allen’s European Auto Group. “You have to do those types of things — blogging, YouTube, Facebook,” Idell says. “Putting a commercial on YouTube is simply a matter of signing up, logging in and posting it.” Not all dealership videos need to be high-concept to get noticed. Brumos Mercedes-Benz in Jacksonville, Fla., posted interior and exterior shots of a used 1998 Mercedes-Benz C43, accompanied by jazz music, on YouTube. The video includes the name and phone number of the dealership’s used-car manager. So far, it has had 2,260 views. Planting a seed Google, the largest Internet search engine, acquired YouTube in 2006. Google spokeswoman Caroline Campbell says the company plans to offer auto dealers a more formal set of advertising opportunities on YouTube. “We’re still in our infancy with the dealers,” Campbell says. Last year, Power surveyed new-vehicle buyers about their use of online media. Most buyers said they watched online videos, both auto-related and on other topics. Nearly one-third said they visited YouTube at least monthly, and 5 percent said they used the site every day or almost daily. “Dealers as well as manufacturers can put ads or videos in front of people,” says Power’s Walker, “to entertain them and to plant the seed to make sure they are aware of a particular dealership or particular manufacturer. It’s an amazing opportunity.” The Power survey also found that one out of six new-vehicle buyers watches videos on MySpace at least monthly. Seven percent said they visit Facebook, and 3 percent visit LinkedIn that often to view videos. The Maguire Automotive Group promotes its four New Jersey dealerships on its MySpace page. It lists dealership hours and locations, the group’s Web address, customer testimonials and sales incentives. The site also includes vehicle photos and a music video of Jon Bon Jovi’s “Lost Highway,” which features a Saturn Sky roadster. c Reducing Your Losses Employee Behavior Choose from one of three opportunities to hear this presentation at the 2008 NADA Convention. Visit us at our convention booth #7961S. The FEDERATED Insurance Companies · 121 E. Park Sq. · Owatonna, MN 55060 · (507) 455-5200 · www.federatedinsurance.com http://www.federatedinsurance.com http://www.federatedinsurance.com
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