Are Your Co-op Marketing Programs Working Today?lotvantageblog
It’s Sunday afternoon and you are watching the football game with your family and the game goes to commercial. What do you and the rest of the family do? Most likely one of two things, flip to the other football game, or grab your cell phone and start scrolling on Facebook. Facebook did a study recently that showed usage DOUBLES during commercial breaks. This means that expensive commercial you are running is 2 TIMES less likely to be seen.
Thanks to services like Netflix and Hulu the age of streaming television is here. eMarketer estimates that 176.4 million US adult internet users will stream or download content a least once a month this year. Are you capitalizing on this $80 billion shift in advertising both at the OEM level and co-op programs?
It starts with reviewing your company goals and expected dealer behaviors. I am a firm believer that pay plans drive results. Your co-op marketing programs are pay plans. Are they driving the results you need? Now, think about where you spend your time. Nearly 50% of consumers time is spent digitally, yet less than 15% of our ad spending is digital. We continue to spend 85% of our ad dollars on print, television and radio, but as consumers we only spend 50% of our time in these areas combined and this doesn’t take into account what we do when commercials come on!
For years, OEM co-op programs have followed a 50/50 split for all media. Why? Shouldn’t we align our spend with the habits of our audience? Looking at the stats above, we should reimburse less for television commercials, billboards, and print and more for Social Media advertising. Every dollar counts and measuring the ROI of a billboard or television commercial is difficult. Your Facebook advertising is TARGETED, to people who actually have an interest in what you are selling. The ROI with Facebook is crystal clear allowing you to move from the traditional “spray and pray” approach to a hyper focused and exponentially more effective approach.
A study by gen.video and Geometry Global, found that nine in 10 social network users are influenced to make a purchase after seeing content on social media. Dealers want to spend more time advertising on Facebook, but the co-op reimbursement process is not easy for them. Submitting a screenshot of the ad, where the click traffic was directed to (not always relevant), then a screenshot of the spend is a lot of work for dealers. More importantly, they don’t have the time to create the ad to begin with! We have allowed co-op reimbursement for websites because we leverage the website provider to make it easy. It is time to look at social media the same way. In fact, a recent study found that the average dealer Facebook page ranked 2.4 on a google search for the dealership, right behind the website. A dealers’ social presence is critical and just as, if not more, important than their website.
Now is the time to look at your budgets and programs for 2019. Don’t just put the same programs in place for 2019 and expect different results, that’s insanity. Change your focus to where you consumers spend their time and market to them on Social Media, where you can target your audience.