In this issue of the Dealer Report:

Following the Leader in the Hi-Tech Age

Recently while on a plane I came across an interesting factoid. Did you know the first neon sign was created for a dealer? It was in 1923 for a brand new Packard dealer who had asked his sign maker friend to create him something unique. This dealer wanted to create a different look for his dealership and have a different feel since he felt the Packard at that time was quite a bit different than anything else.

Of course not soon after the sign maker was creating neon signs for every dealer around, and soon most all Packard dealers around the US. We are as you know a very copy cat industry, if we think a dealer is doing something good, we steal, copy, or emulate it. There is an old saying that it is the sincerest form of flattery, however most are simply installing the "neon sign" without really understanding the meaning of what they are trying to emulate. So, we have the sign now, but is that selling more cars?

With the explosion of technology there are a hundred different things out there for dealers to buy to enhance their business, from crm's to leads to follow up tools and beyond. The real question is, should you be copying everyone else? How many times have you been pitched that a dealer down the street is doing well, you should buy this too

That is the topic I will be talking about in New Orleans at the Synergy conference in May. There are a host of great speakers and I am certain you will find the event a worthwhile expense. In addition, I have worked with Sean Bradley of Dealer Synergy to provide all recipinents of this newsletter 1/2 price admission. I look forward to seeing you there.

Best Regards,

Ken Potter
Vice President of Sales
310.280.4282
mailto:kpotter@carsdirect.com?subject=

Informative and fun, the 2008 Synergy Sessions are ready to rock!

With the vast majority of customers using the Internet to search or shop for vehicles, your dealership can't afford to be left out it's not a trend, it's the way business is done today, and that's not going to change. That's why AutoSuccess, along with Dealer Synergy and The Dubis Group are thrilled
to bring you the 2008 Synergy Sessions, to be held at W Hotel in New Orleans on May 13 and 14. The topic, "Change the Internet Conversation", has never been more relevant than right now. You don't want to miss this program. Informative, challenging and fun. Mark your calendars now.

We've got great speakers ready to help you grow your business, and will make this one of the best "no-nonsense" training events of 2008. We'll also be covering many of the topics no one talks about in the industry, such as:

1. How to break bad marketing habits

2. Failures of the "follow the herd" mentality

3. How to avoid vendors selling "snake oil" to solve your problems

4. Why some dealer web sites "suck" and what you can do to avoid those mistakes

5. The "blessings and curses" of the manufacturers online involvement in your business

Auto Dealers Turbo-Charge Sales through Online Video

Although online video advertising was a relatively obscure concept just 2-3 years ago, it has seen explosive growth in popularity and effectiveness. Today online video is no longer an optional or alternative marketing component, but has become absolutely vital to the success of any comprehensive ad or branding campaign online.

The phenomenal impact of sites like YouTube has turned online video viewing into a daily routine and consumer habit for the average American. More than 70 percent of all Internet users in the USA now watch online streaming video, and the online media research firm eMarketer predicts that those numbers will increase by another 20 percent or so within the next two years.

Internet users respond remarkably well to online video ads, and the Online Publishers Association reports that about 15 percent who watch a video, for example, pay a personal visit to the business identified in the video. More importantly, almost all of those who visit an advertiser also make a purchase.

Automotive dealerships are enjoying especially impressive results and benefits from the online video. Research shows vehicles sell better through a realistic and emotional connection with the consumer than the use of cleverly worded but otherwise static ad copy. A car buyer wants to see and hear the features of a car, not just read about them in a brochure or printed advertisement.

To drive sales, auto dealers need to convince buyers to interact with cars, and putting them behind the wheel via video has become the newest – and most successful – trend in automotive marketing. While buyers are reluctant to walk into a dealership and ask for the keys, they are not shy – and are generally eager and enthusiastic – about going to a dealership or manufacturer Web site and taking a virtual test drive through the lens of a video camera. In fact a recent study found that potential customers spent more time watching streaming car videos than they did reading vehicle specs and reviews.

But streaming online video offers much more opportunity than does typical television ad footage that only lasts for a few brief moments, because dealers can leverage a whole host of interactive tools to create a long-term relationship with the Internet user.

Many dealers create a marketing video for their own dealership site and then simultaneously post the streaming video to social networking sites like YouTube. By doing so they not only immediately evaluate the results of the ad in front of a large audience, they also drive or divert lucrative visitor traffic from these mega-sites to their own Web pages.

By making the Web visitor an interactive participant through streaming video, an auto dealer can create its own online community of car enthusiasts – and grow its own loyal and engaged customer base. Meanwhile the viewer feels that they are completely in control of the experience, making the entire process a completely intuitive and dynamic marketing phenomenon.

Would you like to learn more about CarsDirect? Send us your name and phone number in the form at the top of this newsletter and one of our reps will contact you.

Did You Know...

that 27% of all Honda Fit shoppers also reviewed the Toyota Yarus on CarsDirect? Want more insight into consumer habits? Contact Ken Potter today at 310-280-4282.

CarsDirect in the News

"For those of you thinking of buying a new car, even if you want to deal face to face with someone about a vehicle purchase, I'd recommend that you check out http://www.carsdirect.com/ as it provides the best overall information I found on line to help you save some money."

- McCook Daily Gazette- "Internet Car Buying" by Brian Hoag

March 12, 2008

Internet Brands Inc.‚ which pioneered online auto buying with CarsDirect.com, is becoming a powerhouse in all manner of content.

The company went public late last year and has since acquired a dozen Web sites. During all of 2007‚ it swooped up 45.

This year‚ Internet Brands will look to continue this pace by spending $20 million per quarter on similar acquisitions.

"We want to keep growing," said Lisa Morita‚ chief operating officer. "Our only constraints are keeping up with the growth."

- Los Angeles Business Journal- "Internet Brands Goes Into Overdrive" by Booyeon Lee

March 17, 2008

Internet Brands Product Lines in the News

With billions of dollars in incentive spending by automotive manufacturers every year, automotive portals are looking for ways to offer this information to consumers.

With this in mind‚ Autodata Solutions, Inc.‚is introducing a comprehensive incentives and rebates data base‚ which it says will allow automotive portals to provide geographic-based incentives to their online visitors. In the U.S.‚ it will be ZIP code specific; in Canada, postal code-specific.

The timing of incentives or rebates may influence whether a consumer decides to purchase a vehicle‚" Autodata Solutions said in a release. "Backed by Autodata Solutions' proven ability to research and compile this data, Autodata Solutions offers the most comprehensive database of current customer cash, dealer cash‚ loyalty/affinity cash and APR and lease programs in the United States and Canada. With this solution‚ portals can deliver regional incentive data to specific ZIP/postal codes."

- Canadian AutoWorld - "Canadian and U.S buyers to benefit from Autodata Solutions' incentives research"

March 17, 2008