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Many of you already have websites which are (hopefully) integrated with your offline advertising channels (radio, tv, billboard, newspaper, magazines, direct mail), and you probably generate a substantial part of your traffic and leads through this channel.

What if I were to tell you that Google has made a game changing, strategic move that could reduce your online leads, traffic and profits considerably within the next 2 – 5 years if you do NOT pay attention to the implications of that move?

Google spent $12.5Billion last year to acquire Motorola Mobility, and this acquisition was so strategically important that Google spent more than 41% of it’s free cash for the deal. Now, why would Google bet almost half its cash reserves to make this deal? Is this acquisition telling you something about the future of the internet that WILL have a profound impact on your business if you ignore it? Note that, Google almost OWNS the internet today, but was willing to bet nearly half of its cash reserves to get into the mobile app design solutions playing field!

To understand why, consider these facts:

The Whole World Is Going MOBILE!

  • · There are 5.2Billion mobile phones worldwide and growing rapidly
  • · There are 1.1billion smart phones worldwide and growing rapidly
  • · About 80% of US households have mobile phones
  • · In the US, about 25% of mobile web users are mobile ONLY!
  • · A whopping 10% of Google’s page views are mobile
  • · About 83% of people go online to find a business

Bottom Line: Mobile apps are now replacing web sites. And if you are not thinking about or taking steps TODAY to integrate your existing websites with mobile, you will slowly find yourself out of business!

So What Do You Do?

Fortunately for the small to medium sized business person, there is still time to act, even though the window is closing fast! There are a few, affordable, scalable and functionally powerful ; cross platform mobile app solutions on the market for you.

What Features MUST You Look For In Your Mobile App Design Solution?

  • · Your App Must Have Cross Platform Capability – Must work on Iphones, Ipads, Android, Windows, Blackberry and if you can afford it, Kindle and Nook!
  • · Push Notification – This feature allows you to send unlimited offers/coupons to ALL your customers who have opted to download your app ( at NO additional charge)!

o And by the way, the open rate on push notifications is 97% within 5 minutes, vs. only 4% for emails and even lower for newsletters!

  • GPS Direction – One tap by your customer; and directions to your business is displayed!
  • Quick Response (QR) Coupons – Can be used to download your apps and also as a ‘frequent buyer” card similar to the paper cards used by coffee shops, etc
  • Tap To Call – One tap, and device calls your business, no more fumbling to find a # and dial
  • Tap To Email – For your newsletter, etc
  • Mobile Appointment Scheduling/Reminders – For the Service Division - Should integrate with your existing platform and allow you to schedule and/or remind customers of upcoming service by text messaging.
  • Simple, Inexpensive, Complete Integration: Your app must be capable of handling the existing functionality and features on your website, and must be scalable to handle future changes. You must not accept high cost, ongoing code changes.
  • Guaranteed Submission & Acceptance Into Apple I-Stores & Android Market Place: Your app is no good unless it is accepted by Apple & Google. Your mobile app developer must have the credibility and ability to deliver your app to Apple and Google!

Finally, WHY Should You Consider Getting A Mobile APP?
Your current and/or future customers comprise the majority of the ‘untethered” consumer. Whoever is in their pockets (via smart phone app), will COMMAND their attention, loyalty and $$$ dollars!

  • Their smart phone are within reach 24/7
  • 97% of them will open/read your messages/coupons or offers within 5 minutes, vs. only 4% for email (within 24hrs)
  • It Is A Question Of ROI And Profitability- Your mobile app will help you better integrate and tie together ALL your online and offline marketing channels. and reduce your advertising seepage!
  • Your websites must be integrated and connected to your mobile apps.
  • You will reduce advertising expense seepage, and with the same amount of ad spend, you should expect to get more   customers, keep your existing customers coming back more often and buying more often from you.
  • A mobile app allows you to have a one on one intimate communication with your customers
  • Constant Branding – You are right ON your customers’ mobile device 24/7!

 Click here for more information about how you can take advantage of this mobile app design solution

Michael Ofori is President of MVO & Associates, LLC, a multi-media advertising agency and can be reached at:

978-631-0363 or email mike@multimediaadvertising.biz

 

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I don't think it's a secret that millions of Americans own a smartphones. See here: There Will Be More Smartphones than Humans & here: Afraid of Losing Your Phone, You Might Have Nomophobia

To affirm this even further, the brilliant folks over at Nielsenwire conducted a study: "New U.S. Smartphone Growth by Age and Income." While their study has produced a plethora of paramount statistics, there are just a few I'd like to touch on and examine their importance in regards to your dealership's mobile marketing strategy.

  • In the 25-34 age group, Neilsenwire found that 66% own a smartphone. 
    • 8 out of 10 who purchased a new device in the last three months chose a smartphone over a traditional mobile phone.
  • Of the people who purchased a new device, more than half under sixty-five years of age specifically chose a smartphone. In other words, they're adapting to a new world. 

Neilsenwire also examined the relationship between income and age as it pertains to smartphone ownership.

  • Those aged 55-64, with an income over 100k/yr, are just as likely to own a smartphone as those in the 35-44 age bracket with a substantially lower income.

What does this mean?

It simply means that people in the age bracket 35-44 view a smartphone as a necessity even if they're making only 35k/yr, while older folks view a smartphone as luxury. If I can afford it, then I'll buy it.

What does this mean for YOUR dealership?

Believe it or not, it all falls back to ZMOT and winning that Zero Moment of Truth. Seems like everything leads back to ZMOT these days, huh? In all seriousness, given these statistics, now you know your demographic in regards to smartphone users. It's time to utilize this information to inform your marketing strategy in the coming year. Several dealerships have already adapted by creating their own mobile app or a mobile program. For instance:

  • "TEXT 12345" TO ABC MOTORS to receive specials to your smartphone"

Additionally, more and more people are purchasing smartphones, regardless of income. This is opening up a new avenue for you to reach your customers. If you're not adapting to this new, tech savvy world just like the 55-64 age group is, then you're going to be left in the dust.

Is your dealership implementing the proper strategy geared towards more mobile customers?



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John Wannamaker, often considered the father of the modern department store and modern advertising was quoted about 90 years ago as saying Half the money I spend on advertising is wasted; the trouble is I don't know which half.”

 

Unfortunately, this problem holds true for many car dealerships (perhaps not as dramatic as quoted by John Wannamaker). However, there is no question that advertising seepage and waste is one of the most pressing concerns for advertisers and reducing that ALONE should dramatically improve your advertising ROI without additional investments.

 

Therefore, as you plan your advertising strategy for 2011 what plans are you implementing to:

 

  • Reduce the percent of advertising seepage?
  • Find out which ‘half’ of your advertising investment is being wasted?
  • Measure and track your advertising channels to determine which is NOT meeting your minimum advertising ROI requirements?
  • Cost benefit analysis to determine how much say a 5% reduction in advertising seepage will mean to your bottom line?
  • What specific strategies you can put in place to reduce advertising seepage?
  • What specific strategies can you put in place to stay in touch and engage your existing customers?
  • How do you plan to increase your parts, service and maintenance revenue with your existing customer base? 
  •  Have you claimed Your FREE Google Local Places Listing and is it adequately optimized and mobile device enabled?
  • Are you still advertising in the Yellow Pages? Do you know your marketing ROI for this channel?

 

Now, before we move on, let’s discuss WHY advertising seepage occurs. Let’s assume that you advertise only in the newspapers and Yellow Pages. You place your full page ad, with pictures of the cars you want to promote, your financing options, your phone or vanity #, address and website address. While this well and good, unless you have a short code keyword  or something that tie the two channels together, you will miss the % of your potential customers who prefer to use a mobile device to communicate and you are ignoring the largest growing segment of your potential target population.

 

According to EMarketer (Nov 2009), the % of mobile phone users is expected to increase at a rate of about 20% EACH year between 2008 and 2013 and as % of total US population, increase from about 16.7% in 2008 to 39.5% in 2013. In addition, according to Center for Media Research (Sept 2009), “80% of local media execs believe mobile will be the main distribution to consumers within 3 years”.

 

The New Multi-media Environment Calls For An Integrated Advertising Strategy.

 

Fortunately, there is a way for auto dealers to adopt this trend quickly, inexpensively and seamlessly into their current online and offline advertising strategies. The use of short code text messaging is already widespread. Adding this ONE keyword to all your advertising channels will vastly improve your response, leads and conversion rates.

 

Note that widely popular television shows such as “American Idol” and “Dancing With The Stars” give their viewers the option of calling or texting a vote to their favorite performer.

 

A catchy and memorable keyword in addition to a vanity # are a powerful combination to get your dealership’s name and brand message to consumers.

 

The multi-media car dealer will use their keyword, in the words of Thomas Hensey (Rhino Marketing), to “identify, find, touch and thrill” the target customer by offering them an incentive to text to their database. The dealer will then send the customer to their mobile website ad, featuring their specials, while at the same time sending that ad to YouTube and Social media.

 

In the process, the dealership builds a text messaging database of inquiries, leads, and customers for ongoing, periodic follow up. So long as the dealer continues to “touch and thrill” their database, they will be able to increase new sales, service and maintenance revenues.

 

The key to reducing advertising seepage and increasein sales and revenue is the ability to integrate ALL your advertising channels, and the short code keyword provides the dealer an inexpensive, quick and seamless way to do so. 

 

Michael Ofori is President of MVO & Associates, LLC, a multi-media advertising agency and can be reached at 978-631-0363  email mike@multimediaadvertising.biz

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First, let’s look at the media advertising landscape for 2011; then determine how your strategy fits into that and more importantly, how you are going to maximize your advertising ROI within these parameters.

 

According to Carat, a leading independent media communications agency, total ad spend in the US is expected to increase by 1.7% in 2011. “All media are expected to return to growth, except for the newspaper sector, which, along with magazines, is expected to be the weakest performer. The two biggest areas of growth are internet and television, followed by radio, outdoor and cinema… Online continues to capture a bigger percentage of the media spend in 2010 at 11.3%, increasing to 12.1% in 2011”.

 

The trend towards mobile smart phone devices to reach people on the move cannot be over-emphasized.

 

Now, given this landscape let me ask you the following questions:

  • What is your advertising strategy for 2011?
  • Do you have a plan to minimize advertising leakage or waste?
  • Do you have an integrated multi-media advertising strategy across ALL your media channels to maximize advertising message, leads and conversion?
  • Do you have a rigorous tracking mechanism in place know which channel provided the best ROI, and more importantly, to quickly adapt to changing response, leads and conversion patterns?

 

Despite the changing demographic and ad spend landscape many automobile dealers continue to devote the majority of their ad budgets to TV, newspapers and radio. It is true that the internet is getting a larger share of today’s ad budget, however, there is NO INTREGRATED strategy yet in place to minimize advertising leakage or waste.

 

Every month, the average automobile dealership spends about $50,000 in advertising and the average dealership will use a combination of  TV, newspaper and magazines, radio, direct mail and the internet to advertise.  The critical question is WHETHER all of these channels are integrated in a way where EACH channel provides input into the other that validates the dealer’s brand message.

 

In my opinion, the most ROI effective, integrated advertising strategy MUST encompass the following and include an appropriate, affordable, easy to implement online platform to enable seamless execution:

 

  • TV: You are already spending money here so make sure you include your toll free #, website info and provide an incentive for your watchers to respond to your shortcode keyword.
  • Newspapers & Magazines, Radio & Direct Mail: A contact phone #, website and shortcode keyword are critical here. Note that a response to your shortcode keyword will allow you to direct your customers by smart phone to your mobile website, YouTube and  Social Media sites.
  • Your Online Website: Must be well planned, easy to navigate and SEO optimized. Do not forget a call to action to your shortcode keyword.
  • SMS Text Marketing Platform (Opt-in): If you do not have this, you are missing a HUGE part of your potential audience. For people on the go, you can push through instant coupons, discounts, contests and gratification.
  • Automated Submission Of Ads On YouTube & Social Media: Your presence in this space without a lot of effort and resources is key. Tie in with the other strategies produces maximum results.
  • Automated Mobile Website Capacity: This is critical in today’s smart phone environment and to reach the Y generation.
  • Tracking & Measurement: Having a separate shortcode keyword for each advertising channel will allow you to track responses, leads, conversions and ongoing customer lifetime value. This will also show you over time which channel represent you most effective ROI and potentially reduce your ad spend.

 Once you have your prospects and customers’ keycode contact #, you can now send your prospects periodic new sales specials and coupons, and for existing customers, reminders and/or coupons for maintenance and other services.

 

Now, you are wondering HOW you could do all that without substantial incremental expense. First, doing this for 6 - 9months should show you which channels have the smallest or even negative ROI for possible elimination. Second, the potential incremental sales from this strategy should more than make up for any additional expense with this strategy.

 

You can position your company today to capitalize on the new advertising landscape by incorporating these multi-media advertising strategies to improve your ROI. Many of your competition are already doing it.

 

If you want to find our how other automobile dealerships are using this strategy, please contact me.

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