2010 Dealer Digital Advertising Program

David Schoonover
02/22/10

TABLE OF CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Executive Summary
Objectives
Budget
Timeline
Program Benefits
Strategy
Current State
Competition
Case Studies
Dealer Process Flow
Communications Plan

12.
13.
14.
15.
16.
17.
18.

KMA Coordination
Current Publishing Partners
Billing Process
Measurement
Creative Development
Dealer Package
Field& Dealer Training

1. EXECUTIVE SUMMARY

Establish a Tier 3 dealer digital advertising program, inclusive of

display ads, search, and social media

2. OBJECTIVES
Provide Kia dealers with a mechanism to extend their traditional
(TV, print, radio) advertising Online
Increase Kia brand continuity and ability to extend sales events
and launch communications
Improve dealer profitability through reduced costs
Dealers dont know what they should be paying for digital services. By having
KMA involved, we can watchdog on their behalf

Achieve net zero cost program for KMA

Provide subject matter expertise at the regional and dealer level to foster
growth and program development: self-funded by program revenues
Educate dealers how to advertise in the digital age, and provide them
with online ad development tools necessary to complete the task
Improved coordination and consistency for T1, T2, T3 advertising efforts

3. BUDGET
$$

4. TIMING

EAD 60 days from development to signature

RFP 90 days incl. Q&A (draft 30, vendor response 30, Q&A 30)
Vendor Selection 45 days (21 days vendor pres, 24 for decision)
Contract
60 days (author, negotiate and execute)
Systems Dev 120 days

Total time to launch = 375 days

5. PROGRAM BENEFITS

ADP TO PROVIDE their side

DNG ROLE and costs
Increase dealer competitive position by adding their
capabilities
Adds additional lead generation mechanism
Further leverage and expand upon Kia programs (eLeads and
Website)

6. STRATEGY

Leverage Kia iMarketing Dealer Services infrastructure

Increase dealer knowledge base through significant team
involvement
Install market-level flexibility to fully maximize local-market
conditions, politics, economy, events, etc.

Fix Dealer Site and

SEO Optimize

Paid Search

Display Ads

Social Media

7. CURRENT STATE

AUTOTRADER
ELEADS TRAINING AND CLOSE RATES
DEALER ACTIONS AND REQUESTS
KIA DEALERS ARE LARGELY ON THEIR OWN
DEALER DIGITAL SPEND BY OEM
SOME KIND OF RESEARCH
SOME KIND OF DEALER QUOTE

8. COMPETITION
All major OEMs have a T3 digital advertising program (except
Hyundai and Kia)
1. Ford: Long term leadership, large team, digital dedication and
significant allocation of human and financial resources since
1997
2. Honda: Excellent business process (a stable of the company)
3. GM: Substantial funding, full program. Downside is that they pay
for everything for their dealers, the dealers dont have a financial
stake thus they are not as engaged. Large company creates lack
of coordination
4. VW funds and dedication
5. Subaru Scrappy and excellent and niche marketing, plus not
scared of unpopular niches such as GLBT
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8. COMPETITION cont
All major OEMs have a T3 digital advertising program (except
Hyundai and Kia)
6. Nissan live regional trainers
7. Chrysler minimal program. Just launched PAP promotional
allowance program which provides a higher rate of co-op credits
for digital advertising. No other guidelines or services.
7. Toyota highly fragmented internal organization (GST, SET) leads
to non-centralized strategy

11

APPENDIX
1.
2.
3.
12.
13.
14.
15.
16.
17.
18.

Case Studies
Dealer Process Flow
Communications Plan
KMA Coordination
Current Publishing Partners
Billing Process
Measurement
Creative Development
Dealer Package
Field& Dealer Training

12

9. CASE STUDIES

ADP TO PROVIDE

13

10. DEALER PROCESS FLOW

ADP TO PROVIDE
1-800-XXXXX
WWW.XXXXXXX.COM
Co-Op and IDA claim submission

14

11. COMMUNICATIONS PLAN

Internal

Dealer announcement (NADA)

Website (iMarketing, or ADP provided like Cobalt?)
Phone number
Letter from Michael

Roll Out

15

12. KMA COORDINATION

Tier 1 In-Market plan

I+
D&G
Reprise Search
AD Kia.com

16

13. PROPOSED PUBLISHING PARTNERS

ADP TO PROVIDE

17

14. BILLING PROCESS

The process will follow the current Proxicom e-Leads structure:
ADP will manage contracts, billing and payments for all
advertising publishers
ADP will provide Kia on a monthly basis with a statement of
charges by dealer
KMA will bill dealers via the parts statement
KMA will pay ADP once dealer payments are collected, thus
maintaining a positive cash flow
The billing rate will be 1:1, thus except for startup costs, KMA
budgets will reflect a $0 net cost.
ADP will retain in a Kia bank account a 10% credit (from ad
buys only, not the monthly dealer admin fee). That credit will
be used to fund the RDDTMs.
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15. MEASUREMENT
Measure

19

16. CREATIVE DEVELOPMENT

ADP TO PROVIDE their side

DNG ROLE and costs
Process Map, timing

20

17. DEALER PACKAGES

ADP TO PROVIDE

21

18. FIELD AND DEALER TRAINING

ADP TO PROVIDE DESCRIPTION AND SCORECARD

RDDTM (Regional Dealer Digital Training Managers)
Job descriptions

22

ABOUT ADP
ADP TO PROVIDE

23

ISSUES

Single Source Justification

I+ to review dealer package offerings
Add ADP to terminated dealers eMail
ADP to provide first cut at contract
Determine financial responsibility for terminated dealers
Pixel tagging Kia.com
Officially add to co-op program
Establish desks at the regions for RDDTMs
Dealer agreements
Legal to negotiate contract terms
Procurement to negotiate trainer and other rates
Update ADP proposal w/Kia travel policy numbers

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