 |
 |
|
"Koeppel Direct's media buying expertise has played an integral role in making my company successful. Koeppel generated so much business for our company, occasionally we have to limit their media buys, in order to handle all of the new business." | |
| - R. Gregg Marketer of Senior Products |
|
MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ...... |
Full Speed Ahead!
The automotive industry turns to DRTV in droves to get the word out about itself, its dealerships and its products.
By: Bridget McCrea
Published: 10/07 Response Magazine
|
| |
When the typical consumer is in the market for a new or used car, getting one usually
entails a quick perusal of the Internet to compare makes, models and prices, followed by a Sunday afternoon
drive to one or more local dealerships to check out the stock, test-drive cars and ultimately sign on the dotted
line for a purchase or lease.
Chicago-based Monster Motors is out to prove that there is a more economic and effective way to buy automobiles,
and the online auctioneer is using DRTV to get that message out to the buying public. In June, the company
announced that it was working with New Wave Productions Inc., to produce a series of commercials and
infomercials designed to educate people on the benefits of using auctions rather than more traditional
means of auto shopping.
And while online venues like eBay have made significant inroads in teaching consumers the benefits of auctions,
companies like Monster Motors remain challenged when it comes to getting the message out about what they do,
and exactly how the auto auction process works. "It's all about education," says Dan Enright, president at
Monster Motors, which currently has more than 10,000 vehicles for sale in its local community auctions. "And
even though we see eBay as a direct competitor, they have really educated the population about online auctions.
By now, who hasn't bid on something?"
Working in the company's favor, says Enright, is the fact that many people (women in particular) don't like
working with car dealers, who tend to be "psychological experts." Compare that to the non-intrusive setting of
an online car auction, he adds, and the process becomes less intimidating and even fun. To impress those
benefits, Enright says his firm is producing a five-minute infomercial that will be used on TV, as well as for
training, sales, marketing and as a public information piece.
That versatility is what led Enright to DRTV in the first place. "There are so many uses for these formats.
You can cut them and edit them three ways from Sunday," says Enright, who will also use parts of the infomercial
on the company's Web site, which differentiates itself from the standard online auto sales site
(like AutoTrader.com/) by prompting negotiations between the buyer and dealer/seller before any direct
interactions take place between the parties.
"That's where the infomercial will come in, by showing people how the process works and why it works so well,"
says Enright, who launched Monster Motors in August 2006. The new infomercial, which will focus on the company's
distinctive features and localization of and accessibility of the used car auction market to the general public,
will run on cable in 32 markets. "We could easily be in another dozen markets every year, and eventually expect
to be in 100 of them," says Enright.
Up next for Monster Motors is an "Auto Auction TV" show, which is already set up for testing on cable channel 99
in Chicago. "We're looking at long-form DRTV," says Enright, "and a full-channel version that we'll expand into
markets over time."
Battling the Slump
It's no secret that the auto industry is in a slump, and showing no signs of recovering anytime soon. In fact,
automotive market forecasting firm CSM Worldwide reports that U.S. auto sales could fall to their lowest level
in nine years in 2007, thanks to a mortgage crunch and high consumer debt, both of which are hampering vehicle
demand. Light vehicle sales are expected to fall by 350,000 to 16.2 million vehicles in 2007, the lowest level
since 1998.
To battle this doom-and-gloom, automakers, dealers and auctioneers are turning to DRTV as a way to get the word
out about their offerings, educate the public on the value of their brands, and share information about features,
benefits and pricing. In February, for example, ex-NFL player Howie Long hosted an infomercial for the 2007
Chevy Silverado.
The "Our Truck - The All-New 2007 Chevy Silverado" infomercial showcased the vehicle's capabilities, with Gary
White, GM vehicle line executive for full-size trucks, explaining to Long how the automobile was designed to
tackle demanding jobs. The show included a toll-free number and unique Web address, both of which received an
impressive level of response, according to the company.
The auto industry's use of DRTV can also be seen in less conspicuous places, like on the online actors' resource
Actingbiz.com/, where in June a casting call was posted for non-union male and female thespians interested in
auditioning for Red Rocket Productions of Santa Barbara and The Toland Group Marketing Agency, which were casting
an automotive infomercial. They were offering $1,000 to $5,000 for the talents of energetic men and women who
were able to humorously ad-lib for broadcast automotive advertising. "Asian descent a plus, fluent English" the
ad read, "and everyone with talent will be considered."
At the dealer level, Ricart Automotive of Columbus, Ohio, dedicates a portion of its marketing budget to
producing and running a regular infomercial that showcases its dealership and cars, and features the memorable
toll-free digits, 1-800-DEAL-USA. And in Chicago, Freedom Auto Depot recently contracted Tony Little to serve
as a celebrity spokesperson for its new infomercial.
Little, a St. Petersburg, Fla.-based international fitness expert, motivator and direct response legend, says the
four-location dealership's approach was entertainment-based and targeted to younger drivers. "It involved a
few minutes of humorous dialogue, followed by a showcasing of eight cars for sale," says Little. "Then there
was more humor, information about the dealership itself, and then the spotlight went to another six or seven
cars for sale. It was an interesting approach."
Rolling With the Punches
Having produced shows for various auto-related products over the past few years, Peter Koeppel, president at
Dallas-based Koeppel Direct, says the industry has turned to short- and long-form DRTV in growing numbers in the
past 12 to 24 months. Both manufacturers and dealers are seeing the value of using longer commercial formats in
selling their high-ticket items, which often need more explanation in order to differentiate themselves from
other brands.
At the local level, dealers like Ricart and Freedom Auto Depot are using DRTV as lead generators that drive warm
bodies into their physical locations, where salespeople can then take over and seal the deal. Supported by an
online component, the shows run heavily on the weekends, when people usually think about taking a drive to
the nearest dealership to replace their old clunkers. Koeppel says dealers are also using video-on-demand (VOD)
technology that includes short-form spots that allow consumers to interact with the medium by, for example,
clicking on a link to a 10-minute demonstration, or a brief description of the car's features and
benefits.
"Both Jeep and Dodge have used this approach," says Koeppel, who has clicked through some of the VOD offerings
himself to learn more about specific cars and to find dealerships in his area. He sees VOD as a good national
option for manufacturers and dealers, and points to BMW's use of longer-form films that blend entertainment
with a sales pitch as another good option for automakers looking for an edge in today's competitive
marketplace.
"The way car dealers and auto manufacturers sell their products has changed, with more people doing their
initial research on the Web," says Koeppel. Compare that to the housing market, where nearly 80 percent of
buyers now start their home searches online, rather than by working directly with a real estate agent and/or
home seller. Much like a potential buyer would view a virtual tour online before going to see a home in
person ("I could sell homes using infomercials," says Little, who envisions himself using lines like "Let me
take you on a virtual tour right now ..." on the airwaves), car buyers are using the same strategy before
plunking down a deposit and signing on the dotted line.
"People are familiar with viewing video on the Web, and through interactive applications, to find out more
about products before they buy," says Koeppel, who credits the auto industry with tapping that trend early in
its lifecycle. "The industry's competitive environment put it ahead of a lot of other types of products in
terms of utilizing long-form TV to get the word out and educate consumers."
Getting there isn't always easy. The industry has taken its share of bumps during the past few years, with those
challenges being compounded by ever-shrinking margins. "These companies have gone through some learning curves
with these technologies," says Koeppel. Marrying TV with online and video works well, for instance, but
there's always the challenge of keeping someone's attention focused on longer-length media. Then there's the
fact that auto dealers are known for producing schlocky "yell-and-sell" ads that can turn off today's consumer
(particularly when they show up in long-form DRTV formats), who is more accustomed to being advertised to on
his or her own terms.
To survive, Koeppel says the auto industry needs to constantly adapt and try new things. And while the Mercedes
and Lexus brands of the world have yet to incorporate DRTV into their advertising portfolios, Koeppel sees
potential there too. "The viewing audience for infomercials tends to be a little further down on the scale,
so these manufacturers may not see long-form as a good format for their products," says Koeppel. "Even so,
I think someone who is in the market for buying and looking for information will be looking at more videos
and infomercials if they are done well."
Driving Forward
Expect to see more automakers, dealers, auctioneers and other auto-related firms using DRTV in the future,
and complementing those efforts with online video and other tools that help "drive" consumers to trade in their
current cars in favor of a new or used vehicle. Versatile in nature, both short- and long-form shows serve as
great starting points for firms like Monster Motors, which after finishing its A-roll show in September, began
chopping it up into segments to use in other advertising media, such as its Web site.
"Used effectively, video works much better than a static image when it comes to selling cars," says Koeppel.
"Going forward, we'll definitely see more unique applications for short-form videos (of two minutes or less in
length) and longer-format videos on Web sites."
Ultimately, it's all about giving consumers the information and tools that they need to make the best buying
decision in a market where the pool of qualifying buyers is shrinking. "The auto industry needs to do
everything it can to educate the consumer more about the product and create more of a qualified customer
who comes in to buy," says Koeppel. "All types of car dealers and manufacturers could benefit from using DRTV,
VOD, Web video and other technologies that allow them to hit consumers from different angles."
Having just wrapped up an infomercial for a dealership, Little says that the potential of DRTV for the automotive
industry is significant, and adds that Freedom Auto Depot's president even suggested that he open his own
Florida car dealership and run similar DRTV campaigns to promote it. He turned down the offer, but says the
market is ripe for such an enterprise.
"DRTV tends to work well in this segment because it gives dealerships a 30-minute format in which to sell
credibility," says Little. "That credibility, along with the automobiles that they represent, is what these
dealerships are all about."
Click Here To View Entire Article
|
| |
|
|
|
