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AdAgencyOnline.Net - Automotive Advertising Forum Discusses The Future Of Brick And Mortar Auto Dealerships

Ad Agency Online, L.L.C. is a full service automotive advertising agency that focuses on Internet and digital marketing. They shifted their attention onto the Internet Super Highway to accommodate the demands of their auto dealer clients who must reduce their automotive advertising budgets to adjust to a shrinking auto industry. The solution discovered by most forward thinking automotive advertising agencies is to deliver more for less by directing their automotive advertising messages to virtual showrooms hosted on the internet rather than driving traffic exclusively to real world dealerships.

Ad Agency Online has been counseling their auto dealer clients to shift their automotive advertising investments to a 60/40 split between conventional advertising - radio, TV and Print - and online S.E.O / S.E.M, internal data base and network marketing. Visitors to the FREE automotive advertising resource/networking portal – www.adagencyonline.net – agree with this online marketing strategy which is providing a better R.O.I. for their auto dealer clients with less expense and exposure in a down market. The resulting impact on the future of brick and mortar auto dealerships is already being felt by auto dealers who are looking for ways to reduce expenses wherever they can; and they are not just limiting their expense cuts to their advertising.

AdAgencyOnline.Net is supported by Ad Agency Online, L.L.C. and a select group of preferred automotive advertising vendors who are doing the same thing that car shoppers are doing; using the Internet. Visitors to AdAgencyOnline.Net are going online for information to make a "buying decision" to select an automotive advertising application to improve their selling processes or to share opinions with likeminded car dealers with common problems and solutions. The shift to researching a vehicle purchase online has created problems as well as solutions for old school car dealers who need to keep up with customers that are going online for answers to questions previously delivered by real world car salespeople. The value of virtual showrooms over brick and mortar dealerships is becoming obvious to customers and has created concerns for auto dealers who have millions of dollars invested in facilities that may become obsolete if online shopping trends continue.

In response to the growing influence of the World Wide Web on the future of brick and mortar auto dealerships, AdAgencyOnline.Net recently added a commercial real estate firm - Colliers Abood Wood-Fay and their specialized auto industry team, Automotive Real Estate Service Group, (ARESG), - as a "preferred vendor" on their site. The online community is recognized by the automotive advertising industry as “The One Stop Site For All Of Your Automotive Advertising Needs” and the inclusion of Colliers Abood Wood-Fay was in keeping with their policy to protect an auto dealer’s interests on all levels. AdAgencyOnline.Net has developed a unique definition of "full service" for their affiliated independent automotive advertising agencies, auto dealer clients and site visitors to keep up with the pressures placed on auto dealers who are struggling to survive.

Philip Zelinger, President of Ad Agency Online, L.L.C. and host of the blog talk radio shows that are featured on AdAgencyOnline.Net explained the reason for including a commercial real estate firm on the automotive advertising forum. “ The responsibility that we all share to maximize the R.O.I. for our dealers - either as an employee in sales or service or as a vendor providing a product or a service - requires that we place ourselves in our "employer's shoes" when advising them to maximize the profits that we all share as commissions/salaries or retainers/fees. I have recently hosted several blog talk radio shows discussing the future of brick and mortar dealerships vs. virtual world showrooms. The shows reviewed developing online transaction tools and other applications designed to replicate real world selling processes on the Internet. The results have been very enlightening and revealed some options for auto dealers looking for ways to regain profitability in a down economy. The expected reaction from car salespeople focused on the "people" part of the process - which it should since even the processes are driven by the people that use them - but they need to recognize the "reality" that is forcing the shift from brick and mortar investments to online solutions. The high cost of real estate has many dealers struggling to support their fixed expenses while they have millions of dollars in capital tied up in facilities that can’t cover their debt service. In a shrinking auto industry with reduced margins and bottom lines dealers can barely cover payroll let alone provide an adequate return on investment for the millions of dollars they have tied up in real estate.”

Dealers who survive the consolidations imposed by the manufacturers will be those that recognize online processes that reduce staff and facility as a necessary evil that must be integrated into their business plans. Salespeople also have to adjust their future career goals and job descriptions to fit the needs of the dealer. The role of the people in the car business must shift much like the role of the brick and mortar dealership. Online processes that minimize staff and facility costs while preserving the "human factor" will differentiate one dealer from the other both down the street and online. Downsizing, consolidation and the resulting loss of staff is not necessarily a bad thing. The survivors of the shakeout will most likely wind up better than they started by using technology and processes to force efficiencies that show up in the auto dealer’s bottom line and the employee’s pay checks.

Careers in the automotive advertising and retail auto industry may change, but the future is still bright for those that embrace it. The dealerships that are sold and consolidated to smaller facilities will require an educated Internet staff to sell cars and service to a larger audience that is not limited by geographical boundaries. The assets that are freed up by the sale of the real estate up will be reinvested into ongoing operations and staff for the new "virtual showrooms" on eBayMotors or their next competitor that creates an online identity as the car dealership of the future.

Ad Agency Online is a perfect example of the evolution that technology is forcing on the retail auto industry. AdAgencyOnline.Net evolved from a "brick and mortar" full service automotive advertising agency into a "virtual" network of affiliated independent automotive advertising agencies linked online by their central communication / distribution system and they set precedence for a successful shift from a real to a virtual business model. For example, if you are a dealer looking to buy or sell your dealership - go to www.adagencyonline.net. If you are a dealer looking to improve your selling processes and maximize your R.O.I. - go to www.adagencyonline.net. If you are a salesperson looking to learn more about your industry to improve your income - go to www.adagencyonline.net. The point is that the problem is the solution! Philip Zelinger summarized his confidence in the power of the Internet and the shift from their real world offices to the virtual network of affiliated automotive advertising agencies that serve their auto dealer clients as follows, “The shrinking economy will drive the few remaining fish in the now shallow waters into a more concentrated group on the Internet. All you have to do is find a seat at the online fishing hole and throw in your bait!”

For additional information on AdAgencyOnline.Net, or to listen to the blog talk radio shows referenced in this article, visit www.adagencyonline.net or contact Philip Zelinger directly at 1-888-796-2228. To quote Philip Zelinger, “Help is only a click away!”

Views: 22

Tags: ARESG, Abood, Colliers, Motors, Wood-Fay, ad, adagencyonline.net, advertising, agency, auto, More…automotive, blog, dealer, eBay, industry, online, philip, radio, talk, zelinger

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