Dealers are suddenly facing pressure about SEM, and a lot of them are grabbing at the first solution they see
Los Angeles, CA (PRWEB) December 1, 2006
Nobis Interactive, a leader in full-service online marketing solutions, announces the launch of Nobis Auto -- a division specific to Search Engine Marketing (SEM) for the retail automotive industry.
Search Engine Marketing is an umbrella term that encompasses both its fundamentals of Pay-Per-Click advertising (PPC), the process of purchasing keywords from the search engines directly on a per-click basis, and Search Engine Optimization (SEO), the process of optimizing a website to help the search engines rank it in their organic, or "free," results. Both help companies achieve visibility on search terms that relate directly to their products and services, which can result in highly qualified traffic and leads.
Although SEM is almost a decade old, it has been the buzzword of the automotive industry in 2006. The National Automotive Dealers Association convention in Florida earlier this year focused heavily on automotive SEM curriculums, which taught dealers they have the ability to capture leads through their own website as opposed to relying exclusively on 3rd party lead vendors.
"Search can be a dealership's most successful advertising medium if used correctly", says Terrence Gordon, President of Nobis Interactive. "We help dealers understand that properly implemented SEM programs not only provide the highest quality leads at the lowest cost, but can effectively push branding and dealer loyalty while decreasing their reliance on 3rd party vendors at the same time."
According to a recent Compete study, in the second quarter of 2006, search generated 48% more referrals than third-party automotive sites, in aggregate. OEM branded searches accounted for 85 percent of immediate "Locate a Dealer" and 83 percent of immediate "Start Lead Submission" sessions.
Auto shoppers have been increasingly reliant upon the Internet to provide them with the research necessary to make decisions about a vehicle purchase. The Polk Center for Automotive Studies reports that 35.3 percent of potential buyers ages 18-30 said the Internet was their most important source of information when making a decision about their first vehicle purchase, while just 4.4 percent said from television and 3.6 percent from Newspaper. And according to Yahoo! and ComScore, 4.6 million people engaged in some type of automotive shopping behavior in any 3 month period; of which 77 percent researched into a specific vehicle, 56 percent were searching for a Dealer and 32 percent resulted in a quote.
"We see our dealers achieving 30% conversion rates on their search engine visitors," says Carl Martin, CEO of Nobis Interactive. "We believe the effectiveness can be attributed to search's role within buying cycles, and the mentality behind the keywords being searched in order to complete that cycle. Our keyword formulas focus on action-oriented terms that send pre-qualified traffic to every profit center within the dealership."
Marketing Sherpa projects Search Engine Marketing to reach $8.7 billion for 2006, yet NADA showed online advertising is lowest spend on a dealers list.
"Dealers are suddenly facing pressure about SEM, and a lot of them are grabbing at the first solution they see", explains Gordon. "Many companies, including large 3rd party website providers, are taking advantage of their relationship with the dealer by offering SEM services they know nothing about. We are seeing dealers throw away obscene amounts of money on improperly implemented PPC campaigns, and renting 3rd party websites that actually deter organic search engine rankings. Our product oversteps all 3rd party faults or interests by giving the control back to the dealer. The goal is to help Automotive Search Engine Marketing become well understood, properly valued, and most importantly -- correctly implemented."
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