The Dealer Playbook
The Dealer Playbook

Episode · 6 months ago

Why Last-Click Attribution Is Flawed w/ Bob Lanham

ABOUT THIS EPISODE

In a last-click attribution model, whoever drove the lead gets the credit for creating it. To date, that's how most 3rd party vendors have tried to validate their worth, however, the model is flawed. 

Listen as Bob Lanham, Head of Automotive at Facebook, shares how the largest online retails map their media buying. You'll also discover how they attribute leads and marketing results more holistically rather than focusing only on the last click. 

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Hey, before we hop into this episode,let's talk about why your website and digital presence isn't working. Now Iknow what you're thinking, Michael. We talk all about the Web sites all thetime. You talk about the websites, the websites, a hammer yada, yada, yada. Weget it. But for real, though, it's shocking to me how much guesswork stilltakes place and how its having a detrimental effect on whatopportunities you are able to leverage now. Over the last decade, especiallyfor the O. G. D P beers, you know, I've poured my soul into assembling a teamthat cares deeply about the progress of the retail auto industry that believesin my mission to enrich and empower dealers to perpetually grow. Now I'mmaking my amazing marketing team accessible to the dealer playbookcommunity so that you can start to thrive rather than merely survive.Right now, we're providing a just for you free website diagnostic that willshow you exactly what you need to do in a priority sequence so that you canfinally get the answers you need. Claim...

...yours by visiting triple W dot flexdealer dot com forward slash website audit that's triple W dot flex dealerdot com forward slash website dash audit. Mhm. Let's just dig into your shark tank.Example, right? Those who measure media media mix their models. They see thatright? They see the correlation. But unfortunately in our world, whathappens? Well, the vendor, that soul search says Man, look at your lastclick attribution. Look what I did for your business when in reality it wasvendor over here, probably a completely different department. Maybe that evenbought it right and maybe in a...

...different rep. But if it's not lookedupon, Listen, we have many reports that show any product or service that does.Advertising with us will create a lift and incremental lift in search activityfor that product or service, right? But guess who gets the credit for thatsearch, right? Even though we didn't get the click, but the ads shown drovethe search. This is why dealers, I'm telling you the second day, map it allout and truly understand what they're buying. First they're going to say to themselves, Man,I could cut some media. I could I could cut some costs, which all that does isincrease PVR, which all that does is increase growth. And all that does isput more to the bottom line. But you have to look at it holistically.And I have a passion for it, because when I got into this space, I just Isaw, you know, I'd ask a dealer. How...

...many people do you work with? 15. 20like, Well, how do they work together? Right. And it's like you guys have tobring this all together. Then you'll start to see the impact. And ultimately,you could save some money and, you know, and I don't want This is not aboutselling against any other platform. But once you have the model down, did youhave it all down? You can see, man. I'm spending quite a bit on this oneplatform like platform A, we'll call it. But could platform be do the same thing?That platform a could do just as well, if not, maybe better, But platform becost cents on the dollar compared compared, the only way to know that isto model it out and start testing and learning. And the second you do that,you start to see, you know. Yes, I can. I can do what platform they can do onthis platform for cents on the dollar and put the balance to my bottom lineor to the floor plan or to service bays...

...or wherever they are, wherever theychoose to do that. This brings up a really valuable 0.2,which is we know the OEM's spend hundreds of millions of dollars doing Rand D. We know that many vendors are spendingmillions doing R, and Lord knows we have on R and D over the years. But when it comes down to the localbusiness, I'm not even to say dealers, because I see this in, you know,various verticals. We certainly do see it in dealer world, too. What you justsaid, testing and experimentation. Everybody needs to be comfortable withthe fact that that costs money. It just does. And I know you know, as Ithink back over the last 25 or 30 years, the silos that we live in is because we,you know, if you go back 30 years, it was like, Hey, you need to build awebsite. If you build it, they will come silo then then you know, Yahoocame along and they were like, Hey, you...

...know, all you need is Yahoo Advertising.Penny Penny adds, if you do that, they will come. And then, you know, all ofthe other things have kind of compounded on top of that. But I lovewhat you're saying about know, how do we unify these? How do we actually know?Like we need to map this all out to understand what it is that's actuallyhappening. To see how these work together. I love I love people that,you know, kind of the digital doomsday preppers that are like, No, if you haveFacebook or Google, you don't need a website anymore. Or if you have a website, you don'tneed email, marketing or email. Marketing is dead or s e O is dead. Andthese are just people like that is an indication to me of somebody who is ona soapbox who also lives in a silo, not understanding how all of these channelsfeed to the whole. And they all cost money because you gotta test if you'renot going to spend the money to test, who do you expect is going to do it foryou.

Yeah, this isn't hard. I mean, I Idon't I hate to say it like, I hate to say it that way, but it really like theauto businesses. So you like? Like no other channel works this way, right?Like every other industry tests, and learns and understands the impact ofsearch into other mediums this now. But for some reason, we get so focused onthat last click or that lead gen. And and? And? And if that doesn't happen, Isell nothing. Well, what did Google just come out with their theirguidebooks. 74% of people who buy within the month do not do an onlineaction. Do not do an online action. So what arewe measuring? So So if you believe that, I'm only going to target people thatare gonna buy from me today, we're gonna buy from me this month. Then what do you buy? Right? And moreimportantly, like, do we really think...

...people are stupid? I mean, do do welike, do we think that, um, you know, if someone does a search for specificbrand name if we stick another brand name on there That that person willnever go back to that to the original brand name Searched. Right? Come on.Right? Yeah, sure. They may be influenced and they might explore, but,like, that's not how it works. Like people know what they want and wherethey want to go. Right? I'll tell you. In the dealer space, Michael, you know,most people know what vehicle they want, right? They picked to I want this oneor this one. These are the two I'm going to stick with, but they don't know where they're goingto buy. And they're doing more research on where they're going to buy versuswhat they're going to buy. And if you think a price at is the reason why theybuy again, we don't understand consumer...

...behavior. And that's what I'm trying toget to meet and greet first, then drive them down. Yeah, the the validationhere is literally every world renowned marketer, I hope are you listening, Dpb gang.Every world renowned marketer which now includes Bob adding his voice to thispool, have said and shared this exact same pattern. This is a mission of thedpb. It's to shift the way we think so we can think bigger and break free fromthis box that we we have placed ourselves inside of, um and and this isjust the way it is. We often refer. I don't know if you're familiar withMollie Pittman. She used to work at Digital Marketer. Now she's with EzraFirestone. But she says the same thing like, would you ever walk into a bar,see a beautiful person across the room and just walk up and ask to marry themright out of the gates? No. You got to...

...get to know the build a relationship oftrust, get to know them. Um and you know, for me, too, I think of everyinteraction that I've had with with a woman that I wanted to date. Perhapsyou know, even obviously with my wife, how many interactions it took for us tofeel comfortable enough around each other to get to know each other. I wentthrough moments where it felt like I was failing. Oh, man, I said a stupidthing. She's gonna hate me now like that's the R and d of all of this. ButBut if I track the overall trend even though on a micro scale. It was doingthis, you know? And I pull back. And obviously my scale went up. I scaledupwards and and obviously married this woman. Three beautiful Children, allthat kind of thing. And it's the same way my seven year old daughter knowswhat car dealers sell. Yet that's what we spend most of our advertisingtelling people we tell. We just keep...

...advertising to tell them the thing weknow or they know that we do instead of what you're saying. Why don't you starttalking about the things they have No clue that you do or why they should buyfrom you. So two things. I sold cars for four years. Never once in anytraining I had never once. I never had a script on this. I was never taught byany trainer to take it up like this. Hi, I'm Bob Lanham. Welcome to target ofSarasota. Can I have your name? Phone number? Email address? Are you gonnabuy for me tonight? But but we do that when we're onlyrunning by now. Adds by now. Adds legion ads by now. Be better by now.Give me all your information online that that's not how it works. Like theperson would turn around and walk away. Now, maybe many dealers did. I keepgoing back. David Kane, a good friend of mine in the industry, you know, oneof the best trainers out there. He he...

...had a slide, and I've traveled with himgreatly on a number of road shows. He has a slide that I still follow today,which is the Gallup Poll that measures honesty and ethics and professions.Right. And I've posted this number of times and we chatted about this inclubhouse, Right? We fall, we flip flop between last place and second to lastwith Congress. That's who we flip flop with every month now, I would show theslider David would show the slide and we'd say, Look, all of you in this room,we know you're not that we know you have a good process. You're good people,your ethical you want to do right? But why in 2000 and 2021 does the GallupPoll still show where last or second to last? Well, because we don't tell theindustry or consumers. Otherwise,...

I will put brand marketing above anyother marketing. A dealer does easily, but you know what? They're not soldthat they're so legion. Last click lastclicks to their website. Low cost per VPs, right? Right. And I'm not sayingI'm not saying that's not valuable, because it is. It's a metric. It's aproxy we need to understand. Understand it. But decisions should not be madesolely off of one or two metrics again. What does the what's the model doing?Is the model driving sales and then, more importantly, profitable sales? Oris the model not easy? Easy to find out. I'm Michel Cirillo, and you've beenlistening to the dealer playbook podcast. If you haven't yet, pleaseclick the subscribe button wherever...

...you're listening. Right now, leave arating or review and share it with a colleague. If you're ready to make bigchanges in your life and career and want to connect with positive,nurturing automotive professionals, join my exclusive dpb pro community onFacebook. That's where we share information, ideas and content thatisn't shared anywhere else. I can't wait to meet you there. Thanks forlistening.

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