Presentation Name

ADP Dealer Services

Social Media Solutions

Presenter — Date
Overview

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 Purpose

• Present the Concept and Proposal for delivering a

Social Marketing & Reputation Management solution
to dealers as an ADP Managed Service

• Align on plan to proceed from Concept / Proposal

to Definition / Build

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 Social Media Solutions Concept

Online Social Overview

Dealer Value Proposition

Business Problems Dealers Face

ADP Opportunity & Unique Value Proposition

Social Media Solution & Current Capabilities

Packaging / Sales & Support Model

Business Case

Proposed Schedule

Risks / Issues
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 The Online Social Universe What Is It ?

CONNECTED
in an
ONLINE VENUE

COMMUNITY of PEOPLE
with a With a
This GROUP is
COMMON INTEREST VARIETY of OTHER
CONNECTED with
INTERESTS
1 2 OTHER PEOPLE 3

Who are CONNECTED to PEOPLE in this

4 EVEN MORE PEOPLE of 5 EXTENDED NETWORK
OTHER COMMON INTERESTS ESTABLISH TRUSTED
RELATIONSHIPS

with those in another community

to whom they are
indirectly connected

thus E X P A N D I N G
the original community

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 Why Is Social Media Interesting?
Consumer General B2C Automotive Dealer
Large & Growing Population Social is Relevant OEMs Are In Big Dealer Adoption

• 184M people maintain blogs
• 20% of the Internet users
• 60% of web users read blogs
(whether they know it or not)
• 1M new blog posts each day
Pew Research, 2008
Increasingly Diverse
• 58% over age 35
• 51% household income > $75K
• 19% English-speaking Hispanic
Pew Research, 2008
Big Advertising Market
• Google indexes social sites
• Social sites drive website traffic
• 70% of buyers (all retail)
get info from social sites
before purchasing
• Higher than company websites
• 45% of those have shared info
with others on social sites
DEI Worldwide, Aug 2008
B2C Adoption Curve
• 8 of 10 companies of all sizes
use social media today
• 48% boost social spend in 2009
• The auto industry has a far
greater presence in online
conversations online than any
other industry.
• Ford and Honda lead the way in
Share of Voice
• Toyota, Nissan, & GM lag
Razorfish, Sep 2009
Car Buyer Usage
• #1 site visited by new vehicle
prospects in July 2009 was…
Facebook
JD Power, Oct 2009
• 36% of dealer plan to increase
ad spend over next 6 months
• Majority plan to shift more $$ to
social media
• 56% of dealers using social
media say it is most valuable
for Lead Generation From
Previous Customers
DrivingSales.com, Oct 2009
Recent Interest
• Biggest topic of discussion at
Digital Dealer Conf – Nov ‘09
JD Power Internet – Oct ‘09

• Facebook 200M+ active • 35% of car buyers use

• 92% cite Brand Reputation Competitive Activity
users consumer-to-consumer sites
• 91% cite Brand Awareness
$230M local ad such as blogs and discussion
• 88% cite More Websote Traffic • Dealer.com
rev$ groups during the vehicle
• 87% cite Higher Search Rank • TK Carsites
• MySpace 260M active users shopping process
Marketing Sherpa, Sep 2008
JD Power, 2009 • Izmocars
$134M local ad • DealerImpact
rev$ • Pasch Consulting Group (PCG)
• Tot. projected ad spend in Complements Marketing Mix
social sites in 2009 = $640M
Borrell Associates, Jul 2009 • 94% say it works well with SEO
• 89% with Email Marketing
• 83% with Paid Search
Projected Growth Marketing Sherpa, Dec 2008

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in social media in 2011
eMarketer, Dec 2007
 Is There A Dealer Value Proposition ?

COMMUNICATIONS BROADEN COMMUNICATIONS BROADEN

and EXTEND ACROSS the DEALER and EXTEND ACROSS the
EXPANDED COMMUNITY EXPANDED COMMUNITY
CUSTOMERS

within which an Automotive Retailer

can be a participating member
and have a valued presence

1 2

3 PRIMARY GOAL: EXPAND THE COMMUNITY

Which produces…
ESTABLISHING TRUST INCREASED TRAFFIC
ACROSS A
WIDER COMMUNITY
OF PEOPLE
MORE BUSINESS
GROWING CUSTOMER BASE
HIGHER CUSTOMER RETENTION
DEALER

CUSTOMERS

This is… “Friends & Family Word-of-Mouth” for the Digital Age

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 Current Dealer Business Problems

1) Lots of Sites  Keeping up with all the Social Sites  THIS

Knowledge : New sites always pop up. How many should I use? Which ones?
Productivity : How do I effectively participate without affecting productivity?
IS
REALLY
Companies cite “Lack of Knowledgeable Staff” as #1 impediment to THIS 
using Social Media more effectively as part of their advertising mix
Marketing Sherpa, Dec 2008

2) Lots of Content  Producing enough quality content in all of the Social

Sites
Quality : Stale or irrelevant content turns off users. How do I get good content and control quality?
Productivity : How do I create good content on a regular basis without degrading employee
productivity?

3) Two-Edged Sword  Awareness and managing of negative commentary

Awareness : How will I know when negative content is posted?
Skill Set : What should I do when negative content appears?
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 ADP Opportunity

• Help dealers integrate social media into their overall, ongoing marketing mix

• Help dealers transform perceived chaos into marketing synergy

• Offer Social Media / Reputation Management solution(s) to dealers

– Similar to new BZ Profit Center Packages
– Complementary to ADP Website, Business Online & Digital Advertising solutions
– Familiar model; ADP supplies dealer with “community” site, tangible product

BZ has most of what is needed to deploy a solution by NADA 2010

• $ 2.1M revenue opportunity in FY11 (approx 100 dealers)

• $ 30M+ annual revenue opportunity over 5-year horizon (~1500-2000 dealers)

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 ADP Value Proposition

Make social media, today’s most relevant consumer communication channel,

part of your overall marketing mix
• ADP will build a social networking site to serve as your franchise’s automotive community
• Establish profiles and accounts that create a positive presence for your dealership and
online community within the most popular social sites on the Internet
RESULTS
• Increase customer traffic to your dealership’s eCommerce website
• Increase your Brand Awareness among automotive consumers in your local area
• Improve both the volume of listings and your Search Engine rankings
• Grow your customer base
• Create a direct communication channel to customers that bypasses spam filters

• Coordinate your online advertising with a complete online consumer experience UNIQUE
• Dovetail the online consumer experience with your business system UNIQUE
• Work with a single source provider for all your website, digital advertising,
consumer marketing, online transactional, and business system solutions UNIQUE
• Understand the value of your marketing spend with transparent results UNIQUE

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 Components of Successful Social Media Solution
1) Branded social site built on a flexible platform
2) Community presence in major online social venues
3) Fresh and relevant user-generated content (UGC)
updated regularly
4) Systemic process that produces lots of positive
user-generated content
5) Dealer employee participation & in-dealership
management process
6) Coordinated marketing to build user participation
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SOLUTION DEFINITIONS
Social Media – Dealer-sponsored
online community in the top online
social venues encouraging user-
generated content and activity
What It Is Not
- Display advertising in online social
ad networks… **which can already
be done as part of BZ Digital
Advertising solution
- Inventory listings in social networks
Reputation Mgmt – Systematic
method of enhancing & amplifying
dealer’s brand in a highly positive
and effective manner
What It Is Not
- Outsourced service issuing
responses to specific commentary
from the community
- Public Relations marketing outside
of online social venues
 Current ADP / BZ Capabilities
1) Branded social network (community) built on a flexible platform
– Set of social site templates built using Ning Premium services platform

2) Community presence in major online social venues

– Automated syndication to major sites in the following social categories
Category Examples
Social / Professional : Facebook, MySpace, Linked-In
Publishing / Blogs : Blogger.com, TypePad
Photo Hosting : Flickr, Photobucket
Video Hosting : YouTube, Viddler
Microblog : Twitter,
Aggregators : Digg, Delicious, StumbleUpon
RSS : Feedburner
Search : Google Search, Yahoo Search
Consumer Reviews : DealerRater
Soc Network Platform : Ning,
– Social site monitoring and conversation relevance capabilities

3) Fresh and relevant user-generated content (UGC) updated regularly

– Dealership Employees
– Owner / Management messages, Fixed Ops, Civic activities, Local interest
– Community Members
– Consumers, Suppliers
– RSS Feeds (managed by ADP)
– OEMs, Enthusiast sites, Other video / photo feeds
– Widgets to encourage UGC
– DealerRater.com
– Embed select dealer website content (inventory, specials, etc)
– 100+ widgets included in Ning platform
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 Current ADP / BZ Capabilities

4) Systemic process that produces lots of positive user-generated content

– Content Analysis
– DealerRater.com  filtered feeds
– Brand Monitoring in social venues (with filtered data feeds)
– Alerts regarding negative feedback
– 14 day hold placed on negative reviews to allow resolution

5) Dealer employee participation & in-dealership management process

– Remote install training
– Internal campaigns and incentives drive participation/awareness
– Supplier participation, content and links
– Virtual Marketing Rep (VMR) reinforcement

6) Coordinated marketing to build user participation

– Banner ads specific to User Community (ex: “Join ABC Ford Online Community”)
placed in social venues
– Highly granular demographic targeting capability
– Note: General display advertising placed in social ad networks can already be done
as part of BZ Digital Advertising

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 Current ADP / BZ Capabilities

Social media proof-of-concept trials active

in 6 dealer sites
– Current DA clients
– Executed as a portion of their DA spend
– Found out what worked and what didn’t
– Positive dealer response
• Boston Honda – 61 new Facebook members in 1 st week
• CardinaleWay Mazda - - 571 Facebook fans in 1 st month
Automotive Avenues
– Case studies cited at Digital Dealer
Conference (Nov ‘09) and J.D.Power
Internet Roundtable (Oct ‘09)
• Rapidly increasing dealer interest

Current Functional Gaps

– Embedded email service
– Small template library (Ops)
– White label social mgmt portal (Ops)
– Expanded template library (Ops) Later phase Boston Honda

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 Case Study: Ancira Auto Group
1 Birth of a Community
ADP Builds Ancira Community.com Site

3 Dealer Information
Ancira Crafts Their Message

Dealer personnel set-up profiles

Get engaged
4 Syndicated Content
Relevant Info From Other Sources

5 Local Interest
2 Registration / Publication Highlight Ancira’s Civic Leadership
Site Registered in 120 Social Venues

6 User Content
Fun Stuff For Customers

Will you be my Facebook friend?

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 Case Study: Ancira Auto Group

“I am absolutely blown away that you not only

Positive responded… but that you use social media”
customer
feedback “I will be happy to explain to everyone the
fantastic service I received…”

Search Returns
Brand Name Search
Engine 10 pages of
Results Ancira content

Consumer
response

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 Conceptual Packaging
BZ Social Media Pkg Target Price $ 2995 Install $ 2995 / Mo. B Z S o c ia l B Z S o c ia l
M e dia M e dia P R O
Per dealer community site
P a c ka ge P a c ka ge
– 1 dealer-branded community site platform (based on BZ social site template gallery) B ra nde d s o c ia l s ite X X
– Domain registration and publishing in up to 100 of the most popular social venues S o c ia l ne two rk re gis tra tio n X X
including Facebook, Twitter, and Flickr S o c ia l ne two rk public a tio n 10 0 15 0
– Premium content feeds for up to 3 OEMs Dis pla y a dve rtis ing - X
– Video syndication
P re m ium c o nte nt fe e ds 3 Un lim it e d
– DealerRater.com consumer rating service user subscription, plug-in, and data feed
Vide o s yndic a tio n X X
for 1 dealer rooftop (ea. addl rooftop $ 195/mo)
De a le rR a te r.c o m X X
– Dealership training
B ra nd m o nito ring - X
– Dedicated VMR support (publish up to 5 new content postings per month)
De a le r tra ining X X
overages @ $150 / post
De dic a te d VM R 5 po s ts 10 p o s t s

BZ Social Media PRO Target Price $ 3495 Install $ 3495 / Mo.

plus (minimum) $ 1000 / mo. Social Ad spend Per dealer community site
– 1 dealer-branded community site platform (based on BZ social site template gallery)
– Domain registration and publishing in up to 150 of the most popular social venues
including Facebook, Twitter, and Flickr
– Display ads in social ad networks to boost user participation (up to limit of contracted ad spend)
– Unlimited premium content feeds
– Video syndication
– DealerRater.com consumer rating service user subscription, plug-in, and data feed
for 1 dealer rooftop (ea. addl rooftop $ 195/mo)
– Brand monitoring service and data feed
– ADP eNewsletter
– Dealership training
– Dedicated VMR support (publish up to 10 new content postings per month)
overages @ $150 / post
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 Conceptual Sales / Support Model

Sales Model
• BZ Sales Team
– Focus
a) new Website, DM, and DA opportunities
b) Current BZ website / DM clients
– BZ Social Media Pkgs sold as optional add-on Profit Center offering on each deal
• VMR Upsell
– Focus
a) current DA clients

Install / Support Model

• Install (remote) BZ DA Analyst (remote)
• Training (onsite) BZ Consulting team **resource to be hired**
• Support
– Marketing & Ad Planning, Content Management VMR
– Technical support, setup, and domain registration BZ DA Analyst, 3rd party
– Dealer User Support BZ Support – El Paso **to be
trained**
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 Business Case
ADP DEALER SERVICE
Key Assumptions OSSINING -FY'11 Forecast
Pro je c te d Pro je cte d Proje c te d Proje cte d Pro je c te d Proje c te d Proje c te d Proje cte d Pro je c te d

Avg Sales $ $ 2500 1-Time + Social Marketing Jul-10 Aug -10 S e p-10 Oct-10 Nov -10 De c -10 Jan-11 Fe b-11 Mar-11
$2500 / mo
Sales Rate 5 / mo FY10 (begin TOTAL ADP REVENUE $104,298 $117,032 $131,546 $145,625 $159,281 $172,528 $185,377 $197,840 $209,930
ONSITE REVENUE $86,798 $99,532 $114,046 $128,125 $141,781 $155,028 $167,877 $180,340 $192,430
Feb);
7 / mo FY11 DIRECT COSTS
LABOR 6,075 6,075 6,075 6,075 6,075 6,075 6,075 6,075 6,075
Install Rate within 45 days Misc 15,990 18,825 21,555 24,285 27,025 29,755 32,475 35,205 37,935
TOTAL DIRECT COST 22,065 24,900 27,630 30,360 33,100 35,830 38,550 41,280 44,010

Install Cost 32 hours total (2 days GROSS PROFIT 64,733 74,632 86,416 97,765 108,681 119,198 129,327 139,060 148,420
onsite) MARGIN % 75% 75% 76% 76% 77% 77% 77% 77% 77%

Support Cost 16 hr / mo / site INDIRECTS

TOTAL INDIRECTS 0 0 0 0 0 0 0 0 0

PROCESSING MARGIN 64,733 74,632 86,416 97,765 108,681 119,198 129,327 139,060 148,420
MARGIN % 75% 75% 76% 76% 77% 77% 77% 77% 77%

NEW BUSINESS
OEM REVENUE 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500

SOFTWARE INSTALL & TRAINING

LABOR 25 25 25 32 32 48 48 48 54
Expenses 0 0 0 0 0 0 0 0 0
TOTAL SOFTWARE INSTALL & TRAINING 25 25 25 32 32 48 48 48 54

SELLING EXPENSE
LABOR 0 0 0 0 0 0 0 0 0
Expenses 9,477 9,477 9,477 9,477 9,477 9,477 9,477 9,477 9,477
TOTAL SELLING EXPENSE 9,477 9,477 9,477 9,477 9,477 9,477 9,477 9,477 9,477

NET NBM 7,998 7,998 7,998 7,991 7,991 7,975 7,975 7,975 7,969
NEW BUSINESS MARGIN

FIELD MARGIN 72,731 82,630 94,414 105,755 116,672 127,173 137,302 147,036 156,389
MARGIN % 70% 71% 72% 73% 73% 74% 74% 74% 74%

R&D
LABOR 10,350 10,350 10,350 10,350 10,350 10,350 10,350 10,350 10,350
Expenses 0 0 0 0 0 0 0 0 0
TOTAL R&D 10,350 10,350 10,350 10,350 10,350 10,350 10,350 10,350 10,350

ADP NOI 62,380 72,279 84,063 95,405 106,321 116,822 126,951 136,685 146,038
ADP NOI % 60% 62% 64% 66% 67% 68% 68% 69% 70%
Key S ta ts - Ins ta lls 7 7 7 7 7 7 7 7 7
Total 7 7 7 7 7 7 7 7 7

HEADCOUNT
CTA 1 1 1 1 1 1 1 1 1
Indirects 0 0 0 0 0 0 0 0 0
SM SWIT 4 4 4 5 5 6 6 6 7

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R&D
0
1
0
1
0
1
0
1
0
1
0
1
0
1
0
1
0
1
TOTAL HEADCOUNT 6 6 6 7 7 8 8 8 9
 Proposed Schedule

Formal Field Test 1/05/10

Scope: 3 clients (in DA backlog)
Purpose: Deploy standard packages

Sales Launch 2/01/10

NADA lead-in
Pricing, cat #s, collateral complete

General Release 2/22/10

KEY NEXT STEPS

• Finalize reseller agreements with DealerRater.com, KnowEm, and Ning (key terms already articulated)
• Establish Ops email service
• Establish basic template library (3-4 templates)

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 Risks / Issues

• Dealer perception of price point; Holding price point over time (competitive entries)

CONSIDERATION - Some DA clients already showing interest at $ 3495 / mo

- Commercial B2C social managers validate price point (possibly too low!)

MITIGATION - Some capacity to lower list price

• Some of the current capabilities become commoditized (ex. brand monitoring)

MITIGATION - Attempting to gain exclusive from vendors within automotive vertical

- Other unique value props (ex. Business Online synergy)

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 QUESTIONS ?

THANK YOU

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 APPENDICES

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 Appendix A Component Costs

1. Ning Premium services bundle - $85 a month (includes site support)

2. DealerRater - $85 a month ($1,000 annual) less with reseller agreement
3. Network Solutions Domains (6) - $24 a month ($288 annual)
4. Flickr - $9 a month ($99 annual)
5. Video Syndication Service - $10 a month
6. BlogCatalog Category sponsorship - $25 a month
7. Rebate and Incentives iFrame web service - $55 a month
8. Widgetbox Syndication Program plug in app - $25 a month
9. Knowem Social Media Registration Services - $250 x 1, $50/monthly

The External Supplier List above results in a $250 one time fee and $359 monthly
“Cost Of Goods Sold”, plus additional internal resource costs of providing :
• 32 Hours Initial Setup Labor (4 days of full time resource)
• 2 Days of Onsite Social Marketing/Rep Management Consulting/Training
• 16 hours monthly maintenance (ADP analyst grade resource)

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 Appendix B-1 Dealer Community Site Platforms

Social Network Platforms

Investigated and Considered:
(listed in order of suitability for ADP purposes)
1. Ning
2. Joomla
3. Elgg
4. SocialGO
5. WordPress (BuddyPress)
6. DrivingSales
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 Appendix B-2 Dealer Community Site Platforms

Ning vs. WordPress vs. DrivingSales

When comparing Jared Hamilton’s DrivingSales community social
network platform to others it is worth noting that Jared has done an
admirable job of raising millions of dollars in Venture Capital
investments to fund DrivingSales.com platform development, and the
marketing of the site to both advertisers and auto industry
participants.
The performance of DrivingSales.com in areas related to getting the
target audience to visit and participate has been primarily hampered
by the “clunkiness” of the site platform and performance issues. An
example of how dramatic of an impact these problems related to the
DrvingSales platform architecture and design are can be seen in the
following 12 month traffic analysis from Compete, Inc. which
compares DrivingSales.com to 4 other automotive professional
targeted community, blog and magazine sites. You can view this chart
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link: Compete Auto Pro Site Comparison or by clicking on
Appendix B-3 Top 5 Auto Communities/Blogs: October
2009

1. AutomotiveDigitalMarketing.com (Ralph Paglia - Ning) 13,537 Uniques - Blue

2. DealerRefresh.com (Jeff Kershner – Wordpress Hybrid) 7,726 Uniques - Green
3. DigitalDealer-Magazine.com (Mike Roscoe - Proprietary) 4,660 Uniques - Yellow
4. DrivingSlaes.com (Jared Hamilton - DrivingSales) 3,441 Uniques - Orange
5. Dealer-SEO.com (Brian Pasch - Wordpress) 1,120 Uniques - Pink
Among these sites, DrivingSales.com has the largest
marketing budget, followed by DigitalDealer Magazine…
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Appendix B-4 Top 5 Auto Communities/Blogs: October
2009

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 Appendix B-5 Dealer Community Site Platforms

Ning vs. WordPress vs. DrivingSales

The Compete report and analysis shows poor performance of Jared’s DrivingSales.com
social network platform from an SEO perspective. Compare the “Top Referral
Sites” list for ADM.com and DealerRefresh.com to the top referrers for
DrivingSales.com. The ADM site has virtually no funding, except for Google
Adsense Revenue of less than $200 a month and some sponsored links funded by
ADP, which all total less than $300 per month. Yet, traffic is 400% greater than
DrivingSales.com which invests in digital advertising campaigns! The disparity is
due to the superior performance of the Ning social network design and architecture,
which we have licensed and taken off the Ning DNS server to maximize its stand-
alone SEO benefits. The DealerRefresh site built on a Wordpress platform hosted
on Jeff Kershner’s leased servers outperforms the much better funded
DrivingSales.com site. In October DrivingSales sponsored a successful conference
titled “Driving Sales Executive Summit” which featured a Twitter inlay on
DrivingSales.com’s home page where members could watch live “Color
Commentary” tweets streaming from the event with hash tag identifiers… This was
a successful promotion drawing a spike in visitors that is seen on the DrivingSales
30 day traffic report… Total traffic for October 2009 dropped by 43% due to the
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 Appendix B-6 Dealer Community Site Platforms
DrivingSales, DealerRefresh and the ADM Community
ADP Digital Marketing needs to participate in DrivingSales.com as a sponsor and with
a program to compel satisfied clients to post positive reviews about BZ and ADP…
This is as important to ADP as it is for dealers to have a proactive Reputation
Management strategy and supporting tactical processes in place.

However, to use the DrivingSales platform for ADP’s new SM/RM solution would be
a serious strategic error and would reduce the solution’s success potential.

Additionally, ADP should sponsor DealerRefresh.com and lock up the Advertising that
appears at AutomotiveDigitalMarketing.com through Google Adwords.

On top of these marketing action items, ADP should assign resources to focus on
monitoring and harvesting sales opportunities that appear on the “Big 5” automotive
professional targeted sites.

ADP sales professionals should participate and read what dealers and managers write,
and learn to capitalize on the sales opportunities that appear on these dealer and
dealership employee targeted sites EVERY DAY!
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 Appendix B-7 Dealer Community Site Platforms

Ning vs. WordPress vs.

DrivingSales Platforms

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 Appendix B-8 Dealer Community Site Platforms

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 Appendix B-9
AutomotiveDigitalMarketing.com

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 Appendix B-9
DealerRefresh.com

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 Appendix B-10 DrivingSales.com

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 Appendix B-11 Dealer-SEO.com

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 Appendix B-12 DigitalDealer-
Magazine.com

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