Given the troubles our industry is facing, the J.D. Power event held recently at the Bellagio in Las Vegas, brought to light some compelling information that I think you should know. The overriding theme, of course, was Internet marketing including examining and discussing the rapid emergence of social media and user-generated sites with an eye towards finding out how to leverage this shift in consumer behavior. Whether you were a manufacturer representative, agency guy, member of a regional dealer association, or a single point dealership there was something for you.

This Roundtable attracted some major players and thought leaders in the automotive space. It was not unusual during general sessions or networking, for example, to rub elbows with someone from Asbury Automotive Group or Toyota Motor Sales USA or even someone of importance from MySpace.com or Facebook.com. Some of you may think, yeah, so what? Well, given that most dealers are anxious, desperate, or desirous to find anything that resembles the echo of showroom footsteps, this meeting of minds produced some interesting “takeaways.” There were a number of sessions or panels that focused on topics such as Social Media: Will it sell cars?, Third-party Sites, Search Engine Marketing, and OEM Marketing as well as Dealer Group discussions, just to name a few.

There were no earth-shattering developments from the Third-party panel other than the consensus that dealers still demand, according to eBay Motor’s Rob Chesney, “qualified traffic in a very cost effective way.” Dealers’ need for quality leads means the major of third-party sites are doing reasonably well and that is mostly a function of their ability to engage effectively with online customers who have a need for content and inventory.

Now, what I was looking for from the conference (aside from my excitement that Dealer Marketing Magazine is a media partner) was innovative ideas and information that can help our dealer readers better communicate with online consumers and leverage the proliferation of user-generated content online. Lest we forget, this business is still about selling cars, so this Roundtable gave some insights into what consumers think and how they communicate with their peers online. Chance Parker of J.D. Power, during his session titled User Generated Content (UGC): Scope & Relevance, summed it up best, “It is all about listening to the voice of the customer.” In this modern age of online communication and social networking, dealer customers (and future customers) are all sharing ideas and opinions about vehicles, dealers, and the automotive space, online. In fact, 180 million people in the U.S. maintain a blog of some variety and that is a huge group of people sharing and exchanging ideas about vehicles and the automotive industry. In addition, according to Parker, their research shows that 51 percent of bloggers’ household incomes exceed $75K and the majority is over 35 years old. “So not all bloggers, just incase you are wondering, are teenagers with piercings,” he explains.

So how do you interpret those numbers or leverage the opportunity for the automotive industry? According to Chance, J.D. Power conducted a survey that shows a direct correlation between the “buzz” bloggers generate about buying a new vehicle (brand awareness, hybrid technology, etc.) and actual retail sales volume during an 18 month period. In addition, their research concludes that comparison of data from 2007 and this year shows a 25 percent reduction in purchase intent “buzz.” Well, we all know sales are down this year, so maybe they are on to something here. I think the value, probably more so for the OEMs, is the opportunity to listen to what consumers are thinking and talking about. The bigger question that still needs to be answered, however, is how does this translate into helping dealers move metal?

Unlike, for example, implementing a search campaign which has a set of desired steps that dealers can generally follow to create an Internet marketing strategy, I don’t think the retail automotive industry has firmly grasped a true understanding on how to effectively leverage the explosion in social media and user-generated content to their benefit. It remains in its infancy, but the numbers of people who chat and blog on affinity-sites or talk about the virtues (or shortcomings) of a particular dealership, new make, or model are simply staggering and it will be very interesting and timely to see how our industry responds.

Dealers should be excited about the possibilities of placing their dealership, brand, and reputation in front of online customers, provided it is the right message, at the right time, and in the right place. Ex-Kelley Blue Book stalwart Charlie Vogelheim should be commended for providing an excellent opportunity to learn, discuss, and digest all things Internet marketing related and we encourage our readers to keep an eye out for next year’s J.D. Power Automotive Internet Roundtable. You just might be ahead of the curve and in a position to benefit!

For more information, please visit http://corp.jdpower.com/irt/inernet08/index.asp or www.OnlineAutomotiveReview.com.