< PreviousNA TIONAL AUTOMOBILE DEALERS ASSOCIA TIONVisit nada.org to learn moreby PETER WELCHPeter Welch is president and CEO of the National Automobile Dealers Association.There is no doubt that the way we market new vehicles has changed radically during the past few years. OEMs and franchised new-car dealers have more ways to spend their marketing budgets than ever before, and pinpoint e-commerce tools and digital targeting have enhanced these marketing advances. But one star continues to shine: auto shows.In 2005, the average customer visited a dealership 6.1 times prior to purchasing a new vehicle. Today that number has dropped to 2.4 visits. So where do consumers go to actually touch and feel new vehicle product? Given their physical presence, auto shows are a unique, experiential channel where consumers, armed with information gathered online, can evaluate vehicles first-hand across all segments and brands.And while auto shows measurably ignite consumer excitement for a brand, perhaps their greatest impact is on vehicle purchase consideration and brand loyalty—the two metrics that just so happen to matter more than any other in today’s ultra-competitive market. Auto shows do this by concurrently introducing new potential customers into a brand’s pipeline while reaffirming the brand’s unique value proposition for current customers in a meaningful way.For example, we know that many millennials delayed their first new-vehicle purchase until later in life than previous generations. As a result, their introduction to OEM brands was delayed. But millennials today are buying new cars at a higher rate than they did a decade ago. According to a recent Strategic Vision report, the percentage of new-vehicle sales to consumers under the age of 35 was Abandon Auto Shows at Your Own PerilCONSUMERS AT AUTO SHOWSPLAN TO BUY A NEW VEHICLE WITHIN 12 MONTHS68%11,000,000+CONSUMERS ATTEND U.S. AUTO SHOWSBOUGHT A BRAND THEY WERE NOT CONSIDERING BEFORE THE SHOW21%ADDED ONE OR MORE BRANDS TO THEIR CONSIDERATION LIST39%b y t h e n u m b e r sINFLUENCED IN PURCHASE DECISION BY ATTENDING AN AUTO SHOW 56%NEW-CAR AND -TRUCK BUYERS 11NA TIONAL AUTOMOBILE DEALERS ASSOCIA TIONVisit nada.org to learn more19.3 percent. In 2007, it was 16.6 percent. And guess who’s coming to many auto shows at a higher rate than any other demographic? That’s right; millennials. And they buy. Dr. Richard Waterman, a professor at the University of Pennsylvania’s Wharton School who has been examining auto show impact on consumers for 20 years, finds that auto show attendees are consistently twice as likely to make a new-vehicle purchase in the year following their show visit than the general population.According to Foresight Research, auto show attendees cited show attendance as more influential on their purchase decision than digital advertising, direct marketing or event sponsorship. What’s more, among new-vehicle buyers who attended an auto show prior to making a purchase, 56 percent indicated their purchase was influenced by the show they attended, with 21 percent of buyers attending an auto show purchasing a brand they were not already considering before the show. And of those who reported they would be in the market to buy a new vehicle within a year of attending one recent auto show, 90 percent said their auto show visit had influenced what vehicle they would ultimately purchase.The numbers simply don’t lie. When it comes to generating meaningful consumer experiences that enhance purchase consideration and brand loyalty—and that lead to sales—local-focused content and events are king. Local and regional auto show organizers and involved dealer groups know what will move the needle, and an OEM has the opportunity to communicate with current and potential consumers in their own backyards, often with local brand representatives who speak to consumers in terms with which they are comfortable and who will heighten their relationship with the brand.Unfortunately, a number of OEMs have recently decided to pull back their investments in auto shows—often in favor of new digital tools. And while digital’s potential for marketing is growing, the gritty reality is that many consumers require an in-person experience with a product before purchase.Luckily, OEMs don’t have to reinvent the wheel. America’s auto shows are a proven investment that pays high dividends, not just in raw sales but in brand excitement and customer experience—particularly when consumers are questioning whether the time is right to buy a new vehicle at all. This is why smart automakers don’t see auto shows as a relic of the past, but rather as a launchpad for their digital marketing prowess.It is true that show costs have unfortunately escalated in recent years—as convention centers have raised rates, displays have become more sophisticated, and the cost of logistics continue to rise. But that’s no justification for throwing the baby out with the bathwater. And the brand gurus know this. There’s a big difference between expenses and investments. We hope the OEMs come back around to what dealers know and what the numbers show: Auto shows drive sales and brand loyalty.Let’s find a way to harness that reality and make auto shows work better for us. The numbers clearly tell us that showing the metal is still the best way to move the metal. ■Peter Welch, President & CEO, National Automobile Dealers Association12GET TO KNOW YOUR LEGISLATORAssemblywoman Cottie Petrie-NorrisRepresenting the 74th Assembly District including the Orange County cities of Costa Mesa, Huntington Beach, Irvine, Newport Beach, Laguna Beach, and Laguna Woods.Favorite Quote: “Never doubt that a small group of thoughtful, committed citizens can change the world: in-deed, it’s the only thing that ever has.” — Margaret MeadCommittee Membership: Chair, Accountability and Administrative Review Committee;Chair, Select Committee on Student Debt; Member of the Appropriations, Judiciary, Veterans Affairs, and Revenue & Taxation committees. Biography: Assemblywoman Cottie Petrie-Norris is a businesswoman, community leader, wife and mom. She grew up in San Diego County in a hardworking family and went on to Yale University where she double majored in Economics and English.Over the past 20 years, Cottie has enjoyed a successful career in finance and technology. She has built businesses and led teams at Fortune 500 corporations, small companies and start-ups.In the Assembly, Cottie is fighting to protect our coastline, keep our communities safe, create good jobs and build a thriving California economy where we can all succeed. As Chair of the Assembly’s Accountability Committee, Cottie’s top priority is to ensure that taxpayer dollars are spent efficiently and effectively. Personal: Cottie has lived and worked in Washington DC, South Africa, London and, for the past 7 years back to her roots in Southern California. Cottie lives in Laguna Beach with her husband Colin, two sons Dylan and Hayden and their rescue dog Flounder. Cottie loves yoga, hikes and spending time at the beach with her family. District Office Contact Information:(714) 843-4966 (949) 251-0074 | a74.asmdc.org 19712 MacArthur Blvd. #150Irvine, CA 926121213Powerful. Friendly. Complete.AVRS is your partner for experienced DMV processing, including your EROS and Temp Tag needs. Let’s partner to improve customer experience and grow your business.Part of theLARGEST U.S. TITLE & REGISTRATIONPROVIDERand growing.Temp Tag experts in SIX STATES with4+ MILLIONTEMP TAGS ISSUED.3+ BILLION securely transferred to State DMVs annually.© 2019 AVRS. All Rights Reserved. 19-0750LEARN MORELEARN MOREAT AVRS.COMOC AUTO INDUSTRY FAST FACTSFRANCHISED DEALERSHIPS IN ORANGE COUNTYTOTAL DEALERSHIP SALESTOTAL EMPLOYMENTEMPLOYEESPAYROLLSALES TAX COLLECTEDCHARITABLE CONTRIBUTIONSORANGE COUNTY SOLD MORE NEW VEHICLES THAN 25 STATESTHE AVERAGE DEALERSHIP EMPLOYEE SALARY IS $61,000 A YEAR$95 MILLION GOES DIRECTLY TO ORANGE COUNTY CITIESAVERAGE CHARITABLE CONTRIBUTION OF $55,000 BY EACH DEALERSHIPAVERAGE OC DEALERSHIP’S PAYROLL IS $6,360,000AVERAGE DEALERSHIP COLLECTS OVER $6 MILLION IN SALES TAXNEW VEHICLE SALESUSED VEHICLE SALES121$12.4 Billion12,500$770 Million$737 Million$6,655,000207,39487,967DEALERS’ ECONOMIC IMPACT ONORANGE COUNTYOCADAScholarship Spotlight Your association continues to invest in future technician employees, by awarding college scholarships to motivated high school seniors who are interested in an automotive career. Last spring, Damien Seay’s high school automotive instructor recommended him for an OCADA scholarship based on his keen interest in automotive technology and his excellent work ethic. Mr. Le advised that Damien spent many of his free hours at the high school shop, wanting to learn more and mentoring younger peers. OCADA’s Board was happy to support his continued education goal with a scholarship that Damien used this past year to attend Cypress College’s Toyota Technician Training & Education Network (T-TEN) program.At Santa Margarita Toyota, Fixed Operations Director Gina Allen, feels that “it is important to have entry level college students employed at our stores. When we create a relationship between the school and our store, we can help break down misconceptions about working for a Dealer. I cannot stress how important it is for Service Managers to get out of their comfort zone and interact with community college students. The current technician dynamic is changing rapidly and as Dealers we cannot expect technicians to fall from the sky.” For Gina, the dynamic is simple - she has built rapport with the instructors, so they know which students will be a good fit in the dealerships she manages. OCADA continues to support high school seniors through scholarships to Orange County Community College automotive programs. Santa Margarita Auto Group Dealer Jim Graham commented “investing in our future workforce is so important, as we continue to see our businesses and the vehicles we sell and service become more technologically advanced every year”.OCADA members can connect with other entry-level technicians by attending one of OCADA‘s recruiting events at Orange County Community College campuses or by searching for student profiles on OCAutoJobs.com. In fact, the dealers using these programs have collectively hired more than 150 technicians thanks to these free services provided by your association. Please contact Kim McPhaul, Member Services Manager at (949) 428-5050 or Kim@ocada.org for more information.16Damien Seay 2018 OCADA Scholarship RecipientLube Technician at Santa Margarita ToyotaT-TEN student at Cypress CollegeFor over 40 years, BBVA Compass has provided auto dealers with the exible and a ordable commercial nancial solutions they need to operate asuccessful dealership: For your dealership Floorplan & real estate nancingEquipment financing & leasing optionsInventory & parts receivablesmanagement solutionsFor your customers Competitive retail nancing optionsQuick credit decisions & reliable fundingTerrance DempseyEugene Gonzalez Relationship Manager, Orange County Market 949 -214-0017 Our experienced professionals are committed to helping you make your business more e cient and more pro table — all with the added support of top-level customer service. 1-800- COMPASS • bbvacompass.comAll credit and accounts are subject to approval, including credit approval. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC. Give us a call today. Your business is built on service. So is ours. Follow us on: Dealer Relationship Manager 949-212-040518OCADA’s 55th AnnualGolf TournamentA N N U A L he 55th Annual OCADA Golf Tournament was a great day of golf at Mission Viejo Country Club. Golfers enjoyed reconnecting with old friends and a day of golfing, contests, and fun sponsored festivities throughout the course. After the tournament was finished, guests gathered on the green for the much-anticipated lawn bowling and helicopter drop. The dinner and awards ceremony was action packed and guests walked away with over $10,000 in prizes while our emcee and chairman, Al Parajeckas kept the crowd entertained as he announced the winners of the tournament.T19WINNERSPRESTON MINORTONY FERGESONBROCK PALMERTOM HOWHANNESIANSCOTT WADEGLENN QUINTOSJEFFREY GOLDSMITHCHAD PELLICCIONITIEDNext >