UnityWorks! Media // Industry Articles

Video Streaming, Web 2.0, and the Evolution of the Internet
By Phil Sura, VP of Automotive Sales
As seen in Dealer Magazine: http://digitaldealer-magazine.com/index.asp?article=1391

One of the hottest Internet initiatives this year is video streaming. Some of this interest has been fueled by Google's $1.64 billion acquisition of YouTube. When asked why he would spend a fortune for a three-year old company, Eric Schmidt's responded that video “is the next step in the evolution of the Internet” ( USA Today , Jefferson Graham, 10/09/2006). This is just one aspect of the transformation of the Internet called Web 2.0. According to author Michael Moe (“Hunting for the next Starbucks,” January 28, 2007), this transformation of the Internet will be a megatheme and megatrend. A megatrend is defined by Mr. Moe as ‘technological, economic and social forces that develop, move into the mainstream and disrupt the status quo.” Megatheme refers to the Internet being a platform for multiple focuses (communications, information, marketing, etc.). This means that the traditional media will continue to lose share and Google, Yahoo and other search engines will become even more dominant. The reason that video streaming is a key component of this transformation is that video is more dynamic and more interactive than pictures and text. Many automotive web site providers believe that most metro dealers in the next three years will demand video as a means of more effectively communicating with their customer base and market. Here are some basic questions related specifically to video streaming:

• What is video streaming?
It is multimedia that is continuously received by, and normally displayed to, the end-user while it is being delivered by the provider. The name refers to the delivery method of the medium rather than to the medium itself. (Source: Wikipedia) This simply means that your dealership can send a video to a customer or prospect by adding a link to an e-mail. The customer is linked to a different web site where the video is hosted. The same approach takes place when video content is added to a dealership web site. The customer clicks on a video icon (with a live link behind the icon). The dealership would not need to purchase servers or worry about available band width concerns.

• What advantages will video streaming provide my dealership?
(1) The stickiness factor is increased and (2) the number of touches to drive a “show” is reduced. The stickiness factor is defined as the number of minutes that a prospect stays on your site and the amount of information retained. (1) If a prospect is in the investigative stage and he/she stays at your site for a longer period of time than the competition's site and he/she remembers more of that web site visit than the sites with only pictures and text, you have an advantage. This is branding 101. (2) If your Internet team has the ability to send a response to an inquiry that has more emotion (video rather than text), you will connect with that customer in an entirely different manner. It is similar to the top car salespeople on the floor who balance statistics and product knowledge with being able to connect emotionally with the prospect. If the customer is engaged and excited, closing ratios and gross will increase. If the customer is more emotionally connected with your Internet manager because his/her response is more engaging, the show rate increases.

• What are some examples of video content that a dealership can stream?
Customer testimonials, new car content, used car walk arounds, virtual tours of the dealership, the dealership's network commercials and introductions to the management team to list a few.

• Is video streaming expensive?
No. It is less money to have a monthly video streaming strategy than running a half page ad in most major metro newspapers.

• Can the streaming be measured?
Yes. Both the number of views and the percentage of video viewed can be tracked. This makes it easy to determine an ROI.

• Will video streaming help sell cars?
Yes. Video streaming is one of the most effective ways to reach the prospects that are the closest to a car buying decision (the prospects taking the time to visit your site or the prospects sending an inquiry into your dealership.) Video streaming, like any effective advertising, will create an emotion connection with the prospect. These tools still need to be used properly and the salesperson still needs to do his/her job at the store level once the prospect comes to the dealership.

• Are Fortune 100 companies looking at video streaming?
Advertising Age recently interviewed the movers and shakers in the digital marketing world including executives from Coke and GM. The conclusion from the article was that “it's all about video.”

• Why isn't every dealership in the country using video streaming today?
This is fairly new technology. The early adopters in the automotive dealer world started streaming video content three years ago. Many dealers wait and follow what the top ranked dealers are doing. Many of the top nationally ranked e-commerce dealers are now working with video streaming. If you have a web site and you aren't using video streaming today, you will.

• What questions do I ask a video streaming company?
The foundation of any video streaming company is the platform that it was built on. Does the company use a diagnostic tool to determine the bandwidth and type of media player being used (so that the customer doesn't need to select options or download a certain type of media player)? Are different versions (encodes) of the video being sent out to maximize the percentage of people who can view the streamed video? Can a prospect with a dial up connection watch the video? Will the company allow a dealership to stream video content created by the advertising agency or your OEM? How does the buffering process work (how long does it take to start)? Does the company help create video content which will then be streamed? How many automotive dealerships are the streaming company working with? Make certain that you visit some live dealership web sites to see the tools in action.

It is an exciting time to be an auto dealer. Competition is fierce, consumers are educated, and harnessing technology is becoming a key focus for many dealerships. Video streaming is one additional tool that you can use to drive showroom and service business.

http://digitaldealer-magazine.com/index.asp?article=1391