Philip Zelinger, the President of Ad Agency Online, L.L.C. and host of the automotive advertising resource / networking portal — http://AdAgencyOnline.net — reflected on the future of the retail auto industry and automotive advertising on his blog talk radio show Lunch With Phil Discussing Automotive Advertising. Philip focused on market conditions beyond the control of auto dealers and the automotive advertising agencies that serve them. “The downsizing and consolidation of the retail auto industry in response to a shrinking economy was compounded by government intervention in the manufacturing and business sector in ways that could not have been imagined. The changes in the market and the economy were beyond the control of independent auto dealers and the interventional role of government could not have been foreseen. The impact on the retail auto industry has been profound with many auto dealers closing their doors; some voluntarily and others by government and/or factory dictate. The ripple effect of these closings on automotive advertising agencies and the fear of even more government regulations that impose restrictions on lenders coupled with excessive taxes and fees on small business — such as those associated with the new health care system — have already contributed to the malaise in the retail auto and automotive advertising industry beyond what could have been anticipated by normal market corrections. Further government intervention in the free marketplace with pending legislation like Card Check that threatens to unionize independent retail auto dealerships by eliminating the right of workers for a private vote on the decision to unionize a dealership, and artificial taxes on utilities and fuel costs imposed by legislation like Cap And Trade that creates a government controlled taxing authority on carbon emissions, threaten to decimate our economy with a direct impact on projected retail auto sales and the automotive advertising industry.”
Philip’s comments mirror the concerns of many auto industry experts who have reduced inventories, staffing, operational expenses and automotive advertising budgets in anticipation of further attempts by the government to redistribute the wealth; a stated goal of this administration in keeping with their election promise to fundamentally change America. Philip also commented on other pending legislation that threatens to change the automotive advertising industry. “The Internet has become an integral component of any comprehensive automotive advertising marketing plan. This free media and the various automotive advertising applications that have matured to take advantage of it have allowed automotive advertising agencies to maintain a consistent targeted marketing message with a quantifiable R.O.I. that cannot be replicated by conventional media such as radio, T.V. or newspaper. Unfortunately, even this safe haven for automotive advertising agencies is under attack by the current administration. Attempts to impose fees and control content on the Internet through legislation like Net Neutrality have been unsuccessful to date, however, the F.C.C. has already put the market on notice that they will bypass the will of the Legislative Branch in favor of the Executive Branch’s desire to control the Internet. The F.C.C. has ruled that the Internet is actually a utility, like the telephone industry, which places it under their authority. Similar threats by this administration to bypass the Congress and the Senate, as well as the polled opinions of the populace, have been evidenced by the administration’s threats to overrule the Legislature’s vote against Cap And Trade by suggesting that Carbon Dioxide is a poisonous gas which places it under the control of the E.P.A., another government agency that answers exclusively to the Executive Branch. These attempts to control the free market suggest that the rules have changed and the consequence is that neither the people nor small business is willing to play until the rules are known.”
Philip also provided solutions to the problems that he surfaced along with the assurance that he remains confident in the future of the free market and the auto industry as we know it. “The United States was founded on the rights of the individual operating in a free marketplace with checks and balances that have only been temporarily compromised. The November elections represent the first opportunity for the people to respond to the activities of the current administration that were contrary to the rules of law. The government takeover of General Motors and Chrysler and their related actions against the secured bondholders at GM that transferred their interests to the Unions, as well as the arbitrary closing of independent auto dealers with little or no reasonable recourse, did not go unnoticed. I believe that we all have come to understand that elections have consequences and the next series of elections will provide the same opportunity to right some wrongs. Fortunately, auto dealers are extremely resilient and those that survive these unwarranted government interventions have already adjusted to current market conditions. The efficiencies realized by new technologies that have matured to take advantage of the Internet have reduced operational expenses in brick and mortar facilities in favor of more cost effective virtual showrooms on the Internet Super Highway. Leveraged resources provided by social media and networking communities that empower consumers to shop for vehicles online coupled with similarly leveraged resources accessed by automotive advertising agencies and auto dealers to share best practices have been accelerated by the economic pressures placed on the market. The only two constants in the auto industry are change and human nature. Those auto dealers that adjust their business models accordingly will survive while those that don’t shouldn’t.”
About Philip Zelinger
Philip Zelinger is the President of Ad Agency Online, L.L.C. and the founder of AdAgencyOnline.Net. He invested 25 years as a General Manager and Dealer Principal followed by his last ten years in the automotive advertising industry learning from the teams that he built so he can now presume to teach on forums like AdAgencyOnline.Net. His role as a “Dealer Coach” is enhanced by his hosting a nationally recognized auto industry social networking portal and blog talk radio station – WAAOL, All Automotive Advertising News All The Time. As the author of two books on the auto industry, including “How To Sell A Car – a Career Guide to The Automobile Industry,” he is a recognized authority on market trends and developing technologies with the responsibility of selecting key vendors and applications for his dealer clients as well as forming strategic partnerships for his vendor clients to leverage their shared resources to help them bring their products and services to market.
About AdAgencyOnline.Net and Ad Agency Online, L.L.C.
AdAgencyOnline.Net reviews automotive advertising vendors and new technologies on several blog talk radio shows in addition to the Lunch With Phil Discussing Automotive Advertising. Other shows include “Lunch With Ralph Discussing Automotive Advertising” and “Automotive Advertising Experts.” The shows attract automotive advertising agencies, auto dealers, auto industry vendors and O.E.M. representatives that listen to WAAOL to find vendors, applications and technologies to maximize the R.O.I. for their automotive advertising dollars.
AAOL is a national network of independent affiliated automotive advertising agencies linked by an online communication / distribution system developed by Philip Zelinger. The proprietary operating system that powers AAOL was designed to reduce fixed and semi-variable expenses for full service automotive advertising agencies. The developing technologies that enhanced the performance of the independent automotive advertising agencies linked by AAOL has served as the role model for the solutions suggested on AdAgencyOnline.Net and represented by AAOL to their affiliated automotive advertising agencies when serving their auto dealer clients.
Ad Agency Online L.L.C is focused on discovering and representing new automotive advertising vendors not yet recognized by the mainstream automotive advertising industry. Some of the automotive advertising vendors represented by AAOL include ronsmap, SiSTeR Technologies Video CarLot, TeleTextSolutions, DealerMouth, GetAutoAppraise.com, Argistics – AutoTransaXion, DealMaker.Com, CityTwist.Com, Bulldog Marketing Technologies, Kihon Media, CarFolks.Com, Ai Dealer and Laser Stream Video; with more being added weekly.
For more information on Philip Zelinger, Ad Agency Online, L.L.C., or any of the vendors on AdAgencyOnline.Net contact Philip at http://AdAgencyOnline.Net. Automotive advertising vendors, automotive advertising agencies and auto dealers that would like to be considered as a “preferred automotive advertising vendor” on AdAgencyOnline.Net and/or to hire/join Ad Agency Online, L.L.C. to represent them can contact Philip Zelinger at firstname.lastname@example.org, or call him at 888-796-2228. To quote Philip Zelinger, “Help is only a click away! After all, what are friends for!” ###