Leadpile’s Blog

Bankrate.com just released the top 10 selling cars for 2008.  The hottest and most popular automobiles: 

• #10 – The Chevrolet Cobalt.  Listing price $14,217. Sold to date 114,250 vehicles.  Runs at about 25-30 mpg.  
• #9  -  Ford Focus. Listing price $15,363. Sold to date 123,449 cars. Average 28mpg
• #8  -  Chevrolet Impala. Listing price $21,348. Sold to date 138,952.  MPG depends on the cylinder of the vehicle.  Your looking at anywhere between 17-23mpg depending on the version
• #7 – Chevrolet Silverado (light duty). First truck on the top ten.. Listing price$25,921. Sold to date 148,046. They average 11-16mpg. 
• #6  - Nissan Altima.   Listing price $22,798. Sold to date 158,006.  Average 22-26mpg.  
• #5  - We are half way down the list . Introducing the Ford F Series (light duty). Nice to see another truck on the board.  Listing price $22,798.  Sold to date 164,828.  10-16mpg.  Wow, get ready to spend your money on gas with this type of mpg!
• #4  - Toyota Corolla.  Listing price $17,122.  Sold to date 169,868.  25-30mpg.  Nice!
• #3  - And now the top three!  Honda Civic! I’m not surprised to see this bad boy on the list.  Listing price $19,114.  Sold to date 204,961.  The MPG is great with whopping 28-42mpg. 
• #2  - Honda Accord.  Listing price $25,859. Sold to date 227,874.  Save some cash with this beauty 25-34mpg.
• Finally, what we have all been waiting for .  #1 best selling auto for 2008!  You ready?  Announcing the most popular car around, the TOYOTA CAMRY.  Listing price $22,859.  Sold an amazing 228,874 cars this year.  Take a vacation with the money you will save on gas with 23-34mpg.

Surprised to only see 2 trucks in the top ten?  I think not.  Overall car sales are down 10% this year compared to last year.  Leadpile Lead Exchange deals a lot with the Auto Finance vertical and the volume of leads coming through our system is slightly down also, however we are expecting it to turn around any day now!
There you have it, the top 10 autos for 2008!

According to MSNBC late Friday, there is some speculation that Chrysler could possibly be getting out of the auto leasing arena. I guess time will tell if this turns out to be true.
Major changes such as this has been happening in the auto industry, and turning the once SUV dominated auto industry into the now ECONOMY driven auto industry. This potential exit from the leasing market, could be the beginning of other major auto manufacturers doing the same thing. Why would auto companies continue to be apart of the leasing industry that is dominated by massive gas “hogs”? Then again what about leasing some of these other cars that are making a surge in the auto industry now? Does that mean consumers will not be able to potentially lease those auto types too? WE will see….
One positive that I can see in this potential change is the increase in the auto finance (own) industry. This potentially means more people will be owning their cars instead of leasing. This could result in an increase in our auto finance lead type. Leadpile Lead Exchange will welcome this potential increase in demand!

Watch LeadPile Specialty Finance TV Commercial Here!

According to TNS Media Intelligence (as reported by Emarketer), Automotive advertising spending in the US dropped to $1.99 billion in Q1 2008. That was down more than 14% compared with Q1 2007.

This does not surprise me that much as we predicted in 2005 that more and more Automotive Advertising would be spent online in the years to come. While the overall automotive advertising spending decreased, Internet spending was up 57.9% last year, to $441.6 million.

What does this mean to our Automotive Lead Exchange Participants? Simply put, being in the middle of the online auto lead space is not a bad place to be at all. Carpe Diem!

Last year first half of 2007, Toyota sold 4.5 million vehicles while General Motors came out winning selling 4.54 million vehicles.  Pretty close in sales.  

2008, first half the year, the numbers have arrived.  Toyota automaker sold 4.8 million vehicles for the first half.  That’s about a 2% increase from the same period of last year while GM sales drop 3% the first half.

With the gas price increase more consumers are staying away from the bigger trucks and SUV’s that GM is well known for.  The percentage difference on Toyota’s increase and GM’s drops are somewhat related.  My theory is that consumers are going after the gas saving cars that gives the more miles per gallon.  GM, being a leader in sales until this half of 2008, should  take different approaches to catch the consumers interest?  Maybe it’s time for the engineers to start developing more smaller cars to bring out, less expensive with more miles to the gallon.

All in all the economy is not doing that horrible as critics are proclaiming.  Look at the sales, they are pretty steady, meaning consumers are still spending and they are still buying new vehicles. 

Great time for Auto Groups to take advantage of leads in a lead exchange.  More cars to sell!

Let’s go into Dynamic Pricing and its advantage.  Let’s say you have a network of advertisers but they all pay different pricing on leads.  How do you integrate this in a dynamic pricing tier for the auto and payday vertical?  Everyone wants first look. In a lead marketplace top bidder will get first look.  Segregate your advertisers by pricing.  

Here’s an example.  You have 5 companies buying from you.  Comp.1 can pay $6, Comp.2 can pay $29, Comp.3 can pay $40, Comp.4 can pay $10, and company 5 can pay $23.  Set up 3 campaigns in our lead exchange.  Campaign 1 set it at $6 Campaign 2 set it at $23 and Campaign 3 set it at $40.  Set up different affiliate IDs and put Comp 1 and 4 on campaign 1, company 2 and 5 on campaign 2 and company 3 on campaign 3.  This way you, we PING leads for your advertisers within the price they can afford to pay and you PING back a response with the price you accepted the lead and sold at.

Dynamic pricing works in different ways.  We can set up a unique tier that we will PING a lead at and you can POST back the price the lead was sold at. In addition, you can set up various parameters as filters, such as if you have zip codes that will pay a higher amount than others we can set up campaigns for higher paying zips and a different campaign for lower paying zips. We can also set it up by states, or even customers.  Whatever works best for you we can do.

The technology within our marketplace is so extreme that our integration and the variation of methods that we can assemble is quite intense.

With Tier Pricing, you set up the tier that you feel comfortable paying, we PING you at that price and you POST a reject or accept response letting us know if you will buy the lead or not.  You will pay the price the Tier is set for that we receive accepts on.  The lead exchange works fantastic, you can up your bid to subscribe you in a higher placement or you can go lower if you need too.  

Take into consideration that you are also taking advantage of the redirect feature that is available when we are doing the POST. 

If you need ideas or suggestions on how to set up your dynamic pricing or tier structure give our friendly experienced staff a call.  We will work with you to make this the best experience in the history of lead gen and find the solution that will best fit your companies platform.  And, finding the best way to set up your campaigns for your network of buyers!

Sure, all Cash Advance and Auto Groups want the SSN on the leads.  My question is, are they truly necessary?   Many may say, “well, sure it is!”  It’s needed to run a credit check when applying online.  What happens to leads that don’t provide an accurate Social or that become skeptical and refuse to provide it.

With identity theft in the U.S. affecting over 10 million Americans a year across the U.S. according to a study by the Berkeley Law School, you will experience less people providing their social on leads.  Especially, if they have been victims of identity theft.  Wouldn’t you agree?

What does this mean?  In a lead exchange, we provide safe, secured sites that are developed to ensure that the consumer feels comfortable.  Even then we will get leads where the consumer did not provide the Social.  Realistically, this doesn’t mean the lead is bad.  Payday lenders and Auto Dealers, can purchase leads of such and call them.  Making the consumer comfortable in providing sensitive data.  Consumers will need to earn your trust and understand that their information will not just be floating around and getting to the wrong hands. 

Buying leads with no SSN will bring in more business.  You will close more deals.  Lead exchange will increase your ROI, when you use all aspects to them.  Getting full applications is a great benefit, but don’t forget about the consumers that are interested but become uneasy with just providing all their personal information online.  They are a sure candidate to close more deals, I’m sure.

Its always easier when you can talk to a person directly! Keep that in mind.

Many industry experts are predicting that intensifying economic pressure is sure to lead more auto dealers to consider closing. According to the Detroit News, “General Motors Corp., Ford Motor Co. and privately held Chrysler LLC are going through cash at a faster rate than they generate it, and investors worry that one or more of the companies could run short, perhaps before the end of next year”

According to the Wall Street Journal,  “Ford, GM and Chrysler are running programs aimed at reducing their dealership network by weeding out under-performing sites while bolstering profitability potential for those who remain. The auto makers are kicking in cash to help dealers buy out one another or exit the business”.

What will happen to Dealerships as more competetion, and a weekening economy, continues to “hit” them?

The answer is pretty straight forward. Competition will reign supreme, and efficiencies in sales cycles, cash flows, and ROI’s will rule the day.

What does this mean for the portion of LeadPile’s business that makes up our Online Exclusive Auto Lead Exchange?  Simply put, as more efficiency is demanded by the market, only those companies that can compete with an efficient deliverable (in this case an auto lead), will continue to gain market share.

If you are a lead buyer in our Online Auto Lead Exchange, and you need anything at all to make your buying experience even better, please do not hesitate to ask. We are at your service!,

Yes, correct! In a lead exchange the pricing is market driven.  Payday and Auto Financing are truly the most critical to monitor.  Why?  Simple, the end user, payday companies and auto groups, are looking for exclusive, unique, and qualified leads.  Top tier bidders will get first look and the opportunity to buy leads that are authentic and precise to filters set up.

Many companies use softwares such as CL Verify or Teletrack, that checks for factuality against SS#’s and DOB, and a few other filters.  Software such as these are a benefit to the online verification method that large organizations entitle to run a smooth and prosperous business.  

In a lead exchange, publishers should be alert at the placement of their campaign and the ranking that they hold.  I would never suggest to pay a price that you are not seeing a good ROI on your campaign, but I am suggesting not to be cheap.  You need great qualified leads? That will consist of becoming aggressive.  See when you do the math its pretty simple.  Your cheap, you pay $10 for a payday lead, and you are not converting as many as you like.  Then your upset.  Well lets talk about reality.  You probably have 20 other companies competing for the same lead, bidding more than you, hence, they are buying your leads! Yes, I said your leads!  The more competent and genuine leads that could have been closed by you.

Be at a comfort level that you are seeing a significant amount of conversions.  Larger companies are successful for one reason! They became aggressive and were in a competitive market.  Come straight to the source and pay less for your applicants that need your assistance now!

One more thought to absorb is that in a lead exchange of advertisers and publishers, publishers have the opportunity to set up their minimum price point, just as advertisers can set up the price to pay.  Therefore, if your bid price is too low, you are missing out on some strong potential publishers that are using their marketing revenue in Google AdWords for example, to generate high quality traffic, and its skipping your campaign due to your bargain bid. 

Take this as good advice and monitor your campaigns, you need to be aware that higher tiers will have the chance to accept a lead before you do!