Autobytel’s MyGarage:new revenue streams, team up with DriverSide – UPDATE
Autobytel reports 2010 first quarter financial results
Autobytel, online consumer leads and marketing resource provider for auto dealers and manufacturers, just reported Q110 earnings.
Its $797,000 net income for the quarter compares favorably with the $357,000 net loss of Q409. First quarter revenue of $11.8 million was a drop from the $13.9 million reported one year earlier. Revenue from leads referral revenue dropped 12 percent year over year, primarily impacted by fewer active auto dealers, the elimination of affiliates, and Toyota recalls. Advertising revenue dropped from $1.7 million Q109 to $1.1 million Q110.
Gross margin grew to 40 percent for the first quarter of 2010, a year over year improvement of 4 percent, and a quarter over quarter improvement of .9 percent.
“We made significant progress against several strategic initiatives this quarter, including stabilizing our dealer base, enhancing relationships with auto manufacturers, controlling expenses and driving positive cash flow,” said Jeffrey H. Coats, President and CEO of Autobytel, in the announcement. “Importantly, we are leveraging enhancements in the fundamentals of our business which are intended to generate further gross margin improvement. We are optimistic about our ability to begin driving top line growth, as the automotive industry continues to show signs of recovery and Autobytel continues to offer new and inventive products and services that help auto dealers and manufacturers sell more new and used cars.”
New LendingTreeAutos.com signs with Autobytel
Autobytel Inc. , provider of auto-industry online consumer leads and marketing services, recently announced via its MyRide site that its vehicle price quote and dealer selector platform will power LendingTreeAutos.com, the recently-launched car-buying portal of online lending exchange LendingTree LLC.
“This is good news for car-buyers and dealers alike, said Autobytel COO Mark Garms, in the announcement. It provides new opportunities for both by connecting millions of in-market consumers with an expansive and highly qualified network of auto retailers. Through the power of Autobytel’s online automotive expertise and LendingTree’s proven, consumer-friendly financing tools, car buyers will have access to compelling financing offers and a convenient car purchasing process, while auto dealers will have the opportunity to serve a greater number of in-market consumers.”
The agreement is an extension of a long term marketing relationship between Autobytel’s Car.com Special Finance Program and LendingTree. Now, in addition to helping LendingTree customers with their car purchases, the new agreement includes opportunities for Autobytel’s dealer network to offer financing options to premium credit customers from LendingTreeAutos.com, as well as to credit-challenged car-buyers through the Car.com Special Finance Program.
Read this PDF to learn more about the Car.com Special Finance Program and what it offers auto dealers.
In addition to auto financing which has recently reached the 25 million mark for loan requests, LendingTreeAutos.com provides consumers with a dedicated channel to manage the entire car-buying process – from researching makes and models, to making a purchase from a local dealer. The Autobytel engine allows LendingTree customers to request a vehicle price quote and be instantly matched by zip code and vehicle type with a member of Autobytel’s nationwide network of automotive dealers.
We have questions, and calls in to all involved. In a struggling auto industry economy, why the move to yet another national auto search site? Is this focused primarily on finding borrowers? And with a partnership with Expedia, why not choose its AutoCheck product for vehicle history rather than CarFax? We’d also like to know how large a part of incremental dealer revenue are the credit-challenged buyers provided by Autobytel’s Car.com, other online resources, or as walk-ins. We’ll update you as we know more.
Revamped e-mail manager from AutoBytel
Autobytel Inc., provider of online consumer leads and marketing services to the auto industry, recently announced the re-launch of its Email Manager program. The Email Manager upgrade is specifically designed to help auto dealers easily, consistently and cost-effectively interact with today’s car-buyer across an ever-lengthening purchase cycle.
“Communicating with today’s less-decisive car-buyer first, faster and longer is critical to closing a sale, said Mark Garms, AutoBytel COO, in the announcement. “This is why Email Manager’s enhancements are specifically customized to help our dealers communicate and stay-in-touch with prospective car-buyers from the moment they ‘raise their hand’ online and throughout today’s lengthier purchase cycle,” .
The new Email Manager includes completely redesigned and automated email campaigns to increase consumer open rates and responsiveness and to directly reach the inbox of the target consumer. In addition, earlier and more frequent communications over a full 90-Day period, starting at Day 5, have been incorporated into the product.
How Email Manager Works:
* Campaigns are automatically deployed on a 5, 10, 15, 30, 45, 60, and 90 day cycle, from the date the customer first submits a Purchase Request.
* Each email is dealership-branded and customized by vehicle type and by the consumer’s position in the buying cycle.
* Each email covers issues relevant to the car buyers (vehicle information, trade-ins, lease vs. buy, safety features, etc.).
* Dealers are instantly alerted by email when a customer clicks on the email campaign.
* Dealers are provided with detailed reports on consumer activity.
In addition to Autobytel.com, the company’s network of automotive sites including Autoweb.com, AutoSite.com, Car.comsm, CarSmart.com,, CarTV.com,, and MyRide.com.
Autobytel and Kelley Blue Book together in used car market
Survey says…car sales down, Internet marketing spend up
A new survey conducted by Survey.com on behalf of Autobytel reveals some depressing facts about the state of the automotive industry in the current down market.
56 percent of dealers report that new vehicle sales this year have decreased from 2007. Domestic dealers have been harder hit than import dealers – 73 percent of domestic dealers report that sales are down (vs. “only” 48 percent of import dealers).
The Autobytel survey shows that dealers are increasingly focusing on follow-up and lead conversion, and Internet marketing to stay afloat. 91 percent of dealers report that they are either upping – or standing firm – on their Internet marketing spend despite tighter budgets.
Import dealers are increasing their Internet marketing spend the most while domestic dealers are spending more on the used department as a strategy to remain profitable in the year ahead.
With gas prices hitting record highs in 2008, 9 out 10 dealers have reported an increase in sales of smaller more fuel-efficient vehicles. When asked whether fuel efficiency has become the number one buying consideration for car shoppers, 55 percent agreed (that breaks down to 58 percent for import dealers and 42 percent for their domestic counterparts).
What’s responsible for all the declining sales? Dealers weighed in on this question too. Some said high gas prices were the cause (38 percent) while 37 percent blamed the credit crisis.
Will the market turn around? Not until at least the second quarter of 2009, say 52 percent of dealers.
The phone survey was conducted between August 25 and September 8.
