introduction - dealerconnection the lincoln advertising covenant program (“program”) is a...

LINCOLN ADVERTISING COVENANT PROGRAM OVERVIEW

1

INTRODUCTION

The Lincoln Advertising Covenant Program (“Program”) is a voluntary advertising compliance program designed to build and grow the Lincoln Brand. Lincoln Dealers who agree to the Lincoln Advertising Covenant Terms & Conditions will be enrolled in the Program on a calendar year basis (see Program Enrollment). Dealers will be reminded to update their enrollment status annually; however, enrollment will automatically renew unless the Dealer chooses to exit the Program.

By agreeing to the Lincoln Advertising Covenant Program Terms & Conditions, enrolled Dealers will be paid Lincoln Advertising Covenant Funds on a monthly basis to comply with the Lincoln Advertising Covenant Guidelines.

100% of the Program’s funds must be spent on the purchase of eligible production and media within the calendar year. Lincoln Advertising Covenant Program Headquarters will conduct random, quarterly spend reviews with enrolled Dealers’ to verify 80% of a Dealer’s Lincoln Advertising Covenant Funds are spent on the purchase of eligible media & production within the quarter the funds are received.

Dealers will have the ability to roll up to 20% of their quarterly spend requirement into subsequent quarters – all 2017 funds will need to be spent within the 2017 calendar year (i.e. NO rollover of Q4 Funds).

Compliance will be confirmed by a full year 2017 spend review which will verify all dealers have spent 100% of their 2017 payments. This full year review will occur in Q1 2018. (See pages 12-18 for more information regarding Dealer spend reviews.)

Program Headquarters will regularly monitor Dealer advertising across a variety of media to ensure compliance with Lincoln Advertising Covenant Guidelines. If an infraction is identified, the Dealer will be notified and expected to update and correct the advertising to comply with the guidelines. Lincoln Dealers who receive multiple infraction notifications within a specified time will be suspended from receiving future Lincoln Advertising Covenant Funds. (See pages 8-10 for more information.)

A Program Website is available to access real-time information on program activity. Dealers will have convenient access to this Website via links on the Lincoln Toolbox and FMCDealer. (See page 19 for more information regarding the Program Website.)

2017 Lincoln Ad Covenant Program will run from January 4th, 2017 through January 2, 2018. All funds received for LACP during that time must be spent within that time period.

NOTE: Ford Motor Company reserves the right to revoke or amend the Lincoln Advertising Covenant Program at any time without prior written notice.


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PROGRAM ENROLLMENT

Lincoln Dealers who wish to receive Lincoln Advertising Covenant Funds are required to enroll in this new Program by opting-in on the Dealer Program Enrollment System (DPES). From FMCDealer.com, Lincoln Dealers should select the “Sales” tab, select “Marketing & Advertising” on left menu, and then click on “DPES Enrollment”.

Enrollment must occur by noon on the last day of a given calendar year. Lincoln Dealers who miss the enrollment window will still be able to enroll in the Program but will miss the 1st monthly Lincoln Advertising Covenant payment. Dealers who choose to enroll after the last day of a given calendar year must enroll by the following dates to receive future Lincoln Advertising Covenant Funds.

Enrollment by Monthly Payment

February 2, 2017 Third week of February

Third week of March

Third week of April

Third week of May

Third week of June

Third week of July

April 3, 2017

March 2, 2017

May 2, 2017

July 3, 2017

June 2, 2017

Enrollment by Monthly Payment

Third week of August

Third week of September

Third week of October

Third week of November

Third week of December

August 2, 2017

October 3, 2017

September 4, 2017

November 2, 2017

December 4, 2017

Third week of JanuaryJanuary, 4, 2018


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LINCOLN ADVERTISING COVENANT FUNDING

Fund Generation & Disbursement

Lincoln Dealers enrolled in the Program will be provided Lincoln Advertising Covenant Funds based on their previous month’s retail sales (including A/X/Z/D). The amount will be determined by 1% MSRP of previous month’s sales. (Fleet does not generate funds.) Dealers will receive their monthly LACP payments on their VINCENT Payment Statement (VPS).

PaymentDate

EarningsPeriod

Jan. 4, 2017 - Jan. 31, 2017

Mar. 1, 2017 - Mar. 31, 2017

Feb. 1, 2017 - Feb. 28, 2017

Apr. 1, 2017 - May 1, 2017

Jun. 1, 2017 - Jun. 30, 2017

May 2, 2017 - May 31, 2017

Jul. 1, 2017 - Jul. 31, 2017

Sep. 1, 2017 - Oct. 2, 2017

Aug. 1, 2017 - Aug. 31, 2017

Oct. 3, 2017 - Oct. 31, 2017

Nov. 1, 2017 - Nov. 30, 2017

Dec. 1, 2017 - Jan. 2, 2018

February 21, 2017

April 25, 2017

March 21, 2017

May 23, 2017

July 25, 2017

June 20, 2017

August 22, 2017

October 24, 2017

September 19, 2017

November 21, 2017

December 19, 2017

January 23, 2018

LACP 2017 Payment Calendar


4

ADVERTISING GUIDELINES

By enrolling in the Lincoln Advertising Covenant Program, Lincoln Dealers agree to advertise in compliance with the Lincoln Advertising Covenant Guidelines to be eligible to receive Lincoln Advertising Covenant Funds. The guidelines were developed based on benchmarking competitive luxury advertising programs and with input from the Lincoln Dealer Advisory Committee.

The advertising guidelines and ad examples illustrating their application are available in the Lincoln Advertising Covenant Guidelines & Examples located on the Program Website (www.lincolnadcovenant.com). Agencies and media partners will have access to the advertising guidelines and ad examples on the Lincoln Toolbox Website. (See page 19.)

The guidelines apply to virtually all media, including but not limited to:

• Newspapers & Magazines

• Direct Mail/Circulars

• Broadcast (TV/Cable & Radio)

• Outdoor/Transit

• Dealer Websites

• Rich Media/Screen Cams/Banner Ads

• Search Engine Marketing

• E-newsletters and E-blasts

• Third Party Inventory Websites

• Social Media/Reputation Management

Important Note: The guidelines are advertising specific and not intended to restrict, limit or require a Dealer to price the vehicle in any way. Dealers set actual retail price.

PRE-APPROVAL SERVICE

The Lincoln Advertising Covenant Pre-Approval Center is a no-cost consulting service offered to Dealers by Lincoln. The Lincoln Advertising Covenant Program representatives can assist Dealers with understanding and applying the Lincoln Advertising Covenant Guidelines onto all mediums of advertising.

Who Can Use the Center’s Services?

The Dealer’s internal departments, as well as their advertising agencies, media representatives and production companies, may use the services of the Lincoln Advertising Covenant Pre-Approval Center. Lincoln encourages Dealers to submit all advertising to the Pre-Approval Center. By consistently submitting their local advertising to the Lincoln Advertising Covenant Pre-Approval Center, Dealers will help ensure that it is consistent with the Lincoln Advertising Covenant Guidelines. The center can work with layouts and copy decks to identify potential incidents of noncompliance before an ad is fully developed.


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What Media Will the Center Accept?

All forms of advertising can be submitted for review. There is no limit on the Dealer’s access to the pre-approval services.

What Turnaround Can I Expect?

The staff and the Lincoln Advertising Covenant Pre-Approval Center are ready to help Dealers verify that their advertising efforts meet all requirements of the Lincoln Covenant Advertising Guidelines. Most importantly, they understand the deadlines that Dealers and their advertising partners face and guarantee turnaround in 24 hours or less (excluding weekends and holidays) for all media except Websites. Websites will have a three business day turnaround.

If a Dealer is on a tight deadline, they can send the ad and call the center. In most cases, the staff should be able to help him/her meet a deadline.

How Frequently Should I Submit Advertising for Pre-Approval?

All advertising that has not been pre-approved should be submitted for pre-approval review. Even minor changes to an approved ad could render the ad noncompliant against the Lincoln Advertising Covenant Guidelines.

How Can I Contact the Center?

The Lincoln Advertising Covenant Pre-Approval Center operates Monday through Friday, 8:30 a.m.-7:00 p.m. CT. Please call, fax or e-mail in-progress advertising to the center.

Lincoln Advertising Covenant Pre-Approval Center

Hotline: 877•719•5227 • Fax Line: 877•723•5227 • E-mail: [email protected] Mail: Lincoln Advertising Covenant Pre-Approval Center

2300 Locust Street • St. Louis, MO 63103


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If advertising conforms to the guidelines in all respects, the Dealer will receive an e-mail with links to a letter informing him/her that the advertisement has been approved. The ad will also bear an “Approved” stamp. (See Example A on page 7.)

If advertising does not comply with the advertising guidelines, the Dealer will receive an e-mail with links to a letter detailing the infractions and an annotated ad referencing the relevant guidelines by number and letter. (See Example B on page 7.)

If the Dealer submission is not approved, he/she may resubmit the ad as many times as needed for approval.

NOTE: The nature of the review associated with the Lincoln Advertising Covenant Program is limited to conformance with the rules of the Program as published from time to time and does NOT include compliance with any Federal, State, Local or other legal requirements or prohibitions. Pre-approval by or on behalf of Ford Motor Company does not signify legal approval. Participating Dealers agree that they are responsible for ensuring that their advertising conforms to all applicable Local, State and Federal laws, and that Ford Motor Company and its agents are not responsible for any action or proceedings of any kind, claims, damages, liabilities, costs and/or expenses arising out of or relating to such advertising.


7

Example B: Noncompliant

Example A: Compliant

• The midsize sedan with quality that is unsurpassed by Acura TL, BMW 3 Series and Lexus IS3

• Standard heated and cooled front seatsVIN # AB12345678

• Trendsetting luxury crossover that runs on regular fuel• Voice-activated SYNC® technology standard4

VIN # AB12345678

$0,000 due at signing. Security deposit waived.Excludes tax, title and license fees.


1Not all buyers will qualify for low-mileage Lincoln AFS. Lease payments vary; dealers determine prices. Residency restrictions apply. Cash due at signing after $0,000 cash back. Take new retail delivery from dealer stock by X/XX/XX. See dealer for qualifi cations and complete details. 2EPA-estimated 17 city/23hwy 19 combined mpg, 3.7L Duratec® V6 FWD. Class is Luxury Large Crossovers. 3Based on RDA Group's GQRS cumulative survey at three months of service in three surverys of 2009 Ford and competitive owners conducted 9/08-5/09. 4Driving while distracted can result in loss of vehicle control. Only use mobile phones and other devices, even with voice commands, when it is safe to do so.

Anytown Lincoln1234 Anytown Drive, Anytown, USA 12345

123-456-7891 or visit us at www.anytownlincoln.com

a month/00 monthsRed Carpet Lease1

2017 LINCOLN MKX 2017 LINCOLN MKC

• Three rows of luxury for seven people• Best-in-class gas fuel economy2




• The full-size luxury sedan with standard push-button start• Standard Forward and Reverse Sensing SystemsVIN # AB12345678

VIN # AB12345678

2017 LINCOLN MKZ FWD 2017 LINCOLN NAVIGATORa month/00 monthsRed Carpet Lease1



2017 LINCOLN MKX

• The full-size luxury sedan with standard push-button start• Standard Forward and Reverse Sensing SystemsVIN # AB12345678

2017 LINCOLN MKC

• Three rows of luxury for seven people• Best-in-class gas fuel economy2

VIN # AB12345678

2017 LINCOLN MKZ FWD

• The midsize sedan with quality that is unsurpassed by Acura TL, BMW 3 Series and Lexus IS3

• Standard heated and cooled front seats

2017 LINCOLN NAVIGATOR

• Trendsetting luxury crossover that runs on regular fuel• Voice-activated SYNC® technology standard4

VIN # AB12345678

1Not all buyers will qualify for low-mileage Ford Credit Red Carpet Lease. Lease payments vary; dealers determine prices. Residency restrictions apply. Cash due at signing after $0,000 cash back. Take new retail delivery from dealer stock by X/XX/XX. See dealer for qualifi cations and complete details. 2EPA-estimated 17 city/23hwy 19 combined mpg, 3.7L Duratec® V6 FWD. Class is Luxury Large Crossovers. 3Based on RDA Group's GQRS cumulative survey at three months of service in three surverys of 2009 Ford and competitive owners conducted 9/08-5/09. 4Driving while distracted can result in loss of vehicle control. Only use mobile phones and other devices, even with voice commands, when it is safe to do so.

Anytown Lincoln1234 Anytown Drive, Anytown, USA 12345

123-456-7891 or visit us at www.anytownlincoln.com







4A

9B13B


8

MONITORING FOR COMPLIANCE

Lincoln Advertising Covenant Program Headquarters staff reviews randomly selected ads from every enrolled Dealer on an ongoing basis to ensure compliance with Program requirements and identify Dealers that require targeted assistance.

Reviewed ads are sent to the Dealer with detailed information regarding his/her compliance or noncompliance. In the case of noncompliant ads, feedback is intended to help the Dealer execute advertising that is compliant with the Lincoln Advertising Covenant Guidelines.

In the case of noncompliant advertising, the Dealer will receive an annotated ad along with a letter specifying the guidelines that have not been followed and any penalty for noncompliance.

Upon receipt of the noncompliant notification letter, the Dealer must immediately take steps to ensure that all future advertising complies with the Lincoln Advertising Covenant Guidelines. If the Lincoln Advertising Covenant Program Headquarters determines that an enrolled Lincoln Dealer has run a similar noncompliant advertisement more than seven days after the date of the notification letter, that violation will result in an additional notification letter. Exceptions to this are outdoor/transit advertising and magazine/monthly publications in which creative changes must occur in 30 days.

Noncompliant communications have been grouped into Category A and Category B infractions, depending on the impact to the Lincoln Brand.

Category A Infractions

Category A infractions are the most important and therefore have the most stringent consequences.

Category A infractions include:

• Retail pricing & discounting

• Distressed language

• Unsubstantiated claims

• Non-separation of brands (except in Social Media and Review Sites)

• Internet advertising

Category A Violations

This category was developed to address continued egregious noncompliant advertising; therefore, three infraction notifications will result in the loss of Lincoln Advertising Covenant Funds for the subsequent two-quarter (six-monthly) payment periods. Suspension from Lincoln Advertising Covenant Program will occur on the date the letter is sent notifying a Dealer of its third Category A infraction within a six-month period.

During the two-quarter timeframe, this is considered a probationary period where the Dealer must demonstrate his/her ability to follow the Lincoln Advertising Covenant Category A guidelines. The Lincoln Advertising Covenant Program Headquarters will continue to monitor the Dealer’s advertisement for compliance on a monthly basis. If during the suspension/probation period the Dealer receives notice of any additional Category A violation, the Dealer will be suspended from the Lincoln Advertising Covenant Program for an additional two quarters.


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If a suspended Dealer receives no Category A infraction notifications during the suspension/probation period, then the Dealer’s infraction record will be cleared of any Category A infractions. The Dealer will resume earning compliance funds at the next available disbursement.

See page 10 for a chart illustrating the possible scenarios.

Category B Infractions

Category B infractions relate to noncompliance of the Lincoln Brand guidelines, Lincoln and Dealer logos, improper artwork and vehicle nomenclature.

Category B infractions include:

• Brand integrity

• Lincoln & Dealer logo

• Improper artwork, font, photography, running footage

• Misuse of Lincoln nomenclature

• Dealer trademark/DBA name

• Internet

• Certified Pre-Owned advertising

Category B Violations

Dealer advertising that has been found noncompliant against the Category B infractions carry less stringent penalties; therefore, five infraction notifications will result in the loss of funds for only one-quarter (three-monthly) payment period. Suspension from Lincoln Advertising Covenant Program will occur on the date the letter is sent notifying a Dealer of his/her fifth Category B infraction within a six-month period.

During the one-quarter timeframe, this is considered a probationary period where the Dealer must demonstrate his/her ability to follow the Lincoln Advertising Covenant Category B guidelines. The Lincoln Advertising Covenant Program Headquarters will continue to monitor the Dealer’s advertisement for compliance on a monthly basis. If during the suspension/probation period the Dealer receives notice of any additional Category B violation, the Dealer will be suspended from the Lincoln Advertising Covenant Program for an additional one quarter.

If a suspended Dealer receives no Category B infraction notifications during the suspension/probation period, then the Dealer’s infraction record will be cleared of any Category B infractions. The Dealer will resume earning compliance funds at the next available disbursement.

See page 10 for a chart illustrating the possible scenarios.

NOTE: Category A & B infractions will be tracked separately. Example, a Dealer could have two Category A infractions and four Category B infractions recorded within a six-month period yet still not have his/her compliance funds suspended.


10

Q1 2017

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

CATEGORY ASuspension

CATEGORY ASuspension

with additional violation during

suspension period

CATEGORY B Suspension

CATEGORY B Suspension

with additional violation during

suspension period

CATEGORY A and CATEGORY B Suspension together

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

January 11, 2017Dealer receives

Strike 1

February 13, 2017 Dealer receives

Strike 2

March 5, 2017Dealer receives

Strike 3


Strike 1

February 13, 2017Dealer receives

Strike 2

March 5, 2017 Dealer receives

Strike 3


Strike 1


Strike 2


Strike 3


Strike 1


Strike 2


Strike 3


Category A Strike 1


Category A Strike 2


Category A Strike 3


Category B Strike 1


Category B Strike 2

May 15, 2017Dealer receives

Category B Strike 3

June 18, 2017 Dealer receives

Category B Strike 4

July 9, 2017 Dealer receives

Category B Strike 5

May 2, 2017 Dealer receives

Strike 4June 7, 2017

Dealer receives Strike 5

May 2, 2017Dealer receives

Strike 4June 7, 2017

Dealer receives Strike 5

Dealer onsuspension

for twoquarters

Dealer onsuspension

for twoquarters

Dealer onsuspension

for twoquarters for Category A

violationJune 10, 2017

Dealer receives Category A Infraction

Dealer on suspension

for an additional

two quarters

Dealer onsuspension for

one quarter

August 28, 2017Dealer receives a

Category B infraction

Dealer onsuspension for

one quarter

Dealer on suspension for an additionalone quarter

Dealer onsuspension for one quarter for

Category B violation

Monthly Payments Resume

MONITORING VIOLATION





JAN

FEB

MAR

APR

MAY

JUN

Monitoring Violation


11

Appeal Process

An appeal process is provided for Dealers who believe they have received a “strike letter” in error due to either:

• a monitoring error by Lincoln Advertising Covenant Program Headquarters or

• a publication error (an issue that occurs in the printing process that could not have been foreseen and corrected by the Dealer or the Dealer’s advertising/media representatives prior to publication)

Dealers should resolve any issues outside of these two categories directly with their advertising/media representatives and refrain from submitting them to Lincoln Advertising Covenant Program Headquarters for appeal.

Appeals must be received by Lincoln Advertising Covenant Program Headquarters within 30 calendar days after the date of a “strike letter” to be considered. Any payments not made for strikes being contested by Dealers will remain unpaid until headquarters has ruled on the appeal.

Step 1: Fill out the Lincoln Advertising Covenant appeal form available on the Lincoln Advertising Covenant Program Website. Clearly detail the reasons the strike was issued in error.

Step 2: Attach a copy of the “strike letter” and annotated ad to the form.

Step 3: Send the form and supporting materials to:

Lincoln Advertising Covenant Program Headquarters

2300 Locust Street • St. Louis, MO 63103Fax Line: 877•723•5227 • E-mail: [email protected]

Unsolicited Submission of Noncompliant Advertising

It is reasonable to expect that some noncompliant advertising by enrolled Dealers will occur. It is also reasonable to assume that Dealers who adhere to the Lincoln Advertising Covenant Guidelines may wish to submit noncompliant ads by their fellow, competitive Dealers.

Dealers wishing to submit what they believe to be a noncompliant ad are instructed to provide the ad directly to the Lincoln Advertising Covenant Program Headquarters. Do not provide the ad to any Ford Motor Company personnel.

Step 1: Fill out the Unsolicited Submissions Form available on the Lincoln Advertising Covenant Program Website.

Step 2: Attach the original copy of the advertisement (newspaper, radio script, spam e-mail).

Step 3: Send the form and supporting materials to:

Lincoln Advertising Covenant Program Headquarters

2300 Locust Street • St. Louis, MO 63103Fax Line: 877•723•5227 • E-mail: [email protected]


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Submissions will be treated confidentially and the submitted Dealer will not be informed of any action taken based on the submitted ad.

DEALER SPEND REVIEW

As previously stated, Dealers enrolled in the Program will receive Lincoln Advertising Covenant Funds on a monthly basis. 100% of a Dealer’s Lincoln Advertising Covenant Funds must be spent on the purchase purchase of eligible media within the calendar year. Dealers will be randomly selected for a quarterly spend review, verifying on their spend for a given quarter, LACP funds must be spent in the quarter they were received.

2017 Program Changes

Beginning January 4, 2017, Dealers will have the ability to roll up to 20% of their quarterly spend requirement into subsequent quarters – all 2017 funds will need to be spent within the 2017 calendar year (i.e. NO rollover of Q4 Funds). Compliance will be confirmed by a full year 2017 spend review which will verify all dealers have spent 100% of their 2017 payments. This full year review will occur in Q1 2018.

To validate that 100% of the Lincoln Advertising Covenant Funds went to purchase eligible media, Dealers must maintain advertising records for a period of at least the last four quarters.

Quarterly Spend Review

Dealers will continue to be selected quarterly to review their prior quarter’s payment & spend. Selected Dealers will need to verify 80% of their funds have been spent on approved media within that given quarter. Should dealers fail to verify 80% spend of their quarterly earnings, they will face suspension in the following quarter. All funds paid in 2017 must be used by December 31, 2017 (no rollover of Q4 funds permitted).

The Lincoln Advertising Covenant Program Headquarters will randomly select and notify Dealers of the upcoming spend review. Dealers will be required to send all proof-of-advertising documentation within 45 days of notification.

Annual Spend Review

In Q1 2018, a full year 2017 review will be conducted on ALL Dealers. Should a dealer fail to verify 100% of the funds received were spent, the dealer will be charged back for the amount that was not verified.

Spend Review Document Submission – NOW DIGITAL

Dealers are now strongly encouraged to submit ALL compliant spend verification documents electronically through the program website.The program website will be updated daily to provide virtually real time tracking & monitoring of spend review requirements (both annual and quarterly).

Lincoln encourages all dealers to submit all required documentation on a regular basis (monthly is recommended). Successful submission of approved documentation will only be needed once, i.e. dealers will not need to upload duplicate documentation to support quarterly or annual spend reviews.


13

DEALER SPEND REVIEW (CONT.)

In order to ease the burden of submitting all advertising documentation, Lincoln will automatically credit each Dealer with his/her incurred charges from the previous quarter for the following media types:

• Digital Advertising Solution (DAS) incremental media investment made by the dealer*

• FordDirect Lincoln Search Engine Marketing Fees

• Social Media & Reputation Management*

• DealerConnection Elite and Elite Plus Fees

• DC Elite Prime Performance Package

• FordDirect Lincoln Website Fees

• ConsumerConnection Monthly Package Fee*

• ConsumerConnection Sales & Service related Direct Mail Fees*

• Spend Review eligible items purchased through Lincoln Toolbox

*Auto-spend review credit process is only available for Dealers enrolled in the FordDirect ConsumerConnection, FordDirect Social Media & Reputation Management and FordDirect Digital Advertising Solution (DAS) products. For Dual Dealers the package fee will be split 50%/50% between the Ford Co-op and Lincoln Ad Covenant programs.

In order to help clarify what would qualify for the quarterly and annual spend reviews, the following eligible media types and costs are as follows:

Eligible Media Types

• Newspaper

• Magazine

• Direct Mail/Circulars

• Outdoor/Transit (including reader boards and floorboards)

• Banner Ads/Rich Media/Screen Cams

• Search Engine Marketing

• Television

• Cinema

• Radio

• Sponsorships/Events (See Dealer Sponsorship/Event Form on lincolnadcovenant. dealerconnection.com for details)

• E-mail Blasts

• Inventory Listings (Autotrader.com, Cars.com, KBB.com, etc.)


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DEALER SPEND REVIEW (CONT.)

Eligible Media Costs

• Production Costs/Creative

• Mail/E-mail List Acquisition Fees

• Lincoln Branded Service Marketing/Advertising

• Lincoln CPO Advertising (Must be in 100% compliance)

In order to help clarify what would NOT qualify for athe quarterly and annual spend reviews, the following ineligible media types, costs and charges are as follows:

Ineligible Media Types**

• Dealer Websites (Non-Ford Direct)

• Yellow Page Advertising

• DealerRater

Ineligible Media Costs**

• Agency Commission/Fees

• Lead Generators (Edmunds, TrueCar, CarGurus)

• Dealership Meeting/Travel Expenses

• Courtesy/Demo Vehicles

• Event Staffing

• Consumer Premiums

• Vehicle Related Costs (Vehicle Cleaning, Transport Fees)

• Gas, Insurance, Vehicle Damage Costs

• Calendars

Ineligible Charges**

• Staffing Charges (Bar Staff, Servers, Vehicle Experts, Gratuity, Valet)

• Labor (includes Delivery and Set-up Fees)

• Giveaways (T-shirts, Key Chains, Water Bottles, Etc.)

• Lincoln Academy Training

• POS Materials

• Gas

• Vehicle Leases

• $20 per Test Drive Donations on “Driven to Give”

**The Ineligible Media Types/Costs/Charges are not a comprehensive list. If you have a media type, cost or charge you have an eligibility question about, please call Program Headquarters at 1-877-719-5227.


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Proof-of-Advertising Documentation is specific to the advertising form, as indicated below. Proof-of-Advertising Documentation must be submitted to the Lincoln Advertising Covenant Program Headquarters within 45 days of notification.

Newspapers & Magazines: A legible electronic or original hardcopy tearsheet (not a photo copy) of the newspaper or magazine advertisement bearing the publication name and ad date, plus an original publisher’s invoice reflecting the ad size, cost and publication dates.

Direct Mail/Circulars: A sample of the original mail piece, along with an original printer’s invoice reflecting quantity and cost as well as postal receipts (e.g., USPS, UPS, FedEx, etc.) reflecting the quantity mailed and mailing cost. Invoices must be itemized to show the printing cost separate from all other related charges including postage.

FordDirect Lincoln Website/FordDirect DealerConnection Elite and Elite Plus: The spend review credit process will be handled automatically. The monthly billing file will be submitted on your behalf as the document required if reviewed.

FordDirect ConsumerConnection: The spend review credit process will be handled automatically. The monthly billing file will be submitted on your behalf as the document required if reviewed. The original direct mail piece will also be provided on your behalf upon request.

FordDirect Social Media & Reputation Management: The spend review credit process will be handled automatically. The monthly billing file will be submitted on your behalf as the document requires, if reviewed. Social Media & Reputation Management competitive services require an invoice, including dollar amount (not to exceed the maximum monthly Ford Direct Social Media & Reputation Management package fee) and supporting metrics. Reference the Tier 3 Digital Claiming Resource Guide for examples.

FordDirect Digital Advertising Solution (DAS): No documentation required for the incremental media spend made by the Dealer, as the spend review credit process will be handled automatically. The monthly billing file will be submitted on your behalf as the document required if reviewed.

FordDirect Digital Advertising Solution SEM (DAS SEM): No documentation required for the incremental media spend made by the Dealer, as the spend review credit process will be handled automatically. The monthly billing file will be submitted on your behalf as the document required if reviewed.

Outdoor/Transit (including reader boards and floorboards): A photograph of the installed billboard and/or a shot of each screen for the reader board/ floorboard, plus an original invoice reflecting the location, number of billboards, posting dates and costs.

Rich Media/Screen Cams/Banner Ads: A printout of an actual screenshot of the Internet creative online and an original invoice. Retargeting banners must have an image of the creative with the run dates of the banner signed and notarized and must also include an original invoice with the run dates of the banner ad matching the run dates listed with the banner creative.

Search Engine Marketing: An invoice from the search engine company reflecting the costs incurred, a complete list of the keywords purchased on search engine (for paid search) or a list of keywords (for search engine optimization) and a screenshot of the search engine site showing a successful search using one of the keywords. Billing statements (Google) are acceptable with associated cost per click specific keyword lists.

REQUIRED PROOF-OF-ADVERTISING DOCUMENTATION


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Broadcast [TV/Cable & Radio]: A copy of the script (radio) or storyboard (television) imprinted with the ANA/RAB (radio), ANA/TVB (television) or ANA/CAB (cable) signed by a station official and notarized (see example on Co-op Program Website; notary signature and station official signature must be by two individuals), plus an original station invoice reflecting dates, times, cost of each spot, agency name and any earned discounts or agency commission. If applicable, a separate original invoice showing production costs separate from all other costs may be submitted.

Note: Agency Commission costs do not qualify.

E-mail Blasts: An original invoice reflecting the creative/production costs and/or cost of e-mail lists (not leads) separate from all other expenses. The entire actual e-mail blast indicating the time and date sent must also be included.

Inventory Listings (Cars.com/Autotrader/etc): An original invoice showing Lincoln listing costs separate from all other OEM’s along with an Inventory Report.

Note: Autotrader used inventory listing packages that contain new Lincoln display banners will be recognized at 20% of the package fee to count towards the required ad spend.

Lincoln CPO Advertising: All Lincoln CPO advertising that is not part of a new Lincoln ad must be 100% compliant to be eligible towards the Dealer spend requirement.

Note: The media type submitted must follow all documentation rules as indicated in the overview.

Lincoln Service Marketing/Advertising: All service advertising that isn’t part of a new Lincoln ad must be Lincoln specific in order to be eligible towards the Dealer spend requirement.

Note: The media type submitted must follow all documentation rules as indicated in the overview.

Event and Sponsorship: All event and sponsorship submissions must be accompanied with the Dealer Sponsorship/Event Form available on the lincolnadvovenant.dealerconnection.com website and a photograph or tangible proof displaying the Lincoln brand presence is necessary. Additionally, an invoice stating eligible costs and event dates is required.

REQUIRED PROOF-OF-ADVERTISING DOCUMENTATION (CONT.)

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Spend Review (underspend) Penalties

Dealers who are identified as “underspending” their Lincoln Advertising Covenant Funds during the quarter spend review timeframe (80%) will result in the loss of future Lincoln Advertising Covenant Funds for one quarter.

Dealers who are identified as “underspending” their Lincoln Advertising Covenant Funds during the annual spend review period (100%) will be charged back for the amount that was not verified.

Dealer advertising will still be monitored monthly for compliance and infractions during the spend review period will still occur. The underspend does not count towards a Category A or B infraction.

See below for a chart and example illustrating the possible Dealer spend penalties.

Spend Review Examples:

(see next page for additional examples)

Example #1: 100% Spend Compliance

Q1

Q2

Q3

Q4

December

January

February

March

April

May

June

July

August

September

October

November

$100,000

$100,000

$100,000

$100,000

2017 Sales Received Spend Spend Review

Timeframe

$80,000

$120,000

$80,000

$120,000

Q2

No Spend Review

Q4

No Spend Review

Dec. 2016 - Nov. 2017

$400,000 $400,000 Q1 2018 No Chargeback Total2017

Result

Pay in Q1

Pay in Q3

N/A

No Spend Review


18

Spend Review Examples (cont.):

Example #2: < 100% Spend Compliance

Q1

Q2

Q3

Q4

December

January

February

March

April

May

June

July

August

September

October

November

$100,000

$100,000

$100,000

$100,000


Timeframe

$80,000

$80,000

$80,000

$120,000

Q2

No Spend Review

Q4

No Spend Review

Dec. 2016 - Nov. 2017

$400,000 $360,000 Q1 2018Chargeback

$40,000 Total2017

Result

Pay in Q1

Pay in Q3

No Spend Review

No Spend Review

Example #3: < 100% Spend Compliance

Q1

Q2

Q3

Q4

December

January

February

March

April

May

June

July

August

September

October

November

$100,000

$100,000

Withheld

$100,000


Timeframe

$60,000

$120,000

Withheld

$120,000

Q2

No Spend Review

N/A

Q1 2018

Dec. 2016 - Nov. 2017

$300,000 $300,000 Q1 2018 No Chargeback Total2017

Result

N/A

Withhold Q3 Payment

N/A

Pay in Q2 2018

No Spend Review


19

BUY-SELL/RESIGNATIONS

Resignation Without Replacement

Lincoln Dealers who resign without a replacement will not receive thier monthly payment based on the date the Dealer became inactive in GOLDD.

Buy-Sell Transactions

Lincoln Dealers who engage in a Buy/Sell transaction will be handled in the following manner:

• For new dealers, the first monthly payment is based on Lincoln Planning volume multiplied by 1% Corporate Average MSRP (i.e. 2017 = $483)

• In the event dealer or company terminates the Dealer’s Sales and Service Agreement (i.e. buy/sell, resignation, termination, etc.) or the program concludes, the initial monthly funding will result in withholding final payment.

PROGRAM WEBSITE

All Dealers who have enrolled in the Lincoln Advertising Covenant Program will have access to copies of monitored ads, pre-approval letters issued by the Lincoln Advertising Covenant Pre-Approval Center and reports summarizing monitored advertising via the Program Website. The site also provides easy access to the Lincoln Advertising Covenant Guidelines.

To access this Program information, click on “Lincoln Advertising Covenant” on the navigation bar of the Lincoln Toolbox Website (www.lmtoolbox.com) or go directly to the Program Website (www.lincolnadcovenant.com).

ACCESSING LOGOS, AD TEMPLATES AND PHOTOGRAPHY

All Dealers and their advertising agencies may retrieve logos, ad templates and photography at the Lincoln Toolbox Website. If the Dealer has questions about accessing art, they can call the Lincoln Toolbox Support Center (877.576.4573).

By using the corporate-approved templates on the Lincoln Toolbox Website to create local advertising, compliance with the advertising guidelines is virtually assured.

Line art, logos, photography, newspaper ad builder, national print ads, custom POS, non-custom POS, outdoor, broadcast media, catalogs and more are ready to customize for local marketing campaigns.

introduction - dealerconnection the lincoln advertising covenant program (“program”) is a...

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