Diminishing loyalty was one of several issues to recur during the day-long event.

The fundamentals of website design, the increasing importance of video, and the impact of the Internet on vehicle pricing were also hot topics.

Throughout the conference delegates were invited to participate via interactive handsets, which allowed them to submit questions to a panel of experts, as well as respond to on-screen polls relating to discussion points.

About 44 per cent of the audience at the conference disclosed that they had spent over £50,000 on developing their corporate website, yet a significant proportion – some 18 per cent – admitted to spending less than £5,000.  Trader Media Group’s Nick King advised that most dealers should be spending half of their marketing budgets on their websites.

When surveyed about search engine marketing, 26 per cent of respondents said they did not have a search account.  Of those that did, over a quarter (27 per cent) hold accounts with more than one provider, with Google proving to be the dealers’ most popular choice.

Dan Smith of law firm Wragge & Co spoke on the risk areas for dealers operating online.  After his presentation, over a third (36 per cent) of the conference attendees acknowledged that there were some legal issues to address with their websites.

The conference was organised by EurotaxGlass’s following demand from customers and the industry for an event which would raise awareness of new media developments. 

The day’s itinerary included presentations by representatives from a broad spectrum of organisations which are leading the way in online developments, including Google, eBay Motors and Auto Trader.  The event was hosted by international television journalist Stephen Cole.

Positive feedback from delegates during and after the conference may well lead to EurotaxGlass’s running a follow-up event next year.

It has decided to clamp down on retailers who supply models to online resellers who are not authorised by the brand and advertising the cars with massive discounts to the usual showroom prices.

BMW UK managing director Jim O'Donnell told Motor Trader, “It’s destroying the retail market.

"This year has been the worst experience we have ever had.”

BMW said internet retailers have advertised new cars from the 3 Series range at discounts of more than £4,000, and buyers have been asking franchised dealers to match these prices.

Mr O’Donnell implied that, come next September when dealer contracts are to be renewed, dealers found to have supplied the online traders may be left out in the cold.

In the meantime, the carmaker has issued warnings to its 155 UK sites, reminding them of restrictions stated in their contracts as selective dealers, said the trade paper.