Maximizing Your Ad Dollars in a Changing Inventory Landscape
Choosing where to list your dealership's inventory can feel like picking a Thanksgiving dish. You're faced with an overwhelming number of options like Cars.com, Autotrader, and CarGurus, along with a few new players on the table. But having too many choices can often lead to bad ones. To ensure your marketing dollars are well spent, you need a clear strategy.
The game has completely changed. With Google and Microsoft now featuring inventory listings directly on their search results pages, they are cutting out the middleman and posing a significant threat to traditional third-party sites. This shift in the digital landscape is leading to a decline in traffic to many of these sites, causing an increase in cost per lead and cost per acquisition for dealers.
The New Inventory Players: Google and Microsoft
Google and Microsoft are the biggest search engine providers in the world, and they've both launched new products to get into the inventory listing game:
- Google Vehicle Ads: These are at the very top of search results pages, even above standard search campaigns. They feature your inventory with images, prices, and other key details. When a user clicks, they go directly to the Vehicle Details Page (VDP) on your website. This drives high-quality, engaged traffic straight to your site. Google also has "Cars for Sale," a free listing that appears on your Google My Business profile.
- Microsoft Automotive Inventory Ads (AIA): Similar to Google's ads, these are feed-based and appear on search results pages, as well as on image results and other search engines powered by Microsoft like Yahoo and DuckDuckGo. They also have MSN Autos, which is like a free third-party site listing all vehicle inventory for a given search, with paid ads appearing at the top.
A Look at the Data: Third-Party vs. New Players
When you objectively compare third-party listings to Google and Microsoft's new offerings, the data tells a clear story. While third-party sites are still viable in some markets and for certain brands, many are seeing a decline in traffic. This leads to higher costs for dealers, as they get fewer leads for their ad spend.
A case study review showed that:
- Some third-party listings had a cost per lead of over $500 and a projected cost per acquisition of over $10,000.
- In contrast, a Google Vehicle Ads campaign for the same period had a cost per lead of only $59 and drove a significant number of store visits.
The reason for this difference in performance comes down to traffic quality. Google and Microsoft drive traffic directly to your website, where leads are consistently shown to close at a higher percentage than those from third-party sites.
Key Takeaways for Your Dealership
To adapt to this changing landscape and maximize your ROI, remember these key points:
- Evaluate Your Mix: Don't assume your old marketing mix still works. Regularly review your third-party listings' performance by looking at metrics like cost per lead, lead volume, and closing percentage. What works for one dealership may not work for another.
- Don't Ignore the New Players: It's critical to be present on Google and Microsoft inventory listings. These campaigns are where people are now starting their car search, and their traffic is more engaged and valuable.
- Facebook Marketplace Changes: With Facebook Marketplace stopping vehicle listings for businesses, you'll need to adapt. However, you can still reach this audience by running Facebook's Automotive Inventory Ads and selecting Marketplace as a placement.
By being lean and mean with your marketing dollars and taking an objective look at the data, you can ensure you're getting the best return for your investment. Don't be the cooked turkey in your market—adapt with the times and embrace these new opportunities.
Watch the Full Webinar
For a deeper dive into these topics and to hear directly from Trevor Spiro, VP of Performance Media and Andrew Silva, AVP of Client Services, watch the full webinar below.