Increasing Sales Outcomes for Auto Dealers using Google SEM
I'm working on a national study of paid search outcomes in conjunction with some of the largest call tracking and messaging companies. I'm updating my previous research on dealership Google Ads spending on variable vs fixed operations and the outcomes those investments generate.
Here is a thought starter. Dealers typically measure SEM campaign outcomes by looking at (1) leads (lead forms, phone calls, chat/messaging, SMS), (2) engagement of visitor (did they use vehicle shopping/trade/financing tools), or (3) by page views (VDP/SRP counts).
On average, 90% of dealer Google budgets are sales campaigns. When dealers look at measurable outcomes (leads) the vast majority are not for sales. Even increasing engagement can be tricky with over 60% of consumers abandoning the dealer's website, after clicking on an SEM ad and being sent to an SRP.
The #1 conversion channel that generates a lead is the phone yet many dealers fail to listen to the calls generated by SEM sales campaigns. Over 80% of the phone calls, generated by variable ops sales campaigns, are for service, parts, and general admin.
SEM reports also do not show hangups or disconnects so counting "call conversions" and assuming they are for sales is a blunder. What if I told you that when you follow Google's playbook you introduce unintended consequences and waste money.
- Does Google SEM still work to help dealers sell cars? Yes.
- Do dealer's know how to increase click traffic quality to get more car shoppers visiting their websites? No.
- Should Google continue to be a significant investment in a dealer's paid advertising strategy? Yes, if they can measure outcomes.
- Are most dealers configured and trained to inspect the outcomes of their SEM marketing investments? No.
Get Help and Save Money
There are simple ways to STOP burning up your variable ops sales campaigns with service calls but you won't find it in the standard Google agency playbook. You will find out at the 12th Annual Digital Marketing Strategies Conference (DMSC), July 11-13th in the Napa Valley.
Dealers who are spending a considerable amount of money on Google SEM, and who would like to be part of the anonymous study, and get some clear insights on how to save money, should reach out and contact me via email: [email protected]
Save thousands a year by attending DMSC and since it will sell out again, get register now. https://digitalmarketingstrategies.org/conference-agenda/
Director and CEO, Cars.com
3 年Brian - thanks for your constant 'search' for truth in spending and the quest for incremental gain.
ISI Men’s Ministry Leader | 18+ Years of Automotive Marketing Success | Empowering People and Businesses to Grow and Thrive
3 年Oh man, Advertising Budgets... I think it the uphill battle. Some Owners/GMs get it... Some don't and even worse some don't care. Fight for what you believe, get the store to try it and if it works... you win. Not my favorite way to do things but sometimes you have to do things you don't like. Good Luck out there in the Mean Streets of Marketing Y'All! Have a Blessed Day!??
President #1 Inventory Marketing Product in the Automotive Industry. CarClicks drives serious, highly-engaged auto shoppers to dealership inventory.
3 年Google search is expensive and if not managed properly can be a waste of budget. Getting serious highly engaged customers to your inventory is important. https://www.carclicksmarketing.com/white-paper-carclicks-google-search-comparison/
DIAA + AI = Scalable Conversations
3 年If 80% of your calls from a Variable Ops SEM campaign are for Fixed you have a poor provider, It's not the channels fault. IF the predominant number of your leads are calls even if they are for Var Ops you still have a poor provider. Calls are the worst way to get a lead conversion almost as bad as chat. This data is 7 years old but I would wager still relevant today. https://www.slideshare.net/lbruce67/digital-dealer-15-its-called-a-marketing-mix-for-a-reason
#BeMoreValuable
3 年Dealers should be focusing on a 1st party data strategy. There's fruit on the entire tree. 1st party data is the ladder needed to get up to it.