Selling Cars with Google 104: Dealer Advertising Trends

Selling Cars with Google 104:  Dealer Advertising Trends


MALE SPEAKER: Welcome to selling
cars with Google 104: the fourth in a series of
educational videos created specifically for car dealers. This presentation was put
together by a team at Google that works with car dealers
across the country. We’ve seen firsthand how Google
can help you sell more cars and trucks while saving
time and money. We want to demystify how Google
can work for you. Selling Cars with Google 104
is focused on the Dealer Advertising Executive Survey
conducted by Jupiter Research. Year after year, dealers
are generating more leads from the internet. As you can see, there are now
more dealers than ever that generate at least 10%
of their new car leads from the internet. In 2006, over 51% of dealer
executives said that at least 10% of their leads were
generated online. For used cars, the internet
is even more important. In 2006, 56% of dealers
generated at least 10% of their used car leads online. Dealer spending has begun to
follow their customers’ media habits, and dealers are
directing more of their marketing dollars towards
the internet. As the survey revealed, 40% of
dealers in 2006 allocated over 10% of their overall marketing
budget to the internet. This is up from 35% in 2005. In dollar terms, 43% of dealers
spent more than $30,000 in advertising online in
2006, up from 14% in 2003. Despite these increases in
spending, dealers are still playing catch-up with their
customers, who spend over 14 hours per week on
the internet. So as they learn more about the
effectiveness of internet advertising, dealers are
continuing to increase their online budgets. As you see, 47% of dealers
said they were going to increase their online
ad spending in 2007. As you’d expect, dealers who
are able to successfully convert leads into sales are
more likely to increase their online advertising budgets, 60%
percent, versus those who are not as successful, 35%. This slide compares dealers that
spend less than $30,000 in online advertising
with those who spend more than $30,000. You can see how their online
spend is distributed. Dealers that spend less than
$30,000 are more dependent upon buying online leads. It’s an easy and predictable
strategy, but not necessarily cost-effective when compared to
the other options that more sophisticated dealers are
taking advantage of. This slide compares what tactics
dealers used in 2005 and 2006 and what they had
planned to use for 2007. As you’ll see, the largest
expected increase was for online search. 74% of dealers said they would
use paid search advertising in 2007, an increase of
85% from 2006. Here we see a side-by-side
comparison of dealers that generated over 10% of their
new car sales online with those that generated less
than 10% online. 74% of successful online dealers
use online advertising to increase the number
of email leads. Meanwhile, only 51% of less
successful dealers invest in online advertising to increase
email leads. Likewise, you can see a
significant difference between the more and less successful
online dealers in terms of their use of the internet
for branding. Finally, here’s a look at the
challenges dealers point to most often. Are these some of the challenges
you face as well? Performance tracking, online
competition, lack of staff? Does the internet seem more
complicated to you every day? And what about finding the
strategy to get the highest quality leads? 55% of dealers claim that
determining which tactics will yield the highest
quality leads is their biggest challenge. If these are challenges you’ve
faced, you’re clearly not alone, and we hope we’ve been
of some help to help you understand what dealers
are doing and what’s working for them. Despite the challenges, dealers
are making headway on the internet. They’re using it to generate
more leads, to sell new and used cars, and to increase
brand awareness. In summary, dealers are becoming
smarter, savvier online marketers every day. This concludes Selling
Cars with Google 104. We hope you found this
presentation useful.

About the Author: Michael Flood

3 Comments

  1. wtf, this guy's voice is so amateur. for a minute ther i was waiting for a punchline but then noticed it was from google.

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