Podcast - Maximizing Advertising ROI - 5 Focus Areas for Car Dealers
At Dealer Alchemist, we are thrilled to share educational content with from our very own podcast, Automotive Alchemy. In a recent episode, Shean Kirin, our esteemed Premier Dealer Alchemist, discussed the dynamic impact of digital advertising within the realm of automotive dealerships. The conversation delved into the intricacies of ROI analysis, the shift towards digital mediums, and the pivotal role that engagement metrics play in analytics.
Embracing Digital
In today’s digital age, the car buying journey has predominantly moved online, necessitating a robust digital advertising strategy for dealerships. Our commitment to digital advertising is comprehensive, encompassing not only online platforms but also integrating traditional media like television to maximize reach.
Measuring Digital Success
Mr. Kirin illuminated the criticality of tracking key performance indicators such as phone calls, internet leads, and vehicle sales to determine the effectiveness of digital advertising campaigns. He emphasized the adoption of sophisticated tracking systems like Total to capture every phone call, underscoring the need for accurate sales attribution to advertising initiatives.
At Dealer Alchemist, we recognize the importance of cost management, problem-solving, strategic improvements, and the replication of successful tactics across different channels to refine advertising strategies for dealerships.
Understanding Engagement in Analytics
Our discussion ventured into the realm of analytics engagement, with a special emphasis on average engagement time as a key metric. This metric is indicative of how engaged users are with a website, and a short engagement time could signal inefficient ad spending.
Kirin presented a case study from a dealership that experienced exceptional engagement, with an average engagement time of 54 seconds on a social ad. He noted that high engagement on social platforms often translates to increased phone inquiries, as potential buyers seek immediate answers to their questions.
Strategic Ad Budget Allocation
Shean also addressed the drawbacks of investing in low-engagement campaigns and declared that the days of contentment with substantial television ad expenditures are behind us. He advocated for investment in digital first strategies that are both engaging and effective.
He suggested allocating a substantial portion of the advertising budget to paid search platforms, with about 85% targeting model-specific terms that align with the dealership’s inventory, while the remaining 15% should focus on brand and regional terms.
Exploring Alternative Advertising Avenues
Shean Kirin also emphasized the value of considering advertising channels beyond Google. He introduced Clara Voy, a tool designed to assist in attribution and pinpoint where advertising dollars yield the most impact.
Analyzing Business Distribution
The episode stressed the importance of analyzing business distribution and making informed decisions on the ideal distribution for various models. Kirin recommended adjusting the search budget in accordance with the proportion of each model that needs to be sold by the end of the month.
Integrating AdWords with Analytics
In the conversation, Shean underscored the necessity of integrating AdWords with analytics for accountability, control, and the optimization of digital advertising efforts. He champions a “trust but verify” philosophy, encouraging a direct link between AdWords and analytics for complete transparency.
Conclusion
The expertise shared by Shean Kirin is invaluable for dealerships looking to enhance their digital advertising strategies. Please know that we value the insights of our audience, particularly those who prioritize data-driven results. To delve deeper into the topics discussed in this episode, we invite you to visit the our blog for more content our blog for more content or our YouTube channel. Stay tuned for the next installment of Automotive Alchemy, where we will continue to unlock the secrets to dealership success.
