The Hidden Challenge of Markups in Automotive Display Ads
In automotive dealership marketing, understanding ad costs and hidden markups is key. Dealers often face various costs per click for display ads, varying from $2 to $4, while some display ads might only cost 15 cents. But there’s a hidden challenge: many dealers must be aware of significant markups on these ads. “I’ve frequently discovered display campaigns with 200-400% markups, and the dealers were oblivious,” reveals Shean Kirin. This issue isn’t limited to display ads; Performance Max ads also often carry similar excessive markups.
The key to managing this situation is the principle of ‘trust but verify.’ Dealers should ensure their AdWords account is connected to their analytics account. This connection is vital as it enables dealers to validate their invoices and confirm that the charges are accurate. This step is about more than just cost management; it’s about transparency and making informed decisions in digital advertising. Therefore, while signing up for these services is standard, validating and verifying these expenses is essential for a transparent and effective marketing strategy.
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