The Impact of Performance MAX on VLAs

The Automotive Alchemy Podcast – Episode 3

In the fast-paced world of digital advertising, staying on top of trends and making the most out of available tools is critical for success. Being mindful of how fast these tools can change is particularly true for automotive dealerships, as the landscape of dealership marketing is continually evolving. This article will explore one of the most effective tools in digital advertising today – Google’s Vehicle Ads (formerly VLA’s). 

Google’s Vehicle Ads have emerged as one of the highest-converting digital ad types. However, maximizing their potential increases when dealers understand the foundational technology behind these ads and how they work. Unlike traditional ads, Vehicle Ads focus on placement, putting your dealership’s inventory at the top of a search query with relevant stock that matches the query. 

Complementary Strategy

But, the power of these ads is not in their standalone capacity. Replacing other ad types is not the play here but rather to complement them. Vehicle Ads can significantly increase conversions and reduce costs when appropriately integrated with different advertising strategies like brand, regional terms, and model searches. 

Yet, setting up Vehicle Ads is not as simple as flipping a switch. Maximizing conversions with these ads requires a deep understanding of Google’s Advertising platform and its sophistication. For instance, it’s essential to assign a value to each type of conversion. Without this, Google’s ad technology may treat a phone call the same way as a VDP view, leading to inefficient budget control. 

Another vital aspect to consider is the changes Google has made to its ad types. For example, merging Vehicle Ads into Performance Max ads has implications on performance and interaction rates. Understanding and adapting these changes is essential for maintaining high conversion rates. 

Check and Recheck

When navigating through conflicting data within Google Ads, diving deep is advisable. For example, Looking at each campaign’s cost per click can provide valuable insights into how well-managed your ads are.

While it may be evident to some, cultivating a good relationship with your vendors cannot be overstated. Collaborating with vendors can help maximize ad performance, as they have the expertise to identify and modify the best processes to get the best results. 

In conclusion, understanding and effectively utilizing Google’s Vehicle Ads can significantly boost conversions and maximize ad budgets for dealerships. However, this requires a deep understanding of the ad type, the Google Ads platform, and the changes Google makes to its ad types. With the right strategies and a good relationship with vendors, dealerships can become informed stewards of their ad budget and make the most of Google’s Vehicle Listing Ads.