Hello, I'm Casey Tuggle, and I've been in the automotive industry since about 2010. I was an independent dealer, I lost my mind for a while and ran an auto auction, and then I moved over to franchise retail.
But I have been in digital marketing since 2001, And I have learned a whole, whole lot about what return on investment means in the automotive retail space.
So let's talk a little bit about the inside scoop! Let's look at ways that a lot of dealers lose money, lose influence, or (even worse) get taken advantage of.
If you are in charge of your own marketing budget, you’ve probably been sold on a mish-mash of products and you don’t really know what’s working.
There are so many advertising opportunities that it’s overwhelming. And with digital marketing (anything done via mobile devices or the internet), there are more choices every single day. Consolidation in the industry just means the reps you have dealt with for years are reaching out to you with overlapping products.
We’ve experienced the pain of wasted advertising spend to the point that we finally dug in and mastered it. After spending hundreds of thousands of dollars on wasted advertising, we still survived and now we’ve finally got it dialed in.
We are selling more vehicles with a much lower cost per vehicle. Want to see how it’s done? Here’s our story, and our losses can be your gain.
You’re about to get the inside scoop on where dealers get it wrong! We’ll wrap up with how our technology gives you a local, competitive sales advantage by specifically targeting Local, In-Market buyers with your inventory + financing messages on their devices.
Keep reading to see how we’ve solved the mystery.
Here are the facts about digital marketing and how BHPH dealers can win the game to sell and finance more vehicles with a much lower marketing expense.
Our system works for independent dealers and if you are a BHPH dealer, we have a version of the program that will win for you too.
Google Ad Words Work. Especially if you like throwing a lot of money at things. And many think this is one of their only ways to win the digital marketing game. And yes, most everyone is playing this game. Unfortunately, that competition is bad for ROI.
The average cost per click with Google Ad Words for a dealer is $3.71
Your competitors are spending between $300 and $500 to market each vehicle on their lot. (Source: NIADA 2017 Annual Report)
Most dealers don’t really understand Google Ad Words so we'll give you the rundown on how to maximize ROI.
HOW GOOGLE ADS WORK:
- Generally speaking, your local competitors carry the same basic inventory that you do. Don’t believe us, go run a local search (your city + the year make and model of any car on your lot). See how that works out for you and see where you rank.
- This means that everyone is bidding on the same terms thereby driving the price up for these keywords. I bet you are hoping to rank in the Google “snack pack” - the top 3 listings. All that and you have a 33% shot at someone visiting your site (and the visitor could be anyone).
- Google is not targeting credit challenged buyers - this is your audience and you really only want to talk with them, not with the guy with the 720+ credit score. He’s buying from the franchise guy. He’s worthless to you. The best BHPH dealers focus on the right, local buyers.
- What you want… a way around bidding higher for costly ads @ an average of $3.71 a click (that’s too much money to spend). You want a lower expense, more profit per sale and really it about moving more cars each month on your paper.
- What if you could reach local people that have credit scores in the range of ---- to ---- and that plan on buying a car in the next 90 days for a click-through cost of under $1? No brainer right?
These sites work too. But the target lands on a website where they see your vehicle….and your competitor’s vehicles too. So, you may be paying to drive traffic to your competitors too. Not so great. Well, great for these companies, just not for your dealership.
How About Traditional Media Spends?
Ok Ok so we’re back to traditional media (direct mail, radio, TV, billboards, newspapers, right?) Well, they have their place but no. We have something else in mind for you. If you are still reading, congrats and we are almost at the end. Hang in there.
So, here’s what you know.
You’re wasted a ton of money over the years on ads that you can’t prove work. You need to see a return on those dollars. With today’s technology, we can PROVE return.
You’ve invested in your website - it’s really today’s showroom so let’s use it and drive local, in-market buyers to your VDP’s. Let’s show them your inventory and sell them on how easy it is to drive that vehicle home today.
Once we get the buyers to your site, you can get them to the lot and your guys can close ‘em.
The Big Reveal ...here's what we know...
- Who your local in-market buyers are.
- Yes, we really do. And they change every day (new people join the list and others fall off).
- We know what type(s) of vehicles each person is looking for (pickup, SUV, sedan, etc.)
- We know their income, age, sex, credit score and employment status too.
- We know how to reach these buyers on their mobile devices, tablets, and PCs with ads that show then Your Actual On Lot Inventory. And, we show them ads of the vehicles in the body style they desire.
- Your ads are interactive and a click-through puts them on your VDP’s in the class of vehicle they are hunting for.
- We pitch them on easy financing plus match them to a car they want.