Why Facebook and Google aren’t performing for your dealership

The majority of dealerships use Facebook and Google to promote their inventory and achieve their sales goals. After comparing the marketing performance across hundreds of dealerships, VIN IQ’s analysis showed that although Facebook and Google are designed to deliver an inexpensive Cost Per Click and appear to deliver phenomenal value, an alarming portions of Ad Budgets end up being wasted by a dealership's most popular - “Click Candy” - inventory and leaves the majority of inventory without any promotion.

These “Click Candy” vehicles typically fall into two categories:

        1) Premium, fully loaded vehicles that the average consumer cannot afford

        2) Super cheap vehicles with low profit margins

It’s important to note that with Premium vehicles, VIN IQ’s data shows that these vehicles are already the most popular on a dealership’s website from organic and direct traffic and that promoting these vehicles results in extreme Ad Spend waste. Although many Dealer Marketers believe that promoting Click Candy vehicles acts as a gateway for visitors to then search for inventory more within their scope, VIN IQ’s reporting showcases that visitors rarely continue their search and will instead exit the dealership’s website.

In regards to the super cheap vehicles, the pain resides in wasting Ad Spend on inventory that have low profit margins to begin with and these types of vehicles generally don’t need much exposure in order to sell.

For Dealer Marketers looking to leverage VIN-level technology to determine their Return On Ad Spend based on campaign and vendor performance data, VIN IQ is currently offering a 60-day trial. Using VIN IQ’s detailed reporting, Dealer Marketers are able to discover which vehicles are consuming too much of their Ad Spend and make adjustments to campaigns to promote inventory that need exposure in order to sell.