Shocking Stats: Dealership Facebook Ad Costs Decreasing In 2020

Shocking Stats: Dealership Facebook Ad Costs Decreasing In 2020

Shocking Stats: Dealership Facebook Ad Costs Decreasing In 2020

The past few months during the pandemic have been a season of change for the auto industry.

Dealers have had to change their core business processes, their strategies and budgets, and their advertising plans as a whole.

Over the past 6 months, we’ve seen another big change:

Ad costs on Facebook and Instagram are lower than ever before.

Dealership Facebook Ad Costs Decreasing On Facebook

Facebook and Instagram have continued to rise in popularity and usage as more people flock to the sites to stay in-the-know and keep in touch with their friends and family.

Plus, as a result of COVID, some businesses have had to pull their ad spend, opening up ad real estate and decreasing the competition on these platforms.

Here are the average cost metrics across Dealers United client accounts today, compared to just 6 months ago:

If You’ve Been Debating Advertising Your Dealership On Facebook, The Time Is Now

With the presidential election and holiday season rapidly approaching, we expect that these ad costs are the lowest they will be until 2021.

There has never been a better time to invest in Facebook Ads for auto dealers!

Now is the time to double down on these channels, take control of your digital market, and build your pipeline of in-market shoppers for the lowest cost possible.

To see how many in-market shoppers you can reach on Facebook right now, build your free Market Intelligence Report here!
 

Build your free Market Intelligence Report now.

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Blog Author - Drew Detweiler

Written By Drew Detweiler
Drew manages inbound and outbound marketing for Dealers United. When he’s not at work, he’s probably enjoying the outdoors, fishing, or eating.

Dealers United Partner Generation Kia Featured By Facebook Business For Resiliency During Pandemic

Dealers United Partner Generation Kia Featured By Facebook Business For Resiliency During Pandemic

Dealers United Partner Generation Kia Featured By Facebook Business For Resiliency During Pandemic

 🎉 Congratulations to Lydia and the Generation Kia team! You are leaders in your community and we are proud to call ourselves your partners!

Generation Kia was recently featured by Facebook Business for their resiliency during COVID-19 and how they quickly used Facebook Ads to adapt their business and keep their doors open.


View Generation Kia’s published story live on Facebook Business here.

A Unique Feature As A Facebook “Resilient Business”

Being featured by Facebook Business is an honor that few companies achieve, but being featured in a new area called “Resilient Business Stories” is a unique honor.

So far, Generation Kia is one of only a handful of businesses to be featured by Facebook for resilient business, and is one of the few local companies.

In fact, the other featured resilient businesses included national and international brands and athletics organizations such as Penn State Athletics, Planet Fitness, and Threadless.

Did you know? Dealers United has had 4 other dealer-partners featured by Facebook Business. Check their stories out here!

The reason Generation Kia was selected?

They used a unique Facebook Ads strategy to not only drive sales and service revenue, but truly help their community and set themselves apart.

Generation Kia’s Story: Connecting With Community

The dealership faced many of the same challenges as other auto dealers across the nation in the face of the COVID-19 pandemic.

Generation Kia immediately responded to the crisis by unleashing a full playbook of ads displayed on Facebook and Instagram that would keep them front and center in the community until the market opened back up.

These ads included:

  • Remote buying and at-home vehicle service options
  • Available inventory
  • Brand awareness and safety updates
  • Current OEM incentives from Kia, such as 0% APR for up to 72 months


 

Using this full-funnel strategy from March 1st to April 30th, the dealership was able to drive 252 leads at $21.35 Cost Per Lead, and 42 vehicle sales matched to Facebook Ads via Offline Conversion Events.

Click here to download the full case study and get an inside peek into the ad campaigns Generation Kia ran during COVID-19.

In addition to these digital retailing ads, the dealership also emphatically proved themselves to be a leader in their community by creating an ad campaign on Facebook and offering all healthcare workers oil changes and vehicle sanitizations, completely free of charge.

From April to May, the dealership ran the above Click to Messenger ad campaign, driving 48 Messenger conversations at $9.90 Cost Per Conversation, 13 leads, 109 reactions, 25 comments, and 26 shares.

The campaign had tremendous success, setting themselves up for future business in their community and building loyalists moving forward.

“We may not be selling these people vehicles right now, but providing a favorable experience in the dealership and continuing to message them will keep us top of mind when they’re ready to buy.”

— Lydia Mediaville, Marketing Manager, Generation Kia

How Dealers United Is Helping Auto Dealerships Stay Resilient

During the pandemic, Dealers United has been working closely with its dealer-partners to help them quickly adapt their messaging as we navigate this fluid situation.

We created multiple COVID Ad Playbooks to give dealers multiple strategies to combat the effects of the current crisis, including:

  • “We’re Open” ads for service and sales departments
  • Ads bringing awareness to remote sales and service options
  • OEM incentive ads
  • “Unlock the Demand” campaigns to help auto shoppers understand that now is a great time to buy
  • Buy back / Trade keys ads to replenish low inventory

To learn more about these playbooks and other success stories of dealerships who used Facebook to stay ahead during the pandemic, visit our COVID-19 Resources Page here.

Looking for more COVID-19 Resources to help your dealership?

Click Here

Blog Author - Drew Detweiler

Written By Drew Detweiler
Drew manages inbound and outbound marketing for Dealers United. When he’s not at work, he’s probably enjoying the outdoors, fishing, or eating.

Uncover A Secret New Strategy To Help Maximize Your Dealership’s Marketplace Listings

Uncover A Secret New Strategy To Help Maximize Your Dealership’s Marketplace Listings

Uncover A Secret New Strategy To Help Maximize Your Dealership’s Marketplace Listings

Since Facebook Marketplace for auto dealerships has gained popularity over the past few years, Facebook has continued to add new features and enhancements to the platform.

Last year, Facebook introduced built-in Kelley Blue Book Values and CarFax history reports to Marketplace, plus the ability to use chatbots so that dealers can have instant responses to inquiries without immediately needing staff to reply.

But with their latest release, Facebook Marketplace has become an even more powerful tool for car dealers.

Not yet posting your vehicle inventory into Facebook Marketplace? Click here!

Now your dealership can follow up with shoppers who engage with your Marketplace listings. Watch our video below to learn more!

Creating a Custom Audience For Users Who Engaged With Your Dealership’s Marketplace Listings

To start creating a Custom Audience for Marketplace follow up, go to your Ads Manager and select an existing ad set.

Then, select “Create New > Custom Audience > Marketplace Listings.”

Next, choose if you want to target those who have Viewed Products or those who have Messaged About Products in your Marketplace catalog.

TIP: Reaching those who have “Viewed Products” in your catalog will generate a larger audience, but won’t be as low-funnel as the “Messaged About Products users.

Lastly, set the timeline in which you want Facebook to look for engagement. We recommend a longer timeline if you are sending a “Brand Awareness” message, and a shorter timeline if you are sending Inventory Ads or lower-funnel offers.

Building More Custom Audiences with Dealership Facebook Ads

Remember, there are an unlimited amount of Custom Audiences you can create with Facebook Ads.

You can create audiences of emails you’re sending an email campaign or direct mail campaign to….

…a list of recent customers to send them a service offer…

…and even Lookalike Audiences based on your ideal customer lists!

Interested in learning more about creating Custom Audiences with Facebook? Click here to schedule a strategy chat with our team.

Learn more how to drive leads with On-Facebook Destination For Automotive Inventory Ads

Click Here

Blog Author - Brooke Jensen

Written By Brooke Jensen
Brooke handles all of Dealers United’s digital marketing. In addition to her love for design and copy, Brooke also adores her two dog-like kittens, playing the electric violin, and walking barefoot around the office.

4 Campaign Ideas That Will Maximize Your Dealership’s Market Intelligence Report Results

4 Campaign Ideas That Will Maximize Your Dealership’s Market Intelligence Report Results

4 Campaign Ideas That Will Maximize Your Dealership’s Market Intelligence Report Results

Our latest free tool, the Market Intelligence Report builder, helps auto dealers pinpoint how many In-Market Auto Shoppers are in their area, and unlocks key data insights about their market. But once you get your hands on these auto shopper insights, what’s the next step?

Check out these 4 campaign ideas to help you reach the shoppers in your market with the right message.

Haven’t built your own Market Intelligence Report yet? Check out our free builder here.

Facebook and Instagram have rapidly become one of the most powerful and cost effective tools to reach potential customers.

And with hundred of millions of Facebook and Instagram users in the US alone, it’s not hard to see why.

Here are 4 Facebook and Instagram campaign ideas to start reaching your target audience and sell more cars.

Drive Results With Facebook & Instagram Using These 4 Campaign Ideas

Idea #1: Reach All Local Facebook Users

How many Total Facebook Users did your Market Intelligence Report reveal within your Primary and Secondary markets?

Use these numbers to understand your “Max Potential Reach” on Facebook and Instagram.

We recommend reaching these audiences with branding ad campaigns to familiarize shoppers with your dealership, telling them why they should buy from your dealership instead of the competition.

We call these “Why Buy” campaigns. You can set up these campaigns under the Facebook “Reach” objective, which is the most cost-effective method of reaching the maximum number of users.


While Reach campaigns are not optimized for traffic or leads, this is the greatest way to get your dealership into plain sight of the auto shoppers in your market.

Idea #2: Introduce Your Latest Makes & Models To Shoppers Who Are “Near In-Market”

Take a closer look at the “In-Market Shoppers” section on your report. These numbers are pulled from Oracle Data Cloud with POLK / IHS Markit data.

In your report, how many Facebook users are likely to purchase within 6 months – 1 year?

These are great audiences to build in Facebook and deliver ads showcasing your newest Makes & Models.

Many auto shoppers need to be introduced to the differences in your trims, interiors, and tech features of your vehicles.

Using video and collage ad formats, you can take users on a “virtual tour,” building their affinity toward your brand, and even helping them choose the vehicle that’s going to be best for them when they’re ready to buy.


 

Idea #3: Show Your Live Used Inventory To In-Market Shoppers To Shoppers Who Are Almost Ready To Buy

How many in-market auto shoppers that plan to purchase in the next 3 months did you report return?

According to Cox Automotive, in 2019, the average time car shoppers spent in-market was 96 days.

Source: https://www.coxautoinc.com/learning-center/2019-car-buyer-journey-study/

Shoppers are also spending more time shopping online, less time in the dealership, and visiting fewer dealerships before making a purchase (and after COVID-19, some aren’t visiting dealerships at all)!

It’s imperative to get your live inventory in front of shoppers who are waiting for the right vehicle and price point to pull the trigger.

Facebook Automotive Inventory Ads are one of the most effective tools in a dealer’s pocket.

Displaying your live inventory to in-market shoppers allows them to browse through relevant models on your lot without ever having to scroll away from their Facebook and Instagram feeds.


 

You can even use Automotive Inventory Ads to retarget users who have browsed on your website, showing them models that are the same body style and in the same price range as the one they’ve viewed.

Want to learn more about how Inventory Ads work? Check out our video overview here!

For the lowest funnel shoppers who indicate they’re ready to buy, you can run Lead and Conversion campaigns to encourage them to submit a lead to “Apply for financing, Test drive, or Check availability,” that gets dropped directly into your CRM.


 

Idea #4: Layer In Credit Data To Reach Subprime or Superprime Users

What about the credit score portion of the report?

The report breaks down Credit Score brackets like so:

You can run ads to the “Up & Coming” shoppers on your Market Intelligence Report and drive them to financing pages, easing fears of credit disapprovals.

Do you have a specific credit tool or landing page on your site? Drive traffic there and then retarget audiences with relevant inventory and ad copy to apply for financing.

By driving awareness about financing options and allowing lower tier credit users apply from home, shoppers who may not have come in the dealership can apply online.

Just like the “Up & Comers,” if you have many “Thriving” credit shoppers on your report, you can send them your premium inventory with special financing or luxury vehicle campaigns.

Other Ways To Maximize Your Market Intelligence Report

Discovering your audience is a big piece of the puzzle, but you obviously can’t stop there.

Knowing how to reach your target market effectively can make or break a business.

By using market insights from your Market Intelligence Report and following this blueprint for proven successful campaigns, your dealership can be on the way to using a data driven strategy to reduce wasted ad spend and sell more cars.

To find out more ways you can turn your Market Intelligence Report into actionable ideas, watch our instant, On-Demand product demos here.

Happy Selling! 

Watch our On-Demand Demos to learn more about our Facebook strategies.

Click Here

Blog Author - Drew Detweiler

Written By Drew Detweiler
Drew manages inbound and outbound marketing for Dealers United. When he’s not at work, he’s probably enjoying the outdoors, fishing, or eating.

This Free Dealership Tool Pinpoints How Many In-Market Auto Shoppers You Can Reach

This Free Dealership Tool Pinpoints How Many In-Market Auto Shoppers You Can Reach

This Free Dealership Tool Pinpoints How Many In-Market Auto Shoppers You Can Reach

What dealer isn’t looking for insights into the auto shoppers in their community?

Knowing your PMA’s demographics, credit scores, and total # of in-market shoppers is an incredible advantage to planning your dealership’s overall strategy.

That’s why we’ve created a tool that unlocks these key shopper data points with just a few simple clicks.

Hard To Find Data, Now At Dealers’ Fingertips

Over the last year, we’ve found that most auto dealerships believe that Facebook Ads can help them reach users in their local market.

But does your dealership know just how many users you can truly reach? Better yet, do you know how many of those users are In-Market Shoppers?

Previously, dealers have had to set up an Ad Account and check out the targeting options within Facebook Ads Manager to find out their max potential reach.

Then, in order to retrieve key automotive insights like purchase windows and credit scores, dealers have to request unique access into Oracle Data Cloud, wait for access, then layer those audience targeting options on top of their geotargeting.

(AKA, it was a pain in the you-know-what.)

That’s why our Dev team has spent countless hours to help dealers unlock all the key audience data that matters — at the touch of a button.

Introducing our newest tool for auto dealerships: The Market Intelligence Report! 🎉

Here’s how easy it is to build your own report and pinpoint how many In-Market Auto Shoppers are in your area:

How To Use The Market Intelligence Report Builder

To start building your Market Intelligence Report, go to https://www.dealersunited.com/resource/market-intelligence-report-auto-dealers/ and request instant access to the free builder.

Then, simply plug in your dealership address, choose your Primary + Secondary markets, and click “Get Results!”

You’ll instantly learn key insights about your dealership’s PMA, like:

  • 📲  Total Facebook Users
  • 🚘   Total In-Market Auto Shoppers
  • 🙋‍♂️  User Demographics (Gender, Age)
  • 💳  User Credit Score
  • 📅  …and even when users plan to purchase a car!

These data points can help you not only understand your market better, but also help you leapfrog your competition in terms of a data-driven Facebook Ad strategy.

Knowing, identifying and understanding your target market can be some of the most difficult steps in business.

Since the days of the digital marketing revolution have begun, “spray and pray” campaigns have shown to be far less effective than a well targeted approach using a data driven analysis.

After using the Market Intelligence Report, you will have gained insights into your target market to better reach your PMA and sell more cars.

Click here to continue reading and get 4 campaign ideas that will help you maximize your Market Report findings.

Happy Selling!

Build your free Market Intelligence Report now.

Start Building

Blog Author - Brooke Jensen

Written By Brooke Jensen
Brooke handles all of Dealers United’s digital marketing. In addition to her love for design and copy, Brooke also adores her two dog-like kittens, playing the electric violin, and walking barefoot around the office.

Power Ford + Dealers United Featured In Automotive News For Success With Facebook Advertising

Power Ford + Dealers United Featured In Automotive News For Success With Facebook Advertising

Power Ford + Dealers United Featured In Automotive News For Success With Facebook Advertising

 🎉  Congratulations Matt & Rob @ Power Ford! We are so inspired by your vision and success, and look forward to many more amazing things ahead. 

Dealers United’s dealer-partner, Power Ford, was featured in the June 15th edition of Automotive News’ for their success with Facebook ads. 

For the month of May, Power Ford was able to attribute more than 50% of their total sales to a shopper who either viewed or clicked one of their ads on Facebook or Instagram. 

Click here to read the full article featured in Automotive News, “Facebook ads help grow dealership’s sales”!

New management, new strategy

According to the article, Power Ford changed management in 2017, and the new owners embraced the idea that they had to do things differently in order to get different results. 

They cut hundreds of thousands of dollars in ad spend on traditional mediums like Google Ads and 3rd party leads, and instead began investing more into Facebook’s platform. 

The dealership believed that Facebook was the perfect platform for them to get out in front of the right audiences and reach them with unique, targeted messages.

In October 2017, Power Ford partnered with Dealers United to implement a full-funnel Facebook strategy which included automotive inventory ads, new car ads, and custom dealership branding ads. 

 
 
 

Since transitioning to Facebook advertising with Dealers United, Power Ford’s results “have been impressive.” 

From 2018-2019, Power Ford cut their overall advertising spend by 21% YoY and simultaneously increased their new car sales by 8% YoY. Meanwhile, the new car market in Albuquerque, New Mexico decreased by 3.2%. 

Our favorite stat? The dealership has won the title of the #1 Ford dealership in New Mexico 7 times in the last 24 months, a title previously held by the same dealership for 28 straight years!

More sales with less spend, even in unpredictable 2020

As most dealerships know, 2020 has not been the kindest year so far in terms of car sales. 

But in spite of this, Power Ford has continued to increase sales and spend less on ads.

How?

Power Ford’s success during these challenging past few months cannot be attributed to one factor alone, but from 2019-2020, one thing is clear: Power Ford continued to invest more into Facebook.

In early 2020, the dealership shifted 15% of their traditional spend to Facebook Ads. After the shift, Facebook comprised 46% of their overall media plan. 

Comparing a 5 month window YOY (January through May, 2019-2020), this totals a whopping 131% YOY increase in Facebook Ads investment! 

Matt Sneed, Director of Marketing and Customer Experience, Power Ford
“Facebook Ads have helped us decrease our traditional media spend and become more profitable than ever,” said Matt Sneed, Director of Marketing at Power Ford. “Since investing into Facebook Ads with Dealers United, we’ve continued to perform above Albuquerque’s new vehicle market by double digits. Even throughout these challenging past months, we’ve been able to reduce our ad spend by 30% and outperform the new Ford market in Albuquerque by 10%. Plus, we saved $70,000 on radio and invested more into Facebook instead, and our leads did not go away. The results we’ve seen from Facebook have forever changed our perspective on advertising.”

The dealership also noticed a higher number of sales matched to their Facebook efforts.

The percentage of total unit sales attributed to Facebook Ads (through Facebook’s Offline Conversion Events) leaped from 22% in 2019 to 41% in 2020. Plus, Power Ford has been able to use their Ford Co-Op dollars and achieve a negative cost per new car sold. 

In total, Power Ford is seeing a 28% YoY increase in dealer profits so far this year, all while saving 30% in total advertising costs.

To read the full Power Ford story featured in Automotive News, click here!

To learn more about Dealers United’s Facebook Advertising solutions, check out our Solutions Page here! 

Watch our On-Demand Demos to learn about our Facebook Ad strategies.

Watch Now

Blog Author - Drew Detweiler

Written By Drew Detweiler
Drew manages inbound and outbound marketing for Dealers United. When he’s not at work, he’s probably enjoying the outdoors, fishing, or eating.

Register for the webinar, “The 3 Biggest Facebook Mistakes Even Advanced Dealer Marketers Are Making”!

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