Used car advert cost may not click with dealers
THE market for used car advertising both offline and online is estimated to be worth around £300m annually with advertising costing dealers around £10 per car per week. But now, with the prospect of an increased number of used car websites, some experts believe that prices are set to rise.
Under the pay per click (PPC) internet advertising model, advertisers pay to have traffic directed to their particular website. Several years ago a used car search cost around 20p per click, it is now ten times that amount.
Chris Green, sales and media director of Motoring.co.uk has some advice: “Dealers should continue to invest in their own websites and digital infrastructure but choose advertising partners carefully by using the ones that can prove they make a difference and add value.
“Monitoring keyword campaigns should be a number one priority for dealers and they need to ensure their traffic converts. If it does not, then they should drop that keyword or tail and try new ones, especially the medium to long tail stuff.
“Harnessing and utilising local consumer data has to be a strategy employed by small dealer groups. In the long term it will bring marketing costs down, as well as enable dealers to engage with consumers with products like service plans, resulting in that much needed retention.
“One light on the horizon for the medium to larger dealer groups could be the emerging power and success of high quality, real-time consumer data. Historically, consumer data has been limited in what it can offer but with the advent of the digital world and data capture, deep information on consumer buying patterns is now available.”