It isn’t exactly news that the vast majority of car buyers do their homework online long before they head to a showroom and online marketing is, therefore, one of the best tools in a dealer’s arsenal. Get it right, and you can set out your digital stall in front of willing customers in their run up to a new purchase.
Paid search, or search engine management (SEM) as it’s commonly called, is one of the fundamental tools employed by digital marketers to get retailers’ products and services in front of the right online audience at the right time. Here, we explain what they are and how they can help you.
Paid search has become an increasingly effective way for dealers to connect with online car buyers. As a result, growth in digital ad spend in the UK is continuing to increase, with 40% of that digital ad spend being spent on paid search specifically.* However, if you manage a paid search campaign you know that simply upping your budget isn’t enough. You also need to take the time to measure and analyse your campaign’s performance so you can optimise and refine your marketing accordingly.
The auto industry has seen substantial growth of digital ad spend in the last few years, and the growth isn’t predicted to slow down. The auto industry as a whole grew online ad spend by 44% since 2016 and is projected to grow another 10% in 2019.* And of the industry’s digital spend, about 40% is in paid search.**
The reason for this spend is simple: digital ads drive more sales and cost less. According to DealerSocket, the average profit margin for sold vehicles that were advertised on digital channels exceeds that of sales driven by conventional media by over $800.
It’s clear that paid search is becoming more important than ever, so let’s take a quick look at five key components of a successful paid search campaign.
When buyers decide they’re in the market for a product or service—or they’re generally curious about something—they head to a search engine like Google for information. In fact, billions of Google searches happen every day. Think about how many of those are car searches—or, chances for your dealership to attract potential customers to your site.
While you can rely on search engine optimisation (SEO) tactics to help you increase the ranking of your site without spending money, changing algorithms and ranking criteria make it hard to maintain your position in search results. So how else can you promote your dealership and drive new visitors to your site? Through the use of search engine marketing, or paid search as it’s commonly called.
We’re excited to announce the launch of CarGurus Paid Search, our new managed paid search solution. Through powerful machine learning, CarGurus Paid Search helps deliver ready-to-buy car shoppers to dealers’ own websites and drives more quality engagements by improving results from Google AdWords. It eliminates guesswork for dealers and delivers performance at scale.