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Driving Results for an Automotive Dealership

Posted inAutomotive, Case Studies

The Problem

A Colorado Automotive Dealer Group was facing shrinking profit and operating margins as well as pressure from OEMs to meet retail sales effectiveness standards.  The group had 10 advertising vendors and growing advertising budgets at their disposal, but little to no ability to measure the results of their marketing efforts.

Analyze business KPIs

Harness first, second and third party data across traditional and digital technologies

Effectively isolate myriad audience segments

Deploy and optimize digital media & content to drive consumer sentiment

Incorporate indicative analysis and look-alike audience extension techniques 

The Strategy

In order to help our client achieve greater ROI and combat the obstacles of marketing fatigue and margin compression in the marketplace, we created a holistic marketing plan across paid, native and organic channels. After analyzing key performance indicators, we began defining and capturing valuable first-party data that was then utilized to develop lookalike audiences and retargeting campaigns for individuals in-market or with intent to purchase in the next 3 to 6 months. 

In addition, we employed affinity-based, whitelist and geo-targeting techniques to drive sentiment of those most likely to engage with our client. Custom landing pages were built, tested and optimized, and tailored ads and content were deployed for various personas in-market for specific auto makes and models. Over time, we continued analyzing and determining more direct user journey segments that allowed our client to increase lead and call flow data into the dealership. 

The Results

Within the first year of deploying our solution, our client was able to achieve a 26% increase in year-over-year sales as well as revenue increases of 17.4%, all while similar dealerships were down 6-15% in sales volume and 12-19% in revenue. Simultaneously, we were able to reduce overall advertising expenditures and eliminate multiple vendors. Cost savings included eliminating cable TV, newspaper and paid lead source spends, lowering the client’s overall spend-per-vehicle by over 28%.