Dealerships have numerous options when advertising online to generate traffic to their website, but which method is most effective? Which method is going to produce the highest ROI, sell the most inventory and drive brand awareness?
Only two percent of website visitors will fill out a website contact form, so what about the other 98 percent?
Facebook allows you to display ads to that 98 percent by placing an advertising pixel on each page of your website. Doing so tracks their activity on your website and will know exactly what pages they visited and what inventory they were interested in.
This ad format is known as Facebook Dynamic Inventory Retargeting. LotVantage customers can hyper target their ads to display the exact vehicle they were looking at on your website. This can be a time consuming process to set up this type of advertising for a dealership if done manually, but dealers who have inventory inside of LotVantage can take advantage of this type of advertising rather easily.
Also, once a vehicle is archived from the dealer’s data feed of inventory, we’ll no longer display that ad on Facebook.
Dynamic inventory retargeting on Facebook is successful because it’s hyper targeted to what your customer was looking at on your website. It replaces using a generic ad, which may only send them back to your website’s home page. These ads will feature the exact make and model they were looking at.
If a customer is looking at a 2004 Pro Line DC on your website, they’ll be served with an advertisement on Facebook for a2004 Pro Line DC . Once they open the link, it will take them back to that specific vehicle on your website where they can fill out a contact form or even a credit application.
Dynamic inventory retargeting performs better because the ads are so relevant. We have seen a click through rate as high as 6.43 percent with these types of ads. Ads retargeted without using dynamic inventory see a much lower CTR. We’ve seen click through rates between 1.5 percent to 2.08 percent.
Facebook also rates the quality of an ad by assigning it a relevance score. The more relevant the ad, the more people will see it on their timelines. Relevance scores are on a scale from 1 to 10 and ads using dynamic inventory are receiving a score of 8.
If you are interested in dynamic inventory retargeting for your dealership, please email email@example.com or call 1-877-794-3919 to learn more.
Jim Jabaay is the vice president of LotVantage, a digital marketing company for dealerships and original equipment manufacturers. LotVantage specializes in posting dealer inventory to Craigslist, eBay and driving engagement on social media on behalf of their customers. Visit lotvantage.com or call 1-888-569-3865.