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Jared Hamilton
From: Jared Hamilton
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Amy Taggart

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Google and the Auto Lead Business: Bad news for third party lead vendors?

Read some interesting articles on and about Google basically entering in the automotive lead business.

In February of 2010 when Google made a presentation to a select group of industry leaders about their intentions to get into the auto lead business. Some questions answered include:

How will it work for the consumer?

Basically Google will establish a Web page for vehicle shoppers. Dealers will bid, through a Google auction, to be one of about three dealers listed on the page when shoppers fill out a discounted price request for. The shoppers will then choose which of the listed dealers will receive the lead and provide the price.

When does it start?

Google is initiating the program with a handful of Bay-area dealers but has set no date for a national launch.

How will bidding work on the dealer side?

The minimum bid for placement on the Google vehicle-shopping page is $10 per lead generated and could go well above $25 a lead for popular vehicles, Christian said. The lead is generated when the Google shopper submits vehicle specifications to the dealer

How this may affect third party leads?

Well once example comes from Shaun Del Grande, president of the eight-store Del Grande Dealer Group in San Jose, Calif. He predicts that the program could push enough business his way that he may reduce the number of third-party leads he now buys.

To find out more read the following articles: Dealers eager for Google pilot Google enters into the auto lead business

Share your thoughts below! Will this work? Or is it another territory Google should rethink stepping into? Will this launch affect 3rd party vendors at all? Stay tuned for the launch to see how it all plays out!

Ed Brooks
The thing that is missing as this story spreads, is how this is a very limited test in a single market. It may certainly give us a glimpse of the future, but as with all things 'Google' - expect changes.
Rosa Luciano
It will be interesting to see what happens with this since Google seems to have so much going on now (ie: this, building driver-less cars, etc). They may get bored with the endeavor and shelf it later...
Bryan Armstrong
Rosa- Yeah Google has been known to "Dabble" and then quickly lose interest. It will be interesting to see though if they have success, how it will affect the other parties listings not to mention Dealers SEM efforts.

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