How to calculate advertising cost per sale

Walter Bilson

How to calculate advertising cost per you have a method of quantifying the ROI of your advertising efforts on each vehicle sold? 

Bart Wilson

Attribution, to some extent, is the Holy Grail.  I don't know if it's possible to attribute one source to a sale, and that would impact how you calculate ROI.

I'm extremely interested in dealer solutions.  Are you using a total acquisition approach?  Are you using first click, last click, or spreading the credit over all sources?

Chris K Leslie

It's literally impossible to track that with any sort of efficacy. Because we sell physical goods to people who can just walk in any time they want makes that impossible. Some folks are trying to do matchback but its still pretty new.

Patrick Bergemann

For dealerships using web leads and buyers who start the sales process online, those could be attributed to specific traffic sources and then all other sales could be separated and averaged out with all advertising's not perfect, but it's a step.

Amanda Gordon

I agree with Chris, it is close to impossible to get an exact figure  however the formula we use is cost of marketing (all factors) divided by units sold. Last I checked the industry average was just over $400. Remind your sales staff of that number when they are power brooming customers.

Derrick Woolfson

@Amanda, agreed! And I also agree with @Chris, as even if the BDC set an appt with a customer who inquired on our dealer website - who is to say that they did not first start on (saw the unit they liked), and the went our website. And even when we ask them how did they hear about us (which should happen far more often) - it still does not offer the full story of how they came to purchase their vehicle. That being said, the only thing we can really look at is how many leads we sold per source and divide it by the monthly cost. 

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