Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Paul Rushing

Paul Rushing Lead Generator

Exclusive Blog Posts

What People Are Looking For In An Auto Repair Shop

What People Are Looking For In An Auto Repair Shop

Those who have been involved in some sort of accident have the next step of finding an auto repair shop. These shops are not all created equal as some are …

One Price Selling – What Are You Waiting For?

One Price Selling – What Are You Waiting For?

Most Dealers are closer to a One Price Selling sales process than they may realize. If you’re an excellent pre-owned dealer you’re basically no…

What Is Your Chemistry With Women Buyers?

What Is Your Chemistry With Women Buyers?

Wow, its December. Last month of the year. Now is the perfect time to begin to reflect on the customer processes, engagement and strategies you have in pla…

Want to Advance in Business? Here are a Few Ways to Stay on Top of Your Game

Want to Advance in Business? Here are a Few Ways to Stay on Top of Your Game

If it’s time for you to take the next steps in your career, there are some tried-and-true methods that can ensure your success. All business professi…

BDC training for 2017

BDC training for 2017

  We have a service and sales bdc team for each of our stores. One is a Hyundai store and the other is a Chevrolet store. We have Three sales Bus…

I work with dealers coast to coast and was alarmed when one of my dealers send me this text chat in reference to a pitch they were given by a major automotive classified provider.

Cars.com CTR Pitch

Shortly after assuring this dealer that a 10% click through rate (ctr) would be an extraordinarily, highly, unbelievably successful campaign and that the 10% ctr was probably an error in his recall of the pitch, I received a phone call from another dealer asking me about the same claim. Later that afternoon I reached out to some of my other clients and they also verified that they were given the same "tall tale". Three of the dealers I spoke with also said that a rep from a major search engine was also in tow.

Below are the stats from one of my online properties the content and banner relationship are in sync, as would be expected with a banner that is behavioral and geographically targeted, all traffic comes from the search engines.

Real CTR Rate on 500K + impressions

Over one half of a million impressions I am personally happy with the .7 of 1% ctr of this offer. The content also contains a strong call to action to encourage a click through, not found on classified portals and search engine banner advertising. The chances that a dealer will even experience a 1% ctr is a highly unlikely, an optimistic expectation would be .5 of 1% with reality coming in at .1 of 1% and anything greater than that being a bonus.

The average CPM (Cost per 1,000 impressions) for large sites, over 100,000,000 page views per month, a search engine, in 4th quarter 2008 was $0.17 CPM and the CPM for medium sized sites, between 1 million and 100 million page, classified portal, views per month was $0.30 according the the 4th quarter 2008 Ad Price Index.

Those numbers do not take into geo targeting or a tightly defined niche site such as an automotive classified web property.  I was told that that the banners would also appear on the search engine network as well.  The highest CPM was given to Business and Finance at $0.83 and the lowest social networking sites $0.10.

The quotes dealers were given on this new push was $25.00 cpm.  While a higher rate should be expected on the smaller buys being offered to dealers and due to enhanced targeting, I could not find a way to recommend this type of spend based on current economic conditions, market pricing and anticipated ROI.

Using the numbers given by the rep at the unfathomable 10% ctr that would equate to a $0.25 cpc (cost per click) for what would be considered a content network display ad is still out of round based on the current state of the click.  Using an overly optimistic ctr of 1% it drives that cost up to $2.50 cpc for a banner ad, an unrealistic cost value proposition.

I hope that I have miscalled this offering and several dealers are wrong in their recollection of what they were pitched both in cost of the offer and results claimed. 

If not there are better opportunities out there for their marketing dollars.

Paul Rushing
912-266-1629
www.ismintraining.com
SEGA Systems, LLC
"Without Traffic Everything Fails"
Chat: Google Talk: parushing Skype: parushing

Contact Me: LinkedinFacebookTwitter
© Paul Rushing - May not be republished without expressed consent.

 Unlock all of the community & features  Join Now