How do you make online display ads work for automotive dealers?
June 2014 © Speed Shift Media
speedshiftmedia.com
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Table of Contents
Introduction
1. What’s the difference between dynamic inventory display ads and standard display (or banner) ads?
2. How do display ads affect consumer activity in the big search engines, and how will search engine marketing affect display?
3. What “lift” or increase in effectiveness in Search Engine Marketing (SEM) can I expect by using display ads?
4. Where can I buy display ads?
5. How do I develop an effective display ad that delivers results?
6. What happens after a prospect clicks on a display ad?
7. What metrics and reporting details should I analyze?
8. How long will I have to wait before seeing results?
9. How do I know whether my advertising partner is doing their job and helping me understand it all?
Summary
About the Author
About Speed Shift Media
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As a consumer, you are no doubt aware of how the Internet has changed the way you live, work and play. You have likely made purchases of products
or services online, so you know that your shopping behaviors
have also been affected by the infinite amount of information available with just a mouse click.
As a marketer in the automotive space or even the owner of
a dealership, you may have also experienced the influence of the Internet on your livelihood as loyalty to brands, models
and dealerships has decreased. Potential car buyers now
have the tools to consider many more vehicle options. This
phenomenon has led to consumers beginning their research
early in the buying process.
The numbers reflect this trend. According to the 2013 Automotive Buyer Influence Study conducted in part by AutoTrader.com:
• Buyers in the new car market spent 10 out of a total of 13 shopping hours online;
• Used car buyers spent over 11 hours out of 15 shopping
online; and,
• Use of the web to research vehicles and dealerships has
increased in the last few years. In 2013, 75% of all buyers went online for information, up from 71% in 2011.
Online display advertising, or banner ads, have evolved
over the years and are changing the way some auto
dealerships and their marketing departments approach
online advertising. The resurgence of display ads as a
method of promotion is due, in large part, to the introduction
of inventory ads, which are both effective and efficient
“75% of all buyers research vehicles online.”2013 Automotive Buyer Influence Study,
AutoTrader.com.
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when used appropriately. Inventory display ads provide
a structured combination of reach and targeting. Display
advertising enables marketers to deliver ads to the proper
audience no matter where they hang out, and the ads can
target relevant prospects while processing available data
about online users.
There are many key advantages to incorporating display
advertising as part of an overall marketing strategy. The
first is the ability to reach more customers further up the purchase funnel. If you wait until they search for a specific car or dealership in their favorite search engine, it could
be too late. Display ads allow you to get in front of more
customers sooner. Add to that the benefit of increasing search traffic, extending reach beyond listings sites, and the ability to put pictures of your inventory in front of car buyers
— and you have some compelling reasons to grab a glove and
get in the game. In addition, display marketing enables auto
dealerships to know more about their marketing campaign
performance through innovative analytics and detailed
reporting. This eBook answers some of the questions about
the benefits of display advertising and dynamic inventory display advertising and delves into the technology concepts
that make them possible.
Let’s get started!
“Display ads allow you to get in front of more customers sooner.”
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What’s the difference between dynamic inventory display ads and standard display (or banner) ads?
1.
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Briefly, dynamic inventory display ads incorporate technology that enables the advertiser to adjust the inventory contained in the ad at the exact moment that the ad is shown to a user. The ads are effectively personalized to the interests of the target audience based
upon data such as user demographics, search history,
site visits, and many more attributes. The result is that ad
content is much more relevant to that specific user. The sales conversion rate is also affected by dynamic inventory display ads, making them more profitable than methods that don’t allow for real-time changes to ad content.
On the contrary, standard display (or banner) ads are 100% predetermined by the advertiser, and any true relevancy to
the person exposed to them is based on good planning or,
more likely, luck. While they were seen as effective in the early days of web advertising, they’ve lost their appeal because of over-saturation. Users become numb when these ads appear
along the margins or at the top of a search results page,
and they’ve subconsciously learned to ignore the irrelevant information.
Click through rates are substantially different when comparing standard display ads and dynamic inventory
display ads. Exposing a potential customer to the inventory
that is pertinent to the searches they’ve conducted, their geographic region or other factors, vastly increases the
likelihood that they’ll click through to your landing page. Thus, being able to personalize your
display ad unit to every new user who
sees it will significantly increase your Click Through Rate (CTR). Additionally,
using tools such as inventory specific retargeting will serve to increase CTR
even more.
LearnMore
“Personalize your display ad unit to significantly increase CTR.”
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How do display ads affect consumer activity in the big search engines, and how will search engine marketing affect display?
2.
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You know the household names of the search engine giants, such as Google, Bing, and Yahoo!, and savvy marketers are likely aware of the importance of Search Engine Optimization and Search Engine Marketing as a part of the marketing mix. However, you may not be aware
of the relationship between search and display advertising,
so you might not realize the benefits of using them alongside each other.
The “2007 Dealer eBusiness Performance Study” conducted by The Cobalt Group identified three main phases that car buyers go through when shopping for a vehicle. The pre-
selection phase is the launch pad where prospects begin
by using all available resources and filtering information. Today’s consumer uses search engines, in combination with online and traditional resources, to narrow down their model
choices and find dealerships. In fact, 83% of car shoppers begin with web-based sources to research cars, while 79% use web searching for more information on dealerships.
As a result of search trends and exposure to online marketing,
certain behaviors develop among Internet users that have
an impact on the correlation of search marketing and display
ads. Studies have shown that almost a third of all users will
click on a display ad after conducting a search, demonstrating
that search has an impact on display advertising. Additionally,
almost half of all users eventually conduct a search to find more about a product that first appeared to them in a display ad. The majority will visit a website after performing this type
of search, increasing the likelihood of converting a sale.
The critical message here is that while both search and
display marketing can be effective on their own, the strength of each is significantly increased when used together in a concerted effort.
“83% of car shoppers begin with web-based sources to research cars”2007 Dealer eBusiness Performance Study,
The Cobalt Group.
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What “lift” or increase in effectiveness in Search Engine Marketing (SEM) can I expect by using display ads?
3.
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Once you’ve come to appreciate the close relationship between display ads and search marketing, you’ll be anxious to know how your SEM will receive a boost by employing them together.
Your potential customers are exposed to display ads on a
constant basis. They will eventually begin to subliminally
shape the way they search online to coincide with the
language and terms they see. In essence, the display ads
teach behavior and supply the keywords for users to find out more on certain topics. For this reason, display ads are a
perfect partner for your SEM campaigns, making it more likely
that your prospects will find you.
Plus, your target audience is more likely to buy from you
when they do arrive on your landing page. Studies have
indicated that one in four searchers exposed to display ads
made a purchase afterwards. In the specific economic sector of auto dealerships, brand searches jumped exponentially
after users were exposed to display marketing on particular
models. Users also spent more time on dealership websites,
vehicle detail pages and engaging with landing pages.
However, it is also interesting to note the conclusions
drawn by a Harvard Business School report, “Do Display
Ads Influence Search? Attribution and Dynamics in Online Advertising.” To summarize the findings:
• Display ads do increase search volume, click through rates
and sales conversions;
• Ads generated by searching do not result in increased
interaction with display ads;
• While search may not be immediately affected by exposure to display ads, a significant boost will likely occur after two weeks;
• ROI analysis of display versus search continues to
recommend search as the dominant spend, though a blend
of the two is most effective. Performance indicates that many companies would still benefit from a higher search budget.
As such, the combination of search and display ads is a
one-two punch for marketing departments, and you might
consider adjusting your budget accordingly.
“Display ads do increase search volume, click through rates and sales conversions”Do Display Ads Influence Search? Attribution and Dynamics in Online Advertising, 2013. Harvard Business School. Tweet This!
Where can I buy display ads?4.
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Automotive specific networks are available in some cases. Recently the Auto Audience
Network has been launched in the North
American marketplace. This is an automotive
specific network that places your live inventory into ad units that run on top of auto images in premium
automotive review websites. With highly targeted ads come
outstanding results. Visit AutoAudienceNetwork.com for more
information.
You can also purchase ad space via an ad
auction or Real Time Bidding (RTB) Exchange,
which incorporates cost per click to determine
pricing and placement. In short, every time
search terms are entered into a search engine
like Google, you can bid against other advertisers to take up
the ad space offered. The Google search ad auction process decides which ads appear based on the keyword search
terms entered by the user. Ad position and cost per click are
also simultaneously established. Ex. AdRoll, SiteScout, Google
Bid Manager.
A publisher is a site that produces content and
offers advertising space alongside the material it disseminates. The publishing site may or
may not be related to the ad topic, such as car
dealerships, but sometimes they do recognize
that the visitor may have conducted a search or clicked on
a display ad in the past. The publisher then serves up ads
based on user history and behavior. Ex. NewYorkTimes.com,
Washingtonpost.com, AutoGuide.com.
Ad networks are companies that connect
car dealerships to websites that host
advertisements, similar to a broker relationship.
The key benefit of utilizing a network to place your ads is that they offer an aggregation
of advertising space and can match available supply with
demand. Internet ad networks typically use a central server
to produce ads to consumers, which makes it an efficient way to target and report on impressions to determine ad
performance. Ex. Google, Yahoo, Centro.
There are a few primary sources where you can purchase display ads:
“With highly targeted ads come outstanding results.” Tweet This!
How do I develop an effective display ad that delivers results?
5.
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If you lack experience with creating display ads that deliver results for car dealerships, there are some pointers to help you get started.
If you are using flash animation, beware that not all browsers are capable of displaying flash creative (.swf files). In fact, no Apple mobile devices work with flash. In most cases, the backup for a flash ad is a static gif. However,
the best alternative is an ad with an HTML backup. When you
are working with a vendor, try to find one that uses HTML backups as a standard.
Use text content, images and color palettes
appropriately as there is a fine line between eye-catching and tacky. The placement and size
of your ad will dictate many of the specifics, especially when you consider positioning on the
page. You might try creating a variety of templates subbing
out different elements to determine which work best.
LearnMoreShop Now
Logo Logo
Make sure your display ads are optimized
for mobile. The number of consumers who
are using smartphones, tablets and other
portable devices to conduct online research is
exploding, and you need to ensure that your
ads are visible and compelling so don’t put a ton of small text into your ads.
Especially with respect to automotive inventory ads,
using live images vs. stock photos is essential. As
mentioned, stock images of vehicles are cold and
impersonal, while a true picture of the available car
will help make a connection with a potential buyer.
Try out different ad designs and concepts. There are many elements you can tweak to make the
ad layout more appealing or capture attention
more effectively.
LearnMore
YourLogo
$48,950
YourName
$48,950 $47,895
more >more >
These tips can be effective when implemented properly, but online marketing novices might consider
partnering with a marketing agency or display
specialist with experience and expertise in display ads.
If you are using animation, make sure you view
to the final frame to ensure that the proper call to action is apparent. Certain “teaser” texts may disappear as the animation moves forward,
possibly leaving the prospect confused as to
the next step. Also, if you are using Flash animation, place
your call to action in every frame of the media. That way, the
viewer will not need to wait until the end of the video to click.
What happens after a prospect clicks on a display ad?6.
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Create an attention grabbing headline with a more
detailed sub-heading that’s directly related to the display ad the visitor clicked on. In the case of car dealerships,
your ideal landing page is the Vehicle Details Page (VDP) that
discusses features, availability and location.
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When a prospect clicks through to your landing page, you have reached a significant milestone in the sales process, and you need to deliver the proper follow-up content accordingly.
The landing page is likely the most important part of an
online display campaign, and it is up to you to make it
engaging, straightforward and user friendly. While there are
no hard and fast rules to developing a landing page, there are
some pointers you can use to make yours successful.
Note: Very few companies have the ability to direct
display ad traffic to your specific VDP’s. If you are working with a vendor that cannot display all of your
live inventory in a targeted and personalized way – and
direct the traffic to the specific VDP of the vehicle the user clicks on, you had better look for a new vendor.
Make sure to include many images of the vehicle
clicked on in the display ad, as well as bullet points
that describe the details and features of that particular car.
As a practical matter, provide photos that you’ve taken at your dealership, with as many close-ups as possible. Keep in
mind that consumers can be turned away by stock images of
vehicles from the manufacturer or another source. They want
to see photos of the exact car they’re considering.
2
Supply a clear call to action that details the next steps
for your potential customer: whether they should
include contact information, fill out a form or call to make an appointment with a sales professional, etc. Please avoid the
temptation to give the user more than 3 options to submit a lead – simple is better.
3
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What metrics and reporting details should I analyze?7.
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Click Through Rate (CTR) will tell you how many
people click on your ad. Plus, you should also
measure how many people made it to your
Vehicle Detail Page, accessed your website, or
your landing page by clicking on one of your
display ads. Knowing this figure is critical to determining how effective your marketing efforts are at attracting the attention of your target audience.
LearnMore
It’s always wise to analyze the key site metrics that demonstrate the success of your display ad campaign, as well as those which reveal weaknesses in your strategy. Some helpful analytics to review are:
Note: Retargeting is
an exciting new tool
available in display
advertising that truly
excels when users are
retargeted with the
specific inventory they have viewed on your
website.
Impressions are if you want to know how many
users saw your display ad. In most networks,
the ad loading on the page will register an
impression. In the case of a branding or
awareness campaign, impressions will be an
important metric. However, in most cases, the focus is on
action based metrics, like those that follow.
Keep a close eye on ad Engagement, which
is another key factor in display advertising.
Often, users will engage with an ad unit, for
example, by scrolling through the inventory
images, without clicking through to your site.
User behavior is different when looking at display ads versus search marketing, so CTR isn’t the only metric. The reason for this is that your prospects are reading information they have
selected, and they may not want to leave the current page.
Learn More
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1 2 3 4
Conversions relate to whether your display
marketing efforts are producing visitor behavior which is valuable, including filling out forms, providing contact information,
scheduling an appointment or participating in
an online chat. You want to know how effective your display ads are in soliciting the visitor response you’re seeking.
Retargeted Clicks – are
clicks recorded from
people who have visited
your site before.
Retargeted Impressions
– impressions served to
people who have visited
your site before.
How long will I have to wait before seeing results?8.
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There are countless factors that weigh into the performance of your marketing efforts, and these will all affect your advertising spend levels.
At the outset, it’s important to realize that trying it out for a month will not give you an accurate assessment of the
effectiveness of your approach. More time is necessary, though there’s no hard and fast rule of what you should expect. A common recommendation is to test for a minimum
of three months. You will likely see good results in month
one – but they will continue to improve as the campaign is
optimized for up to six months. Still, you can always improve
your results by considering the following factors.
The dynamic content of your ads. Your
inventory is one of the keys to great dynamic
inventory ads. Do your best to keep photos
looking good (live photos are always better than
stock), make sure your pricing is competitive,
and that you include strong branding and a call to action in
the ad creative.
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The nature of your business. As a car dealership, you
don’t experience the high volatility of other markets, but there are still industry trends to consider. Interest
rates, seasonality, holidays and other criteria will
affect how long before you see results.
The message you’re delivering. Be sure to
test and measure. It might seem like a simple
matter, but your content might need tweaking if
your display ads are not performing. You might
need to vary your taglines, calls to action and
vehicle details; alternatively, you might consider a different placement of this information within the display ad. Without
testing, you will not know.
“Your inventory is one of the keys to great dynamic inventory ads.” Tweet This!
How do I know whether my advertising partner is doing their job and helping me understand it all?
9.
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You’re investing a lot of money and placing your trust in your marketing agency and vendors, so it is essential that you know the basic details of the advertising approach and know what to ask about.
Make sure you’re comfortable with the goals they have set and where they’re targeting to affect your sales funnel. In addition, while your agency partner might be staffed with knowledgeable professionals, they still need to be responsive
to your questions and help you understand their approach.
You’ll know that they’re on track if they can elaborate on these topics:
Are they serving truly dynamic inventory ads. The simplest
way to determine this is to ask if they are using ad tags to serve
your ads. If not, then your ads cannot be truly dynamic. Note
– it is possible to use an ad tag and not serve dynamic creative.
The variables they use to dynamically assign ad content. A
complete list of criteria involved in the process of delivering ad
content (including contextual targeting, behavioral targeting,
and retargeting methods) means that the company’s display ad solution takes user behavior and context into account.
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The services that are in-house and those outsourced.
There’s no reason to be concerned if your agency reports that they rely on certain services from a third party. On the
contrary, it’s a good sign that they recognize their weaknesses and realize that a partner can bring certain strengths.
The dynamic nature of their ad creative. Here, the
distinction is made between standard banner ads and truly
dynamic display ads. You want to ensure that the ad content
being delivered is absolutely up-to-date. For this to be the
case, your provider will need to update your inventory listing
daily, or better. This can be done with a direct feed, or, in
some cases, with web scraping technology.
Whether they offer automated tools. With thousands of
custom impressions presented on a daily basis, automated
tools are essential. You cannot be making changes to each
ad every time an offer or vehicle changes. You’ll also want to know how quickly changes to your display ads can be
accomplished – ask if they can make changes in real time or if
campaigns will need to be redeployed.
Assignment of a campaign manager. You’re likely going to be in constant contact with your display partner to
analyze performance, tweak your campaign and make other
adjustments. Dealing with a different person every time you contact them can be frustrating, so make sure you have a
campaign manager assigned to your account.
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As a car dealership owner or marketing manager, you need
to have a keen understanding of how dynamic inventory
display technology can help accomplish your advertising
goals by exposing a targeted audience to relevant
information. This approach enables you to quickly develop,
design and deploy marketing content in an efficient and cost-effective manner. You have an infinite number of ad impressions available through display ads, meaning
you can reach a wide ranging group of prospects seeking
information on vehicles.
If you’d like to hear more about dynamic inventory display ads as an advertising medium, please contact
a Speed Shift Media specialist. We’re happy to provide a free assessment of your current display marketing
approach and assess potential areas to increase
performance. You can also visit our website to find out more about our products, projects and success stories.
Summary
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Ian S. Cruickshank, VP of Sales
Ian has spent over 10 years in Marketing
and Digital Advertising. His early days
were spent with two of the largest
media companies in Canada in sales
and sales-leadership roles. In recent
years he has spent his time both
consulting on digital disruption and
as the head of sales and marketing
for a social media marketing firm in Vancouver, BC. Currently, as the VP
of Sales, he is the head of all revenue
generating activities for Speed Shift
Media. With a Masters in Business and IT Management he is regularly called on to
present and lecture on a variety of Information Technology and Digital Marketing
concepts. Most of all he loves to be outside with his wife and his young family in
Port Moody, BC.
Feel free to contact Ian directly via Twitter or LinkedIn:
About The Author
We provide dynamic inventory
display advertising solutions to
auto dealers, digital publishers,
and agencies. Our platform
combines advertiser data in real
time — inventory, promotions, and
messaging — using sophisticated
targeting, retargeting, and self-
optimization technologies. We
also offer an innovative, premium automotive display network that
delivers unparalleled relevancy
and engagement. In short, we
make sure the right message
always reaches the right user, for
exceptional results.
About Speed Shift Media
eBook designed by Danielle Borisoff
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