Shockingly Good News for Automotive Digital Advertising in Spring 2020
Updated: Jun 29, 2020
It may shock you to learn that your automotive digital ad spend is more effective now than it was last month. It may shock you more to learn that we’re giving away an award winning tool to prove it.
If your professional life is anything like mine right now, you’re hungry for some piece of good news when it comes to automotive digital marketing. While I’m certainly not going to try to convince you that we aren’t currently in crisis-mode, I do think there is some reason to see a silver lining on this cloud, or lemonade in these lemons.
This morning I decided it was time to stare reality in the face, so I decided to take a look at the global analytics data for Wizely’s Dollars and $ense tool, which connects digital marketing to Simulated Sales. I gathered data on website visitors, sales and conversion-rate (% of website visits that result in a sale) and compared the past 2-weeks (March 9 – March 22) to the previous 2-week period (Feb 24 – March 8.)
I’ll start by acknowledging the bad news :
Website visits are down 24%.
Website users are down 16%.
Simulated Sales are down 25%.
Revenue is down 22%.
But, here’s the silver lining : conversion rates (% of people who buy) on paid advertising are up…substantially.
Conversion rate on paid Facebook traffic is up 23% (from 3.5% to 4.3%)
Conversion rate on Google Paid Search traffic is up 7% (from 2.8% to 3.0%)
By way of comparison, conversion rate on direct traffic (people who type in your website address) is down 1%.
What does this mean? It means that while there are certainly substantially less people shopping for cars online these days, the ones you attract via your paid advertising campaigns on Facebook and Google are buying at a much higher percentage than normal.
Said another way…
Your digital advertising is far more effective right now than it usually is.
I certainly understand the temptation to batten down the hatches in order to weather this storm. We’re making as many reasonable cuts as we can at Wizely. With that said, completely shutting off your advertising spend might not be the best course of action at the moment. Instead, consider meeting a budget reduction goal by shutting off only the most ineffective advertising and using this as an opportunity to get more efficient.
After taking a look at this data, seeing this opportunity and basking in the tiny but bright glow of this piece of good news, I considered what we at Wizely could do to be supportive during this time of crisis for our industry.
In order to provide as much assistance as possible to dealers and our industry during this time period…Wizely is offering unlimited free use of our award-winning Dollars and $ense tool between now and May 31, 2020.
Keep well, keep safe, keep hopeful and thank you for choosing Wizely.