Thousands of people turn to Google each day researching their next vehicle purchase. In fact, 95% of car buyers use digital as a source of information. With that in mind, it should come as no surprise that a dealership must perform well on search engines in order to attract more customers.
Knowing how automotive paid search key performance indicators (KPI’s) work can mean significant advantages for a dealership. Beyond that, learning how to improve them can yield even greater results.
Read on for some of our best tips on incorporating paid search KPI’s into your online marketing strategy.
KPI’s for Automotive Paid Search
When it comes to automotive paid search, there’s a lot of competition but also a lot of opportunities. By understanding the nature of paid search for automotive dealerships and how the related KPI’s function, you can effectively incorporate them into your marketing plan.
1. Cost Per Click:
This is commonly known as CPC. The price you pay per click depends on many variables, including keyword targeting, bidding strategy, and quality score. The better your quality score, the cheaper your CPC. The current average CPC for the automotive industry is $2.46
2. Click-Through Rate
Simply put: how often your ad was clicked when compared to the number of times it was seen. CTR directly relates to the relevancy of your ads and targeting. This means that every time your ad is shown to someone who shouldn’t see it, you’re paying an opportunity cost. The current average CTR for the automotive industry is 4%.
3. Conversion Rate:
Conversions have to do with actions that take place offline but start online. They are something that turns into a sales opportunity, like a phone call or form lead. The higher your conversion rate, the more money you can expect to see for your business. The current average conversion rate for the automotive industry is 6.03%.
Love it or hate it, most consumers search automotive-related queries on mobile devices. Also, about half of consumers opt for a given automotive dealership based on location alone. The logical conclusion: a solid marketing effort can help you convert the other 50% who aren’t just heading to the closest dealership available.
See how we’ve worked with auto dealers to get their paid search up to par by checking out our automotive paid search case study.
Improve Your Automotive Paid Search Strategy
Understanding automotive paid search KPI’s can be the first step towards taking your dealership’s online marketing to the next level.
Stay Current:
Automotive KPI’s change from year to year, so it’s essential to stay informed. For instance, the average Click-Through Rate for the auto industry is currently 4.0% (which is higher than the 3.17% average of all industries.) This is higher than in previous years, and it indicates that paid search is becoming ever more important as a marketing tactic.
Set Clear Marketing Goals:
By setting a measurable goal for how you want to improve your dealership’s performance, you will have something specific to work towards. This all starts with choosing which metric or metrics you want to focus on and determining how much you can realistically expect to improve it.
Collaborate With an Automotive Paid Search Agency:
This is one of the easiest ways to enhance your online marketing efforts. There are a lot of factors at play when it comes to improving paid search key performance indicators, but it never hurts to have expert insight on your side.
ArcMinute Marketing: Executing in Automotive
We are ArcMinute Marketing: an automotive paid search agency dedicated to helping you create digital experiences that inspire action. Our end goal is the same as yours—grow your bottom line and attract more customers through exceptional, relevant marketing.
If you’re interested in partnering with us to take your dealership’s paid search marketing to new heights, check out our automotive paid search services and then get in touch. We look forward to speaking with you.
