Dealerships have numerous options when advertising online to generate traffic to their website, but which method is most effective? Which method is going to produce the highest ROI, sell the most inventory and drive brand awareness?
Only 2% of website visitors will fill out a website contact form, so what about the other 98%.
Facebook allows you to display ads to that 98% by placing an advertising pixel on each page of your website. By adding the pixel, Facebook will know exactly what pages they visited and what makes and models they were interested in.
This ad format is known as Facebook Dynamic Inventory Retargeting.
LotVantage customers can hyper-target their ads to display the exact vehicle they were looking at on your website. This can be a time-consuming process to set up this type of advertising for a dealership if done manually, but dealers who have inventory inside of LotVantage can take advantage of this type of advertising rather easily.
Also, once a vehicle is archived from the dealer’s data feed of inventory, we will no longer display that ad on Facebook.
Dynamic Inventory Retargeting on Facebook is successful because it’s hyper-targeted to what your customer was looking at on your website. It replaces using a generic ad which may only send them back to your website’s home page. These ads will feature the exact make and model they were looking at.
If a customer is looking at a 2004 Chrysler Crossfire on your website, they’ll be served with an advertisement on Facebook for a 2004 Chrysler Crossfire. Once they open the link, it will take them back to that specific vehicle on your website where they can fill out a contact form or even a credit application.
Dynamic Inventory Retargeting performs better because the ads are so relevant. We have seen a click-through rate (CTR) as high as 6.43% with these types of ads. Ads retargeted without using dynamic inventory see a much lower CTR. We’ve seen click-through rates between 1.5% to 2.08%.
Facebook also rates the quality of an ad by assigning it a relevance score. The more relevant the ad, the more people will see it on their timelines. Relevance scores are on a scale from 1-10 and ads using dynamic inventory are receiving a score of 8.
Facebook Dynamic Inventory Retargeting is now available for your dealership.