What happens when you're using the same SEO/SEM provider as your competition?

[Zach Klempf]

Something I tend to come across more than I would like is when dealers are using (or forced to use) the same SEO/SEM service as their competition down the street. I find this to be a real problem that happens more often than you may think.

If both your competition and you are selling the same vehicles (i.e. 2015 Ford Mustang), in the same city or nearby cities, whose side are they on? How can they promise both dealerships to rank highest on Google SERPs when they are competing with another dealer they directly service?

How can you even trust a provider that is playing both sides of the fence?

I recommend selecting a provider for SEO/SEM services that are not also servicing your competitors. Otherwise both of you could be taken to the cleaners. This is just one way marketing agencies are taking dealers to the cleaner.

Have you come across this before?

Do you honestly find it possible for a SEO/SEM provider to offer equal services to competing dealers while not cheating?

 

[Prentice Parton]

I've worked with such agencies in the past (who will not be named) who do this, but I don't think you have anything to worry about. No tried and true strategist would put two dealerships in a bidding war. It drives up CPL, for one, for both dealerships and that's not good for anyone.

There are many factors that go in to competition within an area. More than anything, it depends on each dealerships brand and budget. In my own personal cases, I do my best to drive low CPL (Cost per Lead) for each dealership. I'm not looking for increases in budget without market share data and Impression Share loss data on either side that would prove any percentage of increase would be effective.

You're right, though. There are a lot of turn and burn agencies that skim with top level data and really don't utilize a solid means of deep-level optimization that would be beneficial to both parties, but some of us aren't so bad

 

[yagoparamo]

Its all fun and games while maintaining the status quo until one dealer wants to spend more money and go after the other's business. At that point, how do you justify managing both campaigns?

 

[Prentice Parton]

I only advise budget increases if the loss of impression share is evident and "x" percentage of increase would show "x" return based upon hard data for any client. . Unfortunately, in a realm where a handful of major agencies capture most OEM digital business, competition between clients within the same market happens.

I'll always stand by an in-house digital strategist being the best option, but dealerships need to understand the importance of this position in today's market and compensate accordingly. Exclusivity is a wonderful practice.

 

[JessicaRuth]

It's a great question and I'm curious to see what our community has to say. @Daniel J. Mondello @Bill Simmons @Joe Webb

 

[craigh]

Typically, if your company is large enough, I would put different "client reps" on each client in the same area. They come up with a strategy tailored to that client and treat the other clients the same way they would a client who uses a different company to represent them.

Having the same person run both campaigns is doable, but typically they're going to target different things at each dealership, whether the dealer likes that or not. If they're both buying "2014 ford escape demo" aggressively it wouldn't make much sense.

 

[Prentice Parton]

Ideally, each dealership would be set up on a dynamic inventory system that is integrated with their search ad and vehicles that come and go have a landing page. Granted, newer vehicles are far more difficult to set up on a dynamic level, I would find that most competition happens in the used car realm. It's not about being shady and preferential treatment... it's about budget, goals and ability in the end. The goal is to show a return for both with all things considered.