AdWords Burn w/ Recent Purchasers

[Jay Nelson]

We're wondering how much ad spend is wasted on clicks from customers who have recently purchased and simply looking to contact their store for titlework, we owe, delivery, etc. Has anyone ever looked at this before?

Does 10% sound like too much, or too little?

Any feedback is much appreciated.

J

 

[John.H]

We're wondering how much ad spend is wasted on clicks from customers who have recently purchased and simply looking to contact their store for titlework, we owe, delivery, etc. Has anyone ever looked at this before?

Does 10% sound like too much, or too little?

Any feedback is much appreciated.

J

It has to be significantly less than that. I'd see anywhere from 2% to 5%, but nothing more than that.

 

[Jay Nelson]

It has to be significantly less than that. I'd see anywhere from 2% to 5%, but nothing more than that.

Thanks for the reply. Do you have any data on this, or just guessing like we did?

We’re going to run some testing this month to get a feel at a store or two.

 

[Alexander Lau]

A benchmark for this, specifically in auto? I don't think that exists. You're probably close. I bet it's a lot higher than what people think it is. You probably could configure tools like Roxanne @ https://www.dealerinspire.com/website-platform/ or the like to track that per user / buyer. I'd think you'd need a fairly large sample size in order to make any declarations.

 

[Jeff Kershner]

It has to be significantly less than that. I'd see anywhere from 2% to 5%, but nothing more than that.

Not only that but you have to assume the search was the name of your dealership. The CPC should be lower than most other campaigns. If it’s not, I would be checking it out.

Maybe @Steve Stauning has some insight on this...

 

[jon.berna]

Dont forget service. Another consideration is who cares if it is branded or non branded. I would want all recent transactions to be forced to go to my site organically.

 

[Steve Stauning]

Not only that but you have to assume the search was the name of your dealership. The CPC should be lower than most other campaigns. If it’s not, I would be checking it out.

Yes, they should be coming in at a lower CPC, but the ROI on all "branded" clicks should be closely monitored. How many of these customers would've found you organically? Unless your dealership includes a city name (like Atlanta Toyota), there is almost no reason to bid on your own name. (No sound reason, anyway.)

 

[jon.berna]

I just did a quick report from our database on campaigns containing "brand" in the campaign name for our dealers. This is not perfectly accurate as this is across a lot of dealers and the naming convention for the campaign name is not universal when bidding on their own names.

Average spend per dealership in 2018 per month was $697, avg CPC $3.25, avg bounce rate was 37% and page views was 3.15

Sound like this is still a thing

Edit: Just in case it's not clear, we only report on this, we don't perform paid search campaigns at DD

 

[SteveeAnders79]

I have like 1-2%

 

[Jay Nelson]

All great info. How are you guys tracking it?