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DD, this looks wrong, so I ran the data backwards.


DATIUM

  1. 55 % of dealerships’ online advertising budgets being devoted to paid search
  2. 6 % of dealership website traffic on average is referred by paid search keywords


KNOWN


  1. Avg PPC ad for Car dealers is $1.23


UN-KNOWN

  1. #of Visitors
  2. $ of Total Online Spend



Given the statement by Datium, If we fill in plug in the # of visitors & the avg $ paid per visitor, we'll see the total online spend.


 # of Site Visitors # from PPCAvg $ P/clickTotal PPC spendTOTAL Online Spend
1,00060$1.23$73.80$134.18
2,000120$1.23$147.60$268.36
4,000240$1.23$295.20$536.73
8,000480$1.23$590.40$1,073.45
16,000960$1.23$1,180.80$2,146.91
32,0001920$1.23$2,361.60$4,293.82


Formula:


  1. # of Site Visitors * 0.06 = # visits from PPC
  2. # from PPC * Avg $ P/click = Total PPC spend
  3. Total PPC spend / 0.55 = TOTAL Online Spend



Unless I am missing something, these #'s and $dollars$ look totally wrong to me.


If they are RIGHT, then dealers are WAYYYY underspending on TOTAL Online Spending.



Joe

p.s. The big thing about big data, it's a marketers playground.  I am not passing judgement here, but, hasty analysis (or hasty assumptions) can produce poor results.  Ask yourself WHO is funding or sponsoring the Big Data analysis.  WE ALL ARE IN SALES AND MARKETING, I am not passing judgement.


p.p.s. Big data is so BIG... you must have lots of data and great context to create assumptions.  (i.e. a Kia site is 2-400% more likely to produce a lead than a Jaguar site)