• This thread is just the tip of the iceberg.The people ahead of the curve aren't Googling for answers — they're already in here, having the conversations you haven't found yet. DealerRefresh is free.Get the full picture →

Is PPC a window to all visitor behavior?

G

Guest Poster

Guest
Every customer who arrives at your site has a unique experience.  If you don’t take the time to understand the multitude of possible experiences on your site, you might be missing enormous amounts of opportunity.  Ask yourself a simple question:  “What are the different problems I can solve for my customers?”  You’ll find out quickly that the many solutions you offer your clients are not found on your site.  This is the basic premise behind search personas.  To read more on search personas, check out Marketing in the Age of Google.

Paid search allows us to segment data to better observe these funnels of customers and understand how they behave differently, therefore justifying the need to treat them differently.  We separated Used, New and Service customers and dove into the data.

We looked for high-level indicators of behavior:  Page views per visit and Calls per form submission.  Page views:

PPC-Views-Ratio.gif

Used and New customers behaved very much alike, visiting 2 and 3 pages per visit respectfully and landing solidly at 3 calls per form submission.

Phone-Ratio-Sales.gif
To be fair, the difference between new and used shoppers seems pretty small.  But we’re talking an average of one less page view over a full month’s worth of clicks to all of the dealers who use our paid search.  That’s pretty significant.  I think the explanation for the difference is pretty simple.  There are a lot of extra tools and resources for the new car customer. Build and research tools and reviews are definitely contributors here.

Service customers came in at 2 page views per visit and a whopping 20:1 call to form ratio.

Phone-Ratio-Service.gif

The service customer showed their preference for the phone loud and clear.  This is a confirmation of our gut instincts, but it’s certainly good to see it on paper.  We are seeing that service customers only view 2 pages per visit.

Might the lower page views per service customer visit be attributed to dealers focusing very little attention on fixed ops?

PPC-Conversion-12.gifNow the number that everyone talks about is conversion.   We looked at conversion across all of the keywords in the new, used and service departments:

12% is a good number, I was pleased to see that.  There is more to this story though.

There is a set of keywords that cannot be attributed to a specific profit center.  Things like the dealership name fit into this category and these keywords tend to do a lot of heavy lifting… they drive a lot of traffic.  Because searchers who use dealership name cannot be deep linked to a profit center, the page views per visit goes up to 5.  Calls per form rises to 5:1 as this is a grouping of sales and service customers.

Phone-Ratio-5to1.gif

The interesting story unfolds with a look at conversion on dealership terms however:

PPC-Conversion-18.gif18%.  This is a pretty big number in the conversion world. Given what we know about used and new sales performance though, I think there is a story here.  Customers do their research, move up and down the purchase funnel considering different makes/models etc.  During this process they are taking in advertisements from all of the local dealers. When it’s time to make the leap to leaving a lead what do they do?  They Google the Dealership name, head to the site and contact the dealership.  Proof.

There are certainly other stories to be told here and I would love to hear other perspectives on what folks take from this data.

What does this mean to the dealer: Advertise on your name, regardless of the medium.  Too many people ask “Why should I bid on my name in paid search, we’re #1 in organic?”

Answer: Yes, the number of people who click on the dealership name in PPC is much less compared to the number of people who click on the organic listing.  However, the conversion rate on the people who clicked the PPC ad is 4 times higher.  To take this a step further, PPC is a quick and easy way to capture all those customers who may misspell your dealership's name.  Google does a good job of trying to correct searchers' mistakes, but they're not perfect.

I can only say all of this because PPC gives us the most accurate view of our visitors' behavior.  Is it a clearer window to your visitors?  I would say yes.
 
Excellent information, Matt! The control attributed to PPC can never be disputed - turn it on, turn it off, target specifically, create landing pages - those are the things that I love about PPC.

Regarding buying ads for the dealership name, my only warning to dealers would be to make certain that those particular keywords are parsed separately in reports. There are some companies out there that use dealer name keywords to inflate their performance. These are normally companies who charge $X for Y traffic and end up pocketing a lot of the dealer's spend.

For example, they may say, "The average cost per visitor on all of the individual keyword is $1.45. Our relationship with Google allows us to charge $1.10 per visitor, so we'll charge you $2200 for 2000 visitors."

Sounds like good math, but it's not. If 70% of the clicks they deliver are the dealership name and the average cost per click on those keywords is $0.30, then their actual cost is around $1290...

... which means that over 40% of your spend is being pocketed.

With that warning in mind, everything that Matt said was spot on. I would love to see the data that points to 4X better conversion rate on PPC clicks, but the conclusions all make sense. PPC = great data + additional supplemental clicks that you control.

Great post!
 
I am not surprised at the difference in phone calls for service vs. sales. Our service customers are using the Internet instead of the phone book to find us, and they are used to calling for scheduling a service appt. On the other hand, sales customers are often still in their consideration phase and often do not want to talk to a sales rep yet, so they are more likely to submit an electronic lead. All good info Matt, now do you want to start up the debate with ppc landing zones vs. deep linking within your actual site? (had to open that can of worms, lol)
 
@JD & Tom - The 4X conversion shows itself on paid traffic that comes through the dealership name. I haven't looked at total conversion comparison simply because of the challenge in tracking true conversion from organic traffic.

@ Kevin - Love that you're in the conversation here. You're absolutely right about the service traffic. Those visitors need something - and need it now, making them much more likely to call. Now the debate between PPC specific microsites that gen leads VS a strong deep linking strategy is an interesting one. Without any numbers to share this morning I will tell you that I am definitely more in favor of deep linking to your own site - especially for sales customers who may need the added benefit of build and research tools or reviews to make their final decision. The content on the main site is much more robust and can serve to answer questions that an isolated landing page may not.

Now that the can of works is open... anyone gonna take the bait?
 
Kevin - are you just trying to stir the pot now? We bring Larry in here and we're going to have one very long comment string - lol.

I'm with Matt on the idea of primarily deep-linking to my own site that I put the most time and effort into. However, I also like the idea of un-branding myself to capture leads on a microsite for things like bad credit conversion, trade-in only pages, and other things. It would be interesting to run two PPC campaigns side by side on the same terms (one that pushes to my main site and one that pushes to a microsite) to see which one performs better. I'm sure the results would vary by market and theme, but it would definitely be interesting. Maybe da Bruce can speak more to that?