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Look-Out AutoTrader and Cars.com, There's a new Guru in Town

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Toiling in the trenches, way under the radar, a feisty little automotive internet startup is making all the right moves with its cross-hairs fixed on you, on me and all of us in our industry… the automotive internet/retail industry.

First, a little background...

I am constantly tinkering and improving our site, trying to improve our Google Search Results. 2-3 times a month, I'll do long tail keyword analysis on Google for phrases like "used Ford Taurus near Syracuse NY". I keep seeing this lil-start-up site popping up on Google everywhere and I mean everywhere! “So what!” I murmured to myself… “I see car classified-site wannabes scraping and puking out millions of pages of junk all the time. They appear... then disappear a week later.

But this lil' start-up looked different. This Classified ad site was amazingly thorough in its search results and its pages had depth and effort. Curious, I looked into it's About-Us Page where I found an eye-popping list of 21st century Internet Kingdom builders including the founders of eBay Motors and TripAdvisor! Woa! To say I was impressed was an understatement. From the Board of Directors on down, its pedigree drips with MBA’s and Computer Science engineers from Harvard, MIT, and on.

Then I looked in cities all over the USA and I saw their master plan...

What we have percolating under our feet, is the architecture of the most SEO friendly, robust automotive classified ads site that I’ve ever seen, run by experienced world class Internet entrepreneurs (not newspaper companies). It's time you get to know... www.CarGurus.com.

Let’s look deeper. Way off everyone’s radar, CarGurus.com is working hard to rank for phrases like:

  • used Acura MDX near [city] [state]
  • used Buick Lucerne near [city] [state]
  • used Chevrolet Equinox near [city] [state]
  • used Ford F-150 near [city] [state]

For my market, I ran 100 phrases & here is the Average Position SUMMARY:

1. Cars.com..........6.2
2. CarGurus.com......7.4
3. AutoTrader.com...86.0
4. UsedCars.com.....89.7

WOW! See for yourself, the 100 Google search results I ran are here.

Is CarGurus.com strong in your City? Simply add your city & state with your major market and see for yourself. In AutoTrader’s defense, they rank very well in major markets, but, CarGurus.com is still top 10 in these markets too.

CarGurus.com super dominates local search. Google sees what’s going on. But the "big prize" for CarGurus.com is ranking for a top 3 position for Google's HOT HI-VOLUME short tail terms like:

  • cars used
  • used cars
  • cars for sale
  • cars sale
  • used car
  • used cars sale
  • used cars for sale
  • used vehicles
  • buy cars

On the national stage, CarGurus.com is way off the radar:

1. Cars.com……........13.4
2. AutoTrader.com...15.4
3. UsedCars.com.....23.3
4. CarGurus.com.....91.8

My report for this  is here.

Our business is automotive retail... its LOCAL retail and Google knows it. CarGurus.com is hitting on all cylinders and IMO, IT WON'T BE LONG before Google's quality team manually flags CarGurus.com as an "automotive shopping site of authority". If and when that happens, they'll catapult onto the national stage. If & when that happens, you best have your lead volume caps in place as CarGurus.com will hit critical mass and 3rd party lead counts will blow a hole in your bank account! ;-)

Can it happen? Absolutely.

No one knows what goes on behind closed doors at Google, but, in my exhaustive studies, Google's army of quality control people do oversee and manually override search results. You can bet that Google’s quality control executives personally know all about the stellar work of CEO Langley Steinert and the board members like Simon Rothman, Steve Kaufer and others. IMO, it's only logical for Google to flag CarGurus.com to rank higher for nation-wide terms like “Used Cars”, and when that happens, the shopper counts will go into the stratosphere over night. CarGurus.com is an all-star in the AAA minor leagues… looking to step up to the bigs. One stroke of a Google Keyboard is all it'll take.

It doesn’t end here...Retailers BEWARE! CarGurus.com leads are DANGEROUS.

Visit this CarGurus.com thread in our forum --  Used Cars - CarGurus.com - vAuto and the Travel Industry.  It details the CarGurus.com “marketing hook” where the shopper knows if your price is high or low and by how much. 3rd party resellers HIDE the lead source, so, your lead is a set up for a fire fight on the sales floor. You'll also see an open letter that I sent to Renee Porter, from the partnership division of Cars.com. I am trying to warn Cars.com that leads from CarGurus.com (a cars.com partner) need to be clearly identified as a cargurus.com shopper.  A very in-depth and interesting thread FYI.

Additionally, the CarGurus.com platform needs help with its price comparison tool. Our industry produces very poor used car details and this is the reason why no-one has been able to produce a true blue VIN to VIN shopping tool (GIGO: Garbage IN, Garbage Out).

So, from my seat, CarGurus.com has some internal marketing hooks to perfect, but, its site architecture has no equal. Top rankings on Google are a zero sum game. Look out AutoTrader.com, Cars.com. The Guru is building its empire, one city at a time and if they go national, your iron grip on our marketplace will diminish. CarGuru’s model forces shoppers into producing a lead, its “Marketing hook” helps reinforce the confidence needed to submit a lead. Your dealers will notice a “butt-load” of leads from CarGurus.com partners and comparatively little from you. To maintain share, you'll need to spend more on TV and tinker with new lead generating tools and wrestle with more dealer unrest as the new comer’s pay for performance model and its leads are eating into your dealer’s budgets.

2011 is going to be very interesting indeed.
 
@Joe

This site has been on my radar screen for months and I commend their SEO and website architectural team on their accomplishments.

As you pointed out, they have a very good core architecture. As you know, I have had my hands busy creating the page design and architecture for the AAN.

If I am not mistaken, I saw an AutoUsa advertisement that lists CarGurus.com as one of the websites that feeds them leads.

I have done some deep dives on this site and will be including them in my fall conference seminars at DD9 and Driving Sales Executive Summit.
 
Amazing insight from Dealer Refresh again! This type of real time, actionable information is why I will always rely on Dealer Refresh as my NUMBER ONE source ideas and conversation DIRECTLY RELATED to our business!

Bravo, Joe! Thanks for education and enlightenment...again!
 
TY Edward Shaffer. Glad you liked my work. I'm not a writer, I blew the draft out fast, but boiling it down and making it shorter... takes forever! It's nice to be recognized by the Park Place team.

thnx again,
Joe
 
You know from what I see here it looks like AutoTrader is not the hottest thing since sliced bread like they claim to be. I dont personally use them but I do know many dealers paying 3-6k per month on it and it appears that they use the more is better instead of quality is better.
 
Dawn,

In the internet classifieds biz, The winner is NOT the long tail site, it's the short tail site. Autotrader smacks the ball over the fence with "Used Cars" vs and gives up "Used Toyota Tundra near Flatness Kansas".

Google has one job. To give the searcher a great experience (so you'll come back again). Google defends the top honors to those national sites that offer a great shopper experience. My research tells me that CarGurus.com has what it takes to be a nationwide "Short Tail" car shopping site of authority (aka blessed by Google to be ranked well).

Before you throw AutoTrader under the bus, take a look at how they stack up: http://siteanalytics.compete.com/autotrader.com+c...

Last Month:

autotrader.com 6,917,716

cars.com 2,971,532

cargurus.com 760,390

AT is 2:1 > cars.com and AT is 10:1 greater than cargurus.com... but, thats not the story's theme. CarGurus.com 760k shoppers are all LONG TAILERS and it's well documented (and logical) that Long Tailers are far more committed to a purchase than is a short tailer.

This may explain why Cars.com has 50% less shoppers, but the lead count in my market out-performs AT.
 
If you're hell-bent on REPLACING Autotrader.com's ads with other lead generating opportunities, put together an aggressive Google/Yahoo Pay Per Click campaign, run it for 6 months and see what your lead counts from these PPC ads are like.

My PPC budget is equal to all 3rd party $'s and PPC wins hands down. I know it's not a fair fight. Classified ad shoppers want to remain anonymous AND PPC shoppers are on my site where I can see them. A PPC shopper is on my site, comparing prices to no-one else. That last fact alone has enormous value.

That being said, car shoppers are everywhere! I remain committed to AT and Cars.com because they have a valid business model and it fits our inventory profile.
 
Good point Joe but in my experience with AutoTrader I have not seen big gains which is why I said they focus on quantity and not quality.

I think my big beef with AutoTrader is that if you dont have premium listings you will NEVER show up first no matter how you price your vehicles or what you do. The premium always shows first.

Like when a consumer searches for a Nissan Altima and I have a featured listing and my competitor has a premium, mine is priced less and is better equipped with less miles and they are both the same year...I lose no matter what bc when the consumer organizes the cars from cheapest to most expensive, they are first though they are more expensive. When the consumer is looking for less miles and organizes the data low to high miles mine is not first even though it does have the cheapest price or it does have the least miles.

This is deceptive and some consumers may not realize that their requested data filter is not ALL vehicles. I can see where AutoTrader benefits bc they can sell these outrageously priced packages and they make out like bandits from it LOL. I however feel differently about my ROI from that $5k per month.
 
I can imagine the howls of indignation if cars or autotrader placed an indicator in dealer's listings saying "this is a fair deal" or "this is a bad deal" like cargurus is doing. As happened when CARFAX started posting its opinion about how much vehicle history adds to or decreases a car's market value, there would be much ballyhooing about killing dealer grosses, not sticking to a core business and trying to get between the dealer and the customer.

Would you advertise in a paper if the publisher insisted on prominently placing their opinion of your pricing in your ads?