Outrageous PPC CPC for Jeep/Chrysler

[mwpistell]

Pistell,

Don't disagree but,

Great to push product (for Chrysler)
Good for status quo dealerships
Bad for dealerships that want to grow (compete with status quo dealerships)

Hey Yago,

Not sure if I understand. Chrysler's PAP Digital funds have identical reimbursement rates ($160 per new car sold + bonus funds) for all certified vendors in the program, so your Ma 'n Pa Chrysler dealership receives the same rate as your status quo dealer.

 

[bono426]

Hey Yago,

Not sure if I understand. Chrysler's PAP Digital funds have identical reimbursement rates ($160 per new car sold + bonus funds) for all certified vendors in the program, so your Ma 'n Pa Chrysler dealership receives the same rate as your status quo dealer.

This is true, but Chrysler limits you to what you can and can not go after for keywords.

The leads that come from Chrysler's site are usually really high quality and convert well... but if we were solely relying on those leads alone, we'd be screwed. So we're forced to run our own adwords campaigns against Chrysler, and everyone else that Chrysler is paying for, to remain on top of this extremely competitive Boston market (not the chicken )

I've taken your advice, mixed with a little bit of my own knowledge, and have gotten the clicks down to about $10. Which is muchhhhhhh better than $30 haha.

I appreciate all your help Pistell. It's nice having a place (dealer refresh) to come and get questions answered and opinions critiqued by some of the industry's best!

 

[yagoparamo]

Hey Yago,

Not sure if I understand. Chrysler's PAP Digital funds have identical reimbursement rates ($160 per new car sold + bonus funds) for all certified vendors in the program, so your Ma 'n Pa Chrysler dealership receives the same rate as your status quo dealer.

It limits the ability of a smaller store to hire a SEM superstar like you and try to get ahead a larger store in its market.

 

[Kevin McKillop]

Look at auction insights. You could be outbidding the OEM who has much bigger pockets to afford outrageous $20+ CPC. #1 is not always the best place to be.

Dig through some search terms reports. Find some exact match keywords you get a lot. Bid on some of those and aim for a QS of 10/10 with those. If you're still paying crazy prices (with 10/10), then leave them. Don't waste your money like they are at $20, hell even $10!

This could also be temporary, maybe new initiatives from Chrysler (to the dealer) where they blow all their money quickly since it's new and they don't know! I've seen it with GM, a dealer blows through $8k in 2 months (first try at Adwords) with some keywords at $20 CPC when they should have been $2 or less. They try it out, think it's a waste, run out of funds and the auction goes back to normal.

I guarantee most have auto bidding enabled. Google thanks them for it.

 

[joe.pistell]

It limits the ability of a smaller store to hire a SEM superstar like you and try to get ahead a larger store in its market.

Yago,

We all know, dealers are like snowflakes, no 2 are alike. That goes for Internet Ad spending too. A "true" SEM superstar matches the dealers business profile to the marketplace they're in.

Example of Internet Advertising in 2 flavors:
--Big Store = Carpet Bombing
--Lil' Store = Precision Sniper fire

The Big store has 500+ units and they can buy short, expensive keywords that stretch out in a a big radius, maybe something like "Chevrolet Impala For Sale". The store has 60 New and 33 used impalas. They're ready for any any Impala buyer, new or used.

Our lil' Store has 11 Impalas and they really need a high precision SEM superstar. The SEM superstar optimizes the ad expense by shrinking the radius, using the best ad copy they can create, point the ads to teh best converting pages and reduce bids to find that sweetspot (least ad$ with highest conversion rates). A SEM superstar may even shut off "Chevrolet Impala For Sale" and roll the monies into keywords that convert better.

A SEM superstar's job is to know their client, their competition, their inventory profile and spend the advertising money with "aggressive precision".

HTH
joe

(Note to readers: SEM = Search Engine Marketing IN this example, we're talking Paid Search ads)

 

[NIOMARVIN83]

The PPC cost for Jeep/Chrysler dealerships can indeed be outrageous, especially in competitive markets. For example, in the highly competitive Boston area, dealerships have faced CPCs as high as $30. However, by optimizing campaigns, some have managed to reduce these costs to around $10 per click. This involves focusing on high-quality keywords, improving Quality Scores, and leveraging exact match keywords to avoid overbidding. Smaller dealerships need to adopt a precision approach, carefully targeting their ads and optimizing their spend to compete effectively against larger, well-funded competitors.

 

[Alex Snyder]

Banned

We let that NIOMARVIN bot roll too long. Apologies for that everyone.