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Ryan Everson's Ultimate Guide to Not Get Forked by Vendors

Discussion in 'Websites, SEO, SEM, Display, Social, Marketing' started by reverson, Oct 19, 2018.

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  1. reverson

    reverson
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    Jr. Refresher

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    Ryan
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    So we recently acquired a new dealership and ran into this exact issue when examining the dealership's paid search account.

    The vendor had every model in a single campaign which gave them no control over the spend of each individual model.

    One of the things we look at is our annual sales volume vs our annual paid search spend for each model to quickly see if anything is way out of whack.

    In the chart below, the orange line is our annual unit sales and the blue bars are the annual paid search spend.

    You'll notice we spent way too much money on the Camaro, Suburban, Volt, and Corvette but not enough money on the Equinox, Traverse, and Trax. Why did this vendor spend $6,000 advertising the Corvette when we only sold 3 the entire year and probably would have sold them with zero paid search advertising.

    This is a report everyone can easily run using Microsoft Excel to help identify wasted spend and areas of opportunity.

    ppc sales.png
     
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  3. Alexander Lau

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    Your agencies should do this for you, if they're not your paying for crap service. Something we did years ago at Strong Automotive. Good concept, nonetheless.
     
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  4. reverson

    reverson
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    Before we brought our paid search in-house we probably had 6 or 7 different paid search vendors and literally none of them did this. So it's awesome that your old agency did but I'm willing to bet the majority of dealers aren't receiving this service.
     
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  5. Alexander Lau

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    Agreed, don't get me wrong we were ahead of things and I just fell into that mold. Most don't, you're right. If you've got the resources, much smarter to bring it in-house too.
     
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  6. Rick Buffkin

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    I would love to get you guys opinions on Conversion Window timeframes and Repeat Rate percentages for conversions. Other than display and retargeting, should a conversion window timeframe be set greater than 30 days. As far as conversion repeat rate, should any repeat rate be greater than a 1.00 for our segment???
     
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  7. reverson

    reverson
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    What bid strategy are you using?

    Conversion reporting inside Google Ads is to primarily power the bidding strategies that use machine learning to get additional conversions.

    We use Google Analytics for most of our conversion reporting because it allows us to look at the entire conversion path with multi-touch attribution models and custom channel groupings. This will allow you to better see the effect of Google Ads past the initial 30 days.

    To answer your question though, below are the settings we use:

    ad conversions.JPG

    Repeat rate is a tough one because it depends a lot on your website CTA's and can also be incorrectly counted if a user clicks the back button and visits a confirmation page a second time.
     
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  8. joe.pistell

    joe.pistell
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    Dealer's profile will impact the challenges to the spending model.


    Here's an old Dealer Profile framework I posted here about a zillion years ago. Many of these attributes can influence ad spending ROI.

    ===================Dealer Profile Attributes===================

    Dealer attributes come in 2 ways.
    “Digitally Observable” (DO) or “Via human interview” (HI).
    Most Dealer Profile Attributes are DO.


    Franchise’s Influence
    • Franchise Persona (e.g. jag vs buick vs kia. This is a key study unto itself)
    • OEM's Position among its competition (e.g. Audi/Subaru/SUV's are strong, Buick/Sedan's are sucking wind ;-)
    • OEM Incentives (this has historical precedent & it’s relative to its peers, it’s dynamic (i.e. marketplace driven)).
    • IMPORTANT! Franchise Inventory Complexity Profile (e.g. Honda has a few models, trims & options, Chevrolet has a 100x more. Both OEMs use this strategically.)
    Dealer’s Direct Responsibility:
    • Dealer’s Local Impact (a little fish or big fish?)
      • # of roofs
      • Franchise’s Persona, it’s impact to the Store (a volume brand or elite?)
      • Inventory size (width and depth)
        • Inventory Dupes (e.g. longo toyota has 77 Black Camry’s)
        • Inventory Scarcity (rare vehicles)
      • New/Used ratio (used inventory changes shopper demos & engagement)

    Dealer’s Management Methods
    • Pricing models (e.g. call for price, A-B = C, One Price, etc)
      • Frequency of price changes
    • Inventory health
    • Inventory Performance Sensitivity
      • Age driven?
      • Turns driven?
      • Marketplace driven?
      • "Oh shit I'm about to be fired, I'd better do something"
    • Is the dealer management rules based or reactive?
    • Standard website or custom?
    • Inventory health. Time to front line. Quality of Photos, options detail, etc.
    • Dealer's Review volume & scores

    Geo Profile
    • Rural, Suburb, City (population density & demographics)
    • Drive time to market center
    • Avg distance to sale (from sales history)
    • Marketing Footprint: Serve a single market or multiple markets

    Dealer's Advertising Profile

    Traditional Ad Spend
    • Carpet Bomber? (big spender)
    • Drop in the ocean? (little spender)

    Digital Ad Spend
      • Early Adopter?
      • History of trying new products/ideas? (gives us insight into the stores performance efforts)

    Marketplace Influences
    • # of In-Franchise competitors
      • Dealers share of the total In-Franchise inventory in his marketplace (i.e.. little fish or big fish?)
    • # of off-Franchise competitors that share "common customers" (e.g. Kia/hyundai/toyota/chevy have common customers)
      • Dealers share of total inventory in his "common customer" marketplace

    Websites Responsibility in converting ad spend into sales opportunities
    • -Site Design, which includes…
      • ----Search UI Quality
      • ----SRP Design Quality (i.e. Clutter)
      • ----VDP design quality (e.g. VDP photo size)
    • -Site Speed

    /end
     
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  9. joe.pistell

    joe.pistell
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    Uncle Joe

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    @Alexander Lau@Alexander Lau, step it up bro. Create a thread.
     
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  10. Rick Buffkin

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    :banana2::iagree::iagree::iagree: :banana2:
     
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  11. Alexander Lau

    Alexander Lau
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    Nah... I'm a born poacher! Thanks though.
     
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