Used Vehicle SEM Comments and Best Practices

[terrencegordon]

Our typical dealer increases search marketing traffic between 15% and 25% with the tool. In addition, you can look at the search query report we attached on my last post. People are searching in that manner and we are getting good click volumes.

I believe both Haystack and TCD programs are great in theory. The Adwords API is something we have considered as well since we are the hub of the inventory.

However, your quote and your attached report are contradictory.

Although you didn't indicate the geo market this report is pulled from, for 15 days of activity, I'm unfortunately not seeing the volume of impressions let alone clicks on that would interest me enough to put energy (or dollars) towards it for my clients.

What would prove me wrong are if these minimal clicks had a much higher conversion (to lead) rate than the rest of the campaign's higher traffic generating terms.

 

[dscarry]

Although you didn't indicate the geo market this report is pulled from, for 15 days of activity, I'm unfortunately not seeing the volume of impressions let alone clicks on that would interest me enough to put energy (or dollars) towards it for my clients.

What would prove me wrong are if these minimal clicks had a much higher conversion (to lead) rate than the rest of the campaign's higher traffic generating terms.

I appreciate your thoughts. And again, there's a mixture of philosophy and functionality here that can make this conversation go on and on and on.

First, to answer your question, that dealer is in small market and typically receives about 1000 clicks a month from their search campaign and about 200 from their Haystack campaign. We have dealers in larger metros that receive 1000 or more clicks from the Haystack portion of their campaigns. There's definitely traffic out there.

Second, we're a full service agency. So we plan a dealer's budget from Internet to newspaper. Typically a dealer sets a budget and splits it up amongst the mediums they deem necessary. Our perspective is while small, those clicks and that investment (let's say $750 in that case) is more valuable than the half page print ad he's going to buy if we don't buy those clicks. Would you agree that those clicks are more valuable than a half page print ad?

Finally, we believe in what we call the lesson of the long tail. We took a client and looked at their search terms. 47% of their traffic came from three keywords. The other 53% came from 1215. If we didn't focus on small bits of traffic and grab them up in 1's and 3's, we'd miss 53% of the traffic.

In the end, your point is well taken - you wouldn't put the effort into building those campaigns and neither would we. The Haystack tool makes it that you put zero effort into that campaign and still get the traffic. As far as whether you'd put the money into that, I'd again go back to what's the alternative? You'll find that most dealers will sink that into print, mail or electronic and get a much lower ROI.

 

[terrencegordon]

Our perspective is while small, those clicks and that investment (let's say $750 in that case) is more valuable than the half page print ad he's going to buy if we don't buy those clicks. Would you agree that those clicks are more valuable than a half page print ad?

Now that's something I can agree to!!!

 

[Eric Mayhew]

Although you didn't indicate the geo market this report is pulled from, for 15 days of activity, I'm unfortunately not seeing the volume of impressions let alone clicks on that would interest me enough to put energy (or dollars) towards it for my clients.

What would prove me wrong are if these minimal clicks had a much higher conversion (to lead) rate than the rest of the campaign's higher traffic generating terms.

It's always the concern when sharing sample data. That's probably atypical data. I'm sure both Duncan and I will agree, it's ultimately the strategy, location, (and budget) that will define volume.

I can't speak to the Haystack product because I haven't had a tour of it (Duncan, I'm game if you are). I can speak to TCD however. We help align strategy with the end users goals. That means you can define your desired volume (or other KPI's), and we'll find you the most cost effective strategy to deliver on your goals.

TCD is more than just a dynamic inventory solution, but that is definitely one aspect. We have a few of these dynamic tools to keep your message timely with everything else that's going on in your dealership from incentives to fixed operations. It should be noted that different profit centers warrant differing campaigns and costs. Like all marketing mediums, PPC also cannot be standardized from market to market, so be careful not to jump on a sample report as gospel.

It's easy to cast an inefficient net and get lots of unqualified traffic. Heck, just set up a simple adwords campaign, put your city and state in the ad copy BUT DON'T set geo targeting. Watch your funds vanish with very unqualified traffic. TCD (and I'm sure Haystack as well) work really hard to help you avoid that trap.

It's not the only figure of merit, but cost per conversion is one that would be telling. It certainly shows that not all click traffic is created equal.