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Automotive Online Advertising - Behavioral Targeting Sells Cars, Service and Warranties

Behavioral targeting is revolutionizing the automotive industry's approach to advertising. In the automotive industry, there have historically been a wide range of advertising methods used with varying degrees of success. As more time passes, traditional methods of advertising are becoming obsolete. Online advertising is pushing a growing number of potential customers to the automotive dealership showroom floor. The technology in automotive online advertising is advancing at a rapid rate, allowing car dealerships to target individual consumers at their stage in the buying cycle and on the websites that they visit most through behavioral targeting.

 

Gone are the days where auto dealers had to rely on the "spray and pray" or "shotgun" approach of targeting a broad demographic and geographic area through TV, radio, print or online ads. Behavioral targeting is the future of advertising across a variety of industries; however this targeted display marketing application is particularly effective in the automotive market. Why?

 

  • Behavioral targeting is personal - The purchasing of an automobile is a very personal process. Life circumstances, financial situation, personal tastes and occupational needs all play a factor in the car selection process / buying cycle. Historical methods of advertising place broad advertisements, loosely based on geographic and demographic data, leaving the responsibility of personal interaction to the salespeople at the dealership. The problem with this approach is that 95% of the car buying process exists when the customer is not at the dealership. Behavioral targeting enables the right ads to be shown to the appropriate customer on sites they visit the most.

  • Behavioral targeting reduces waste - When automotive dealers use the traditional "shotgun" approach to advertising, only approximately 30% of the time does the right ad get in front of the right consumer. This means that 70 cents of every advertising dollar is wasted on people who aren't interested, resulting in a poor return on investment in advertising dollars. Behavioral targeting integrates with the dealer website and CRM system and places a unique identifier on the potential customer computers. With this approach, ads are ONLY shown to targeted customers at the places they visit on the web. Because the ads never show to someone who is not interested in your offering, waste is eliminated.
  • Behavioral targeting integrates with existing car sales processes - The correct behavioral targeting system will integrate with dealer communications and follow-up on cars, service and warranties. Advertisements will change dynamically based on where the customer is in the buying cycle.

    1. If the customer is shopping for a car, they will see ads particular to the type of car they are interested in, directing to an inner page on the dealer's website particular to that make/model of car.
    2. If the customer has purchased a car from the dealer but failed to add the warranty at the time of purchase, they will see warranty advertisements that direct to an inner page on the dealer's website particular to warranty services.
    3. When the dealer sends a reminder to the customer to schedule service appointments, the customer will see advertisements for service for his/her vehicle that direct to an inner page on the dealer's website specific to service deals and scheduling.
    4. When the customer has owned his/her car for a while and new models / pricing comes out that he/she might be interested in, the potential car "re-buyer" can be targeted on the same personal level.

Here is a behavioral targeting graphical example, using JAN as the premium ad network:

Online Automotive Advertising - Behavioral Targeting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As you can see from the above points and graphic, behavioral targeting is revolutionizing the ways that automotive dealerships sell cars by keeping customers in front auto dealership throughout the buying cycle. The personalized approach, waste reduction and complete integration with the car sales cycle makes behavioral targeting effective in selling cars, service and warranties.

 

Sean Taylor is the founder of Jaroop, an advertising agency focused on creating cost effective online advertising and publishing solutions for clients and positive consumer experiences for their customers. Sean regularly publishes articles and speaks around the country on the topics of technology, advertising and business. Sean can be contacted through Jaroop’s website or at 860-357-2060.

 

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About the author


Sean
Sean is the founder and a principal of Jaroop. He specializes in helping companies leverage the web to build profitable businesses. Sean focuses on evaluating client situations and opportunities as if he were a partner in the client’s business. This approach allows Sean to make recommendations that align with the company’s strategy and are appropriate given the firm’s values and customer base.

With publishers, Sean is passionate about creating partnerships that allow Jaroop to build profitable bolt-on businesses for clients. Sean enjoys strategically evaluating the market opportunity for the firm overall, assessing the value of its web real estate and developing a battle plan that maximizes high-margin revenue that aligns with the firm’s core business. This way, the client firm can concentrate on what it does best and also enjoy the upside of a well-executed web publishing business.

With advertisers, Sean assesses the effectiveness of all existing marketing/advertising functions of the client firm and looks for a way to decrease waste and increase the effectiveness of advertising campaigns by leveraging the web. Sean is enthusiastic about the targeting capabilities through web ad serving and the potential of integrating these campaigns with many of the marketing activities the company is already doing.

Sean’s consultative approach is appreciated by clients, as his recommendations often help the overall business in addition to just the advertising function. Over the course of Sean’s 10 year career as a business consultant and entrepreneur, Sean has intensively worked with over 200 companies in the areas of strategy, business development, finance, human resources and technology across a variety of industries. Sean is passionate about generating innovative ideas and plans for execution that drive profitable, sustainable growth for businesses.

Sean holds a master’s degree in business administration from the University of North Carolina at Greensboro and a bachelor’s degree in Economics from the University of Connecticut. He enjoys teaching and regularly speaks at conventions and various association events around the county. Sean is involved with several charities, but mainly focuses on childhood disease initiatives and furthering performing arts.
http://www.jaroop.com

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Tags: Ad, Advertising, Automotive, Behavioral, Business, CRM, Car, Dealers, Display, Dynamic, More…J.A.N., Networks, Online, Placement, Small, Targeting

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