Automotive Digital Marketing

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Digital Advertising; How Does CPM Cost Effect the Dealer's ROI, and What About the 99% that do NOT click on the Ads?

The visual illustrations of marketing and sales funnels that most car guys know and love apply very well to digital advertising audience quality. And when it comes to the value of impressions made by a dealer's advertising campaigns, the quality of the audience seeing thos ads is a mjor component of ROI from the campaign. What is the value that a Digital Advertising campaign's impressions have relative to the underlying cost of placing ads into an online advertising network... the Cost Per Thousand Impressions, or CPM? After all, isn't WHO sees a dealership's ads as important, or more important than how much it costs per person to show those ads?

Check out the logic below which was presented to me by Nathan Scripps of Jumpstart Automotive Media as his rationale for the greater value offered by JAM to dealers at a higher CPM than the rates quoted by ADP's other advertising network suppliers. I would love to hear what other Automotive Digital Marketing and Advertising experts have to say about this value proposition.

According to Nathan (and I agree), many car dealers do not see a major difference in online advertising outside of the cost and the various CPM rates offered by several different types of digital advertising sources. With CPM rates as low as $2 from the Google Adsense Network, Specific Media at $7 to $9, and Jumpstart Automotive Media at $35 it is sometimes hard to see the value differential. However, this could be like comparing a $9,988 Chevy Aveo with a $112,000 Mercedes-Benz SL Roadster...

If a dealer is short sighted enough to only look at the clicks, or website visitors the advertising impressions generate... THEN, if the dealer directs ADP to invest half their ad budget on Specific Media at $10 CPM and the results are a 0.05% Click Through Rate (CTR), then that is equivalent in value to placing the other half of the digital advertising budget on Jumpstart Automotive Media at $40 and getting 0.20% CTR.

Although Click Through Rates are absolutely the wrong metric to value an entire digital advertising display campaign, if it is all that is being measured by the dealer in estimating the ROI then CPM rates must be considered as a component of the ROI only when matched up with the corresponding CTR.

However, in order for dealers to get results from a Digital Advertising program, it is imperative to look beyond the Clicks and focus on the 99% of the people seeing the advertising, who they are and where do they see the dealer's name and offers..

Digital Advertising Networks fall into 3 categories from an Automotive Digital Marketing perspective:

General Networks reach the general audience, think Google AdSense, Yahoo! ROS, etc.
• This is basically the entire internet, a modern equivalent to broadcast television
• The general population includes roughly 2% to 3% car buyers
• The rate can vary from below $2.00 to $7.50 CPM

Networks can be targeted to content, like automotive, such as with Specific Media or Yahoo!, but if If they are limited to automotive
• This population is narrowed down based on browsing patterns
• Content can include news about the Detroit bailout, blogs about gas prices, or car shopping information
• This is the modern equivalent of cable television tuned to a certain station
• The population includes an unknown percentage of shoppers, but reasonably assumed higher than 3%
• The rate is higher than run of networks, so anywhere from $7.50 CPM and up depending on target (automotive $8, but categories like diabetes may cost $50 CPM or more)

Vertical Networks or branded content sites reach a very unique car-buying audience
• All content and thus all users are related to the shopping experience
• Inherently, 100% of the audience is the right audience
• Surveys show 53% of this audience intends to buy a car within a year, another 27% intend to buy "soon" without a timeline in mind.
• That means this audience is 25 to 35 times more likely than the general network audience to buy a car
• Does that mean it's OK to pay 25x the rate of other lesser targeted sites? No, that would not benefit dealers.
• It simply means that when the CPM is below the threshold relative to what general purpose network's charge, it should be included in dealer ad campaigns..

About the Automotive Digital Marketing Professional Community

The Automotive Digital Marketing (ADM) Professional Community website is built on a perpetually growing"Viral Expansion Loop" Networking Platform and serves Car Dealers, Dealership General Managers and their management teams, including Internet Sales Managers, BDC Managers, Marketing Managers, Sales Managers, Service Managers, Service Advisors, Parts Managers, Fixed Operations Directors and their teams. Launched at the beginning of January 2008, ADM has emerged as a valuable and proven resource for the entire spectrum of automotive marketing and Internet sales related professionals. Interactive Media and eCommerce Professionals at car companies (OEM) and tier 1 and 2 advertising agencies who want to see, hear and read what the best Digital and Interactive Marketing professionals in the automotive industry have to say about relevant and timely topics visit ADM on a regular basis or subscribe to the many RSS feeds available within the ADM community.

ADM is a great place for Tier 1, Tier 2 and Tier 3 automotive marketing and advertising practitioners, as well as Webmasters, dealer web site managers, automotive software developers and information technology solution designers to get new ideas and stay up to date on the challenges facing retail automotive Internet sales practitioners. ADM serves Automotive CRM and Lead Management suppliers, vendors, application developers and their affiliated sales professionals as an online exchange for strategy, tactics, best practices, files, resources and contacts that create powerful networking relationships within the auto industry.

Did you know there are now over 2,000 members on Automotive Digital Marketing Professional Community?
Have you reached out to connect with important ADM member contacts by asking them to be your Friend?

Did you know that there are over 4,000 photos listed on Automotive Digital Marketing Professional Community?
And, do you know that many of these images are actually charts and graphs of the latest marketing trends and research? Did you know that many of these photos are actual ads used by dealers that worked exceptionally well? There have been over 4,000 photos uploaded and made available for use by all ADM members.

Did you know that there are more than 650 videos on Automotive Digital Marketing Professional Community?
Have you seen how many of those videos are actual examples of marketing campaigns and business processes used successfully by some of the leading and most successful dealers in America?

Did you know that there are over 450 blog posts on Automotive Digital Marketing Professional Community?
When was the last time you posted a blog entry and let important ADM industry professionals know what you are up to? Have you checked ADM for the latest articles published by writers who walk the talk? Members have created more than 460 blog posts within their ADM provided websites that feature online file storage and personalized blog hosting at no cost to ADM members.

Did you know that there are over 400 forum topics on Automotive Digital Marketing Professional Community?
Have you checked the forum lately to see what your associates, clients and colleagues are saying?
Have you posted a forum discussion to see what other professionals have to say about the topic?

There have been over 400 discussions started and still active with ongoing comments and information being published daily within the ADM Forum.

Did you know that there are more than 25 professional groups on Automotive Digital Marketing Professional Community?
Have you joined any groups so that you can send messages to all other group members?

Did you know that there are Important Upcoming Automotive Digital Marketing Events listed on Automotive Digital Marketing Professional Community?
Have you posted what you or your organization considers to be important upcoming events on the ADM calendar so that other professionals will know about them, consider attending and register their intent? ADM members can create calendar events using the ADM site application that allows image and logos, links to registration pages, location maps that integrate with Google Maps, Outlook Calendar integration, invitation mailings using uploaded email lists, RSVP tracking and event management features and a whole lot more.

Did you know that there are more than 500 MP3 audio files on Automotive Digital Marketing Professional Community? Have you checked out what other automotive professionals are listening to?
Did you know that many of these MP3 files are automotive marketing and Internet sales best practice Podcasts, and examples of highly effective radio spots, along with powerful and engaging dealer website soundtracks?

If you are interested in visiting and perhaps joining the Automotive Digital Marketing Professional Community, go to:

> The ADM Professional Community is all about car dealers using the web to generate sales leads and Internet sales. Automotive Internet sales and digital marketing professionals working with Acura, Audi, BMW, Chrysler, Dodge, Ford, Toyota, Chevrolet, Chevy, Honda, Nissan, GMC, GM, Mercedes-Benz, Lincoln, Mercury, Mini, Jeep, Volvo, Saab, Hummer, Cadillac, Buick, Pontiac, Saturn, Lexus, Porsche, Hyundai, Kia, Suzuki, Subaru, Volkswagen and other automotive franchises are ADM's most prolific members. Used car and automotive remarketing professionals will find a treasure trove of data, files, best practices, strategies, tactics and great contacts within the industry available at ADM.

ADM is proud to serve as an online meeting place, networking tool and idea exchange for automotive dealership suppliers and advertising agencies who provide car dealer Internet sales and web marketing solutions, such as ADP Dealer Services, JW Thompson, Zimmerman, The Cobalt Group, The Reynolds and Reynolds Company, BZ Results, ADP Dynamic Websites, Automotive Websites, Dealerskins, Izmocars and Izmo CRM, TK CarSites, Autobase, DealerTrack, Arkona, Reynolds Web Solutions, Clickmotive, Xi Group and other dealership technology suppliers and vendors.

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Tags: CPM, Cost Effectiveness, Dealer ROI, Digital Advertising, advertising network, automotive digital advertising, automotive digital marketing, automotive internet sales


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