Dealers that run effectively targeted Display Advertising campaigns across networks of popular websites boost their Search Engine Marketing performance.
Display Advertising lowers the average cost per click with dealer paid search campaigns, while increasing the volume of their organically generated search traffic. The research described further below and from several other independently verified studies confirms the value of a combined display and search advertising marketing strategy.
A recent example that I witnessed first-hand is a dealer in the Denver area that elected to re-allocate 50% of their online advertising budget to Display Advertising for the months of June, July and August 2009. During the previous 12 months the dealer had allocated 100% of their online advertising budget to Search Engine Advertising (PPC). After switching 50% of their budget to Display Advertising, the overall volume of visitors referred by Search Engines (both paid and organic) to the dealer's site increased by 24% compared to the same three months in 2008 when the same monthly online advertising budget was 100% allocated to Search Engine advertising. When the additional traffic directly generated by the dealer's Display Advertising is added into the calculations, total Unique Visitors to the dealer's site generated by the combination of Search Engines and the Display Advertising increased by over 54% compared to the same 3 months in 2008, with the same total online advertising budget.
Integrating Online Marketing
Combining multiple online automotive marketing campaigns can boost effectiveness, according to “The Effects of Display Media on Search Traffic,” a white paper from iCrossing.
The digital marketing firm found that display ad campaigns increased dealership website visits from search engines by nearly 14%. The study's methodology used a scientific approach with 4 periods, one serving as a control period. During period 1 of the study, no display campaign was run; iCrossing ran a display campaign for its client during period 2. Period 3 included a less integrated display campaign from another agency, while period 4 had no display campaign.
Display ads also raised paid search click-throughs by almost 15%—and decreased the cost per click (CPC) by more than 11%.
“Running a display campaign causes a statistically significant increase in search traffic, specifically search visits, unique visits and SEM click-throughs,” according to the white paper. “CPC, which was lowered during the display campaign, also shows that targeted display campaigns help other media campaigns reach cost efficiency.”
This research supports data from several other studies, including a research report published by Google which also showed a positive correlation between online display advertising and improved Search Engine Marketing (both paid and organic) performance. All research to date verifies what has been reported by several individual dealers, that web based Display Advertising campaigns have an effect beyond simple click-throughs on the banner ads themselves.
For example, a January 2009 study commissioned by iProspect and conducted by Forrester Consulting showed that Internet users exposed to an automotive promotional ad might not click on the ad itself, but often took some other form of action:
27% Searched for the make, model or dealer using a search engine.
21% Typed the advertised URL directly into their browser and navigated to the dealer’s site.
9% Researched the make, model or dealer through social media, online communities or message boards.
Measurement of Display Advertising campaign effectiveness must take into account such cross-pollination, not just simple click-through rates (CTR), in order to be accurate.
Charts, data and conclusions are from the following sources:
1. eMarketer Daily newsletter dated September 9, 2009.
2. Dashboard Reports and data generated by Omniture SiteCatalyst for dealers using ADP Digital Advertising to run Search Advertising campaigns exclusively, and dealers using ADP for both both Search and Display Ad campaigns.
3. Dart For Advertiser reports and data from DoubleClick for dealers using ADP Digital Advertising.
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 Advisers, 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 and content syndication services available within the ADM community.
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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.
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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.
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