How do you make online display ads work for automotive dealers?

June 2014 © Speed Shift Media

speedshiftmedia.com

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Table of Contents

Introduction

1. What’s the difference between dynamic inventory display ads and standard display (or banner) ads?

2. How do display ads affect consumer activity in the big search engines, and how will search engine marketing affect display?

3. What “lift” or increase in effectiveness in Search Engine Marketing (SEM) can I expect by using display ads?

4. Where can I buy display ads?

5. How do I develop an effective display ad that delivers results?

6. What happens after a prospect clicks on a display ad?

7. What metrics and reporting details should I analyze?

8. How long will I have to wait before seeing results?

9. How do I know whether my advertising partner is doing their job and helping me understand it all?

Summary

About the Author

About Speed Shift Media

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As a consumer, you are no doubt aware of how the Internet has changed the way you live, work and play. You have likely made purchases of products

or services online, so you know that your shopping behaviors

have also been affected by the infinite amount of information available with just a mouse click.

As a marketer in the automotive space or even the owner of

a dealership, you may have also experienced the influence of the Internet on your livelihood as loyalty to brands, models

and dealerships has decreased. Potential car buyers now

have the tools to consider many more vehicle options. This

phenomenon has led to consumers beginning their research

early in the buying process.

The numbers reflect this trend. According to the 2013 Automotive Buyer Influence Study conducted in part by AutoTrader.com:

• Buyers in the new car market spent 10 out of a total of 13 shopping hours online;

• Used car buyers spent over 11 hours out of 15 shopping

online; and,

• Use of the web to research vehicles and dealerships has

increased in the last few years. In 2013, 75% of all buyers went online for information, up from 71% in 2011.

Online display advertising, or banner ads, have evolved

over the years and are changing the way some auto

dealerships and their marketing departments approach

online advertising. The resurgence of display ads as a

method of promotion is due, in large part, to the introduction

of inventory ads, which are both effective and efficient

“75% of all buyers research vehicles online.”2013 Automotive Buyer Influence Study,

AutoTrader.com.

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when used appropriately. Inventory display ads provide

a structured combination of reach and targeting. Display

advertising enables marketers to deliver ads to the proper

audience no matter where they hang out, and the ads can

target relevant prospects while processing available data

about online users.

There are many key advantages to incorporating display

advertising as part of an overall marketing strategy. The

first is the ability to reach more customers further up the purchase funnel. If you wait until they search for a specific car or dealership in their favorite search engine, it could

be too late. Display ads allow you to get in front of more

customers sooner. Add to that the benefit of increasing search traffic, extending reach beyond listings sites, and the ability to put pictures of your inventory in front of car buyers

— and you have some compelling reasons to grab a glove and

get in the game. In addition, display marketing enables auto

dealerships to know more about their marketing campaign

performance through innovative analytics and detailed

reporting. This eBook answers some of the questions about

the benefits of display advertising and dynamic inventory display advertising and delves into the technology concepts

that make them possible.

Let’s get started!

“Display ads allow you to get in front of more customers sooner.”

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What’s the difference between dynamic inventory display ads and standard display (or banner) ads?

1.

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Briefly, dynamic inventory display ads incorporate technology that enables the advertiser to adjust the inventory contained in the ad at the exact moment that the ad is shown to a user. The ads are effectively personalized to the interests of the target audience based

upon data such as user demographics, search history,

site visits, and many more attributes. The result is that ad

content is much more relevant to that specific user. The sales conversion rate is also affected by dynamic inventory display ads, making them more profitable than methods that don’t allow for real-time changes to ad content.

On the contrary, standard display (or banner) ads are 100% predetermined by the advertiser, and any true relevancy to

the person exposed to them is based on good planning or,

more likely, luck. While they were seen as effective in the early days of web advertising, they’ve lost their appeal because of over-saturation. Users become numb when these ads appear

along the margins or at the top of a search results page,

and they’ve subconsciously learned to ignore the irrelevant information.

Click through rates are substantially different when comparing standard display ads and dynamic inventory

display ads. Exposing a potential customer to the inventory

that is pertinent to the searches they’ve conducted, their geographic region or other factors, vastly increases the

likelihood that they’ll click through to your landing page. Thus, being able to personalize your

display ad unit to every new user who

sees it will significantly increase your Click Through Rate (CTR). Additionally,

using tools such as inventory specific retargeting will serve to increase CTR

even more.

LearnMore

“Personalize your display ad unit to significantly increase CTR.”

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How do display ads affect consumer activity in the big search engines, and how will search engine marketing affect display?

2.

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You know the household names of the search engine giants, such as Google, Bing, and Yahoo!, and savvy marketers are likely aware of the importance of Search Engine Optimization and Search Engine Marketing as a part of the marketing mix. However, you may not be aware

of the relationship between search and display advertising,

so you might not realize the benefits of using them alongside each other.

The “2007 Dealer eBusiness Performance Study” conducted by The Cobalt Group identified three main phases that car buyers go through when shopping for a vehicle. The pre-

selection phase is the launch pad where prospects begin

by using all available resources and filtering information. Today’s consumer uses search engines, in combination with online and traditional resources, to narrow down their model

choices and find dealerships. In fact, 83% of car shoppers begin with web-based sources to research cars, while 79% use web searching for more information on dealerships.

As a result of search trends and exposure to online marketing,

certain behaviors develop among Internet users that have

an impact on the correlation of search marketing and display

ads. Studies have shown that almost a third of all users will

click on a display ad after conducting a search, demonstrating

that search has an impact on display advertising. Additionally,

almost half of all users eventually conduct a search to find more about a product that first appeared to them in a display ad. The majority will visit a website after performing this type

of search, increasing the likelihood of converting a sale.

The critical message here is that while both search and

display marketing can be effective on their own, the strength of each is significantly increased when used together in a concerted effort.

“83% of car shoppers begin with web-based sources to research cars”2007 Dealer eBusiness Performance Study,

The Cobalt Group.

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What “lift” or increase in effectiveness in Search Engine Marketing (SEM) can I expect by using display ads?

3.

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Once you’ve come to appreciate the close relationship between display ads and search marketing, you’ll be anxious to know how your SEM will receive a boost by employing them together.

Your potential customers are exposed to display ads on a

constant basis. They will eventually begin to subliminally

shape the way they search online to coincide with the

language and terms they see. In essence, the display ads

teach behavior and supply the keywords for users to find out more on certain topics. For this reason, display ads are a

perfect partner for your SEM campaigns, making it more likely

that your prospects will find you.

Plus, your target audience is more likely to buy from you

when they do arrive on your landing page. Studies have

indicated that one in four searchers exposed to display ads

made a purchase afterwards. In the specific economic sector of auto dealerships, brand searches jumped exponentially

after users were exposed to display marketing on particular

models. Users also spent more time on dealership websites,

vehicle detail pages and engaging with landing pages.

However, it is also interesting to note the conclusions

drawn by a Harvard Business School report, “Do Display

Ads Influence Search? Attribution and Dynamics in Online Advertising.” To summarize the findings:

• Display ads do increase search volume, click through rates

and sales conversions;

• Ads generated by searching do not result in increased

interaction with display ads;

• While search may not be immediately affected by exposure to display ads, a significant boost will likely occur after two weeks;

• ROI analysis of display versus search continues to

recommend search as the dominant spend, though a blend

of the two is most effective. Performance indicates that many companies would still benefit from a higher search budget.

As such, the combination of search and display ads is a

one-two punch for marketing departments, and you might

consider adjusting your budget accordingly.

“Display ads do increase search volume, click through rates and sales conversions”Do Display Ads Influence Search? Attribution and Dynamics in Online Advertising, 2013. Harvard Business School. Tweet This!

Where can I buy display ads?4.

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Automotive specific networks are available in some cases. Recently the Auto Audience

Network has been launched in the North

American marketplace. This is an automotive

specific network that places your live inventory into ad units that run on top of auto images in premium

automotive review websites. With highly targeted ads come

outstanding results. Visit AutoAudienceNetwork.com for more

information.

You can also purchase ad space via an ad

auction or Real Time Bidding (RTB) Exchange,

which incorporates cost per click to determine

pricing and placement. In short, every time

search terms are entered into a search engine

like Google, you can bid against other advertisers to take up

the ad space offered. The Google search ad auction process decides which ads appear based on the keyword search

terms entered by the user. Ad position and cost per click are

also simultaneously established. Ex. AdRoll, SiteScout, Google

Bid Manager.

A publisher is a site that produces content and

offers advertising space alongside the material it disseminates. The publishing site may or

may not be related to the ad topic, such as car

dealerships, but sometimes they do recognize

that the visitor may have conducted a search or clicked on

a display ad in the past. The publisher then serves up ads

based on user history and behavior. Ex. NewYorkTimes.com,

Washingtonpost.com, AutoGuide.com.

Ad networks are companies that connect

car dealerships to websites that host

advertisements, similar to a broker relationship.

The key benefit of utilizing a network to place your ads is that they offer an aggregation

of advertising space and can match available supply with

demand. Internet ad networks typically use a central server

to produce ads to consumers, which makes it an efficient way to target and report on impressions to determine ad

performance. Ex. Google, Yahoo, Centro.

There are a few primary sources where you can purchase display ads:

“With highly targeted ads come outstanding results.” Tweet This!

How do I develop an effective display ad that delivers results?

5.

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If you lack experience with creating display ads that deliver results for car dealerships, there are some pointers to help you get started.

If you are using flash animation, beware that not all browsers are capable of displaying flash creative (.swf files). In fact, no Apple mobile devices work with flash. In most cases, the backup for a flash ad is a static gif. However,

the best alternative is an ad with an HTML backup. When you

are working with a vendor, try to find one that uses HTML backups as a standard.

Use text content, images and color palettes

appropriately as there is a fine line between eye-catching and tacky. The placement and size

of your ad will dictate many of the specifics, especially when you consider positioning on the

page. You might try creating a variety of templates subbing

out different elements to determine which work best.

LearnMoreShop Now

Logo Logo

Make sure your display ads are optimized

for mobile. The number of consumers who

are using smartphones, tablets and other

portable devices to conduct online research is

exploding, and you need to ensure that your

ads are visible and compelling so don’t put a ton of small text into your ads.

Especially with respect to automotive inventory ads,

using live images vs. stock photos is essential. As

mentioned, stock images of vehicles are cold and

impersonal, while a true picture of the available car

will help make a connection with a potential buyer.

Try out different ad designs and concepts. There are many elements you can tweak to make the

ad layout more appealing or capture attention

more effectively.

LearnMore

YourLogo

$48,950

YourName

$48,950 $47,895

more >more >

These tips can be effective when implemented properly, but online marketing novices might consider

partnering with a marketing agency or display

specialist with experience and expertise in display ads.

If you are using animation, make sure you view

to the final frame to ensure that the proper call to action is apparent. Certain “teaser” texts may disappear as the animation moves forward,

possibly leaving the prospect confused as to

the next step. Also, if you are using Flash animation, place

your call to action in every frame of the media. That way, the

viewer will not need to wait until the end of the video to click.

What happens after a prospect clicks on a display ad?6.

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Create an attention grabbing headline with a more

detailed sub-heading that’s directly related to the display ad the visitor clicked on. In the case of car dealerships,

your ideal landing page is the Vehicle Details Page (VDP) that

discusses features, availability and location.

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When a prospect clicks through to your landing page, you have reached a significant milestone in the sales process, and you need to deliver the proper follow-up content accordingly.

The landing page is likely the most important part of an

online display campaign, and it is up to you to make it

engaging, straightforward and user friendly. While there are

no hard and fast rules to developing a landing page, there are

some pointers you can use to make yours successful.

Note: Very few companies have the ability to direct

display ad traffic to your specific VDP’s. If you are working with a vendor that cannot display all of your

live inventory in a targeted and personalized way – and

direct the traffic to the specific VDP of the vehicle the user clicks on, you had better look for a new vendor.

Make sure to include many images of the vehicle

clicked on in the display ad, as well as bullet points

that describe the details and features of that particular car.

As a practical matter, provide photos that you’ve taken at your dealership, with as many close-ups as possible. Keep in

mind that consumers can be turned away by stock images of

vehicles from the manufacturer or another source. They want

to see photos of the exact car they’re considering.

2

Supply a clear call to action that details the next steps

for your potential customer: whether they should

include contact information, fill out a form or call to make an appointment with a sales professional, etc. Please avoid the

temptation to give the user more than 3 options to submit a lead – simple is better.

3

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What metrics and reporting details should I analyze?7.

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Click Through Rate (CTR) will tell you how many

people click on your ad. Plus, you should also

measure how many people made it to your

Vehicle Detail Page, accessed your website, or

your landing page by clicking on one of your

display ads. Knowing this figure is critical to determining how effective your marketing efforts are at attracting the attention of your target audience.

LearnMore

It’s always wise to analyze the key site metrics that demonstrate the success of your display ad campaign, as well as those which reveal weaknesses in your strategy. Some helpful analytics to review are:

Note: Retargeting is

an exciting new tool

available in display

advertising that truly

excels when users are

retargeted with the

specific inventory they have viewed on your

website.

Impressions are if you want to know how many

users saw your display ad. In most networks,

the ad loading on the page will register an

impression. In the case of a branding or

awareness campaign, impressions will be an

important metric. However, in most cases, the focus is on

action based metrics, like those that follow.

Keep a close eye on ad Engagement, which

is another key factor in display advertising.

Often, users will engage with an ad unit, for

example, by scrolling through the inventory

images, without clicking through to your site.

User behavior is different when looking at display ads versus search marketing, so CTR isn’t the only metric. The reason for this is that your prospects are reading information they have

selected, and they may not want to leave the current page.

Learn More

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1 2 3 4

Conversions relate to whether your display

marketing efforts are producing visitor behavior which is valuable, including filling out forms, providing contact information,

scheduling an appointment or participating in

an online chat. You want to know how effective your display ads are in soliciting the visitor response you’re seeking.

Retargeted Clicks – are

clicks recorded from

people who have visited

your site before.

Retargeted Impressions

– impressions served to

people who have visited

your site before.

How long will I have to wait before seeing results?8.

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There are countless factors that weigh into the performance of your marketing efforts, and these will all affect your advertising spend levels.

At the outset, it’s important to realize that trying it out for a month will not give you an accurate assessment of the

effectiveness of your approach. More time is necessary, though there’s no hard and fast rule of what you should expect. A common recommendation is to test for a minimum

of three months. You will likely see good results in month

one – but they will continue to improve as the campaign is

optimized for up to six months. Still, you can always improve

your results by considering the following factors.

The dynamic content of your ads. Your

inventory is one of the keys to great dynamic

inventory ads. Do your best to keep photos

looking good (live photos are always better than

stock), make sure your pricing is competitive,

and that you include strong branding and a call to action in

the ad creative.

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The nature of your business. As a car dealership, you

don’t experience the high volatility of other markets, but there are still industry trends to consider. Interest

rates, seasonality, holidays and other criteria will

affect how long before you see results.

The message you’re delivering. Be sure to

test and measure. It might seem like a simple

matter, but your content might need tweaking if

your display ads are not performing. You might

need to vary your taglines, calls to action and

vehicle details; alternatively, you might consider a different placement of this information within the display ad. Without

testing, you will not know.

“Your inventory is one of the keys to great dynamic inventory ads.” Tweet This!

How do I know whether my advertising partner is doing their job and helping me understand it all?

9.

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You’re investing a lot of money and placing your trust in your marketing agency and vendors, so it is essential that you know the basic details of the advertising approach and know what to ask about.

Make sure you’re comfortable with the goals they have set and where they’re targeting to affect your sales funnel. In addition, while your agency partner might be staffed with knowledgeable professionals, they still need to be responsive

to your questions and help you understand their approach.

You’ll know that they’re on track if they can elaborate on these topics:

Are they serving truly dynamic inventory ads. The simplest

way to determine this is to ask if they are using ad tags to serve

your ads. If not, then your ads cannot be truly dynamic. Note

– it is possible to use an ad tag and not serve dynamic creative.

The variables they use to dynamically assign ad content. A

complete list of criteria involved in the process of delivering ad

content (including contextual targeting, behavioral targeting,

and retargeting methods) means that the company’s display ad solution takes user behavior and context into account.

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The services that are in-house and those outsourced.

There’s no reason to be concerned if your agency reports that they rely on certain services from a third party. On the

contrary, it’s a good sign that they recognize their weaknesses and realize that a partner can bring certain strengths.

The dynamic nature of their ad creative. Here, the

distinction is made between standard banner ads and truly

dynamic display ads. You want to ensure that the ad content

being delivered is absolutely up-to-date. For this to be the

case, your provider will need to update your inventory listing

daily, or better. This can be done with a direct feed, or, in

some cases, with web scraping technology.

Whether they offer automated tools. With thousands of

custom impressions presented on a daily basis, automated

tools are essential. You cannot be making changes to each

ad every time an offer or vehicle changes. You’ll also want to know how quickly changes to your display ads can be

accomplished – ask if they can make changes in real time or if

campaigns will need to be redeployed.

Assignment of a campaign manager. You’re likely going to be in constant contact with your display partner to

analyze performance, tweak your campaign and make other

adjustments. Dealing with a different person every time you contact them can be frustrating, so make sure you have a

campaign manager assigned to your account.

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As a car dealership owner or marketing manager, you need

to have a keen understanding of how dynamic inventory

display technology can help accomplish your advertising

goals by exposing a targeted audience to relevant

information. This approach enables you to quickly develop,

design and deploy marketing content in an efficient and cost-effective manner. You have an infinite number of ad impressions available through display ads, meaning

you can reach a wide ranging group of prospects seeking

information on vehicles.

If you’d like to hear more about dynamic inventory display ads as an advertising medium, please contact

a Speed Shift Media specialist. We’re happy to provide a free assessment of your current display marketing

approach and assess potential areas to increase

performance. You can also visit our website to find out more about our products, projects and success stories.

Summary

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Ian S. Cruickshank, VP of Sales

Ian has spent over 10 years in Marketing

and Digital Advertising. His early days

were spent with two of the largest

media companies in Canada in sales

and sales-leadership roles. In recent

years he has spent his time both

consulting on digital disruption and

as the head of sales and marketing

for a social media marketing firm in Vancouver, BC. Currently, as the VP

of Sales, he is the head of all revenue

generating activities for Speed Shift

Media. With a Masters in Business and IT Management he is regularly called on to

present and lecture on a variety of Information Technology and Digital Marketing

concepts. Most of all he loves to be outside with his wife and his young family in

Port Moody, BC.

Feel free to contact Ian directly via Twitter or LinkedIn:

About The Author

We provide dynamic inventory

display advertising solutions to

auto dealers, digital publishers,

and agencies. Our platform

combines advertiser data in real

time — inventory, promotions, and

messaging — using sophisticated

targeting, retargeting, and self-

optimization technologies. We

also offer an innovative, premium automotive display network that

delivers unparalleled relevancy

and engagement. In short, we

make sure the right message

always reaches the right user, for

exceptional results.

About Speed Shift Media

eBook designed by Danielle Borisoff