Topic: search engine marketing
The auto industry has seen substantial growth of digital ad spend in the last few years, and the growth isn’t predicted to slow down. The auto industry as a whole grew online ad spend by 77% since 2016 and is projected to reach almost $22B by 2022. And of the industry’s digital spend, 43% is in paid search—a total of $5.8B.*
The combination of spend per dealer and the large number of dealerships means that only the retail industry spends more on search ads than automotive. The reason for this spend is simple: digital ads drive more sales and cost less. According to DealerSocket, the average profit margin for sold vehicles that were advertised on digital channels exceeds that of sales driven by conventional media by over $800.
It’s clear that paid search is becoming more important than ever, so let’s take a quick look at five key components of a successful paid search campaign.
Search Engine Marketing (SEM) has become an increasingly effective way for dealers to connect with in-market shoppers. In fact, over 80% of dealers are now investing in SEM, according to a CarGurus study. However, if you manage an SEM ad campaign you know that simply upping your budget isn’t enough. You also need to take the time to measure and analyze your campaign’s performance so you can optimize and refine your marketing accordingly.