27/01/2022 - 6 minute read
The Ultimate Guide to Google Ads for Car Dealerships in 2022
We discuss how we use Google Ads to its full potential for car dealerships.
Most dealerships rely on classified ad sites such as AutoTrader or eBay to generate leads. These sites have major drawbacks:
Difficult to Target
Ads Are Often Ignored
Competition from other dealers
We believe that for car dealerships to continue to grow in 2022, they need to take control of their ads and pursue a direct-to-consumer model.
Google ads and the direct to consumer model explained for car dealerships
The direct-to-consumer model (D2C) is a concept that has allowed car supermarkets such as WeBuyAnyCar and Cazoo to grow into household names.
These large outfits are successful because they control the whole buying journey for their customers. They can purchase cars directly from customers without going to auctions, and they can retail cars on their own platforms.
This means they make a higher profit margin on each sale than an independent dealer can achieve.
Taking back control of the customer journey
But there is a way that local dealers can take advantage of this powerful model for themselves.
That's by running targeted local ads on paid platforms such as Google ads, and generating leads with a landing page that's optimised for paid traffic.
How Google ads fit into the vehicle buying journey
Google offers two main advertising products, Google Search Ads and Google Shopping ads.
Google Search Ads are a form of online advertising that allow businesses to reach potential customers through text or banner ads placed on Google search results pages and other websites across the web.
Google Shopping ads (product carousels with images included) are not available for car dealerships, because Google does not allow vehicles to be sold on it's shopping platform.
Benefits of Google search ads for dealerships
There are many benefits to using Google ads for car dealerships:
Reach a large audience: With over 2 billion active users, Google has the potential to reach a large number of consumers.
Target your audience: You can target your ads by location, age, gender, and interests, meaning you can reach people who are likely to be interested in your products.
High ROI: Google Ads is one of the most effective forms of advertising, with some businesses reporting a return on investment (ROI) of up to 500%.
Flexibility: You can control your budget, how long your ads run for, and how often they appear. This means you can tailor your campaign to fit your needs.
Customer journey example for a customer buying a car
The customer journey for a customer buying a car can be summarised in the following steps:
The customer sees a Google ad for a car dealership.
They click on the ad and are taken to the dealership's website.
They browse the website and find a car they are interested in.
They fill out a form to request more information about the car.
The dealership gets an email notification that someone has requested information about the car.
The dealership sends more information about the car to the customer.
The customer decides to buy the car and goes to the dealership to finalise the purchase.
The customer may or may not take out a finance agreement on the vehicle
Getting started with Google ads for a car dealership
When you're starting with Google ads, it's best to target keywords that are specific to your brand. This will help you to capture traffic from people who are already interested in what you have to offer.
Before you start, set up conversion tracking
Make sure you have the Google Ads tracking code installed on your website before you start. This will help you to see the results of your ads. This will tell you how much money is coming back from your marketing strategy.
Set up branded keyword ads
Your first ads should target branded keywords.
Other than your specific brand name, for a car dealership, some good branded keywords to target might include:
"car dealerships near me"
"buy a car"
If you retail new vehicles, you should also run ads targeting the brand name of the vehicle make you're licensed under.
By targeting these keywords, you'll be able to reach people who are already interested in buying a car, and you'll be more likely to convert them into customers.
We generally see that running ads for branded keywords bring the most benefit in the
The power of local targeting
Our recent research has found that over 50% of all sales happen to customers that are located within 25 miles of the dealership. This means that dealerships need to focus on targeting local customers with their Google ads.
Google Ads provides powerful ways to target ads locally. You can target by location, radius, and even on a map. This allows you to place your ad in front of people who are likely to be interested in what you have to offer.
Google Ads also offers a high ROI, meaning you're getting more bang for your buck with this form of advertising. You can control your budget, how often your ads appear, and how long you want to run them for.
What to write in your google ad copy
Good ad copy takes lots of time and experimentation to write. The most important thing is to run several variations of your ad, and check results to see which approach is most effective.
Here are some examples (for a car dealership) to get you started:
"Looking for a new car? Check out our latest deals at our dealership!"
"Find the perfect car for you at our dealership. We have a wide variety of vehicles to choose from!"
"Come down to our dealership and take a test drive today! You won't be disappointed."
The advantage of Google ads compared to other ad platforms
Google Ads brings highly relevant traffic to car dealerships because it targets people who are already interested in the specific vehicles you offer.
Unlike social media platforms like Facebook, which tend to show ads to lots of users who may not be in the market for a new car, Google Ads allows businesses to target people based on specific searches.
This means that you're more likely to reach people who are interested in buying a car.
The next level: Lead generation with Google Ads
Once you have an account set up running ads for branded keywords, the next step is to run a lead generation ad.
Don't overlook the most important part of your business, getting cheap stock. By buying second-hand stock directly from consumers you can skip middlemen like auctions and increase your profit margins.
Lead generation ads are a great way to capture the attention of people who are looking to sell their car. These ads offer a simple way for people to get in touch with you.
When creating a lead generation ad, it's important to make sure that your call to action (CTA) is clear. You want to make it easy for people to get in touch with you, so make your form as simple as possible.
What lead generation ads look like for a dealership
When selling a car, the customer journey typically begins with a person conducting a search online for car dealerships in their area. They then might visit a few of these dealerships' websites to learn more.
Once the potential customer has made a decision, they'll negotiate prices and complete the sale.
Setting up Google ads for lead generation
For this, you need a landing page and form, and then you will need to set up some Google ads.
Some good keywords to target in your Google ads when selling a vehicle might include:
"sell my car"
"I want to sell my car"
"how can I sell my car"
"where can I sell my car"
Should dealerships run Google Display ads
Google Display Ads are a form of online advertising that allows you to reach people who are not already searching for your business.
These ads appear as banners or videos on websites across the web, and allow you to target people based on their interests.
We generally do not recommend Google display ads for car dealerships. Instead, we run paid social funnels on websites such as Facebook, Instagram, and TikTok.
We find that the return on investment for paid social funnels is generally much higher than Google display ads.
Google Ads is a powerful tool that car dealerships can use to generate leads and sell more vehicles. Ad targeting allows you to place your ad in front of people who are likely to be interested in what you have to offer, and the ROI for Google Ads is high.
Additionally, lead generation ads make it easy for potential customers to get in touch with you.
When setting up Google ads for lead generation, it's important to make sure that your call to action (CTA) is clear. You want to make it easy for people to get in touch with you, so make your form as simple as possible.
For car dealerships, we generally do not recommend running Google Display Ads, but instead focusing on paid social for a broad spectrum approach.
About the author
Gary Lewis Cheetham is an automotive marketing specialist, born and raised in Oldham, Greater Manchester. He spent his teenage years working at the family dealership after school, learning the ropes of the car trade from the inside out.
After moving on to working in marketing, Gary Lewis founded GL Digital in 2020 when he noticed a need for direct-to-consumer marketing platforms within the auto industry. He now strives every day to help independent dealers in the UK and US realise their potential. Gary also loves Formula 1 and motorsport.
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