Facebook is providing car dealerships with an improved form of advertising through its automotive inventory ads. The ads have been upgraded to allow dealerships to reach move prospective buyers by taking into account visits to other auto and dealer-related Facebook pages, website and apps.
According to a recent Facebook IQ survey, 63% of car buyers discover new vehicles online. Previously, dealers could use Facebook’s automotive inventory ads to re-engage people who visited their website or app. With this expansion, dealerships can now reach more potential customers who have expressed interest in purchasing a vehicle online.
The ads work by allowing dealers to upload their car inventory with details such as make, model, year and location. Facebook then automatically generates tailored ads that show the most relevant vehicles to the right audiences. For example, if someone has visited a car-related Facebook Page, but has not yet visited the dealership’s website, the website will push ads for the dealership.
Some dealerships in the USA have already used the system. Facebook said that Lexus Santa Monica used automotive inventory ads to reach local buyers, driving 3.2 times more vehicle detail page (VDP) views and three-times lower cost per VDP view compared to previous prospecting campaigns with the same budget. Another dealership, Castle Chevrolet, saw a 27% increase in reach compared to a prospecting conversion campaign using lookalike audiences.
Brad Burlingham, vice president of marketing, LAcarGUY and Lexus Santa Monica, said: ‘“Enabling Facebook automotive inventory ads for prospecting provides an efficient, cost-effective way for us to expand our campaign to reach more engaged in-market shoppers.”