- How does this follow-up acquisition set the stage for the future of 3rd party lead generation?
- More importantly how do these acquisitions affect auto dealers?
If you take a close look at Autobytel’s recent ad in Automotive News, “Leads so hot you will need a cold shower,” you can see that ABTL is speaking directly at its competitors, specifically TrueCar, AutoTrader.com, Cars.com, and Edmunds…
“And unlike some lead providers out there, we never get between you and your customer. We never dictate your price. We never put our brand over yours…”
While there is often talk in the dealer-vendor communities debating the even importance or value of 3rd party leads, I argue that they are the next best thing to producing your own organically.
3rd Party Leads Are Good for Your BDC
In my recent piece about whether or not your dealership is buying analytics or opportunities I argue that 1st and 3rd party leads should take precedence over other forms of marketing and advertising that are more about branding driving website traffic.
Even with major auto groups such as AutoNation making strides to reduce the percentage of business that stems from 3rd party lead providers, these leads continue to play a significant role in the sales process for shoppers and for dealers.
According to an IHS Automotive / Autobytel Collaborative study, Autobytel consumers have purchased nearly 4 million vehicles in the last four years.
With these two acquisitions, the three major companies with a per-lead sales model are now one entity, further strengthening the publicly-traded company and allowing it continue enhancing its suite of dealer products such as SaleMove and its texting program, Autobytel Mobile.
The acquisition adds approximately 600 retail new dealers and 300 retail used dealers to the Autobytel network, for a combined total of approximately 4,954 dealers. These dealer additions do not include the 450 retail new and 170 retail used overlap dealers that were receiving leads from both Dealix and Autobytel.