When it comes to advertising in social media, dealers are left with little choice but to leverage a medium that is essentially equivalent to traditional media, e.g. television, radio, and print.
Fortunately, the return on investment for running ads [on Facebook] is a cost-effective way to drive website traffic, but like most forms of advertising, attributing initiatives to your bottom line is elusive to say the least.
This is why dealers aren’t “feeling it” when it comes to social media. They can justify the ad spend for how something like Facebook Ads affects the top of the funnel, e.g. branding, top of mind awareness, consideration, purchase intent, etc., but they can’t establish a verifiable ROI in how it impacts their business beyond impressions, clicks, and leads generated.
Marketing Attribution and Verifiable ROI
The type of verifiable return on investment dealers need to know requires deep levels of attribution.
For example, what percentage of business in a campaign is from newly acquired customers, what percentage is from existing customer relationships, and what percentage is re-activated business that was or may have been lost.
Dealers benefit from knowing how much service business is scheduled, completed, and also a potential forecast of service business expected as a result of any marketing initiative.
Finally, dealers benefit from knowing how a campaign is affecting vehicle sales. Therefore, dealers need to see Vehicle Detail Page (VDP) Views, leads generated, identifiable hand raisers, and of course the number of vehicles sold within a given period.
Until these metrics and measurements can be attributed through social media advertising, dealers will continue to be skeptical of the return on investment they are seeing from their efforts.
Free eCourse and eBook: Keys to Verifiable Social Media ROI
To assist with this, I’ve created a free 7-day e-course designed to help dealers overcome the obstacles and causes behind why dealers and agencies are not able to produce a verifiable ROI with social media, and what it will take to do so, namely, DMS and CRM integration with Facebook. The e-course is absolutely free and at the end of the course you will receive a free e-book that contains all the curriculum in the course, plus more. It was designed for dealers, automotive marketing firms, and ad agencies alike. Click here to sign up.