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How Dealers Can Optimize Inventory Turns With Facebook

This morning, LotLinx Founder and Executive Chairman, Len Short, partnered with Digital Dealer to host a webinar educating dealers on how they can use LotLinx Deeplinking™ for Facebook to optimize their inventory turns.

Len’s session connected the dots between margins, inventory turns, VIN view optimization, and Facebook. It goes like this:

  1. Turning inventory faster means less days of holding costs, which in turn improves margins.
  2. The best way to turn a car faster is to get more online VIN view attention to that car.
  3. Dealers are - in general - overbuying VIN views on certain cars while underbuying on others, resulting in a few cars getting the lion’s share of the spotlight, while other cars remain in the dark.
  4. The LotLinx VIN View Optimizer helps dealers pinpoint the under-engaged cars and focus VIN-specific digital campaigns towards them.
  5. By optimizing their digital ad spend between AdWords and Facebook, dealers can drive higher-quality VIN views to their under-engaged cars, thus helping them turn faster.

Unfortunately, too many dealers today are focusing their digital marketing efforts on acquiring the most traffic for their inventory in the aggregate, while missing what’s most important: return on investment.  

In order to get a high ROI, the amount invested must make sense. You wouldn’t spend your whole budget on an AdWords campaign aimed at obtaining VDP views for the cars that already get enough traffic from Direct and SEO traffic, would you? Most dealers, unfortunately, are doing precisely this. Because they’re not focusing on VIN-level campaigns, because they’re not analyzing what their traffic is doing for their inventory, and because they’re not connecting the dots between the amount spent and the return.

Len’s not saying AdWords is bad. In fact, he’s saying AdWords should be a core part of the dealer’s digital advertising strategy. What he IS saying is to not buy AdWords past the point of diminishing returns. The rest of the budget should be invested into Facebook, where the clicks are still cheap and the car Shoppers are plentiful. What dealers need in order to make Facebook pay dividends, however, is the right technology. Today, most dealers are on Facebook buying audiences - in fact, when polled, the majority of the audience answered “Neutral” to the question, “How would you rate the quality of your Facebook traffic in terms of VDP conversions?”

The good news is that it’s not too late to learn the right way to approach digital marketing for your dealership. You can start by reading Len’s article in Wards Auto on maximizing marketing ROI. Then, you can use our 2 free tools to help you assess your inventory advertising needs:

  1. The VIN-View Optimizer shows you how many VIN views each vehicle on your lot is getting, by source. You then know where to focus your ad spend - towards the cars needing more attention.
  2. The CPC Optimizer calculates how much dealers can save on AdWords costs-per-click and the results they are likely to experience with LotLinx Deeplinking™ for Facebook. You will find out the optimum amount of your AdWords spend to re-allocate towards LotLinx for Facebook.

Dealers who have started using LotLinx Deeplinking™ for Facebook are experiencing 44% better results than AdWords, at 66% less cost. Watch the recorded webinar to learn more!