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Multi Channel
Aug 1, 2022
In Progress
$10,500.00 USD

Revolutionizing Car Dealership Ads: A Risky Move for Remarkable Success

We encountered a client who had faced challenges related to low search impression shares and the inadequate visibility of crucial keywords in search results. When these keywords did appear, they often ranked poorly. Furthermore, the website’s conversion rate was disappointingly low. The client, operating in the car dealership industry, specifically struggled with selling certain car makes and models. Unfortunately, due to an inefficient ad account structure, the client couldn’t accurately calculate lead conversion rates and sales rates for individual models. The absence of control over budget allocation made it even more difficult to enhance sales for specific models or makes. With a vast campaign containing around 2500 keywords, it was clear that a new strategy was needed.

To address these challenges and the unique aspects of the business, a comprehensive strategy was devised. Initially, the conversion rates for each make and model (approximately 150 in total) were meticulously calculated. Subsequently, lead-to-sale conversion rates, cost per lead, and cost per sale were computed for all makes and models. This detailed analysis identified the best-selling makes and models within each category, which were then categorized as high, medium, or low priority.

The distribution of the budget was strategically divided among these priority groups. High-priority makes received 30% of the budget, medium-priority makes received 20%, and low-priority makes received 10%. An additional 20% was allocated for remarketing and brand awareness campaigns. The remaining funds were dedicated to general keywords such as “car buying agent” and “car buying service.” To bolster brand awareness, a comprehensive approach was taken, involving PMAX, Display, and YouTube ads to ensure wide-reaching visibility.

For targeting specific makes and models, separate campaigns were established, each assigned a budget based on conversion rates and costs per lead and sale. Employing a maximize conversion bidding strategy, target cost per acquisition was set at the ad group level, granting better control over each model of every make. By configuring the target CPA, a flexible approach was adopted, allowing adjustments in spending for different models based on their individual conversion rates.


Initially, it seemed that all the necessary steps had been taken, but a new challenge emerged. Prominent brands like “Toyota,” “BMW,” and “Mercedes” were also conducting advertising campaigns in the same targeted location. Given the budget constraints, it was apparent that competing with these well-known brands in terms of keyword competition and ranking was a daunting task. About a week into running the ads, a strategic adjustment was made.

Instead of persisting with the “maximize conversion” bidding strategy, a bold decision was made to switch to a “target impression share” approach. The campaign now aimed for an absolute top impression share of 70%. This decision was considered risky due to the anticipated significant increase in cost per click. However, this calculated risk was embraced, recognizing that pushing boundaries often leads to innovative solutions.

The outcome was a resounding success. Impressions skyrocketed, increasing roughly tenfold to an impressive daily count of 40,000 from an initial 3,000. Conversion rates experienced a substantial boost as well, with daily conversions surging to 80-90 from the earlier 20-25. This surge in performance translated to increased revenue for the business, enabling it to allocate more funds towards advertising. Remarkably, within a mere six months, the ad spend increased nearly 5 times. This success underscored the value of daring decisions in shaping best practices.

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