The Power of KPI Tracking and Conversion Optimization for Automotive Social Advertising to Increase ROI
For many years, SimpSocial has been operating nationwide lead-generation campaigns for auto dealers. Instead of website clicks that have a low lead conversion rate, lead generation advertising allows us to generate leads straight from Facebook and Instagram. We have spent tens of millions and created hundreds of thousands of leads at an average cost of $5 per lead.
We collaborate closely with the development team at META to teach their algorithms conversion optimization in order to further enhance our lead-generation efforts. Before, lead conversion was the sole factor that could be used to optimize ads. This implied that META’s algorithms would modify the advertising to target more people with bad credit if a client clicked on an ad and submitted a lead. Unfortunately, this led to a significant concentration of clients who lacked the credit necessary to buy a car.
We can now, however, optimize ads based on high-quality clients because we concentrated on training the algorithm on sold units rather than merely leads. As a result, Facebook and Instagram ads now bring in far higher-quality customers. We are able to assist our clients in attracting the correct kind of customers and prevent them from squandering their advertising budget on low-quality leads by concentrating on clients who not only submit a lead but also arrange an appointment, show up for the appointment, and purchase a vehicle.
SimpSocial also monitors four KPIs that have improved our ability to convert these leads. These include cost per visit, cost per show, cost per lead, and cost per sale. By monitoring these KPIs, we can determine where the lead generation process needs to be improved and make the necessary adjustments.
One of the best kinds of advertising for auto dealers is automotive social media marketing. With billions of individuals actively using social media sites like Facebook and Instagram, these platforms have enormous audiences. This implies that auto dealers, irrespective of their size or budget, have the ability to reach a wide audience with their advertisements. Furthermore, social media networks offer advanced targeting options that let businesses target ads toward particular demographics, hobbies, and behaviors. This increases the likelihood of conversion by ensuring that the proper people see the adverts.
We’ve been able to improve META’s conversion algorithms through our ongoing cooperation with their team so that they put more of an emphasis on producing high-quality leads that lead to auto sales. We have produced hundreds of thousands of leads for our automotive clients nationally over the past seven years, with an average lead cost of $5. Cost Per Lead, Cost Per Appointment, Cost Per Show, and Cost Per Sold are the four key performance indicators (KPIs) that we monitor in order to continuously improve our lead generation process and assist our clients in achieving their business objectives. Social media advertising is a very cost-effective choice for auto dealers trying to maximize their return on investment, as we’ve observed an average cost per car sold of $250.
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