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Herb Anderson
10/28/2024
Maximizing Digital Advertising ROI with carumai
Why Traditional Digital Ads Aren't Effective for Every Type of Inventory

For years, platforms like Google, AutoTrader, and Cars.com have evolved their offerings to help dealers promote inventory. Vehicle Listing Ads (VLAs), for example, have become popular with agencies and dealerships to boost visibility for everything from new and used vehicles to older, aging stock. While visibility on top search engines can be effective, it's crucial to recognize that, for certain vehicles on your lot, these campaigns can lead to wasted ad dollars and efforts, often with little to show for it.

The Challenge with Aged Inventory

The primary challenge with moving aged inventory lies beyond exposure. Some units, fully merchandised, competitively priced, and already generating views and leads, may not benefit from further ad spending. In other cases, certain vehicles have low search volume, meaning they're rarely looked for online, so traditional ad strategies are unlikely to spark much activity. These "C" and "D" units don't see the same engagement boost that "A" units get on these popular ad strategies. Additionally, many potential buyers may overlook these vehicles due to misconceptions or a lack of awareness.

How carumai's VIN-Specific Solution Addresses This Gap

At carumai, we've transformed inventory promotion using machine learning and predictive models tailored to each VIN. Our platform analyzes traffic on your site—organic and paid—alongside third-party vendor data to assess which vehicles will benefit most from additional promotion. Instead of pouring ad dollars into units that aren't likely to sell or have already maximized digital exposure, carumai identifies which vehicles genuinely need a push to generate demand.

Our VIN-specific ads drive interested buyers directly to the Vehicle Detail Pages (VDPs), allowing them to find all the information they need about a car. This focused approach increases your chances of converting online interest into showroom traffic, ultimately leading to sales. With carumai, you're not waiting for buyers to search for aging inventory; you're actively creating demand across platforms, giving your underexposed units the lift they need to move off the lot.

Real Data, Real Results with carumai Manager SRP
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Using carumai Manager's SRP, you can filter down to any configuration (in this example, vehicles aged 45 to 60 days). Here, the dealership has 156 units that fit this range, with an average age of 54.4 days. These vehicles show an average of 362 VDP views and 3.34 leads per unit, with an average listed price of $35,000.

This data indicates that not all of these vehicles require additional ad spending, as some have already generated enough activity to move off the lot. Others, however, could genuinely benefit from targeted investment. carumai makes identifying which units need that extra push fast and easy, allowing you to allocate your budget where it truly counts.

Case Studies: Targeted Ad Spend for Better ROI
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Consider one example: a vehicle that's been listed for 46 days, receiving only 34 views, with no leads, appointments, or advertising spending, indicating that current ad strategies aren't effective for this unit. This vehicle clearly would benefit from carumai's targeted ad spends and a proactive strategy to bring it into potential buyers' consideration. Relying solely on intent-based approaches doesn't work here, as there are minimal interest in this vehicle.

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In contrast, here's another vehicle from this same filter group. Over the same 46-day period, this vehicle has accumulated 374 VDP views, 21 leads, and 2 appointments, with $524.12 spent on advertising. Notably, most of its VDP views are organic, the highest quality traffic you can drive to your website. This vehicle already has enough digital activity to sell, so why continue allocating funds here when another unit, like the previous example, is in greater need of exposure?

Optimize Your Ad Spend with carumai's VIN-Ads AI

Traditional advertising approaches often waste funds by focusing on vehicles that already have ample digital engagement to sell, while overlooking those that truly need more exposure. This imbalance is a the key reason why some cars sit on your lot for extended periods; ad dollars are directed toward units that don't need them or they drain your digital activity on intent-based campaign efforts like search ads and third-party classified listings, while underexposed vehicles continue to go unnoticed month after month.

With carumai's VIN-ads AI, you can stop wasting ad dollars. Our system automatically reallocates spending away from vehicles that don't need it, focusing instead on units that require visibility from day one. This automated strategy prevents waste spending, keeps your advertising targeted, and protects your profit opportunities before they diminish over time.

Ready to Maximize Your Advertising Efficiency?

If you're ready to transform your dealership's ad strategy, schedule a carumai demo today by clicking here.

carumai: Better Ads, Less Fees.

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