Case Studies Measuring the Impact of Automotive Online Advertising

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	Measuring the Impact of Automotive Online Advertising

Measuring the Impact of Automotive Online Advertising

Technology Category	Analytics & Modeling - Predictive Analytics Analytics & Modeling - Real Time Analytics
Applicable Industries	Automotive Retail
Applicable Functions	Business Operation Sales & Marketing
Services	Data Science Services System Integration
Challenge	The automotive industry faces a significant challenge in accurately attributing car sales to digital marketing investments. Both digital marketing providers and auto manufacturers need to confidently attribute sales to different marketing channels to ensure optimal allocation of advertising budgets. This challenge is compounded by the fact that consumers cannot purchase vehicles online, making it difficult to measure the direct impact of digital marketing efforts on car sales. Read More
About Customer	The customer in this case study is a leading digital marketing provider that serves automotive dealerships. This company offers a range of online advertising services designed to help dealerships increase their vehicle sales. The digital marketing provider leverages advanced analytics to measure the impact of its services and demonstrate their value to dealership customers. The company operates on a large scale, serving numerous dealerships across the United States, and focuses on helping these dealerships optimize their marketing strategies to achieve better sales outcomes. Read More
Solution	APT’s Test & Learn software was employed to address the attribution challenge. The software uses proprietary analytics to isolate the cause-and-effect relationship between strategic initiatives and key metrics like vehicle sales. The digital marketing provider used Test & Learn to identify past occurrences where dealerships subscribed to or cancelled their products. By matching these 'test dealerships' to control dealerships with similar financial patterns, the company could clearly quantify the sales impact of adding or cancelling their services. The software also segmented results by various dealership and demographic attributes, enabling a detailed understanding of the impact across different types of dealerships and regions. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Analytics & Modeling - Real Time Analytics

Applicable Industries

Automotive

Retail

Applicable Functions

Business Operation

Sales & Marketing

Services

Data Science Services

System Integration

Challenge

The automotive industry faces a significant challenge in accurately attributing car sales to digital marketing investments. Both digital marketing providers and auto manufacturers need to confidently attribute sales to different marketing channels to ensure optimal allocation of advertising budgets. This challenge is compounded by the fact that consumers cannot purchase vehicles online, making it difficult to measure the direct impact of digital marketing efforts on car sales.

About Customer

The customer in this case study is a leading digital marketing provider that serves automotive dealerships. This company offers a range of online advertising services designed to help dealerships increase their vehicle sales. The digital marketing provider leverages advanced analytics to measure the impact of its services and demonstrate their value to dealership customers. The company operates on a large scale, serving numerous dealerships across the United States, and focuses on helping these dealerships optimize their marketing strategies to achieve better sales outcomes.

Solution

APT’s Test & Learn software was employed to address the attribution challenge. The software uses proprietary analytics to isolate the cause-and-effect relationship between strategic initiatives and key metrics like vehicle sales. The digital marketing provider used Test & Learn to identify past occurrences where dealerships subscribed to or cancelled their products. By matching these 'test dealerships' to control dealerships with similar financial patterns, the company could clearly quantify the sales impact of adding or cancelling their services. The software also segmented results by various dealership and demographic attributes, enabling a detailed understanding of the impact across different types of dealerships and regions.

Impact #1	The digital marketing provider was able to accurately measure the impact of its advertising services on dealership car sales.
Impact #2	Dealerships that added the provider's services experienced significant sales lifts, with franchise dealerships seeing a 9.4% increase in overall units and independent dealerships experiencing a 30% lift.
Impact #3	The software enabled the company to break out the sales impact by dealer type and car type, providing detailed insights into the effectiveness of their services.

Impact #1

The digital marketing provider was able to accurately measure the impact of its advertising services on dealership car sales.

Impact #2

Dealerships that added the provider's services experienced significant sales lifts, with franchise dealerships seeing a 9.4% increase in overall units and independent dealerships experiencing a 30% lift.

Impact #3

The software enabled the company to break out the sales impact by dealer type and car type, providing detailed insights into the effectiveness of their services.

Benefit #1	Dealerships that added the provider's services experienced a 12.5% increase in overall units, or nearly 5 cars per month in the first 6 months.
Benefit #2	Franchise dealerships saw a 10.8% increase in new car sales and a 5.4% lift in used car units.
Benefit #3	Annual service subscriptions drove a 415% ROI for franchise dealerships, generating a $217,000 net benefit per dealer.

Benefit #1

Dealerships that added the provider's services experienced a 12.5% increase in overall units, or nearly 5 cars per month in the first 6 months.

Benefit #2

Franchise dealerships saw a 10.8% increase in new car sales and a 5.4% lift in used car units.

Benefit #3

Annual service subscriptions drove a 415% ROI for franchise dealerships, generating a $217,000 net benefit per dealer.

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Overview

Measuring the Impact of Automotive Online Advertising

Operational Impact

Quantitative Benefit