By now, you have to be coming to the realization that Facebook isn’t going away. According to PEW Research almost 70% of US adults now use Facebook. If you add Instagram into the equation you are talking about 80%+ of car buyers in the united states are using the two networks combined.
Over the past two years, our company has spent millions of dollars on Facebook & Instagram marketing for automotive dealers across the country. We have dealerships in markets of 4,000 people spending over $20,000 per month on Facebook & Instagram marketing. There seems to be no end to the number of leads we can pull out of the two social networks.
Here is a sampling of $3.5 million spent on Facebook & Instagram ads for automotive dealers across the country. This is 100% Facebook & Instagram Lead Generation Ads. You will see we have a lead volume and lead cost on the chart. If you are unfamiliar with Lead Generation ads. You should read up on here: https://www.facebook.com/business/learn/facebook-create-ad-lead-ads
You can see that the average lead cost is a just under $17 per lead. From our experience, you can generate leads for car buyers off of Facebook & Instagram ranging from $3 to $25 depending on the type of lead you are looking for.
Example: Offering to pay more for a customers trade-in, we call them Buyback ads, will get leads at a much cheaper cost than trying to get leads for a BMW lease. The audience size of people looking for a higher price on their trade is much greater than the audience size of people looking to lease a BMW.
One of the unique viewpoints our company has with these Facebook & Instagram leads, is the fact we have text messaged all of them. We know exactly what the engagement rates are and what is converting for our clients. We have clients who have built such massive Text Message lead funnels with these Facebook & Instagram leads that they are selling cars for as low as $89 per car sold!
Many advertising agencies receive commissions or kickbacks from networks to run Radio and TV ads on those networks. They also receive kickbacks from Google to spend your budget on Google AdWords. Facebook & Instagram do not offer agency kickbacks at this time.
Therefore, most agencies do not see value in moving your budgets over the social networks. Many dealers end up with some basic content posted on their Facebook & Instagram pages with no real strategy put behind how you will convert car deals. This won’t be a popular opinion, but it is the flat out truth. If your agency is not working with you to spend larger portions of your budget on Facebook & Instagram, you should consider finding a new agency.
You should be spending at bare minimum 30% of your budget up to 50% of your budget on Facebook & Instagram advertising. If you are not spending that much and think you should be spending more. I would be happy to review what you are spending, and provide you with sample ads you can use.
Just hit the Text Us button and ask to speak with Jason Girdner.