TECOBI has been running lead generation ads for auto dealers nationwide for 7 years. We use lead generation ads because they give the ability to generate a lead directly from Facebook & Instagram instead of website clicks that have low conversion to lead. The average lead cost has been about $5 per lead, and we have spent tens of millions and generated hundreds of thousands of leads.
To further improve our lead generation efforts, we work closely with META's development team to train their algorithms on conversion optimization. Previously, ads could only be optimized based on lead conversion. This meant that if a bad credit customer clicked an ad and submitted a lead, META's algorithms would optimize the ads to target more customers like that. Unfortunately, this resulted in a large concentration of customers without sufficient credit to purchase a vehicle.
However, by focusing on training the algorithm on sold units, not just leads, we now have the ability to optimize ads based on high-quality customers. This has resulted in a much higher quality customer being generated from Facebook and Instagram ads. By focusing on customers who not only submit a lead, but also set an appointment, show up for the appointment, and buy a vehicle, we're able to help our clients attract the right kind of customers and avoid wasting their advertising budget on low-quality leads.
At TECOBI, we also track 4 KPIs that have helped us get better at converting these leads. These are cost per lead, cost per appointment, cost per show, and cost per sold. By tracking these KPIs, we can see where improvements need to be made in the lead generation process and make changes accordingly.
Automotive social advertising is one of the most effective forms of advertising for auto dealers. Social media platforms like Facebook and Instagram have massive audiences, with billions of active users worldwide. This means that auto dealers have the potential to reach a vast audience with their ads, regardless of their size or budget. Additionally, social media platforms have sophisticated targeting capabilities, allowing dealers to target their ads to specific demographics, interests, and behaviors. This ensures that the ads are seen by the right people, increasing the chances of conversion.
Through our ongoing collaboration with META's team, we've been able to optimize their conversion algorithms to focus on generating high-quality leads that result in car sales. Over the past seven years, we've generated hundreds of thousands of leads for our automotive clients nationwide, with an average lead cost of $5. By tracking four key performance indicators (KPIs) - Cost Per Lead, Cost Per Appointment, Cost Per Show, and Cost Per Sold - we're able to continually improve our lead generation process and help our clients achieve their business goals. On average, we've seen a cost per car sold of $250, making social media advertising a highly cost-effective option for auto dealers looking to maximize their return on investment.