You’re Paying 1814% More Than You Should
1814% seems like a ridiculous number – yes? (it gets higher), but I assure you, this was calculated using real world data from 2017 that I will get into shortly.
This revolves around dealerships and their AdWords accounts. As we audit accounts on behalf of dealers and sometimes take over the management of Adwords accounts, we often find all kinds of waste, some of it small, and other times thousands wasted.
It would have been thousands more wasted had we not stopped the bleeding.
Bidding On Your Brand Name
This is a two-sided discussion – is it good? is it bad? This article isn’t about picking a side. It’s about making sure that whichever side you are on, you’re not paying for it unknowingly, or you’re not overpaying for it. That’s right, even though you don’t bid on your own brand name, you could still be showing up for your brand name search unknowningly.
We created a silo strategy that has saved our dealers thousands of dollars every single month (combined). For large groups this is off the charts; for independents, it’s a nice savings; but for groups, it’s a compound problem.
To clarify what I mean by your brand name, I’m talking about people going to Google and doing a search for the name of the dealership. e.g. “<city> toyota” or something a little more unique like a lot of family named dealers “mckillop motors”. The organic listing will appear #1 on Google for these searches, so the argument is – why bother paying for an ad as well?
We don’t need to decide that (that is another topic). But let’s walk through some data and see how many dealers are spending anywhere between 1000-6000+% more than they should on brand keywords.
Here are screenshots from some of our dealers big and small, all different OEMs, in different areas. These represent searches on dealership names between Jan 1, 2017 and June 14, 2017 from some of our dealers.
Let’s do some math here from the screenshots above:
- 12,409 clicks
- $486.21 total cost
- $0.04 average cost per click (CPC)
When you don’t silo your brand name, you mix it with the rest of your keywords and bidding. Let’s see what 12,409 clicks would cost if these are all mixed with the rest of your campaigns/keyword bids:
- $0.50 CPC = $6,204.50 or 1176.09% increase.
- $0.75 CPC = $9,306.75 or 1814.14% increase.
- $1.25 CPC = $15,511.25 or 3090.24% increase.
- $1.75 CPC = $21,715.75 or 4366.33% increase.
- $2.30 CPC = $28,540.80 or 5770.04% increase.
I just went with a scale to give you some rough numbers, and the 5770.04% increase was from an actual dealership we just started with this month. That was the cost of clicks going to their own dealership name. Imagine knowing you paid 5770.04% MORE than you should have, how happy would you be?
How To Find/Fix The Problem
How do you find out where the holes are? You need to look at your Search Terms Report. Find which keywords you are bidding on right now, that are matching up with your brand name searches.
Find the wholes and plug them using negative keywords. Need step-by-step instructions? That’s what we do and why people choose to work with a Premier Google Partner specialized in automotive.
Ready to save some cash? Give us a call.