Dealers urged to review underused Facebook inventory ads to increase sales

Time 9:00 am, February 20, 2020

DEALERS are failing to fully maximise on the opportunity presented by Facebook automotive inventory ads.

That’s according to specialist digital marketing agency Honchō, which is advising them to reassess the way they use Facebook ads to create greater engagement with in-market new and used cars buyers using Facebook and Instagram.

Facebook expanded its automotive inventory ads service just over 12 months ago to enable dealers to target potential buyers searching online for a car. Previously, it had been limited to buyers who had visited the dealer’s website or used their app.

Honchō said its audit of the way dealers use the service had found a failure to capitalise on its expanded reach.

John Clarke, Honchō’s paid social media specialist, said: ‘Facebook automotive inventory ads are more powerful than before, offering a highly targeted solution which can be up to 40 per cent cheaper than Google ads, yet many dealers are failing to use them to reach in-market buyers.

‘A common mistake we see is dealers bundling different brands and models into the same ads. Instead, they should be creating individual ads containing just one car brand and a single model which they can then build an audience around.’

Honchō believes Facebook automotive inventory ads could help boost new car sales with the introduction of the 20-plate.

‘In the run-up to the March plate change, our advice to dealers would be to create product sets within their Facebook inventory featuring a specific brand and a 20-plate model.

‘Buyers searching for that make and model will then only see dedicated ads which can be based around any special promotions or to market pre-registered stock. This will increase the propensity of buyers to engage with the dealership,’ said Clarke.

Honchō says dealers who adopt Facebook automotive inventory ads are likely to see a large increase in their paid social returns, with conversion rates typically rising by 25 per cent.

‘Dealers who are yet to adopt Facebook automotive inventory ads are failing to maximise on the value of their paid social efforts.’

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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