Cox Automotive Inc. is launching an audience extension product designed to help automakers and regional associations boost the performance of their social media advertising.
The social media audience extension product utilizes anonymous website behavior data from Autotrader and Kelley Blue Book's KBB.com — two of the industry's most utilized third-party automotive shopping sites — and in turn allows advertisers to use this data to deliver highly targeted ads on Facebook and Instagram.
Unlike other automotive shopping targets that use old data in an attempt to predict future shopping behavior, Cox Automotive's social media audience extension program analyzes real-time browsing behavior to create highly targeted and unique advertising audiences for its clients.
According to the 2017 Cox Automotive Car Buyer Journey Study produced in connection with IHS, nearly three-quarters of all car shoppers visit Autotrader or KBB.com before making a purchase, giving the program access to a vast majority of the total automotive marketplace.
Cox Automotive collects and analyzes the shopping activity on its sites and intelligently segments car buyers by behaviors and preferences, including specific make, model, competitive or segment intender audiences. Advertisers can then target these segments on Facebook and Instagram with their own specific message, utilizing the multiple creative options and campaign objectives Facebook and Instagram offer.
Consumers increasingly rely on online research before purchasing, and it's critical to reach them where they are and at the right moment, said Adam Pavkov, director, product operations - social media at Cox Automotive.
“The program is geared for Tier 1 (OEM level) and Tier 2 (regional or large dealer groups) which focus on new or CPO sales,” Pavkov tells Marketing Daily.
Honda Motor Company was one of 29 early adopters of the product, he says.
"We're always looking for new ways to use data to make advertising more efficient and effective," said Dan Rodriguez, manager of auto remarketing certified pre-owned at American Honda Motor Co. "This product has helped us more accurately identify in-market shoppers and narrowly target our messaging, and we're excited by the results.”
Compared to Facebook or Instagram campaigns using data provided by other companies, advertisers using Cox Automotive's data reported on average 64% higher click-thru rates, 497% higher conversion rates with a 57% lower cost per conversion.2 For campaigns targeting conquest and segment audiences, Cox Automotive's data resulted in 39% higher click-thru rates, 175% higher conversion rates and 22% lower cost per conversion.
Additionally, campaigns targeting audiences modeled after retention shoppers outperformed competitor–based campaigns with a 310% higher click-thru rate and a 72% lower cost per click.
‘We strategically chose to start with Facebook and Instagram based on where our dealer clients are spending their money, but we are constantly exploring current and emerging platforms, particularly with the growth of digital usage with today’s car shoppers,” Pavkov says.