EXPERTISE / AUTOMOTIVE INDUSTRY

The Automotive industry sector has given us many challenges we have been able to solve
challenge
1

The automotive industry: how many cars can I sell with the help of the Internet?

One of our automotive clients was convinced they needed to invest more online, although they had no hard data on the effectiveness of the medium, neither were they sure about the optimal levels of investment they should make in Display and Search.

On the other hand they needed to know whether there was synergy between online and offline media and be able to quantify it.

Were they missing an opportunity for growth?

Solution:

We designed a system of equations that would mathematically replicate the buying process of a vehicle, and indicate how to invest in each media and how it would impact each of the stages.

Actions Carried out:

Macroeconomic and industry data were collected, as well as brand specific data and competitor data.

In addition, a comprehensive database was created integrating advertising information from offline, display, and actual data from online search generated by keyword categories.

From all this information a system of equations was built, for 3 cars of the same make, with over 36 econometric models.

Results:

We detected that SEM was the most effective media generating new customers, providing 51% of the total contribution of total marketing to web visits, which was the main lever to generate visits to the dealer (72%), and therefore sales.

We found that improving rankings in search engine results increased clicks by +49%

We succeeded in quantifying the synergy between TV and SEM, and its duration in time, allowing our client to optimize spending.

Finally, we were able to recommend an optimal media mix, increase display from 8% to 9% of spend, and SEM from 0.3% to 5.9%.

System of equations

System of equations
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