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Many Auto Dealers invest heavily in advertising and various other lead-generation activities – or at least they did before the current industry crisis!

So why not have a look at who is offering to provide leads, and how cost-effective they might be….

First thing that strikes me is that most claim to be leaders in providing leads!

Well….

“… the industry’s leading provider of the highest quality,
Internet-generated consumer leads to auto dealers nationwide, today
announced the launch of a used car inventory pay-per-lead program for
dealerships. …”

iSM Today | Automotive Internet Sales Resource – AutoUSA Launches …

Let’s first review online lead generation options – according to Harlene Doane, Auto Dealer Monthly’s Operations Director, some “dealers are reporting a shift to more online marketing…” – should you be one of them?

Broadly, a dealer’s options are:

1. Use 3rd party lead providers

2. Develop own website
– buy qualified traffic eg PPC – Google Adwords
– organic search marketing
– social media marketing
– email marketing
– use off-line promotions (ads, mailings, etc) to send prospects to website offer

Selection Criteria:
– Cost: <$30 / lead
– Info completeness eg name, phone, address, income, acceptable call window, etc

See the comparison of 3rd party vs own website in the article below. (Comes out strongly in favor of doing your own lead generation.)

Automotive Lead Generation from an Auto Dealer Monthly Perspective

Doane goes on to say that “it’s not enough to know the cost per sale of third-party lead providers, but instead you must know the cost per sale of each third-party lead provider individually…Cutting advertising isn’t always a prudent …

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