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BizReport : Social Marketing : November 18, 2015

New Facebook ad formats encouraging automotive ad spend

Research from full service marketing agency HPS Group reveals new ad formats on Facebook are attracting an increasing share of ad spending from automotive brands.

by Helen Leggatt

HPS Group's latest 'Automotive Facebook Advertising Benchmark Report' (Q3 2015) has been released and reveals that automotive marketers have continued to increase ad campaign spending on the social network. According to Martin Watts, associate director of digital marketing at HPS, automotive retailer campaign activity has increased and more retailers are running campaigns for servicing and after-sales.

"Used car listings are proving to work exceptionally well with Facebook's carousel ad format. I think we could see a real shift in spend away from dedicated used car sites over to Facebook and Instagram as we head into 2016," said Watts, adding that new ad products on the social network, both now and in the figure, "will really make a difference to automotive retailers, such as the recently launched 'lead gen ad'. We've run some trials and have seen the cost per lead drop by nearly 80% when compared to 'Click to website' ads."

Additional findings from the report include:

- Automotive CPM average cost of $1.87 is significantly lower than global CPM and has stayed at the same level compared with global CPM increase of 28%;

- All automotive ad placements saw a drop in CTR in Q3 2015 (excluding right hand side ads which remained on par with previous quarter); meanwhile global CTR grew 9% QoQ.

Image via Shutterstock

Tags: advertising, automotive vertical, marketing, social

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