The challenge
Challenge. Estimate the impact of advertising investment on sales for one of the largest brands in the automotive industry.
Strategy. Consider traffic to the dealership as demand. Analyze the behavior of that traffic and its response to marketing, and the path to conversion from demand to sales.
Approach. Estimate the effect of marketing activity on in-store traffic through marketing mix modelling, and estimate the effect of in-store traffic on final sales.
Outcomes
3 out of 10 people who visit car dealers are driven by marketing efforts, which enables a 30% conversion of those who end up buying a car.
Purchasing power accounts for 12% of the growing demand (the relationship between the macroeconomic situation and the product price).
- Marketing efforts represent 32% of incremental automotive demand.
- Rising prices have a negative impact on sales, which marketing efforts should offset.
View data
| Index | |
|---|---|
| Base | +2.04 |
| Macro trends | +2.91 |
| Price | −2.47 |
| Media | +1.16 |
Digital marketing efforts are the most important to increase car demand, along with paid TV.
View data
| Attribution | |
|---|---|
| Paid search | 2.0 |
| Paid TV | 1.2 |
| Organic visits | 1.2 |
| Radio | 1.0 |
| Others | 0.2 |
- Search and site visits are key touchpoints in the buying process to increase demand.
- SEO, SEM, display and video play a very important role in increasing search and site visits as demand generators.
Actions
Leverage digital investment. A deep understanding of the consumer cycle makes it possible to optimize every touchpoint across the purchase journey.
- 01MediaOnline and offline media (TV, press and magazines).
- 02Web searchThe online search that media generate.
- 03Site visitThe brand’s website.
- 04Dealership traffic and leadsStore visits and potential customers.
- 05Final salesAlong with the financial process, interest rates and the sales force; all on top of the base and the macroeconomic context.
- Increase organic search and visits through offline investment (synergies).
- Reach potential consumers through online investment and site visits (synergies).
- Optimize the site to turn visits into dealership traffic (conversion).
- The change in the media mix, which increased online investment by 22% in the new marketing strategy, resulted in 34% more dealership traffic.