Automotive Insights

Advertising Cost Per Vehicle Sold

Adaptiv always stands by the fact that we care about what our clients care about. Tangible leads and sales. Our success is reliant on your success. One item that we view as being relevant to some of our dealerships is their advertising cost per vehicle sold. In our previous experience of working both in dealerships and for a large auto group, we found that the average dealership should range $400-$500 per car, However, this isn't the case with most, often we see this number start in the mid $600's and climb up into the $1,000's.

One of our clients decided that they wanted to understand this number a little further. We had to identify what classified as an advertising cost*, how it was attributed to sales and once we had defined this, you can find your average and then plan accordingly to improve.

Adaptiv Marketing, Edmonton, Alberta

Please note that for confidentiality reasons, we are unable to disclose their financials. However, this graph is showing the general trend of when we started to see their advertising spend optimized.


In the graph below you can see the trend of their decreasing average advertising cost per vehicle sold. As you can see originally they averaged the high $600's, and by the time we got into the account and began optimizing their advertising spent, we managed to drop it down to the $300-$400 range on average.

Similar to some of our other case studies, this was about working with the clients to understand where their advertising dollars are best spent for maximum return on investment. This was achieved by looking at current opportunities generated vs what sold, how to generate more quality opportunities, and maximize on current spending.

*A few things to note are: each dealership is different from what they associate to an advertising cost. Some include balloon/helium in their budgets, others include promotional lunches, etc.  It is best to get this unedited raw data directly from your controller to see evaluate.

Cali Murray