Launched in August 2000, Dearborn, Mich.-based FordDirect.com is a unique joint venture between Ford Motor Company and 3,900 U.S. Ford Motor Company franchise dealers. FordDirect enables car shoppers to build, price and view inventory of new and used Ford vehicles online. Local dealers provide offline support by stocking vehicles, arranging test drives, handling trade-ins, locating hard-to-find vehicles and servicing cars and trucks after the sale. FordDirect sold more than 180,000 new vehicles in 2003, its first full year of operation, and the number of sales is expected to grow considerably in the future.
| "Google
AdWords opened our eyes to the potential of reaching buyers more
effectively through keyword advertising" |
Approach
To keep pace with the growing consumer expectation
that every step of the buying decision for vehicles can occur online,
FordDirect began exploring the requirements for a website to attract
buyers – not just browsers or information-gatherers – three
years ago. A challenge then and now, says FordDirect president and COO
Steve St. Andre, is to attract car buyers to the website "throughout
all stages of the purchase consideration process." A key element of
FordDirect's marketing effort, St. Andre says, is Google. "It opened
our eyes to the potential of reaching buyers more effectively through
keyword advertising," he says. FordDirect initiated a Google AdWords™
campaign in June 2003. The company's two major goals were to attract
shoppers to the online tools and services FordDirect offers, and to
convert lookers into Ford buyers.
Results
FordDirect tracks three important online
metrics: conversion of click to lead; cost-per-lead; and advertising
cost for every vehicle sold. "We were amazed from the start by the volume
and quality of traffic that Google has provided to the FordDirect business,"
says St. Andre. "We learned quickly that search advertising has the
ability to target customers at levels other online media cannot match."
Since initiating a keyword advertising campaign with Google, St. Andre
continues, "Our volume of traffic has increased consistently, and driven
more customers to Ford dealers." St. Andre says the level of traffic
Google could generate was never in question. "But what we were most
impressed with was Google's ability to drive relevant traffic by narrowing
in on the keywords that provided the best ROI." St. Andre knows precisely
what his return from Google AdWords is: a steady conversion rate of
more than 5 percent from clickthrough to active lead. What's more, with
AdWords, the cost-per-lead remains under $5. In addition, he notes,
"The ultimate measure is our advertising cost-per-vehicle sold. With
AdWords, we're spending less than $100, tracking the offline purchase
from online lead." Compared to the traditional media spend, Google provides
FordDirect significant savings: In 2002, auto manufacturers spent $508
on average to advertise each vehicle sold.*
For FordDirect, there's not much nostalgia for pre-Internet days. As
St. Andre puts it, "Because using Google has kept our cost-per-lead
and our cost-per-sale so low, we've been able to allocate a greater
portion of our budget to Google keyword advertising – and deliver
more customers in the process." Which is why, he concludes, "Google
AdWords will continue to grow as a percentage of FordDirect.com's total
marketing spend."
*2003 Automotive News Market Data Book.
About Google Advertising
Google AdWords is currently used by
thousands of businesses worldwide
to gain new customers in a cost-effective
way. AdWords uses keywords to precisely target
ad delivery to web users seeking information about a particular product
or service. The program is based on cost-per-click (CPC) pricing, so
advertisers only pay when an ad is clicked on. Advertisers can take
advantage of an extremely broad distribution network, and choose the
level of support and spending appropriate for their business. For more
information, go to www.google.com/ads.
