Four Best Practices to Drive Results From Targeted Social Advertising with DMS Data
Out of the 24 times customers interact with dealerships, 19 of those are digital. This means that ensuring that your dealership is set up to engage the right shoppers with your online inventory is more important than ever. A dealership’s DMS database is the perfect tool to access highly targeted audiences that have already connected with your brand. DMS Audiences are readily accessible, so you just need to decide which customer segments you’re ready to digitally reconnect with.
Facebook is extremely conducive to first-party data integration and allows dealerships to specifically target audiences made from existing customer segments. Their platform allows you to match customers in your DMS with user profiles on Facebook and Instagram. Understanding best practices will allow you to maximize the value of delivering very specific ads customized to every stage of each customer’s automotive journey.
Here's how you can apply best practices for better results.
DMS audiences should never fall into the category of “set it and forget it”. These audience pools are dynamic and constantly changing. Your Facebook campaigns should accommodate these changes so you are only delivering campaigns to the most relevant audiences. Work with a vendor that can provide technology that will automate a daily data refresh on your DMS audiences so you get fresh data each day.
Deploying a Facebook or Instagram ad campaign targeted at DMS audiences will have the most impact if the content of the ad is specific to the needs and nature of each given audience. It’s important to take the time and build out advertisements that will connect with each audience segment. Understand which ad template may make the most sense to communicate your message – VIN-level Automotive Inventory Ads? Display Ads? Video ads? Then, adjust your creative and messaging to meet the needs of each DMS audience.
When you are mining your DMS data, you may find that many DMS audiences are not large enough to execute a Facebook campaign that performs. It is often more effective to identify several DMS audiences that can be layered into a single campaign. For example, if you want to drive customer transactions, it would make sense to create a single DMS audience comprised of Trade-ups (based on service records over 100,000 miles) and Likely Rebuyers (3-5 years from their most recent vehicle purchase). Finally, leverage your DMS data for acquisition by allowing Facebook to deliver your ads to “lookalike” audiences based on characteristics of your existing customer base.
Equally as important as using your DMS data for customer targeting is using your DMS data for sales attribution. This helps to provide a clear understanding of ROAS (Return on Ad Spend). DMS data can be uploaded to Facebook so records of VINs sold can be matched to ad impressions, clicks and leads submitted, giving you a comprehensive understanding of the results your ad investment ultimately delivered.
Tackling all of these best practices can be time-intensive and difficult to implement. We recommend working with a vendor that can efficiently manage the setup and delivery of your DMS audiences as part of your paid social advertising strategy, like CDK Social Suite. There’s a gold mine of customer data in your DMS to help drive better performance of your social campaigns, so consider the benefits of engaging customers at strategic moments in their automotive journey on Facebook and Instagram.