How do Google Vehicle Ads work?

Imagine a potential customer searching for a car. She's interested in a few models and wants to learn more. They begin by typing ‘Land Rover Defender’ into Google. At this point, Google’s algorithms spring into action. The most relevant cars are displayed through a digital 'shop window' at the top of the search results. These are drawn from Vehicle Listing Ads (VLA) data feeds, showcasing vehicles that match the search query.

The customer sees all the key information, such as pricing, condition, and mileage, all crucial factors that can influence a purchase decision. Mohammed Mubashir Lone, Senior Multichannel Strategist at Google, mentioned in a recent discussion panel during Car Dealer Live 2024, ‘Providing potential buyers with instant access to detailed vehicle information through these ads significantly enhances the consumer's decision-making process.’

The customer can browse through different models and decide which one they want to explore further. Let’s say they choose a model. With a simple click on the ad, they are directed straight to the producer’s or dealer’s website featuring their selected car. This streamlined process is designed to reduce friction, making it easier for customers to proceed with their purchase, a feature that Mubashir Lone emphasizes as vital in today's fast-paced digital environment.

One of the key strengths of Google Vehicle Ads is their use of AI and machine learning. These technologies help ensure that the most relevant ads are shown to the right users at the right time. For example, if a user frequently searches for BMW X3 models, the system will prioritize showing them ads for that specific vehicle.

What’s important, Google Vehicle Ads work across all Google platforms, not just search!

Advantages of Google Vehicle Ads

Better Targeting

One of the biggest advantages of Google VLAs for OEMs and dealers is enhanced targeting. Advanced options, such as demographics, interests, and search themes, ensure that ads reach users who are most likely to be interested in the products. This targeted approach maximizes the efficiency of advertising spend and boosts the overall effectiveness of campaigns.

Moreover, businesses can leverage behavioral targeting to connect with customers who have already shown interest in similar products or services, enabling a more tailored marketing strategy. By focusing on specific audiences, companies can optimize their advertising spend, increase conversion rates, and achieve greater success in their marketing campaigns.

Shorter direct conversion path

Customers see exactly what they want and can quickly click on the ad, bringing them closer to conversion. Strategic actions like dealer contact or lead form submissions further streamline the conversion process.

Call-to-Action flexibility

Google Performance Max campaigns allow dealers to customize call-to-actions (CTAs) based on their specific goals. These could range from getting directions to a dealership, scheduling a test drive, or filling out a lead form.

This customization ensures that the company is driving the right actions from potential customers.

Improved ROI

Performance Max offers comprehensive reporting tools, enabling auto advertisers to track key metrics like impressions, clicks, conversions, and cost per acquisition. These data-driven insights empower advertisers to make informed decisions and optimize campaigns for maximum ROI, as evidenced by successful case studies across the auto industry (I mention a few further in the article).

The power of omnichannel marketing

Mohammed Mubashir Lone has consistently emphasized in the aforementioned interview, the importance of an omnichannel approach in automotive marketing. As he noted, “Omnichannel isn’t just a buzzword; it’s a necessity in today’s car market. Whether it’s online research or in-person dealership visits, customers expect a seamless experience.” 

Google Vehicle Ads play a crucial role in bridging the gap between online discovery and offline engagement, ensuring that the customer journey is as smooth as possible.

Results and impact of Google Vehicle Ads

As Google Vehicle Ads continue to roll out globally, their impact is becoming increasingly evident. 

The key to the success of Google Vehicle Ads lies in their ability to simplify the advertising process while enhancing targeting accuracy. According to the experts, such as Mathew Bennett, this tool provides a seamless transition from online searches to dealership visits, greatly increasing the chances of conversion.

Google’s approach, leveraging AI and machine learning, has automated many of the processes that were once time-consuming and required extensive manual input. As Badowiec notes, The integration with Google Ads means that even smaller dealerships can compete on a level playing field. The system takes care of the heavy lifting, leaving the businesses to focus on converting the leads into sales.

Moreover, the omnichannel capabilities of Google Vehicle Ads ensure that consumers receive a consistent experience, whether they're browsing online or visiting a dealership in person. This integration across multiple touchpoints is not just a technological advancement but a strategic necessity in today’s competitive market.

However, there are challenges to be mindful of. Google’s ecosystem can be complex, and while the platform offers powerful tools, the nuances of setting up campaigns correctly cannot be underestimated. As mentioned by Mubashir Lone in his interviews, missteps in setting up ads, particularly in defining the right goals and actions, can lead to less effective campaigns. 

But all in all, Google Vehicle Ads represent a significant advancement in digital advertising for the automotive industry. As the platform continues to evolve, it is poised to become an indispensable tool for the automotive market worldwide.

Case Studies highlighting the impact of Google Vehicle Ads

Who: Qvale Auto Group.

Why: They wanted to boost conversion rates and reduce advertising costs.

Results: After implementing Google Vehicle Ads with the help of DOM360, Qvale Auto Group achieved a 53% increase in conversions and a 12% reduction in cost per acquisition, showcasing the efficiency and effectiveness of the ad format.

Who: Asbury Automotive Group

Why: To enhance their digital presence and drive more qualified leads to their website.

Results: Asbury Automotive Group saw a 35% increase in website visits and a 15% increase in conversion rates after implementing Google Vehicle Ads. The ability to show relevant vehicles directly in search results helped them attract more serious buyers, leading to a higher return on their advertising spend.

Who: Ken Garff Automotive Group

Why: They wanted to improve the efficiency of their advertising budget and generate higher quality leads.

Results: Ken Garff Automotive Group reported a 20% increase in lead quality and a 10% reduction in cost per lead after adopting Google Vehicle Ads. The targeted nature of these ads allowed them to reach potential customers more effectively, translating into more sales and better overall marketing performance.

Who: Lithia Motors

Why: To effectively advertise a large inventory across numerous locations while maintaining up-to-date listings.

Results: Lithia Motors experienced a 30% increase in customer engagement and a 25% boost in sales after integrating Google Vehicle Ads. The automation and real-time updating of inventory listings made it easier for customers to find exactly what they were looking for, resulting in more sales and higher customer satisfaction.