Schedule More Test Drives Using Facebook "Lead Gen" Ads

1000% ROI With Facebook - Do I have Your Attention Yet?

As the cost of running a dealership continues to rise, and savvy consumers are further enabled by tools like Auto Trader, profits are suffering. In a time when margins are decreasing, the only answer should be to sell more! I'm going to show you how to do exactly that, using Facebook.

What Are Facebook Ads?

Facebook Ads are a low cost, highly targetable, extremely effective tool, that all dealerships should leverage. For the price of your daily coffee run, your dealership can generate dozens of qualified leads each week. 

Several types of Facebook Ads exist, but for the purpose of this article i'm going to be talking about "Lead Generation" ads. As I believe them to be the most under rated, yet highly effective way to schedule more test drives and ultimately increase your dealerships sales. .

What Are Lead Generation Ads?

Simply put, when building a Facebook Ad campaign, you're given a variety of Ad types to choose from. Each Ad type is optimized a little bit differently and provides slightly different functionality. So for the purpose of this article, as mentioned above, we're specifically talking about "Lead Generation" Ads. 

As described by Facebook, lead generation ads "Collect lead information from people interested in your business." So what exactly does this mean?

Basically, lead generation ads allow you to show an advertisement via Facebook to your target audience. If they like what they say, they can click to learn more. If they'd like to take advantage of whatever it is you're offering, they will be shown a page containing their pre-filled contact information. They will then submit this to you, and expect to hear back from a representative of your company. You will receive their contact information, and can follow up with the customer accordingly. That's pretty much the basics of how a "Lead Gen" advertisement works. 

Using Lead Gen Ads To Generate Test Drives

The intricacies of creating a high performing ad that convert, are far beyond the scope of this blow post. However the graphic below will give you an idea of how we're using Facebook lead generation ads to book test drives. 

Now the idea behind all of this is real simple. Show people an ad with something of value that they might want, tell them you will give them that "thing" in exchange for coming in for a test drive, and let them opt in right on the page. That's the beauty, lead gen ads make it so easy for customers to complete a form and opt in right from the ad it self. Check out the screenshot demo below of the 4 steps a customer goes through to book a test drive.

The 4 Parts of a Lead Gen Ad:

A lead gen ad is not simply just an ad. It's actual a 4 part sales funnel in which the customer discovers your offer, clicks through to learn more, opts in to claim the offer, and is brought to a thank you page. The whole process is outlined below.

Next Steps

After the user "converts" by going through the whole process above, now it's all up to you. In your Facebook ads dashboard, you will have access to download each lead in realtime. Simply check back once a day, download the leads, and send them to your sales rep or BDC. All leads should be contacted within 24 hours maximum, but the faster the better. If a sales rep can contact them within an hour of filling out this form, you have a 99% chance of having them come in for a test drive.

Your Big Question: How much does all this cost?

The answer is... as much as you want it to cost! 

Facebook allows you to allocate as much, or as little as you'd like to any give ad campaign. My suggestion is start with at least $20 a day. That should result in at least a dozen or so leads each week. But the more you can invest, the more customers you'll be able to bring through your dealerships doors.

The Bigger Question: What's my Dealerships ROI?

Actually it's pretty incredible. Think of it this way, for pre-owned vehicles the margin can range, but typically dealers are aiming for between $1000-$3500 in gross profit per vehicle depending on a few factors. But lets say you ran a Facebook Lead Gen ad, for $20 a day, promoting test drive for one month. You would spend a total of $600.

For a total spend of only $600, you would acquire somewhere between 35-45 leads! That is 35-45 customers who are telling you they want to test drive a car, and want to know when they can come in to do so. Now... if you convert just 1 customer out of all these leads, even worst case scenario you are making $1000 profit, and nearly 100% ROI! If your sales team cant convert 1 lead out of 45 who are asking to come in for a test drive. You have bigger problems here.

Most likely you will actually convert between 5 - 7 leads each month depending on your sales team and capabilities. Now assuming you net an average of $1500 per vehicle, you would be generating $7500 - $10,500 net profit each and every month. That's nearly a 1000% ROI. 

Let me RE-CAP:

AD SPEND $600/MONTH = $7500-$10,500 NET PROFIT

The numbers don't lie! This is something you as the Owner, GM, or Sales Manager need to evaluate. An extra 10k per month for spending even $1000 a month is an incredible opportunity. Especially if you own a dealer group, and implement this strategy across 10 of your locations, we're talking an extra $1,000,000 per year!!!! Why aren't you doing this already!


So why aren't more dealerships using this?

Because most of them have no idea this exists, and they are too busy shoveling buckets of money over to AutoTrader. But seriously, most dealerships are not even aware this functionality exists. Ask anyone you know that works at a dealership about Facebook Lead Gen ads. Unless they are already my client, chances are they won't know what you're talking about. 

The bottom line!

Make no mistake, once this catches on in a few years, and every dealership is doing it, it will cost a lot more to get the incredible results we can get now. But for now, there is massive money to made relatively easily. At least until everyone else catches on and joins the party. But for the next few years at least, this method is going to be a gold mine for a few select dealers.

Now to be honest, the true secret to success here is not just running an ad. It's all about how you run the ad, your audience targeting options, demographic settings, time of day and week you run the ads, etc. These are things that we've narrowed down here at Suits Social. We have a simple plug and play formula, and once you set up your ads once, you can just keep them running all year and easily maintain them yourself. 





This One Mistake Is Costing Dealerships Across Canada Millions!

Go Digital or Risk Extinction

Dealerships are at risk of going the way of Kodak. By clinging to the traditional way of doing business, they're missing out on huge opportunity and practically inviting startups to come in and disrupt their space. In particular i'm speaking in regards to the way they reach out, attract, and engage with new customers.

Customers are making decisions In A New Way

As of 2017, 90% of purchase decisions are now made online, failing to create a powerful presence in this space will have dire consequences. In the short term, this will result in countless customers and deals lost. In the long term, it will result in the downfall of the dealership as we know it, as startups work to bring high-tech into the world of automotive sales.

Let's Get Specific

Online presence is a broad term so lets narrow it down. The quantity and quality of your online reviews, social media profiles, and business listings all play a role in how customers find your dealership online. These key factors also play a role in helping customers decide how they feel about your business. As in, do they trust you and are they willing to spend their money with you?

The Punchline

So you might be asking... how are dealerships loosing millions of dollars each year? Recent studies show that businesses with a positive online presence generate between 5 - 9% each year. Now every dealership is different, but lets just assume your dealership generates about 2 million per year in gross revenue. A 5 - 9% increase would equate to roughly between 100,000 - $200,000 dollars a year. Multiply that by the number of dealerships in Canada with a weak online presence , and I promise you the number will be in the hundreds of millions if not billions. That is quite an opportunity.

How your dealership can capture a slice of that million dollar pie!

First and foremost make sure your dealership comes up on google with an accurate location page, relevant pictures, and most importantly positive reviews. Google reviews are king! Not Reviewsii, or any other self contained review platform. Google reviews will boost your rank in search by as much as 25%! They are also the most trusted and most frequented review score visited by consumers. 

Now if you have decent google reviews but you have not received any new ones in a while, it's time to put a strategy in place to collect more. Dozens of great strategies exist, and we're happy to point you in the right direction if you shoot us an email at

The next thing you need to do, the thing that 99% of dealerships fail at, is build a powerful and dominating social media presence. A strong social media strategy across as many relevant platforms as possible will be crucial to your online success. It will increase your rank in local search, increase relevancy, validate consume decisions, and increase brand awareness. I could write a book on social media strategy, tools, and hacks, but lets just save that for another day. You know how to reach us for more info.

The last and simplest tool to get a slice of that million dollar pie is business listings. Business listings are simply places online that list your business information. If these listings have inconsistent information, or missing information, your relevancy in local search and overall SEO will suffer. Make sure you frequently browse the top 10 Canadian listings sites, and check for correct business data. 

For any questions or advice, get in touch with our team -

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