Car Dealers Are You Advertising On Facebook?

Facebook and Instagram now account for 20% of all mobile phone usage. In a world where American consumers spend about five hours a day on their smartphones, this equates to about an hour a day on two of Facebook’s products! This is a great opportunity for auto dealers (as well as RV and powersports centers) who are moving their advertising budgets to online spend and maybe only doing Google search ads right now.

“Hold on!” you say. I just saw Zuckerberg on CSPAN! Facebook is done! The government is going to regulate them out of business. Not quite… most likely Zuckerberg’s biggest problem will be memes about his leather booster cushion and how closely he resembles the android Data from Star Trek: The Next Generation.

So while Facebook has been in the news about data scandals and CEO Mark Zuckerberg has been grilled for hours by less than tech savvy Representatives and Senators, it is still a great place to advertise to in market consumers.

First off, not a whole lot will be changing after Facebook’s data leakage problem with Cambridge Analytica. There will be changes but a lot of them will not be that material to advertisers. The updates will be more around transparency to users and making it easier for consumers to understand what exactly they already opted in to.

The largest change for dealers will be in how Facebook advertisers are able to interact with third party data providers that provide demographic and shopper insight data like Acxiom, Datalogic, Experian and Epsilon. This we know is changing from Facebook themselves. However to what extent the changes will happen and if they will slowly rollback is currently unknown.

While no firm dates have been announced it’s believed that by June 30, the feature will go away in their Ad Manager interface and any ad campaigns that are setup before June utilizing third party data to match consumers with third party data will stop running in October.

While this will make matching consumers a little bit harder, car dealers with good Customer Relationship Management data shouldn’t really be impacted much because while Facebook will be making it harder (or impossible) to leverage third party data, you still have the best data… your own customers.

You will still be able to leverage what you know about customers who purchased a vehicle, received service or just requested a quote from your dealership against Facebook’s internal data (demographics, interests, locations, etc).

Next Up… how much should I spend and how should I spend it?

Shift Toward Peace of Mind.

Interstate National’s 360-degree solution leveraging dealer development, technology, reinsurance administration and product development maximizes a dealer’s profitability. Interstate deploys a proven sales approach to increase product performance & overall profitability of dealers while leaning on technology for streamlined efficiency and administration. At Interstate, our mission is to build and preserve relations with our community to protect every driver’s journey ahead.


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