What if you could recapture tens of millions of dollars in wasted ad spend? In this episode of Here’s the Deal, our VP of Sales for Strategic Verticals, Frederick Stanichev, tackles a core challenge of the automotive industry: siloed data.
Manufacturers (OEMs), dealer associations, and local dealers all play critical roles in the customer journey. By connecting OEM ad exposure data with dealers’ real-time conversion signals (like test drives and store visits), auto brands can finally align ad spend with buyer intent – and stop paying to reach customers who’ve already converted.
Watch the full episode to learn:
Automotive companies are leaving a significant amount of money on the table due to advertising inefficiencies, and we know why. I’m Frederic Stanichev, VP of Sales at LiveRamp for Strategic Verticals, and here’s the deal.
So when we think about the automotive industry, there are three specific tiers or groups. One is the OEM/Manufacturer. They are responsible for the national budget and building brand awareness for the automotive brand. Two, you have the dealer associations that are responsible for the original budget and kind of have a more tailored approach to a local market. And three, you’ve got the dealers that are here to drive people in-store for test drives and the final conversion.
The situation today is that data is fragmented across all those different tiers. For instance, let’s consider that I’m in the market for a car. I might have actually gone to the dealership and do a test drive, but the manufacturer might not know about this and therefore might keep on advertising to me as somebody that they want to build brand awareness for.
This is inefficient advertising spend because I’m already really down the funnel. So they should have actually allocated that budget towards somebody that needs to be aware of the brand before going and doing the test drive.
The solution for this is data collaboration across all the different tiers. The data should be able to flow between the dealer back to the OEM to inform the audience targeting that is actually happening at all different levels.
A car manufacturer can not do this alone. It requires a toolkit so that the data capture can actually be done in real time through all the different partners. It needs a strong identity layer and data clean rooms for the data to flow seamlessly and in real time across all the different partners to limit the advertising inefficiencies. And finally, it needs a partner that has a strong data collaboration network, so that it can plug easily with all the different data partners to augment the data. And too, it can act on it straight away throughout the advertising ecosystem.
So the amazing thing is it is reality today. We have a partner that is today leveraging technology and realizing over ten percent in advertising efficiencies across all entities. That represents today tens of millions of dollars every year that they are saving.
So if you are in the automotive industry, you need to act on this now because the longer you wait, the more money you’re actually leaving on the table.
