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05/15/2015

Why one Chevy dealer switched dollars from cable to Web prerolls

From Advertising Age

Drew Ament believes in the power of video pre-roll, those ads before YouTube videos, to sell vehicles.

Pre-roll ads typically cost a fraction of other advertising, including a dealer favorite, paying for click-throughs on Google searches, said Mr. Ament, digital marketing manager at Sands Chevrolet Glendale and Sands Chevrolet Surprise near Phoenix.

And when targeted appropriately, pre-roll ads can bring buyers to a store, he said.

...

Sands Chevrolet, Mr. Ament said, sets its targeting parameters to never send pre-roll ads to video watchers who are less than 25 years old or for whom YouTube doesn't have an age. That's because those under 25 probably can't afford a vehicle and the store doesn't want its ads showing up on children's videos, which is possible when an age is unknown.

Mr. Ament has become such a strong believer in pre-roll ads that he has directed most of the Glendale store's advertising budget to them.

Before starting pre-roll in October, Sands Chevrolet Glendale was spending more than $50,000 per month for advertising on cable TV, Mr. Ament said.

Today, the dealership spends more than $25,000 per month on pre-roll advertising, money that has come out of the cable budget, he said. The store also spends more than $20,000 for paid search and Facebook advertising.

Mr. Ament said, "If you're looking to buy a car today, you're probably going to watch a video."

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