As shoppers spend more time online, the success of RV dealerships increasingly hinges on their ability to connect with potential buyers through effective online marketing strategies. One of the most powerful tools at a dealer’s disposal are Automotive Inventory Ads, or AIAs, on Meta platforms like Facebook and Instagram. As we navigate a turbulent and unpredictable economy, focusing on cost-effective dealership marketing strategies is more important than ever. So we’re here to help explain what AIAs are, how they function for RV dealerships and the myriad benefits they offer for awareness and conversion.
What Are AIAs?
AIAs are a dynamic ad format that promotes a dealership’s current vehicle inventory to interested buyers. Unlike traditional ads that require manual updates and static content, AIAs leverage real-time data to display the most relevant units to potential customers based on their interests and browsing behavior.
This automated nature ensures that users see ads tailored to their preferences, increasing the likelihood of engagement and lead generation.
So, for example, imagine a potential customer searching online for fifth wheels for sale. That information is tracked, and the behavior is noted in their digital footprint. Meta takes this information about the user’s interest in fifth wheels and, through an AIA, can show that person your current fifth wheels for sale in their Facebook or Instagram feed.
How AIA Functions for RV Dealerships
AIAs are a game changer in digital marketing for dealerships. These ads can integrate seamlessly with your existing inventory feed, allowing you to showcase your RVs on the social media platforms your customers are already scrolling. Here’s a step-by-step breakdown of how AIAs work for RV dealerships:
- Integration With Inventory Feed: AIAs pull data from your inventory management system. A third-party agency or your DMS manager can set up an automated dealership inventory feed, including vehicle details, images and prices. This integration ensures that the ads are always up to date with your latest inventory.
- Dynamic Ad Creation: Using Meta’s machine learning (AI) algorithms, AIAs are dynamically created and personalized for each viewer. These ads highlight RVs that match the viewer’s interests, behavior and demographics. Data like this can be collected by Meta through behavior tracking codes like the Meta Pixel.
- Targeting & Retargeting: AIAs leverage Meta’s advanced targeting capabilities to reach motivated potential buyers. They can target users based on their location, age, interests and past interactions with similar content. Additionally, AIAs can retarget users who have previously visited your website or engaged with your content.
- Placement Across Meta Platforms: AIAs are not limited to Facebook and Instagram feeds. They can appear in other placements within Meta’s ecosystem, like Facebook Marketplace, WhatsApp and Messenger. They could even appear on other websites and mobile apps through Meta’s Audience Network. Meta’s algorithm will choose an ad’s placement based on which one is most likely to improve the ad’s results.
Why Dealerships Should Use AIAs
RV dealers who run AIAs are reporting compelling results in terms of exposure, engagement, conversion and ROI. More specifically, dealers consistently see that more people are seeing the ads, more people are engaging, leading to higher conversion rates at a significantly lower cost per lead. At NetSource Media, we’ve tracked these ads delivering four times more exposure than traditional Facebook ads, while the cost per Messenger conversation has been two times lower and the cost per landing page view is five times lower, compared to traditional Facebook ads.
The dynamic nature of these ads ensures that they reach a wider audience that is more likely to be interested in RVs. Facebook also implements a frequency cap on ads, so a single user can only see an ad so many times. Since AIAs change based on current inventory and the user’s most recent behavior, the frequency cap is often higher than that of traditional ads. That means users are shown AIAs more often than they might be shown another ad.
These ads also have better engagement and conversion rates. By showcasing vehicles that align with users’ interests, AIAs significantly boost engagement rates. Users are more likely to click on ads that feature RVs tailored to their preferences, leading to more interactions and potential leads. They’re also one of the most cost-effective, lead-generating digital ad options. The ads are generated based on information pulled from your inventory management system in real-time, which reduces the need for manual updates and saves time while optimizing ad spend. This real-time feature also ensures that ads reflect current stock, alleviating user frustration due to outdated listings.
Maximize Success With AIAs
To fully leverage the potential of AIAs, RV dealerships should consider the following best practices:
- Optimize Inventory Feed: Ensure your inventory feed is accurate and up to date. High-quality images and detailed descriptions enhance the appeal of your ads. Fill out as much information as possible. Facebook’s current limit is 20 photos per item, and it’s best to add as many photos as you can. This helps people feel more confident about contacting your dealership and helps prevent people from clogging inboxes and phone lines with basic questions.
- Use Meta’s Targeting Options: Take advantage of Meta’s sophisticated targeting tools to reach the right audience. Experiment with different targeting parameters to find the most effective combinations. Dealers that have aggregated customer data — like names, email addresses and phone numbers — and have provided adequate disclosures to their customers that they may share this data with third parties, like Meta, should consider doing so. Providing this data to Meta allows them to find your customers on their platform and to understand their behaviors and interests. They’ll use this information to show your ads to users who are similar to your previous customers.
- Engage With Prospective Buyers: Use the increased engagement from AIAs to interact with potential buyers online. Promptly respond to inquiries and nurture leads through the sales funnel. This is essential when it comes to AIAs optimized for Messenger conversations. Many dealers don’t take the time to provide people on Messenger with the same level of care and attention that they offer in-person or phone call leads. Treat potential buyers contacting you through Messenger the same as you would a person who walked through your door. Respond in a friendly manner and help the user narrow down which RV is best for them.
Enhancing Digital Marketing
AIAs on Meta platforms offer RV dealerships a powerful tool to enhance their digital marketing efforts. By leveraging the dynamic and targeted nature of AIAs, dealerships can increase their exposure, engagement and conversion rates. At NetSource Media, we have seen firsthand the transformative impact of AIA for clients. As dealership marketing continues to evolve, staying at the forefront with innovative solutions like AIAs will be key to driving success and growth in the competitive RV market.