Case study
Case Studies on Mobile Marketing and Advertising

CPL is king for the automotive industry

When the automotive industry needed a way to drive showroom traffic, create test drives and benefit from mobile ad sales conversions, solutions in the market were less than ideal. That’s why Maddict got to work and created an optimised solution for automotive where cost per lead (CPL) reigns king.

The Brief:
Convert impressions and clicks to showroom traffic, test drives and sales conversions for automotive clients at optimised cost per lead (CPL).

The Solution:
Maddict responded by creating a unique solutions engine suited to the industry to optimise CPL while emphasising lead quality. The engine relies on the network’s dynamic and offers detailed targeting options.

Initial ad configurations are micro-optimised through human intervention based on the most effective content asset, going right down to favouring the highest performing individual ad unit.

Ad configurations for the highest performance include:

  • Frequency capping
  • Customized targeting options per ad format
  • Audience segmentation based on historical data and previous campaigns within same category
  • Effective retargeting capabilities using IAB category audience segments
  • Directing traffic to premium sites where ad formats are pre-tested by the Maddict team to ensure an intuitive user experience and high CTR potential.

CTR as a metric is downgraded and carefully investigated because of the potential for suspicious behaviour such as:

  • Fake clicks offering inflated CTRs that don’t lead to actual conversions. Sites reporting extraordinarily high click through rates (of 2 standard deviations away from the mean) are disqualified from the campaign to discourage grey actions.
  • Ad formats (mainly interstitial) that do not have a close button, trapping the user into clicking the banner to exit. Many networks consider these legitimate clicks, increasing the CTR but resulting in extremely low conversion rates.

Banners lead to a landing page where users are invited to enter basic credentials – such as name, email and cell phone number – to book a test drive. This powerful lead set enables easy follow up and call back for clients. The user experience is simplified and made intuitive to prevent bounce.

The Outcome:
Effective campaigns are created where clients saw an increase of 540% on lead conversion rates compared to web. (Discover more Maddict market insights in the case study’s Market intelligence notes section below).

Clients gain clean and vetted lead sets daily for instant follow-up. Manual micro-optimisations positively influence CPL. Meanwhile, rich media executions create engaging formats that deliver up to 96% increases in dwell rates, a 57% higher interaction rate compared to industry averages, and average interaction times of close to 9 seconds.

Maddict data indicates that 37 percent of automotive clients run campaigns with a primary goal of brand awareness and engagement, while 30 percent have registration as a KPI, followed by 19 percent wanting foot traffic into showrooms. There has also been an increase in “Always On” campaign strategies.

Despite varying KPIs, automotive clients universally want to reach a many unique users as possible.

The device usage chart shows an increased audience interacting via tablets. Tablet users get better resolution advertisements and video, and are therefore more likely to engage. Another behavioural insight is the time of this engagement: tablets are most likely to be used at home from the comfort of the couch. Not only does this make audiences more receptive, but there is a spike in conversions between 8 to 10 pm.


Campaign in Focus – JEEP Case Study

Jeep effectively used the Maddict automotive solution to create test drive opportunities for its Wrangler models in a successful 4-week campaign in KSA. The campaign’s key KPI was lead collection with high conversion and low CPL.

The campaign’s success was based on an incredibly intuitive user journey to prevent bounce. Users were asked to only enter 4 fields of essential information to book a test drive. Hourly optimization actions were conducted, with traffic diverted towards the highest performing sites and banners.

The result was a campaign that delivered a set of targeted high quality leads to the client for follow-up.

Market Intelligence notes

A campaign’s CPL is calculated by dividing the campaign cost over the number of strong leads generated, where users have engaged by filling in their contact information. This varies in a narrow band within regional markets. The conversion rate is found by dividing the number of clicks on an ad with the number of leads that ad generated, i.e. instances when the user followed up a click with action. This too changes somewhat across regional markets.

Maddict’s results indicate that KSA offers the highest conversion rates in the GCC due to bigger traffic volumes and a greater willingness to engage, coming in at 28 percent. The UAE is second, with conversions hovering at the 22 percent mark, and Kuwait comes in third with a 21 percent average conversion rate.

Meanwhile, the Levant is showing interesting CPL results, with leads coming at competitive costs.

Overall, Maddict has witnessed a growth in premium network use compared to blind content advertising across the GCC and Levant. Premium networks deliver transparency, tracking, and optimisation capabilities down to individual ad units, albeit at a higher CPM (Cost Per Mille).


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One Comment

  1. mariam

    November 11, 2015 at 3:59 pm

    it is really a nice article, thanks !!!


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