Autobytel has invested $2.5 million in cash to help build, launch and grow AutoWeb, Inc.’s pay-per-click (PPC), auction-driven automotive advertising marketplace – creating substantial opportunities for Autobytel customers in cost-effective customer referral and marketing programs.
“We believe our investment in AutoWeb will not only create substantial opportunities to deliver serious car buyers to our customers and a personalized online experience to consumers, but will also increase monetization of our website traffic,” says Jeffrey Coats, President and Chief Executive Officer of Autobytel.
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In a recent automotive advertising outlook study, Borrell Associates, a leading research firm, noted that new car sales should grow more than 54% this year, up from 10.4 million in 2009. At the same time, advertising spending is shifting from newspapers, television and radio, to online and mobile. According to the study, by 2018, total online spend by auto manufacturers and dealers is anticipated to grow to more than $20.0 billion, up from $14.0 billion in 2013.
What Does the Autobytel and AutoWeb Venture Represent?
- Autobytel will become the first automotive publisher to benefit from AutoWeb’s PPC platform.
- AutoWeb’s proprietary technology and unique PPC business model, which analyzes web traffic and adjusts advertiser costs accordingly based on traffic quality, sets it apart from standard pay-per-click models.
- The venture creates a new client-driven advertising platform focused on significantly enhancing client ROI by reaching consumers with the highest purchase intent.
How the New AutoWeb Will Work:
- Attracts high-intent, high-volume, content-oriented automotive publishers to its network.
- The platform helps publishers monetize traffic that has previously been under-monetized.
- In-market car shoppers researching specific vehicle brands at publisher sites are presented with highly relevant display ads and benefit from an online experience that delivers the perfect vehicle to meet their needs.
- Auto manufacturers benefit from gaining access to serious, in-market car buyers at the right price. AutoWeb’s platform enables manufacturers to fully optimize their ad campaigns in real time by model, zip code and demographics.
- Generates revenue for every click on the ads it delivers and shares a portion of that revenue with its publisher partners.
- Uses proprietary technology to evaluate traffic quality derived from the source and click-to-conversion data and adjusts advertiser costs accordingly to provide more clicks at the right price and quality.