Since Google announced Vehicle Listing Ads (VLAs) at the 2022 NADA Show, this product has evolved into an invaluable resource for automotive advertisers in North America. 77% of people start researching a new car online, using 6.4 online information sources on average to research their new vehicle. For advertisers, determining the right message for the right channel and customer requires constant adaptation to the ever-changing consumer landscape.

Consider the chart below, which shows the percentage of consumers using multiple online research sources when shopping for a vehicle. Leveraging Google’s AI solutions allows dealers to quickly adapt and connect with car buyers across a fragmented online purchase journey.

Looking back at the introduction to VLAs

Vehicle ads were initially rolled out to automotive advertisers, serving the familiar shopping ads in the carousel format at the top of search results. Ads appeared when users searched queries like “2022 honda pilot” or “used suv near me” and featured essential details, including make, model, year, mileage, location, and vehicle images. The ads drove shoppers to the vehicle description page where they could get more information, submit a lead, call the dealer, or chat with a sales representative.

Transition to Performance Max

In 2023, Google upgraded Vehicle Listing Ads to performance max campaigns, providing more touchpoints to reach consumers on their research and purchase journey. This unlocked new ad inventory for advertisers, across Search, YouTube, Display, Discover, and Gmail through multichannel campaign delivery powered by AI and dynamic vehicle feeds. With this change, we experienced several key updates:

• Increased connections with relevant in-market shoppers across a wide range of ad inventory. This drove more exposure to inventory, complementing paid and organic strategies.
• Automated budget optimization across ad channels to optimize for qualified leads and store visits, leveraging AI and dynamic vehicle feeds to serve inventory to the right user. Performance Max for Vehicles enables omnichannel bidding optimization under one campaign to deliver more online and offline conversions.
  
  

‍Ongoing Enhancements and Recent Changes

Fast-forward to today, and the tactic has continued to evolve, with functionalities for new customer acquisition goals, brand exclusions, and, more recently, updates to ad formatting for new vehicle inventory. Google is currently testing an updated format for new inventory that displays the sale price and MSRP instead of showing MSRP only. This appears for a small percentage of new inventory vehicle ads, however Google has indicated an expanded rollout later this year. 

Importance of Pricing

As this feature is more broadly available, having accurate and competitive pricing is crucial. Price sells, and shoppers will quickly see which dealer has the best price on their favorite model. Vehicles with competitive pricing will likely see higher click-through rates (CTR), higher quality lead volume, and increased store visits. 

‍Tips for Maximizing Performance

From our early involvement in the VLA pilot program through the changes we see today, we continually analyze performance to determine the best approach to managing these campaigns for optimal outcomes. Here are a few tips from our experience over the past few years:

1. Optimize the Vehicle Feed: Providing comprehensive data for each vehicle is vital. While only specific attributes like make, model, mileage, year, location, and image are required, supplying optional details like trim or body style can help Google better understand the inventory. These campaigns don’t use keywords and rely on Google’s interpretation of relevant searches to match each vehicle.
2. Submit Quality Data: Proper formatting and high-quality images are essential to avoid disapproved statuses and maximize exposure for every vehicle. Regularly monitor Google Merchant Center diagnostics to address any issues.
3. Keep Data Fresh: Update vehicle feeds at least once daily to ensure the campaign reflects current inventory and prevent ads for sold or out-of-stock vehicles.
4. Choose the Correct Conversions: Select conversion actions that bring shoppers closer to a purchase. Use value-based bidding strategies to prioritize the best-quality conversions. 
5. Use First Party Data: Supplying first-party data in audience signals helps Google find more users like the ones who have already purchased from you. 

‍Performance Max for Vehicles Works

No matter what you call them, VLA, vehicle ads, or the new official name, Performance Max for Vehicles, it’s essential to know these campaigns work to reach engaged, in-market car shoppers. They are more efficient in generating online and offline conversions, resulting in a lower cost per acquisition than similar traffic driven only from search. These campaigns benefit from Google’s machine learning,  automation, and vast knowledge of consumer behavior.

‍Partnering for Success

Now is the perfect time to review your strategy and evaluate if this tactic is suitable for your goals. Performance Max for Vehicles places your inventory prominently across the web to reach engaged car shoppers at any point in the research or purchase journey. Working with a trusted Google partner experienced in managing and optimizing vehicle ads is essential. Our team at The Moran Group is adept at configuring Merchant Center, managing vehicle data feeds to ensure your inventory is always up-to-date, and optimizing for qualified leads. Contact us to get started or learn how you can maximize opportunities within your current digital marketing strategy. 

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Sources

1. Google/Kantar, Gearshift Study, North America, 2023
2. Internal Campaign Data Analysis, 2023 - 2024
3. Google is upgrading Vehicle Ads to Performance Max, Search Engine Land, 2023
4. Vehicle ads will be upgraded to Performance Max with vehicle feeds, Google Ads, 2023