Mercedes-Benz National Tier 1 SEM Program

PROBLEM

Digital marketing budget percentage distribution was not aligned with sales priorities.

BACKGROUND

Mercedes-Benz dealerships operate as franchises and aren’t obligated to buy new inventory. Vehicles are held at processing centers (VPCs) before being assigned to dealerships. Prioritizing the sale of the cheaper C-Class over the more profitable S-Class can benefit the brand financially in instances where there’s excess inventory depreciating at VPCs. This happens because Mercedes-Benz produces significantly more C-Class than S-Class and dealerships may decline new vehicle assignments due to space or capacity constraints.

SOLUTION

Restructured Google Ads Account and created reporting used to strategically shift budget percentages based on vehicle sales priority. Reporting formula factored for vehicle days supply and monthly objective bonus cash.

RESULTS

New vehicle sales shifted to greater favor sales priorities increasing profitability.

Mercedes-Benz Coordinated Tier 3 SEM Program

PROBLEM

  1. MBUSA competing with Mercedes-Benz Dealers in SEM.
    • MBUSA.com was competing with dealer websites due to a lack of visibility / connectivity to dealer’s Google Ads accounts
  2. Mercedes-Benz Dealers competing with Mercedes-Benz Dealers in SEM.
    • Dealer franchises were advertising on Mercedes-Benz branded keywords outside of their assigned territories (AOIs), competing and driving up bids in Google Ads
    • Dealers were incentivized to do this because it was less expensive to compete with other Mercedes-Benz dealerships vs. competing with other luxury OEMs
  3. Third Parties competing with MBUSA and Dealers in SEM.
    • Auto-endemic sites (e.g. Truecar, KBB, Edmunds) were competing with MBUSA and dealers in AdWords and selling these leads back to Mercedes-Benz for a premium greater than CAC

SOLUTION

Implemented a 6-month pilot with Google, agency partners, and dealers in Chicago which was later rolled out nationally.

RESULTS

CPCs decreased 27% as the result of insights / efficiencies gained from improved reporting.
(forecasted to deliver $9MM in efficiency gains annually at 100% utilization)