Online Activity in the Car Credit Industry
I remember around two years ago when the cost per click for online advertising in the car credit industry was around £10 per click. At times, in its peak, this figure could be double that amount. However, it now seems like everything else in the car industry, the prices have decreased and nowadays for high performance keywords the cost per click rates are much, much less than what they were. Why? Well there are a few reasons. The main one being that there are nowhere near as many lenders offering finance to consumers. Also, what goes on offline transfers over to the online world and the fact that there is less of a demand for cars has therefore meant that the advertiser competition is no longer what it was, hence the price cuts. That’s the thing about the Internet – the competition dictates the cost of things more so than offline marketing. It is a very competitive business, which can sometime be fair and sometimes not so depending on the type of promotion being undertaken. The fact that many businesses are no longer trading as a result of the credit crunch has meant that many Websites have stopped bidding on advert types such as Google AdWords. The normal route for decreasing the budget of a business is to first of all cut online activity and then offline will follow. However, over the last few years this process has somewhat been altered slightly with more and more businesses recognising that the online industry, especially the online car industry can often be a cheaper way of promoting cars and credit than with offline products and services.