• Dave Bloom

Auto Repair Ads: Returning $3 in Revenue for Every $1 Spent.

Updated: Feb 18

Dave Bloom is the Director of Digital Marketing for Axis Local, a Digital Marketing Agency.

One of the fundamental ways to measure the success of digital ads is with a metric called Return On Ad Spend or ROAS. It measures for every dollar spent on ads, how much is returned to the client in revenue. For example, a ROAS of < 1.0 would indicate a campaign that is losing money as more is being spent on ads then the campaign is bringing in in revenue. In this case study, we examine the ROAS of the ad's portion of Axis Local's omni-channel digital marketing strategy for oil change and auto repair clients as it pertains to a client with 5 locations in the Atlanta, GA metropolitan area.


 

The Opportunity

 

Our client, a 5-location auto repair and oil change brand located in the greater Atlanta, GA area had a need to drive more in-store sales of oil changes, brake services, and general auto repair. They needed to be able to attribute any new sales directly to the ads in order to measure the success of the ads. On average, this client has an average revenue per customer of $95. Lastly, they needed the ads to be profitable.

 

The Solution

 

Axis Local implemented the ads wing of our omni-channel digital marketing strategy for oil change and auto repair clients and began running targeted ads that appeared at the top of Google's search results for those that were in-market for oil changes, brakes, and other auto repair services. These ads triggered only when someone located within a 7 mile radius of one of their locations searched for their auto repair services.

As the year 2021 progressed, optimizations were made on these campaigns by Axis Local to ensure everything possible was being done to achieve success. Optimizations included adding/removing keywords, locational bid adjustments, keyword bid adjustments, audience exclusions, audience bid adjustments, locational radius adjustments, etc. Axis Local measured the performance of the ads using Google's 'Store Visits' metric, which can track if someone who clicks on an ad then physically visits one of the client's auto repair and oil change locations.

The results: In 2021, Axis Local drove 727 store visits, at a cost per store visit of $32.89. Considering how the average customer spends $95, that equates to $69,065 in revenue. The capital spent on ads in that period was $23,012.23. This is a ROAS of 3.001.



To learn more about our omni-channel digital marketing strategy for oil change and auto repair clients click here.

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