NEW YORK, October 24, 2017 According to new research by GroundTruth (formerly xAd), the leading global location technology platform, location-based targeting solutions are 4X more cost-effective at generating a real-world dealership visit than traditional media metrics like Cost Per Action (CPA), which include Click-to-Call and clicks to manufacturer websites. Furthermore, while optimizing for online metrics can drive down the cost of CPAs to an average of $3, it increases the cost per visit to an average of $10, raising the price of acquiring a new customer overall.

Consumer dependence on mobile devices and the growth of location services have given brands a new way to measure whether their campaigns are effective. Location data from GroundTruth has shown that car shoppers make just 2.2 visits to a dealership before making a purchase. Therefore, by the time a consumer “clicks” an online ad, they’ve likely already completed their competitive research and made their purchase decision. So while online performance may appear to be positive, it isn’t having a positive impact on converting dealership visits—the metric that matters most to a brand’s bottom line.

“Cost Per Action and Click-Through Rates have been the go-to metrics for automotive marketers. But driving visits to a website, isn’t the most effective way to generate in-store sales,” said Stephanie Sollers, Vice President of Auto at GroundTruth. “Our research shows that more sophisticated location targeting leads to more dealership visits overall. And with the Auto industry facing a year of sluggish sales, it’s time for marketers to look to location-based marketing to turn this trend around.”

Optimizing for online conversions also forces Auto marketers to be more reliant on less strategic tactics like proximity targeting, reaching people as they are at or around businesses. GroundTruth’s analysis revealed that more predictive location products like Audience targeting and retargeting, which are built from a person’s past visitation behavior, drove 11.3% more total visits with less ad spend compared to proximity targeting.

GroundTruth now offers a Cost Per Visit business buying model, which debuted in March as the industry’s first pay-for-performance model for driving offline visits. Since its launch, 8 out of 10 brands are saying yes to Cost Per Visit, with GroundTruth projecting over 100 active campaigns in Q4.

To learn more about the methodology behind GroundTruth’s Automotive analysis of CPA vs. Cost Per Visit, visit: https://goo.gl/cBySQ7