All you need to know about Facebook Auto Inventory Ads


In 2019, the automotive industry spent $13.38 billion dollars on digital advertising in the US alone. After a dip in 2020 caused by the pandemic, the sector is expected to bounce back to the levels recorded in 2019. The auto dealers that best position themselves to grow are the ones that take advantage of online advertising, using it to create a strong, consistent digital presence in front of prospective customers. Though there are several media strategies that can execute this goal, Facebook Auto Inventory Ads is proving an invaluable tool for reaching highly in-market customers on a familiar, user-friendly platform. 

Accenture found that 63 percent of those looking for a new automobile will look online. Additionally, 53 percent decided which new car they intend to purchase from the information they found on the Internet. Since shoppers are doing most of the research phase of the car buying process online, dealers must leverage online behavioral data to market to customers earlier in the buying process. 

In addition to valuable third-party auto intender data, dealers and advertisers have discovered the significance of vehicle description page ads in this process. Retargeting VDP views allow them to reach customers who are extremely likely to buy with relevant, targeted vehicle ads that align with the customer’s needs. Facebook Inventory Ads is one of the major platforms that took advantage of this trend, further establishing itself as an industry leader in the automotive advertising space. 

Facebook Auto Inventory ads

With Facebook inventory marketing, auto dealerships can create a ‘virtual store’ that holds a specific set of vehicles that are personalized based on the user’s past web-behavior. These target buyers are then shown ads that contain the actual inventory details, such as the make and model.

Facebook began offering ads for car dealerships back in 2017. In 2019, they updated their ads to create the dynamic version seen today. This latest version has improved the ability of car dealerships to target consumers based on the behavior they have exhibited on car-buying websites and apps. This has increased the audience for these ads.

Marketers for dealerships across the country have seen that these ads offer tremendous conversion potential. Since customers today largely walk into car dealerships ready to buy, dealerships must make sure that their inventory and options for prospects are available to those interested in buying a car before they make a decision. Once advertisers have gone through the process of setting up their inventory catalog, data feed, and tracking pixel, the campaign is ready to run. 

Maximize the Success of Facebook’s Auto Inventory Ads

With the new format of dynamic inventory marketing, dealerships have already begun to see impressive improvements. In Santa Monica, for example, a Lexus dealership saw 3.2 times more views on vehicle description pages. A Chevrolet dealership also saw a 27 percent increase in reach.

Car dealerships generally run promotions across multiple platforms and channels. Facebook consistently stands out as a channel that offers tremendous success. Ads for the industry receive an average of twice as many clicks as those on other channels.

There’s no doubt that Facebook sets dealers up for success with this platform. However, not all advertisers capitalize on the unique opportunity and partner features offered by Facebook. Demand Local has seen tremendous growth with the product due in part to:  

  • Vin-specific campaigns
  • Live inventory based on the dealer’s feed
  • Dynamic VDP/SRP retargeting
  • Leads captured directly in the Facebook interface

In addition to understanding the ever-evolving world of Facebook, advertisers must be prepared to report upon the plethora of data available to them in an intuitive, enlightening way for auto dealers. Demand Local’s revamped reporting capabilities include:

  • Real-time lead metrics
  • Vehicles with activity
  • Moved vehicles
  • Clicks on moved vehicles

Getting started with Facebook Auto Inventory ads

To see the greatest success with Facebook inventory marketing, automobile dealerships should focus on finding an experienced advertising agency that understands how to maximize the growth possible with this form of marketing. Finding someone who has experience with the nuances and detail required to manage successful automotive campaigns, and how to effectively use automation to master low-funnel targeting strategies. 

Facebook inventory marketing offers brands outstanding opportunities to engage with their prospective customers through highly relevant and personalized ads. If you want to increase ad engagement and inventory leads, get in touch with us to learn more about Facebook Auto Inventory Ads, and how it can help build your consumer base.

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Written by

Lauren Richter

Lauren joined the Demand Local family in 2015. Her focus is to provide innovative marketing solutions for automotive dealers (Tiers 1, 2, and 3) and advertising agencies. She is a straight shooter who enjoys solving problems, exceeding expectations, and making her clients’ lives easier. Before working at Demand Local, Lauren advanced her Search Engine Marketing expertise at a different automotive digital marketing company.

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