The short answer
Lexus's multicultural Tier-2 program ran prospecting, competitor conquesting and retargeting across 23 markets. Q4 cost per high-value site action fell from $29.27 in 2023 to $1.27 in 2024, and the low-funnel percentage rate rose from 1.02% to 2.10%.
Q4 2023 compared with Q4 2024. The study expects these gains to support 2024 sales; it does not report sales results.
How do you lower cost per acquisition across 22 site actions?
The luxury OEM's Tier-2 program tracked 22 high-value site actions, from awareness-driven interactions to conversion-driven ones. It wanted more consumers moving toward the lower-funnel actions, while spending more efficiently.
With the strategy now spread across that wide set of conversion goals, the challenge was to lower cost per acquisition and balance upper-, mid- and lower-funnel work at the same time.
Before Demand Local
- A Q4 2023 cost of $29.27 per high-value site action.
- 22 high-value site actions to balance, from awareness to conversion.
- A need to move more shoppers toward lower-funnel actions while spending more efficiently.
What were the three parts of the campaign?
- 01Reach new consumersTargeted mobile and desktop display introduced the brand to new potential buyers.
- 02Conquest competitor brandsAds reached shoppers who had engaged with the competitor brands in each market, to shift their consideration.
- 03Retarget site visitorsShoppers who had visited the OEM's websites without completing a high-value action were brought back.
Which formats did the campaign use?
- Mobile and desktop display ads for broad reach and visibility.
- Rich media video interstitial units for an immersive experience.
- Audience segmentation by funnel stage.
What changed between Q4 2023 and Q4 2024?
- Cost per high-value site action fell from $29.27 to $1.27.
- The low-funnel percentage rate rose from 1.02% to 2.10%.
- Shoppers completed more high-value actions, especially in the lower funnel.
- More users moved from awareness and mid-funnel actions toward key lower-funnel conversions.
- Expected to support 2024 sales by sending more qualified buyers to dealerships.
Questions about this case study
- What results did the Lexus Tier-2 multicultural program get?
- Across 23 markets, Q4 cost per high-value site action fell from $29.27 in 2023 to $1.27 in 2024, and the low-funnel percentage rate rose from 1.02% to 2.10%.
- Which channels can dealers activate?
- Supported channels include CTV, digital out of home, streaming audio, online video, display and search, with activation through platforms such as Meta, Google, Amazon and The Trade Desk. We build the channel plan around your market, inventory and sales goals.
- Is our customer data ever resold?
- Never. Demand Local does not resell your data. Your first-party data powers your own campaigns, and your customer relationships remain yours.
