Google Ads have always played a key role in automotive retail. But, at a time when 94% of car buyers say they research online before choosing what car to buy and where to buy it, having your vehicle stock front and centre has never been more crucial.
However, innovation in Google’s automotive features has been limited…until now.
Performance Max, launched in late 2021, allowing advertisers to reach relevant customers across all major Google channels, not just search. This includes YouTube, Google Discover, and Gmail, helping brands appear wherever their audiences are browsing.
For automotive retailers, it was a welcome addition. It makes it easier to showcase all brands and models using engaging creative like images and video.
Performance Max supports the full customer journey, from initial research to retargeting, making it easier to attract and convert buyers at every stage.
While Performance Max is powerful, a key gap remained for automotive: connecting a customer who’s found a car they like with the most relevant listings and putting that exact vehicle right in front of them.
Cue Vehicle Listing Ads
That’s where Google Vehicle Listing Ads (VLAs) come in. Launched as a beta in the UK in March 2024, VLAs are built specifically for the automotive industry.
Think of VLAs like Google Shopping ads, but for cars and non-commercial vans. They allow dealers to showcase their new, used, and factory stock directly on the Google Search results page, matching the right audience to the exact brand and model they’re actively looking to buy.
How do you set up a VLA?
To get started with VLAs, you’ll need to create a stock feed in a Google-specific format and link it to your Google Merchant Center account.
Next, you’ll build a campaign and define the most relevant audience signals, such as brand and model interests, search themes, retargeting lists, and custom search criteria.
Google then uses your feed to generate Vehicle Listing Ads that appear in Search results. Each ad includes key details like the vehicle image, year, mileage (for used cars), location, dealer name, price, and – most recently – monthly finance options.
When a user clicks on the ad, they will then be sent to that vehicles Vehicle Detail Page (VDP).
How does Keyloop use VLAs?
As one of the very first advertisers to launch Google Vehicle Listings Ads in the UK for our marketing services customers, we now have over a years’ worth of data to review.
Overall, we’re seeing remarkably low cost per click of below £0.20 for a used car query which is compared to a standard text ad cost per click of £0.50 – £1.00.
The lead numbers are also encouraging: one account has seen a 74% lower CPC and 70% lower CPL while another account saw a 72% lower CPC and 52% lower CPL.
Initially, the number of auctions in which Vehicle Listing Ads (VLAs) were triggered was quite small, as Google rolled out the feature gradually. As a result, VLAs accounted for only a small percentage of clicks compared to standard text ads in the automotive category. However, this share has steadily increased, and according to the latest data from Google, VLAs have now surpassed standard text ads in click distribution.
This highlights that VLAs are no longer a “try-and-see” feature, but a must-have for competing at the highest level in the automotive advertising industry. They can serve as the crucial link between customers researching online and those making direct online purchases.
Embrace VLAs to future-proof your business
As the automotive market becomes increasingly digital, adopting tools like Vehicle Listing Ads is essential for retailers wanting to remain competitive. VLAs not only lower your marketing costs and improve lead quality but also help dealers meet customers at the exact moment they’re ready to buy – with the right vehicle for them, at the right time. For retailers looking to future-proof their marketing strategies, embracing VLAs isn’t just a smart move – it’s a necessary one.
To discover more about how to harness the opportunity of Google’s Vehicle Listing Ads, learn more about our Marketing Services get in touch with the team today.
