Brand Name: CareWale
Objective of Case Study:
The objective of the case study is to know how Google Adwords helped CarWale.com to increase it’s ROI (Return on Investment).
Google Adwords is an advertising program, which helps small and medium companies to track its cost on advertising, on Google and its partner websites. Through Adwords’ various tools like’ Conversion Tracking’, one can find out the’ cost per click’ and the’ click through rate’ of various ads displayed on the top and right side of the organic searches, and hence minimise costs to increase revenues.
Launched in 2005, it has been 8 years for CarWale.com in the Indian Automotive web portal space. It is a website, where all manufacturers, dealers, buyers and sellers of various models of cars can benefit, and take informed decisions whether to buy or sell their cars, and at what price. The company also has tie ups with finance and insurance companies to help the buyers and sellers of cars get all services under one portal.
To make them further aware of the various deals, CarWale advertises heavily through Adwords on Google and its partner websites.
According to their Vice President Marketing, 80% of their advertising budget has been allocated to online advertising and a large portion of this 80% goes to Google adwords. The rest of the 20% budget is spent on offline advertising. The Keyword tool is used widely by their inhouse team, to increase the effectiveness of their campaigns. ‘Conversion tracking’, ‘cost per click’ and ‘cost per impression’ are the other mathematical calculations which help their inhouse teams to track their costs and hence increase revenues. As per figures taken in the year, 2010 :
- About 30000 enquiries were received every month through Adwords.
- New enquiries were growing at the rate of 20-35% every month.
- About 1.5 lac cars sold in 2010, were influenced through this portal.
- This worked to about 10% of the total sales of cars in the country.
Result: With an increase in enquiries every month by almost 3000- 10000 calls, and a significant number of enquiries getting converted to sales, the revenue of the company has been increasing month on month, along with an increased ROI.
Hence, the recommendation from CarWale’s, Vice President Marketing is that ”all advertisers in the auto industry, in the country, should earmark a large portion of their advertising budgets to online advertising and that too through Google Adwords”.