Carsguide is changing its business model and charging dealers on a cost-per-view basis rather than cost per lead. It's narrowing down the location of people interested in buying a car and, when they click on an ad, will only pass on their details to the relevant dealer rather than blast out their data broadly to dealers regardless of location.
Buyers will be able to see the location of a car in the ad before clicking, making it more useful to them and the dealers.
Carsguide.com.au, half owned by car dealers and News Corp, admitted the old model was "broken", that around a third of leads to dealers had been irrelevant due to location, and that it risked annoying customers because their data was passed to dealers outside their location which would contact them regardless.
That was wasting both of car buyers and car sellers and risked a less accurate data pool as well as increased admin burden.
But that won't happen from December this year, according to the company, and listing cars for sale on the site for private sellers will also be free, which will likely drive more traffic to the site.
The cost per click basis for dealers will be capped, and Carsguide said dealers would not pay any more under the model.
"We are sacrificing our lead revenue to deliver a better consumer experience and deliver more qualified buyers to dealers. We had to do something significantly different to provide what customers are demanding and we are prepared to disrupt our business to change our position in the marketplace," said CEO Lauren Williams. "Our shareholders, who represent 25% of the automotive market, are all in support."
"Consumers now have control and no longer need to divulge their personal details to the dealers just to see where cars are located. The enquiring buyers are going to be more qualified because they will only contact the dealer when they are genuinely interested in a car."
Carsguide.com.auy flagged the move last month when appointing MediaCom, BWM and Interbrand to revamp the brand. It launches a new website and mobile app later this month.
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Need a job? Visit adnewsjobs.com.au.
Have something to say? Send us your comments using the form below or contact the writer at adnews@yaffa.com.au.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.