Good afternoon All
I thought I would share with you all an e mail sent to Autotrader regarding sponsored adverts and pricing. I am assured that it has been forwarded to head office and am awaiting a response.
Dear Auto Trader
I have been giving this some thought and as you have asked for my feedback, I would appreciate the following to be forwarded to the “Ivory Tower. “
Having given deep thought into the recent behaviour of Auto Trader I feel it is best not to mention the price increase and new "packages" as they are effectively old news. However, something new has just hit me - Sponsored Adverts, We have been told for years that more searches are going to mobile circa 70% and have paid more money for priority listings to ensure we are at the top of the search. After being told this, and it being backed up with facts, we, as independent dealerships, have accepted Auto Trader’s word.
But now Auto Trader have changed their mind and decided that everybody searches on a desktop device. So I now ask myself why would they do such a thing and is there a method to their madness? So here is the conclusion: The larger supermarkets and franchise groups all have desktops and use them frequently... So how do Auto Trader make money out of this? They create "sponsored adverts" for desktops, only enticing the larger groups and supermarkets to give them lots of money for the privilege, but what they don't seem to understand is that by doing this their core business (all the small fish that make up most of the pond) have all suffered as a result.
So what is the solution and how do we, as independents get to the top of the search like the big boys? Umm, let me think...... I have it……. MORE MONEY. So if I give you another £1,631 per month for a 40 car package, up from £2,792 per month to £4,423, you will do it for me. You have really shocked me this time Auto Trader. You are forcing the independents to seek alternatives. Your greed will be your undoing I can assure you. Please explain to me how you justify the price of this? I thought it would be the usual £100 here or there, but I was wrong. You want thousands! Please explain - I am confused. You told me that people don't really look on desktops anymore. In fact, you told me that last month! Do you think that by forcing smaller independent dealerships to the bottom of the search you can force them into alternatives such as downsizing their packages or leaving Auto Trader altogether? This is not going to help you now, or in the long run. Sorry Auto Trader, this one is going to cost you a lot of money and my friendly advice is that you put this one into reverse as quickly as you can.
Many thanks for the quote, but we won't be taking you up on this one. The mission to leave you is going well, but as with all divorces it will take time. I look forward to Auto Traders response.
Regards
Chris Roach
Owner of Chequers Cars Lightwater & Auto Trade Associates where reputable independent dealerships come together as one.