A new way to calculate ROI for car portals

During last week’s #DCDW event, I delved deeper into how we calculate ROI for car portals at Ligier Store Doesburg – Experience Center. I used Marktplaats as an example, but this method can also be applied to the other three portals.

The core idea behind assessing ROI is that, as a marketer, I need to determine whether my investments yield the expected return. Suppose I receive 50 leads from platform Y, but my sales team fails to follow up by calling, emailing, or messaging. As a result, they sell very little. Does that mean it’s a poor marketing investment? Or is it a problem in the sales process?

The marketing team provides opportunities, while the sales team is responsible for converting at least 13%. Both departments have their own responsibilities. A “bad” existing lead has a better chance of converting with a solid process than a “good” lead with a poor one.

Example

In October 2024, our investment in Marktplaats was €705. This resulted in:

• 21,490 VDP views (Vehicle Detail Page views)
• 257 URL clicks
• 58 leads (50 via Direct Messaging and 8 via phone calls)
• 5 cars sold

How should this be calculated? If you look at the Cost per Sale (CPS), that month it was €141 per car sold. However, the previous month, I sold only one car through Marktplaats, resulting in a CPS of €705. CPS doesn’t tell me much, as it fluctuates significantly. For marketing decisions, I prefer looking at longer periods where the investment is expected to generate opportunities.

The role of the VDP view

For me, VDP views are the most critical metric. Without VDP views, there are no leads, phone calls, or showroom visits. Now that Google has launched Vehicle Listing Ads (VLA) and we’re part of the pilot, Cost per VDP is becoming increasingly relevant. We’ve seen this principle with platforms like GasPedaal.nl, but Google brings a new dimension.

In the current pilot, the CPC (Cost per Click) is about €3. If Cost per VDP becomes a key metric, how do you calculate ROI?

ROI Calculation: A New Approach

I propose allocating 50% of the marketing investment to VDP views. For this case:

• 50% of €705 = €352.50
• Cost per VDP = €352.50 ÷ 21,490 VDP views = €0.016 per VDP view

Next, I assign value to URL clicks:

• €0.15 per click × 257 clicks = €38.55

The remaining budget goes to Cost per Lead:

• Remaining budget: €313.95
• Cost per Lead = €313.95 ÷ 58 leads = €5.41 per lead

Conclusion

This method may vary per dealership and month but offers marketers a valuable tool for assessing portal value. Looking solely at CPS makes you too dependent on the sales process. This risks shifting the focus to “better leads” instead of a better process. In truth, there are no “better leads,” only better processes!

Ultimately, a strong sales process generates more revenue than merely better leads. This approach allows you to evaluate and optimize both marketing investments and sales processes. That way, you’ll know whether your marketing budget is truly delivering results.