Video is yet another way for dealers to reach potential customers online and to show off their used inventory, and many stores are taking advantage of this more interactive digital marketing option.

Videology  — a video advertising platform — revealed a new report this week that breaks down video advertising’s ability to drive auto sales for dealers.

The report, titled “Messaging That Moves Cars Off Lots” shows a variety of statistics that imply “targeted digital video drives a significant increase in sales metrics, increases overall advertising effectiveness, and offers a viable option to complement television campaigns for local auto dealers,” the company said.

But broad video campaigns that target a large demographic may not be the way to go for manufacturers and dealers.

According to the report — based on data compiled from auto advertisers using the Videology platform over the past six months — when digital video campaigns targeted smaller group and areas, the positive impact on sales was higher.

“The report concludes that all automotive campaigns — even national efforts — benefit from an advanced targeting lens if the end goal is to drive sales,” the company said .

In one case study outlined in the report, a geo-targeted campaign for a major auto brand produced a 60-percent sales lift among those exposed to the video advertising campaign versus the control group, the company shared.

The advertising experiment also narrowed the filter to include those in-market to purchase an automobile. When this was done, the sales lift rose to 160 percent, according to the report.

On top of geography, video advertising criteria that have the most positive influence on purchase behavior include purchase affinity, site selection, frequency and browser selection, according to the report results.

According to the report, exposure to a video advertisement five or more times was the “tipping point” for pushing increased purchase affinity for viewers.

The said, geo-targeted campaigns cut down on the frequency necessary, requiring only two-to-four views before purchase affinity rose.

“Digital video can target on precise geographies and discrete consumer segments — including those in-market to buy a car.  Common sense says it should work to move cars out of dealerships — and now we have the data to back it up,” said Scott Ferber, chairman and chief executive officer of Videology.

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