From its origins as a digital yearbook for Ivy League students in 2004, Facebook has indeed come a long way.
For instance, nobody could have envisioned that nearly 20 years later, it would supplant TV as an advertising platform for a fraction of a cost.
From the exclusive enclaves of Harvard–and later Yale and Stanford–today’s Facebook users are estimated to be nearly three billion from all corners of the globe.
Now, businesses may think that the primary purpose of creating a Facebook pages is to get as many likes or follows as possible. So, their marketing strategy is designed to achieving this goal.
After that, they no longer have any idea of how to get their followers to take the next step toward dipping into their pockets for their wallets.
The fact is that more than 9 in 10 of your visitors have no intention of buying. It is now up to you to convince them otherwise.
Sure, it is nice to see the number of followers tick up, and you may enjoy bragging rights over their competitors. But your social standing will not impact your profits in the long run unless you do something.
And that is where Facebook Retargeting ads comes in.
When you are personally managing your Facebook advertising/Facebook retargeting ad, you may have an idea of who your customers are based on their profiles. But do you know the reason why they visited your website or Facebook page?
You might say because they are paying customers.
How much are you betting that your assumption is correct? Are you willing to wager your company’s fate? Scratch that. You do not need to make that bet because it is essentially what you are doing anyway.
Make sure that the data supports your assumption if you are going to mortgage your future.
How can you convert them into loyal customers rather than one-time customers?
Facebook retargeting ads is an invaluable tool that will help identify the people who visited your website and then study their data to spot patterns and intent.
You can then use this data to create compelling ads to make them revisit your site and make a purchase.
Facebook Retargeting ads can help your company in a myriad of ways.
The first step is preparing a list of the prospects you want to target.
Creating the list is quite easy because there are multiple tools you can use, such as analytics, visitor profiles on your website, or your brick-and-mortar store. You can also gather data through your customer relationship management software.
You can prepare your customer list in the following formats before you can upload them on Facebook:
Your custom audience may also be identified by the country/city/state/provide where they are based. The Zip Code may also be entered as an identifier, along with the birth date and gender.
You can launch your Facebook ad campaign using the Facebook Ads Manager tool.
But first, you need to install the Facebook pixel. It is a small modification to your code, which is a powerful tool to track users and their online behavior after interacting with your brand.
Once they click on your ad, added an item to their cart, or visited your website, you ensnare the customer in your web of omnipresence.
Even if they leave, you can follow the cookie crumbs to easily track them across the Internet.
Everywhere they go, they will be reminded of you, like the one that got away, or perhaps an itch on their back that they could not reach to scratch.
Installing the Facebook pixel is quite straightforward. Before anything else, you need the following elements:
A. Creating a Facebook pixel
B. Add the Pixel
The next step is to add the pixel code into your website’s source code. You can choose to do it manually, use a partner integration, or email the instructions to your website administrator or engineer.
Generally, you only need one pixel across multiple business sites.
But there are times when you need to add multiple pixels, like when there are two separate ads on your website. The marketing agencies may decide to run separate pixels for their dynamic ads.
1. Head on to Ad Creation to create your dynamic ad. Make sure to select the audience who already interacted with your services and products on Facebook or other platforms. You can then retarget them first.
2. Next is to select your retargeting option. There are multiple ways to do this.
3. There is an option to identify the number of days where the last audience activity was recorded. Enter your answer.
4. Show Advanced Options if you want to include Lookalike Audiences in your Custom Audience targeting. Lookalike Audience refers to that underserved segment of potential buyers who share similar intent and goals with your existing customers.
The catalog is necessary to create your Dynamic Ads.
The catalog is a repository of all your products that you want to advertise on the platform. Facebook retargeting ads recommends creating a single catalog rather than different inventories to minimize confusion.
If you already have an eCommerce website from Shopify, you can integrate it seamlessly into your ad campaign. If not, you will have to create your business Catalog.
You click on Commerce Manager to get started.
With retargeting campaigns, you can tailor your ad according to the specifications of the customer.
For instance, you can target prospects who visited your website or competitor sites as they browse for products that interested them.
The question is, why did they not convert?
You can then tweak your ad to address the pain points of the customer, making them more likely to buy.
Using Facebook Retargeting ads, you can increase site visits by over 700%!
The first stage is to get them to click on your ad because the same data revealed that the customers are 26% more likely to make a purchase when they do.
After defining the parameters of your Custom Audience, you can then begin to launch your facebook retargeting campaign.
Go back to your main business profile page, and move your cursor to the top-right of your screen to select “Create an Ad.”
Simply follow Facebook’s instructions on how to start your campaign, including your budget, your audience, the frequency of your ad, and the schedule to display your ad.
You also need to outline your marketing objective to give Facebook an idea of your business goals. In this way, it can further hone on the types of customers you want to target.
For instance, eCommerce sites are for-profit organizations. Facebook will target the audience not only for their buying capacity but whether or not they are likely to engage with your business.
As you can see from the options, some websites are not interested solely in profits. They may want to expand their brand reach, generate leads, increase engagement, and website traffic.
Facebook is an affordable platform for marketers to display their dynamic ads.
You can already advertise for as little as $1.00 a day. In fact, it is recommended that you first low-ball Facebook, especially during the early stages.
The idea is to run analytics to determine which among your ads yield the most ROI. You can then rationalize your future budgets.
For instance, you can optimize your poorly performing ads or abandoning them together to focus on your more successful facebook campaigns.
You need to remember the three primary factors for how Facebook will present your ads to your target/custom audiences:
There is a reason why Facebook created the Lowest Cost option, and it is ideal for:
The Lowest Cost It is not the best determinant of the cost per action (CPA) rate, although Facebook claims that it will try to bring you the cheapest cost results.
The final cost will hinge on the bidding activity. The stiffer the competition, the higher the rates.
When launching your Facebook retargeting campaigns, make sure to create different types of content.
The idea is to test your ad using trial and error.
Different ads may have different outcomes depending on conditions, target/custom audiences, and frequency.
You can even take the shotgun approach. Launch simultaneous ads at once and see which one sticks. Analytics will give you a good glimpse of where you are successful and which areas you went wrong.
It is better to target your top prospects and customers first rather than deploy your ad to all your customers. You can get better results this way as your data will have less noise.
Facebook Retargeting ads is a novel way to advertise to your prospects without being too creepy about it. It is also a more affordable way to get the word out about your brand and direct your prospects to your sales funnel.
More importantly, do not forget A/B testing on all your Facebook ads to reduce guesswork in your future marketing campaigns.
Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.
Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.
Pay-per-click (PPC) remains one of the fastest paths to pipeline, but the economics vary widely by industry and are shifting as AI reshapes the SERP. CPCs are up versus prior years, conversion rates have improved in many categories, and lead quality is increasingly a function of how well advertisers feed first-party data into bidding models.
The table below summarizes 2025 search-PPC benchmarks by sector—CPC, conversion rate (CVR), and cost per lead (CPL)—so you can compare what “good” looks like in your niche and calibrate ROI assumptions.
Use these numbers as directional guardrails, then layer in your own close rates and LTV to get to the only metric that matters: profitable growth.
Sector | CPC (2025) | CVR (2025) | CPL (2025) | Notes |
---|---|---|---|---|
Attorneys & Legal | $8.58 | 5.09% | $131.63 | High LTV offsets cost; intake speed drives ROI. |
Home Services | $7.85 | 7.33% | $90.92 | Strong local intent; geotargeting and call flows matter. |
Healthcare (Physicians & Surgeons) | $5.00 | 11.62% | $56.83 | Wide variation by specialty; appointment UX boosts CVR. |
Real Estate (Agents/Brokerages) | $2.53 | 3.28% | ~$100.48 | Lower CVR keeps CPL high; lean on LSAs/retargeting. |
B2B / Business Services | $5.58 | 5.14% | $103.54 | Longer funnels—optimize to qualified pipeline value. |
Restaurants & Food | $2.05 | 7.09% | $30.27 | Efficient lead costs; fast payback with online ordering. |
Automotive – Repair/Service | $3.90 | 14.67% | $28.50 | Top-tier CVR; excellent for local lead generation. |
In short, AI is changing the way PPC campaign management is occurring, and it's happening FAST.
ROI ≈ (Close-Rate × Avg Customer LTV ÷ CPL) − 1
Example (legal): if close-rate 12% and LTV $6,000 on CPL $132 → ROI ≈ (0.12×6000 / 132) −1 ≈ 4.45x (345% net). Improve any one input (faster intake bumps close-rate; better routing lowers CPL) and ROI jumps. Benchmarks for CPL/CVR above provide solid starting points. LocaliQ
PPC will keep paying when two things are true:
(1) you can convert and qualify leads quickly, and
(2) your bidding models are trained on the outcomes that actually make you money.
As AI compresses differences in targeting, the edge shifts to first-party data, creative velocity, and value-based bidding.
Treat the benchmarks above as starting points, then rebuild your ROI math from the ground up: ROI ≈ (Close Rate × LTV ÷ CPL).
Contact us today for your customized PPC audit to see how we can improve your search engine marketing ad spend.
When you’re running pay-per-click (PPC) ads, it’s easy to assume clicks mean genuine interest, but most car shoppers are just kicking tires online. Seeing your inventory once doesn’t mean they’re ready to buy anytime soon or even at all. If you want to reach the portion of clicks that come from serious buyers, you need to use retargeting.
The reality is that even prospects who intend to buy a car will bounce before contacting you or visiting your lot in person. And if you don’t have a way to keep them aware of your business, when they’re ready to buy, they’ll buy from a competitor. Running retargeted ads will keep your dealership in their awareness even after they bounce.
According to a 2022 Cox Automotive Car Buyer Journey Study, the average person spends more than 14 hours searching for a new car, which includes visiting around 5 websites before making a purchase decision. The sites they visit include automakers, dealers, third-party sites, and pre-owned car lots with online inventory. Your prospects aren’t going to buy right away, so to get the sale you need to reel them back in. If you’re not using retargeting – also called remarketing – in your PPC campaign, you’re missing out on hot leads.
Buying a car isn’t a small decision. People compare makes, models, and deals and look for dealerships with great reputations. Getting a single click from a potential car buyer isn’t enough to make the sale. And when they bounce, there’s no guarantee they’ll remember you exist. You’re paying for all those initial clicks, and if potential leads never come back you’ve wasted your ad spend. When you use retargeting, you’ll have another chance to turn their curiosity into a conversation, and that’s why remarketing is an essential component in every PPC ad campaign.
PPC ad retargeting for car dealerships shows your ads to people who have already clicked on an ad or visited your website. When implemented strategically, it keeps your dealership visible across multiple platforms and follows those people across the web. For example, when you run retargeted ads on the Google Display Network, your display ads will show up on the blogs, news sites, and apps your prospects frequent.
You can also run retargeting campaigns on social media sites like Facebook and Instagram. As long as your prospects scroll through their daily feed, your ads will show up for them if they’ve already interacted with you. YouTube also offers retargeting options with video ads that play right before the content. In fact, don’t underestimate the power of YouTube video advertising. According to data from Wyzowl, video ads convince 84% of people to buy a product or service.
Not everyone searching for a new car will respond to the same bland, boilerplate message. For example, someone browsing luxury SUVs isn’t going to click on an ad that says, “Low APR on all models!” That’s where remarketing shines. It lets you tailor your message to what each user actually wants, which increases response rates.
With retargeting, you can segment your audience based on their interests and behavior. For example, someone comparing financing terms won’t be swayed by flashy sports car imagery. With retargeting, you can show truck shoppers truck ads and sports car shoppers sports car ads. It sounds simple, but it’s one of the most powerful marketing methods of all time. People are far more responsive to messages that feel personal. You may have caught their attention with a general ad at first, but once they start browsing those SUVs on your website, you can retarget them with SUV ads.
When you use retargeting, you can provide different calls to action (CTAs) to users based on how they’ve engaged with your web pages. A visitor who spent a lot of time on your truck inventory pages can be served ads for your latest truck deals. Someone who checked out your lease specials can be hit with ads that talk about financing offers. It’s deceptively simple and brutally effective. Relevance is everything. When your ads reflect what the prospect was already thinking about, it feels personal and resonates.
A next-level tactic is using engagement depth to determine how strong your call to action should be. For instance:
· Multi-page viewers and long dwell times. These are warm leads and can be retargeted with stronger CTAs like “Book a test drive” and “Get a quote today.” They’re close to converting and just need a little push.
· Single-page bouncers. These are people who just peeked at your site. They can be re-engaged with lighter touchpoints like a general promotion or model comparison guide to reel them back in.
· Abandoned lead forms. If someone started filling out a form but didn’t finish, retarget them with a reminder and a stronger offer to sweeten the deal (e.g., “Complete your form for $500 off!”).
This level of nuance turns retargeting into a conversion machine and allows you to show the customer exactly what they want to see.
People don’t buy cars from whatever dealer they find first. That’s too risky. They buy from dealerships they trust and that feel familiar. You can build that sense of familiarity and trust through retargeting. For example:
· Consistent branding across ads. Using consistent branding, design, and messaging throughout your ads reinforces your dealership’s identity.
· Frequency builds familiarity. People need to see a brand between 5-7 times before they’ll remember it. Retargeting puts your dealership in front of people over and over again. Even if they don’t click right away, it’s helping to establish your credibility.
· Social proof works. When you use social proof like customer testimonials or awards in your ads it builds trust with your prospects.
Trust is earned over time, and retargeting will help you get it.
If you’re not using retargeting, your competitors definitely are. Car dealerships operate in one of the most brutally competitive markets out there, with national chains and franchise giants dominating search results and flooding ad channels with endless budgets. If you’re not showing up again and again, your competitors will, and they’ll scoop up all your leads.
The good news is you don’t need a massive marketing budget to get results. Retargeting allows smaller, local dealerships to play smart rather than trying to play big. When you focus on local PPC with hyper-targeted remarketing, you can reach a smaller, more qualified audience – people who are actually in your area, browsing your inventory, and likely to buy soon.
And unlike those cookie-cutter campaigns from national dealers, you can make your messaging feel personal and specific to your local community. That’s an edge big budgets don’t have.
Every visitor who leaves your website without converting is a potential sale but not necessarily lost. With smart retargeting, you can bring them back into your funnel and stay top-of-mind while your competitors waste money shouting into the void. Persistence wins the sale and retargeting is how you stay on the map.
To be blunt, search ads can get expensive fast, especially when clicks can cost a couple dollars per click. Pouring money into cold traffic is gambling on people who may not be ready to engage. Retargeting changes everything.
Display retargeting clicks typically cost a fraction of what you’d pay for search ads using competitive keywords. You’re no longer paying top dollar to get someone’s attention from scratch – you’re nudging people who already know who you are, and those people are more likely to respond. This makes retargeting one of the most cost-effective ways to use your advertising budget.
· Lower CPC, higher intent. Retargeting costs less per click, but you’re targeting people who already visited your site and showed interest.
· Better conversion rates. Familiarity breeds trust. Retargeted visitors are statistically more likely to convert than new users who just clicked an ad out of curiosity.
· Higher ROI. Since retargeting reaches warm leads, the cost of acquiring a lead is usually lower, which means your overall cost per lead is lower and you get better ROI.
If you’re skipping remarketing because you think it’s just something “extra” that doesn’t make a difference, you’re not saving money – you’re losing easy wins. Instead of perpetually chasing new, cold traffic, invest in converting the traffic you’re already getting. That’s exactly what remarketing does.
Generic ads are fine for first impressions, but once someone has browsed your inventory it’s time to get specific with dynamic retargeting. Here’s how it works:
When a prospect views a specific vehicle on your site, you can use retargeting ads to show them the exact vehicles they viewed and others like it down to the year, color, trim, and mileage. For example, if they looked at a black 2005 BMW 535i, that’s exactly what they’ll see in the ad – the same photos, same specs, all across sites like YouTube, Facebook, news platforms, and more. This reminds your prospects of exactly what they want.
Dynamic retargeting works by integrating your live inventory feed with your ad platform, like Google Ads or Meta. This means the vehicles displayed in your ads will always be up to date and won’t feature cars you sold last week.
Beyond personalization, dynamic ads are an incredible tool for creating a sense of urgency:
· Leverage scarcity. With these ads, you can leverage the power of scarcity by stating that your inventory won’t last. Using messages like “Only 1 left” or “Recently reduced” signals that the opportunity won’t last.
· Show what’s popular. If a particular model is getting a lot of views, let your prosects know. People don’t want to miss out on a good deal.
· Trigger action with FOMO. Fear of missing out is real, and when people see the car they want again – with a reminder that it might sell soon – they’re more likely to come in for a test drive.
By using retargeted ads, you can increase conversion rates by up to 200% compared to standard display ads. These ads feel more like a helpful reminder than an outright advertisement.
If you’ve never run paid ads before, it’s easy to assume your only options are basic keyword targeting and generic follow-up ads. But today’s ad platforms give you a buffet of hyper-specific targeting capabilities to fine-tune exactly who sees your ads, where, when, and how.
One of the most effective PPC retargeting tactics for car dealerships is location-based targeting. With radius targeting, you can serve ads to people within a specified distance from your dealership, like within 10-15 miles. These will be prospects who are not only likely to visit your site but could realistically walk into your showroom today. Don’t waste ad spend on clicks from people three states away.
Then there are device-specific campaigns. If your analytics show that 75% or your traffic comes from mobile (this is common), you can launch a mobile-only retargeting campaign with click-to-call buttons, mobile-optimized landing pages, and a map and directions built right into your ads. This will improve the user experience and increase conversion rates.
Timing also matters. When you schedule your ads you can control when they appear. Run them during lunch breaks, in the evenings, or on weekends when people have more time to browse car listings and are more likely to make big purchase decisions.
Other strategic targeting elements include:
· Demographic targeting. You can tailor your messages based on age, income level, and household status. A 25-year-old college grad and a 45-year-old parent are not shopping for the same reasons even though they might buy the same car.
· Behavioral triggers. You can create audiences for your retargeted ads based on repeat visits, clicks, video views, or interaction with a specific feature like a trade-in calculator.
· Lookalike audiences. Build new audiences that resemble your best customers. Platforms like Meta and Google are really good at identifying similar users based on their behavior online.
The bottom line is that retargeting doesn’t have to be broad. With the right strategy, it becomes a smart, cost-effective system for reaching the right prospects at the right time.
Have a sale, lease offer, or year-end clearance? Retargeting can amplify the urgency to act now. By offering short-term discounts and financing deals, you can tap into the urgency people feel when presented with time-sensitive offers. Emphasize the end date using a countdown timer or final deadline to create FOMO (fear of missing out).
With this type of retargeting, you can align your ads with your email messaging to increase conversions even more. For example, if you sent out a promotion to your email list, they’re likely to see your retargeted ads and be reminded of the deal you’re offering.
Retargeting is the PPC secret weapon most car dealerships don’t take advantage of. Using this strategy can make the difference between a one-time curious visitor and a buyer ready to schedule a test drive. If you’re spending money on clicks without retargeting your visitors, you’re wasting your ad spend.
At PPC.co, we specialize in high-performance white label PPC campaigns that include smart retargeting from day one. Whether you’re launching your first campaign or looking to tighten up your existing ad strategy, we can help you capture more leads, drive more traffic, and move cars off your lot. Let’s turn those clicks into closed deals – contact us now to get started.
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