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What are the leading sites/brokers and what are they charging dealers to list and/or to get leads? What are their business models when it comes to making money off of dealers?
Hello! Thanks for your question about the leading auto broker sites, what they charge dealers to list and get leads, as well as their overall business model to make money off dealers. The short version is that the top auto broker websites that generate leads for dealers are CarGurus, Autotrader, Cars.com, Edmunds, Car Max, True Car, Cars Direct, and The Car Connection.Auto brokers generally have a business model in which they charge both regular listing fees as well as additional fees for ad features to automotive dealers, and can also profit via offering auto marketing services or partnering with media outlets to support their auto classified sections. I also found that it is generally not standard practice to list set listing or lead fees, but rather these companies connect with dealers to create custom price plans that meet their needs, so rather than provide exact rates, I've instead provided descriptions of the various ways fees are structured for dealers. Below you will find a deep dive of my findings.
METHODOLOGY
In order to answer your question, I compiled data from industry websites, website analytics sites like SimilarWeb and Alexa, as well as other trusted media sources. I focused both on finding out which of these sites were leading, which I based on overall traffic to each website, as well as locating information on how they charge and make money off dealers. Because I found exact fees were generally not listed, I instead found out what the payment/ business model was for these auto broker sites.
TOP AUTO BROKER/ LEAD SITES
The top auto broker/lead sites, based on traffic data from SimilarWeb and Alexa were CarGurus (34.9 million views in the past 6 months) Autotrader (22.3m), Cars.com (17.4m), Edmunds (16.4m), Car Max (7.76m), True Car (7.67m), Cars Direct (3.1m), and The Car Connection (2.1m).
I also noted that car sales related websites Yahoo Autos, Kelley Blue Book, Autoblog, etc generate large amounts of traffic that may also generate leads if dealers place ads on these sites. However, per your request I focused on those that were considered auto broker sites, rather auto related media sites.
LISTING FEES, AD SPEND, & LEAD GENERATION
While the actual fees to dealers are not made public on the majority of auto broker sites, generally these sites generate revenue in two ways- via listings fees themselves and via charging dealers for additional ad features to accompany their listings. For example, Autotrader charges a rate for listing fees that varies based on number of listings, and then adds additional fees to have listings featured, and to add elements to listings that will generate more interest.
Some of these sites offer special ad tracking services for dealers as well. For example, Cars.com offers a monthly subscription package for dealers which offers the ability to see when ones page is being viewed, track ad traffic, and offers ad management features aimed at dealers rather than individual sellers.
Some auto broker sites like Edmunds are generating a significant amount of their revenue from helping dealers develop and implement successful online marketing strategies. In addition to offering listings that generate leads for auto dealers, Edmunds offers digital and mobile ad solution services, as well as loyalty marketing programs.
I also noted that while these websites are generally charging for listings or ads, one way that is commonly used to calculate the cost of each lead generated is CPL, or cost per lead, which calculated by dividing ad spend by lead volume. So for example, if a dealer spend $5,000 to list and advertise on Auto Trader, and they generate 100 leads, the CPL would be $50. The cost per lead would vary based on the dealer's success with ads and listings,
OTHER RELEVANT DATA
Another way these companies are financially benefitting is through their partnerships with media companies. Many newspaper websites for example integrate the functionalities of sites like AutoTrader.com for their auto classified sections. The media's recognition of the potential revenue generated from auto broker sites has led many media outlets to either partner with or buy out popular auto broker sites. For example, Cars.com was purchased for $3 billion by five media sites, and Auto Trader is currently owned by Cox media.
CONCLUSION
To wrap it up, the top auto broker websites that generate leads for dealers are CarGurus, Autotrader, Cars.com, Edmunds, Car Max, True Car, Cars Direct, and The Car Connection. Auto brokers generally have a business model in which they charge both regular listing fees as well as additional fees for ad features to automotive dealers, and can also profit via offering auto marketing services or partnering with media outlets to support their auto classified sections. Thanks for using Wonder! Please let us know if we can help with anything else!