Cash For Clunkers “Mixed Blessing” In Autobytel’s Third Quarter
While automobile dealers received a boost from the “Cash for Clunkers” federal vehicle trade-in program, one major direct marketer’s praise for the effort was decidedly muted.
Autobytel, which provides prospect leads to a network of dealers, indicated the total number of dealers taking advantage in its offerings declined during the third quarter.
“While the US Government sponsored `Cash-for-Clunkers’ incentive program was a real boon to auto manufacturers and dealers, it was somewhat of a mixed blessing for Autobytel,” said Jeffrey Coats, Autobytel’s president and CEO, in a statement.
“Although we experienced increased leads delivered per dealer as a result of the program during the third quarter, overall dealer demand for leads decreased, as certain dealers felt they had sufficient volume of customers through increased on-line and showroom traffic.”
Revenue for the 2009 third quarter of $13.4 million was flat with the 2009 second quarter, and was down from $17.3 million for the same period last year. Auto lead referral revenue declined approximately 25%, from $15.6 million in third quarter 2008 to $11.7 million for the quarter just ended. The company attributed the decline to weakness in the general economy and automotive sector.
The company’s advertising revenue remained stable at $1.6 million for the 2009 third quarter, only slightly less than what it pulled in a year ago.
The company indicated changes to its search engine marketing efforts, as well as Web site improvements, resulted in a 30% sequential increase in page views and a 300% increase in organic leads compared to the beginning of the year.
