Case Study
Modern Auto sees a 9x increase in ROAS with solution from Cognition and insights from AMC
For four generations, Modern Auto has operated a family-run network of automobile dealerships. The company had been using digital advertising to gain competitive advantage for their 17 locations across North Carolina, but they wanted more insight and better performance for their advertising campaigns.
Since 2021, the company has been working with Amazon Ads to increase exposure for their three stores and to increase sales. They sought to optimize the use of information to assess the effectiveness of their media spend, track key performance indicators, and make informed decisions regarding advertising strategies.
Uncovering opportunities for growth through Amazon Marketing Cloud
To help transform information into actionable insights and uncover opportunities for growth, Modern Auto turned to Cognition, an Amazon Ads partner that specializes in solutions for automotive retailers. Cognition provides a user-friendly solution for their clients to upload and process a total of 150,000 records each month.1 Customers like Modern Auto use Cognition to upload offline events to Amazon Marketing Cloud (AMC), a secure, privacy-safe, cloud-based solution in which advertisers can perform analytics across pseudonymized signals, including Amazon Ads signals and their own inputs.
Modern Auto obtained valuable insights from these analyses using first-party records. For instance, analyzing audience engagement behaviors unveiled preferences for specific vehicles and messaging, helping the brand optimize future campaign content design rules based on audience segments.
— Carson Henry, CEO, CognitionAMC is absolutely vital to our clients. It makes it possible for us to provide a true return on ad spend.
In addition to their AMC uploads, Modern Auto uses Amazon Ad Server templates to continually align the right vehicle and messaging with specific audience segments based on AMC performance metrics.
Using Amazon Ad Server templates, Modern Auto and Cognition tailor creative ad elements to customer preferences and behaviors. Real-time performance metrics, such as click-through rates, conversions, and engagement, help Modern Auto modify messaging, vehicle selection, and creative ad elements so that their advertising aligns with audience preferences.
Reaching 9x ROAS by generating insights
Cognition has collaborated closely with Modern Auto, sharing campaign results and insights and putting some of the learnings from AMC and Amazon Ad Server into practice. After one year, the results of Modern Auto’s campaigns exceeded key success metrics and outperformed the company’s objectives, surpassing industry benchmarks for cost per lead by 43%.2 The increase in generating high-quality leads helped Modern Auto expand their customer base and increase sales opportunities.
The company also improved their efficiency in converting leads into vehicle sales. This resulted in a 9x increase in return on ad spend (ROAS), delivering substantial revenue growth and helping the company position itself for success in the automotive market.3
Refining results for future campaigns
Modern Auto benefits from Cognition’s advertising practices, achieving outcomes that position the advertiser for sustainable growth and success in the automotive market. The regular first-party signal uploads and analytics in AMC allow Modern Auto to gain insights into the success of its processes and technologies.
The deployment of these insights through Amazon Ad Server then helps Cognition to keep advancing audience and bidding strategies, ad creatives, and media allocation so that Modern Auto can achieve even better results in the future. “Cognition provides us true matchback sales data to digital ad attribution, giving us confidence in knowing our spend is really working for us,” says Gary LaDue, marketing director at Modern Auto. “The technology in AMC undoubtedly optimizes all that we do.”
1-3 Source: Cognition, United States, 2023.