The 2022 Facebook Ads Guide for Auto Dealers - Adpearance

The 2022 Facebook Ads Guide for Auto Dealers

Leverage Facebook’s dynamic ads and robust targeting to capture low-funnel car shoppers for your dealership. Use these tips and best practices to maximize ROI and generate more leads from your automotive Facebook ad campaigns in 2022.

Best Facebook Ads for Auto Dealers

In addition to the standard ad types that have been around for years, Facebook offers inventory-based catalog ads that make the advertising platform especially effective for auto dealerships looking to generate high-quality, low-funnel leads.

Automotive Inventory Ads

Dynamic advertising is a must for any competitive dealership. By linking your vehicle inventory feed to a Facebook catalog, you can instantly create Automatic Inventory ads that include up-to-date vehicle descriptions and live pricing information. Bring users back to your website by segmenting particular makes or models into vehicle sets to ensure that your ads are only shown to interested Facebook users. Then, go a level deeper and target shoppers with VIN-specific ads that directly link them to the exact piece of inventory on your website.

By targeting a healthy mix of previous website visitors and new in-market shoppers, you can guarantee full-funnel coverage and fully leverage Facebook as a lead generation channel.

The results? Our experience has shown that Facebook Automatic Inventory ads result in a 2x higher click-through rate, 40% lower cost-per-click, and 3.4x more conversions when compared to static ad creative.

Dynamic Ads

Lead Form Ads

In addition to dynamic inventory ads, Facebook lead form ads can generate in-app leads. Instead of users clicking through to a VDP, they will be prompted to fill out a form with their contact information. These ads are especially effective in automotive for reaching low-funnel shoppers and converting them into leads. 

Part of what makes lead form ads so effective is the native experience that allows users to quickly fill out and submit forms without leaving the Facebook interface. The ad and form are completely customizable, and you can sync your CRM to make sure the leads you generate are automatically sent to your sales team. 

Lead form ads do require a longer setup period, but in our experience, they out-perform the already impressive performance of dynamic inventory ads.

Video Ads

Video ads can be an effective way to increase brand awareness or reach. These ads can be valuable for new dealerships or dealers who are looking to promote a specific aspect of their business or increase awareness of the dealership as a whole. When you need to communicate deals, promotions, or brand promises, select views or impressions as your campaign objective to reach a high volume of relevant Facebook users at a relatively low cost.

Best Facebook Targeting for Auto Dealers

Facebook offers a wide range of targeting options, but there are three that have proven to be the most effective for auto dealers.


In our experience, remarketing is the most successful targeting method for car dealers advertising on Facebook. Remarketing campaigns target previous website visitors to ensure your ad spend is focused on users who are already familiar with your brand and known to be in-market for a vehicle. 

To create a retargeting audience, you can easily track and retarget previous visitors using the Facebook Pixel. This audience can then be segmented into specific campaigns based on the pages that they viewed, the amount of time elapsed since their last visit, the total amount of time spent on the site, and other relevant activity.


Once you have a remarketing list, Facebook can create a similar-to-remarketing audience by finding users with similar demographics and characteristics as your previous website visitors. While not as effective as remarketing, targeting a similar-to-remarketing audience tends to produce moderate success at a low additional cost for dealerships.

First-party data

Leverage your own customer data to create lookalike audiences or target repeat customers. Create custom audience segments derived from previous content consumption and use dynamic retargeting to target previous website visitors with custom creative. You can take it a step further and create lookalike audiences by assigning website visitors with a tracking pixel, then target individuals exhibiting similar behavior.

Third-party Data

Target in-market vehicle shoppers based on their make of interest by leveraging third-party data. This level of targeting requires integration with a custom third-party data provider but it’s worth it for the sharply focused approach to reaching ready-to-buy car shoppers. Use third-party data to pair a custom audience with vehicle sets for maximum targeting accuracy. 

As Internet privacy continues to be a concern for consumers, the future of third-party tracking remains uncertain. While you don’t want to rely entirely on third-party data for your ad targeting, at this moment, it remains a valuable asset for targeting potential customers.

Getting Started

If you’re looking for a partner to implement a lead-generating Facebook advertising strategy, get in touch. We’ll start with a free digital analysis to assess the opportunity in your market and determine how Facebook ads can be leveraged for sales success.

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About the Author

Rachel Sather

Rachel is a digital advertising specialist. She gets your business in front of the right buyers at the right time using cutting-edge technology.

Adpearance is the digital marketing company obsessed with generating quality leads. Our solutions combine cutting-edge technology, premium tracking, and an expert team to transform business results.

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