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Automotive · Digital Advertising + Inventory Strategy

Larry H. Miller Honda Murray

+$0KIncremental gross revenue

Reallocated $40K/mo ad budget to high-margin units and drove $420K in attributable gross over 6 months

Duration6 months
Year2023
IndustryAutomotive

The short answer

LHM Honda Murray was spending equally across all inventory despite massive variation in margin. By mapping ad spend to gross-per-unit data and shifting budget from fast-turning commodity units toward high-margin slow-movers, the store added $420K in attributable gross revenue over six months on the same total budget.


Problem

Auto dealerships typically spend a flat CPL target across all models. But not every model is the same business problem. High-demand models sell themselves — strong organic interest, fast turns, thin negotiated margin. High-margin models sit longer, close at better gross, and need more marketing to find the right buyer.

LHM Honda Murray was running even spend allocation across model lines. Budget for high-margin units was identical to fast-turning commodity units — despite the commodity models moving in under two weeks and the high-margin units averaging over six weeks on the lot.

The result: overspending on units that didn't need the push and underspending on the inventory that actually drove gross.


Approach

Inventory performance analysis. I mapped average days-to-turn against average front-end gross for every model line. The pattern was consistent: a small group of high-margin models was carrying the majority of gross contribution but receiving a fraction of digital spend.

Margin-weighted budget allocation. I rebuilt the media plan with spend weighted by days-to-turn and gross-per-unit. Fast-turning models got floor spend — enough to capture existing demand without overpaying. Slow-moving high-margin models got 3–4× their previous spend.

SRP-to-VDP funnel work. For the highest-margin units, I rebuilt SEM campaigns to drive traffic directly to model-specific VDPs with in-stock inventory shown above the fold. Previously these campaigns pointed to broad SRP pages with too many choices and high bounce rates.

Monthly inventory sync. I built a recurring process where performance data informed allocation at the start of each month. Budget tracked the inventory, not the calendar.


Result

Metric6-Month Impact
Incremental gross (attributed)+$420K
High-margin unit days-to-turnReduced significantly
VDP engagement on target models+180%
Total budgetUnchanged ($40K/mo)

The reallocation paid for itself in month two. By month four, leadership was asking why it hadn't been structured this way from the start.


What I'd do differently

Build the OEM co-op alignment process into the intake from day one. Available co-op budget went unclaimed in the first two months because the paperwork wasn't submitted in time — a process gap, not a strategy gap. Getting that locked in earlier would have meaningfully expanded available budget over the engagement.


This Is What “Being the Answer” Looks Like.

The Found First methodology — the system I built to run AI search visibility at enterprise scale — is what produced this outcome. Every engagement starts with an audit so I can show you what's recoverable, what's fixable, and what the install would look like for your business.