The company will focus on enticing more dealers to subscribe in 2020, Steinert said. CarGurus this week rolled out its revamped real-time performance marketing products, which includes social media ads, to dealerships nationwide.
And the company said it intends to reduce advertising on its website this year to offer a better consumer experience, with the goal of driving more leads and increase conversion to sales, CFO Jason Trevisan said on the earnings call. That likely will mean a short-term loss of advertising revenue, he added, as CarGurus expects “very little growth from our OEM and automotive partner advertising business in 2020.”
“While this decision certainly means forgoing short-term transactional advertising revenue, we know this decision is in the best interest of both consumers and dealers and supports a healthier subscription business for CarGurus over the long term,” Trevisan said.
He added that the revenue impact likely will result in “relatively flat” total revenue…
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