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Automotive Digital Marketing: Strategies & Benefits for Dealerships

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Automotive Digital Marketing

Table of Contents

5 Min Read

Automotive digital marketing involves marketing using digital platforms such as social media to connect with customers and collect their information. It then uses this information to target and convert potential customers into buyers. However, it is necessary to find cost-effective ways for dealerships to boost sales and increase conversions. Earlier, it was all about publishing an ad in a newspaper or as a television commercial. It doesn’t always yield the same results today.

As consumers are more invested in the buying process, they begin their journey online by researching, finding, reading reviews, and comparing dealerships’ websites. This blog will cover car dealership digital marketing, its benefits, the latest trends, tips, and strategies.

 

What is Automotive Digital Marketing?

Automotive Digital Marketing involves dealerships using digital tools to market their products and services to target audiences efficiently. It uses digital channels and strategies to promote and sell vehicles, parts, and services in the automotive industry. Digital marketing efforts must be efficient in getting the right information to customers who want to purchase a car. To get the right customers, marketers need to have an online presence, which is more than having a great website. It is developing Automotive Marketing and SEO strategy, making finding your information for buyers easy.

Before visiting a dealership, consumers decide based on research—choosing the best car, evaluating affordability, and determining where to buy. Building trust and brand awareness through automotive marketing is critical to guiding them through the buyer’s journey. In the initial phase, make your brand visible. As they evaluate options, ensure they find your dealership easily via search engines. By the time they complete their research, you’ve built enough credibility to convert them into customers and secure their purchase.

 

 

Why Do You Need Digital Marketing in the Automotive Industry?

With the constant changes in the advertising landscape, there felt a need to introduce newer methods of marketing that are effective and cost-efficient. Digital Marketing for the automotive industry solves all the issues traditional methods face and still offers the option to reinvent strategies. Let’s see why and how digital marketing is the solution to the needs and demands of the automotive industry:

1) Competitive Advantage in Lead Generation: Generating leads is critical in this competitive sector. Automotive marketers must constantly evolve tactics to stay ahead in this fast-paced environment.

2) Changing Consumer Expectations: Consumers demand the best user experience when purchasing vehicles. Fifty-nine percent of car buyers conduct extensive research online before visiting a dealership.

3) Need for a Seamless Buying Experience: Buyers expect a smooth and enjoyable buying process because they make a significant emotional and financial investment.

4) Power of Digital Marketing for Conversion: Digital marketing helps reach and convert the target audience effectively by displaying authentic and engaging user-generated content across various platforms, such as websites, social media, in-store digital displays, and events.

5) Boost in Brand Sales and Conversions: Displaying user-generated content on social walls informs customers and increases brand trust, leading to higher sales and better conversion rates.

 

Boost in Brand Sales

 

6) Online Presence is Crucial: Since the target audience spends most of their time online, a well-executed digital marketing campaign ensures that marketers can reach the right customers at every stage of their purchasing journey.

 

Top 8 Benefits of Digital Marketing in the Automotive Industry

Here are some critical benefits of  Automotive Digital Marketing for your dealership:

1) Ability to reach a larger audience

Your potential buyers can be anywhere. If your product is good and meets their needs, they will have trouble visiting you even if your business is far away. You can also target a specific audience if your products and services are relevant to them. Digital marketing for the automotive industry can help you save money and streamline your strategy.

2) Brand awareness and reputation

Digital marketing strategies help build your identity and visibility. It can also help create a loyal base of customers once trust in your brand is established. It makes your reputation because vehicles are purchased on a recommendation. Customers also read your reviews, so ensure you address issues correctly and professionally.

3) Know your customers

Digital marketing collects vital information such as customer behavior, interaction with your ads, and how this can be utilized to improve your advertising efforts. You can determine the demographics of your customers. This will guide you in changing your efforts to match your customers’ wants. To make this happen, SEO must ensure an online presence and that your Automotive Ecommerce website ranks at the top of the search engine. Remember that any potential buyer should be able to find you online with generic keywords.

4) Lead Generation

One significant benefit of digital marketing is generating more leads for your automotive business. When you use the right keywords, search ads reach users when they’re in a buying mode. The same goes for using your content to drive targeted users to your website or physical location, using those exact keywords, and optimizing your content for SEO search.

 

Benefits of Digital Marketing in the Automotive Industry

 

5) Customer-Centric Information

Prospective buyers want as much information as possible about the vehicle they are considering, from its specs to its value. This allows customers to decide which car they would like to purchase.

6) Financing Estimates

Having a good marketing strategy can bring in leads. However, the central issue faced when trying to convert leads into an actual business is the monetary factor. By offering these products online, automotive companies stand a better chance of making the sale and profit from selling insurance or financing the car. This is because potential customers can easily find your dealership online and see all your financing options without losing them to another website offering financing options.

7) Low Cost

A traditional marketing method is not only costly but not as rewarding as it seems. A digital marketing method is cheap, gives better results, and is easy to perform. It is more affordable because it targets only those interested in purchasing and allows you to track your return on investment (ROI).
Thanks to metrics from digital marketing campaigns, dealerships can better build and optimize their budget based on accurate data and mold their strategy with what is working for their dealership.

8) Vehicle Availability

The automotive industry is one of the most competitive industries. With so many brands and models, customers have more options than before. This is where digital marketing can come in handy for your business. Using various digital marketing techniques, you can ensure that your vehicles are always available and top-of-mind to potential customers and cater to what they actually want. A dealership can have the best inventory, but with poor marketing, the inventory would not be sold and would not yield results.

 

Upcoming Automotive Digital Marketing Trends

Here are the top Car Dealership Marketing trends  of which you should be aware as they decide how the market fluctuates and what you need to do to remain in competition:

1) Artificial Intelligence

Artificial intelligence can help you create and strategize your advertising efforts faster. It will be beneficial for personalizing the experience for your customers. With AI, you can collect data, automate reaching out to your customers and maintain a good relationship. AI can also help in creating ads with high-quality images, so you make a great first impression.

2) Better Customer Service

Improved customer service will win the hearts of customers. They will pay more if you offer excellent service and a seamless car purchase process. They are also likely to purchase more from you if they are satisfied with the service.

3) Video Personalization

Since we are dealing with auto dealer digital marketing, videos tend to make the most impression on the customer. Personalized videos are compelling as customers watch YouTube before deciding.

4)  Mobile Optimization and Customization

People carry their mobile devices everywhere and use them for various purposes. It is a convenient tool for researching. They will use their smartphones to find dealerships. Hence, leveraging this is vital for dealerships in the long run so that they can create ads. Automotive internet marketing allows you to analyze and customize what your customers need.

5) B2B Marketing

B2B marketing Is where dealerships establish favorable and trustworthy business relationships with manufacturers. For example, when you want to buy components of a vehicle from suppliers, you will have to be in touch with them and have a good relationship. A reputable digital presence ensures other brands can also rely on you.

 

Automotive Digital Marketing Trends

 

6) Local Search

Local search is compelling because 43 percent of Google queries have local intent. Almost half of the search traffic on Google is local, which can be great if your dealership dominates local automotive searches. It is also observed that 78% of local mobile searches lead to an offline purchase in a few hours.

Dealerships must be discoverable at each stage of the buying process, especially during the final stage. This search includes directions, hours, addresses, and product availability information.

7) Video Content

Video is the new way to target consumers. Sixty-eight percent of buyers prefer to learn about products from short, engaging, and captivating videos. The results are also effective, as 83% of marketers suggest it offers good ROI. Videos can be of various types, such as interviews, live streams, ads, live videos, etc.

8) Immersive Websites

The website should be convenient for your buyers, fast-loading, and compatible with all devices. It should add features such as financing calculators and pricing tools and handle traffic from multiple devices, as 46 percent of car shoppers prefer using various devices. The content should be seamless, the descriptions and landing pages should be made with precision, and all the necessary information should be displayed.
Using a good CRM to monitor your website traffic is also essential. This way, dealerships can tell where most of their traffic is coming from, their click-through rates, bounce rates, etc., gain insights into what’s working, and improve marketing campaigns.

9) Physical Showroom Experiences

Find ways to interact with the customers live and in the store. Shoppers can then check what’s in stock, scan products, and read reviews on their mobile phones. Retailers can also send push notifications when they have deals. Virtual showrooms can make the shopping experience even more enjoyable. Buyers can explore car models virtually or take them for test drives, unifying the digital experience and increasing their sales chances.

10) Personalised Content for Target Audience

Creating personalized and immersive content drives engagement and better conversion rates. When customers engage with your content, it captures their attention and subconsciously pulls them to buy a product. This needs to be done through the platform where they engage the most and are most active, as fifty-six percent of new buyers start their research at third-party sites before visiting the dealer website. Your content should be available beyond your website.

Why Is Automotive Digital Marketing Important for Dealerships?

Since car buying trends keep evolving, dealerships must change their pace and catalog with time to have a constant business. Let’s look at three key reasons:

1) Accessibility: Car buyers can research and compare vehicles on various online platforms from their computers, tablets, or smartphones, even when dealerships are closed, which gives 24/7 capability.

2) Convenience: After selecting a vehicle, buyers can take a virtual test drive on some websites or schedule an in-person test drive at a dealership, making the process more convenient.

3) Ease: Completing an online purchase is often quicker than handling paperwork at a dealership or coordinating with a sales representative, saving buyers valuable time.

4) Real-Time Analytics and Adjustments: With digital marketing, automotive businesses can track the performance of their campaigns in real time. This allows for quick adjustments to strategies based on what’s working and what’s not, improving overall effectiveness.

 

14 Best Strategies to Boost Automotive Digital Marketing

Let’s have a look at the top car dealer online marketing strategies that help in increasing business for the dealership and are the ways to boost your dealership:

1) Implement SEO

As mentioned above, people research cars they want to buy online. Search Engine Optimization will help buyers find you. A website ensures your presence online. You should boost your website by investing in car dealership SEO strategies to reach the top of a search engine page.

 

Maximise SEO

 

Your website must create a great first impression when a customer lands on it. A website can also generate leads for other platforms, such as social media. Have a reliable website where customers can get information without being misled. This makes their purchase experience seamless. Include various call-to-action elements. A clear and interactive CTA requesting their name or contact information is better, but you don’t want to overwhelm them and turn them away.

2) Blogs

Include blogs on your website informing buyers about cars or what they should look for before purchasing. They are not looking for a vehicle on the first go but want general knowledge about car buying. For example, the advantages of buying a used car or the things they need to consider before purchasing. If you have addressed these concerns in your web blog, it will rank at the top of a search engine. It will help establish you as a trustworthy dealership.

3) Social Media

Automotive Social Media Marketing is integral as It helps your dealership to have a more significant online presence on Facebook, Instagram, or YouTube. Being active, connecting with your audience, and learning about them will create brand awareness. You can also easily buy ads, target specific customers, and analyze these metrics. Facebook lets you see how many people clicked through to your website from an ad.

4) Videos

Videos increase viewership and conversions as they influence potential buyers. Many people watch YouTube car videos while buying a vehicle. You can create videos that show testimonials, test drives, tips on car buying, and vehicle features. They also attract more clicks or visits to your website through social media and online ads.

5) Email Marketing

Email seems old-fashioned, but it is still effective even in the digital age. You can ask prospective customers for email addresses and later send targeted messages. However, you must personalize emails and include links or CTAs to your website. Emails also allow you to modify the length or tone of the content based on your analysis and the responses you get. Include offers, discounts, and new cars in your email since it’s reaching their inbox directly, and they can find information quickly.

6) Customer Testimonials

Customer testimonials are effective because they build trust and relationships when people are unaware of you. It allows you to interact with a customer who has left a bad review and quickly resolve that issue. They will help build your brand more efficiently.

7) Social Media Marketing (SMM)

There are almost 4.39 billion internet users worldwide, and social media users are nearly 3.48 billion. Therefore, social media must be addressed, as it has the largest marketable audience. It is also a suitable parameter to judge the success of your marketing strategies. A digital consumer spends around 2 hours and 22 minutes daily on social media sites, allowing dealerships to market their inventory to them.

 

Social Media Marketing

 

The various channels through which it can be done in YouTube video content influence 70 percent of car buyers who use YouTube for research. Similarly, 60 percent of Instagram users use the app to look for products. Additionally, Facebook, which has a significant chunk of social media, is a great marketplace, and paid advertising can be beneficial in targeting your audience.

8) SEM and PPC

Search Engine Marketing(SEM) is the paid version of SEO. It allows the dealership to buy space at the top of search pages and market itself. This is essential because if your dealership is displayed on the first page, it will likely make an impact and generate leads.

Pay-per-click (PPC) is the payment for every click an ad generates. According to research, consumers are 22 times more likely to view your automotive category item and 28 times more likely to convert when clicking on an ad. Some of the most popular PPC advertising platforms are Facebook and Google AdWords.

9) Content Marketing

Content Marketing involves you, as a dealership, constantly targeting your potential buyers with relevant information so that you can get them to a decision and make them your actual clients. Most buyers look for information digitally, so it’s the most accurate way to give them the product and service they want and lure them to your dealership.

10) Affiliate Marketing

Affiliate marketing is when a third person or an independent party helps you sell your products and is rewarded with a percentage of the sale in return. They search for opportunities to Sell your auto parts or cars, Share links to your website, drive traffic to your site, encourage people to buy from your dealership, Create apps or websites that promote your products, and creatively market your product. The ROI can be huge from affiliate marketing if partnered well.

11) Leverage Google Ads

Unlike SEO, Google Ads can deliver faster results by targeting customers actively searching for vehicles. With ads placed at key search moments, car dealerships can increase brand visibility, get higher click-through rates, and generate leads faster than traditional methods.

12) Sales Automation

Automating the lead nurturing process allows dealerships to manage leads more effectively, freeing sales teams to focus on new prospects. Sales automation tools can segment leads by customer behavior, resulting in improved accuracy, increased lead quality, and higher revenues for the dealership.

13) Referral Marketing for Customer Loyalty

Referral marketing leverages the network of existing customers to bring in new ones through incentives like discounts or gifts. Referred customers often have a higher retention rate and can significantly lower acquisition costs while building brand loyalty.

14) Multi-Channel Strategy

A multi-channel marketing approach combines traditional and digital channels to deliver a consistent message at every stage of the customer’s buying journey. This strategy, used by top dealerships, improves brand visibility and provides a seamless digital experience, reaching consumers through social media, email, SEO, and other platforms.

 

 

Major Automotive Digital Marketing Channels

There are many digital marketing for automobile industry channels, but have a look at the most prominently used ones, which have wider user bases and varied audiences:

1) Facebook

Facebook has a vast user base; you can find many tools here. You can use Facebook Business Pages, Messenger, images, and videos to attract potential customers and access analytics to see how your business performs.

2) Instagram

More than Facebook, Instagram is now rising in popularity since it is all about visual marketing. Many marketers are now targeting Instagram to show their ads. You can create a business account page, access analytics, and improve efforts accordingly.

 

Automotive Digital Marketing Channels

 

3) Twitter

Twitter is also one of the more popular media platforms on which to show your ads. You can determine the performance of your tweets to see how they perform, much like on Facebook.

4) LinkedIn

Although LinkedIn’s audience is primarily professionals, its popularity is rising. You will have to create and post formal content that suits this audience. Since these are professionals, they can be the perfect audience to sell a car to.

 

The Importance of Market Research in Automotive Digital Marketing

A dealership needs to have an effective and efficient car dealer social media marketing strategy. However, it is incomplete without knowledge of how the market operates or what is trending. This makes market research relevant for digital marketing. Let’s have a look at the fundamental aspects of the market research:

1) The Automotive Industry

Check if your strategies and ideas align with current market standards, needs, and what the market is looking for. Get an update about the industry, different subsectors, typical customers, the latest technology, and future trends. Hire someone to collect and review this information to decide on a niche. Estimate the kind of profit you will make, understand the marketing context, and learn how to run your campaigns effectively.

2) Competitors

The Digital Marketing campaign will also show car buyers how different you are from other car dealers or competitors. It also means developing an AI system unique to your brand and selling points that will help boost your marketing strategy. How do your competitors operate, what products and services they offer, and how can you be better than them in identical spheres?

3) Customers

Create a database of your existing customers and potential ones obtained through targeted advertisements. Include data on their preferences and what kind of vehicles they like.

4) Your Dealership

Now, finally, your dealership. Gather and collect past information about your dealership, including reviews for your services, customer satisfaction, what you can do differently from your previous strategies, etc.

 

High-Quality Car Images and Videos for Dealership Marketing

We have covered how visual imagery and videos tend to attract more audiences. Therefore, you must be careful when using images; they should be of high quality and have convincing content because they fuel your Automotive Digital Marketing efforts. To retain customers, an image needs to reflect high quality. Videos also require detailed information about the car you are trying to sell.

You can use AI to automate the process of editing your vehicle images. With Spyne, you just need your smartphone. See how Spyne intensifies your efforts and gives the best outcome.

1) AI-Powered Image Enhancement: Spyne uses AI to edit vehicle images automatically, providing features like background removal, window tinting to reduce reflections, and masking of license plates. This ensures that all images appear clean and professional and get more and more eyeballs. Book a demo for your Virtual Car Photography Studio.

2) Guided Photoshoot Assistance: The app provides step-by-step instructions for taking optimal photos, capturing pictures from all angles, the right angles, and distances using a smartphone, ensuring high-quality results without requiring professional photography.

3) Seamless 360-Degree Videos: Spyne helps dealerships create flawless 360-degree videos of vehicles, allowing customers to view cars from all angles. These immersive videos improve engagement on dealership websites and social media platforms.

4) Fast Turnaround Time: With automated editing, Spyne significantly reduces the time needed to process and finalize images, helping dealerships quickly distribute marketing materials for campaigns or listings.

5) Consistency Across Listings: Spyne ensures that all images and videos follow a consistent visual style, building a cohesive and professional brand image across all marketing channels, including VDPs (Vehicle Display Pages), social media, and ads.

 

 

This helps dealerships as it is a –

1) Cost-Effective Solution: Dealerships can save much money on professional photography services by using the Spyne app, which delivers professional-quality images and videos on smartphones.

2) Improves Customer Engagement: High-quality visuals, including 360-degree views, help attract more customers, giving them a better understanding of the vehicles and increasing the likelihood of purchasing.

3) Enhances Online Presence: By quickly providing AI-enhanced visuals, Spyne helps dealerships maintain an active and appealing online presence, crucial for digital marketing efforts and customer retention.

4) Optimized for Multiple Platforms: Spyne optimizes images and videos for use across different platforms—whether VDPs, social media, or online ads—ensuring your visuals look perfect no matter where they’re posted.

 

Essential Foundations of an Automotive Digital Marketing Strategy

Automotive dealerships are a competitive space. Therefore, dealerships must constantly improve customer experience to remain relevant. The three essential elements of digital marketing for the automobile industry are Website, Paid Media, and Organic. Let’s have a look at them:

Website

Every dealership should create and maintain a professional site that states its brand and displays accurate information about the dealerships. The site should also include details about the people leading and supporting your business and the vehicles and services your dealership offers.

Paid media Channels

A dealership needs to advertise to drive traffic to its site digitally. Therefore, it should use paid media channels. Paid media is marketing you pay for, so it includes everything from pay-per-click advertising, such as paid links on Google, to video marketing on platforms like YouTube.

Organic Marketing

Organic marketing doesn’t rely on paid marketing tools; it happens automatically as it pops up on the user’s feed when recommended by the algorithm. Digital marketing for car dealerships includes building and maintaining email distribution lists, posting to social platforms such as Facebook, Instagram, LinkedIn, or Twitter, and fine-tuning your website content for search engine optimization (SEO) to deliver traffic to your online presence naturally.

 

How to Grow Your Dealership With Digital Marketing?

Once you have the fundamental elements of your automotive digital marketing in place, let’s have a look at the top tips to grow your business with digital marketing:

1) Create a competitive website to have more visibility and leads.

2) Optimize the site for mobile to cater to large audiences.

3) Use Human Resources to follow up with clients and potential buyers.

4) Maintain the overall marketing spend and use KPIs to assess their success.

5) Deploy a solid local SEO strategy to target nearby neighborhoods.

6) Create unique content to reach consumers early in the car-buying journey and to remain competitive.

7) Integrate AI to personalize marketing and stay relevant in the space.

Implement these tips judiciously and constantly track their results through metrics. This will ensure that your car dealer’s online marketing works to its full potential.

 

Conclusion

To Sell a Car is difficult, but automotive digital marketing makes this process smoother. To succeed, dealerships need to know how digital marketing works—SEO, visual images, marketing, and artificial intelligence will help them reach their goals. Ensure that your content is accessible for customers to find. Implementing SEO ensures that your content is easily discoverable by potential buyers while compelling visuals enhance customer interest. AI-driven tools streamline customer interactions, providing personalized experiences and improving lead generation, ultimately boosting dealership success.

 

 

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FAQ

We Have Your Answer

  • Why is Automotive Digital Marketing Important in the 21st Century?

    Today, there is competition from other businesses. So to stand out from them, companies—large and small—must develop digital marketing strategies. The strategies can help companies increase their base and create an online presence.

  • How is Digital Marketing targeted to Auto Dealers Different from Traditional Marketing?

    Traditional marketing only focuses on traditional media: TV, print, or radio. The drawback to this is that they aren’t interactive, and you cannot reach your target customers since capturing the right audience is difficult.

    In digital marketing, you can reach audiences on different platforms and reach the right audience and demographic. Moreover, you can make your ads in images, videos, and texts. They are highly interactive since they focus on the customer. You can personalize these ads to fit what your customers need. It also allows your business to showcase other products to people.

  • How Much Money Do Car Dealerships Spend on Advertising?

    According to Statista, in 2021, U.S. car dealerships spent about 48 thousand dollars on radio advertising. Most advertising was done online, where dealerships spent over 312 thousand dollars. Hence, U.S. car dealers spent 8.19 billion dollars on advertising in 2021.

  • What is digital marketing in automobile industry?

    Digital marketing helps use a car buyer’s journey to the dealership’s advantage. It helps enhance your marketing efforts per the stages of a car buying journey, from the awareness phase to the final buying decision. A car buyer, on average, visits at least 2 car dealerships before making a purchase, and most of the research is done online.

  • How do you do marketing for automotive?

    To market in the automotive industry, focus on SEO to boost online visibility, leverage social media to engage potential customers, use targeted ads (PPC) for quick results, encourage customer reviews, and create engaging content to build brand trust.

  • What digital marketing does Tesla use?

    The company utilizes its website, online configurator, and social media accounts to showcase its vehicles, highlight new features, and engage with its audience. Tesla’s online presence helps create buzz, generate excitement, and educate potential customers about the benefits of electric vehicles.

  • What are the 4 P's of marketing cars?

    The 4 P’s of marketing cars are:

    Product: The vehicle itself, including its features and specs.

    Price: The cost of the car, including financing options, discounts, and incentives offered to buyers.

    Place: where the dealerships are located, where the car is sold

    Promotion: Marketing efforts like advertising, social media campaigns, discounts, and customer testimonials to attract potential buyers.

  • Why take the multi-channel approach?

    It also helps you achieve short—and long-term goals, and dealerships don’t have to rely on and over-invest in one or two marketing channels to generate business. It also allows them to interact with customers at various points of the buying cycle.

Team Spyne

Young, enthusiastic, and curious are the three words that describe Spyne’s content team perfectly. We take pride in our work – doing extensive research, engaging with industry experts, burning the midnight oil, etc. Every word we write is aimed at solving our readers’ problems.

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