It wasn’t that long ago when buyers spent whole afternoons going from dealership to dealership just to get the best deal on a car. They often relied on the salesperson’s word to find out about a vehicle. However, things have changed. Dealerships are now attracting potential buyers through appealing online ads. This is the reason why you must research well about car dealership advertising.
Shoppers now do all their research from home before even stepping into a dealership. Modern car buyers spend around 59% of their time on online research.
Many dealers face trouble because they don’t understand the right approach to dealership advertising. If you are just getting started in the digital world or have been considering outsourcing the task to a reliable automotive agency, digital dealership ads could solve your lead generation and marketing problems.
What is Car Dealership Advertising?
Car dealership advertising refers to the marketing and promotional efforts undertaken by automotive dealerships to attract potential buyers and sell vehicles. It encompasses various strategies and channels, including online and offline advertising, to showcase their inventory, promote special offers, and engage with their target audience. The goal of car dealership advertising is to increase brand visibility, generate leads, and ultimately drive sales by effectively communicating the value of their products and services to prospective customers.
It helps dealerships connect with prospective car buyers, both near-market customers who may purchase a car in 3-6 months and in-market customers who will purchase a vehicle in less than 3 months. The target audience of car dealership ads is consumers who are actively searching for a car to purchase. They are in the market to buy a car and frequently visit automotive-related locations like dealerships or online sites to review and compare prices.
Why are Car Dealership Advertisements Important?
Let’s look at some benefits that car dealer ads can bring to your dealership.
Increase used car inventory
The National Automobile Dealer Association (NADA) reported that approximately 8.3 million lightweight vehicles were sold in the first half of 2021. A car buying campaign can help you acquire a profitable inventory. Dealers also offer incentives to their staff to find good used cars, but it can be costly and take a lot of time.
An advertising campaign informing customers that they buy used cars is a more effective way of increasing inventory. Even if you don’t have an inventory shortage, expanding can help you give customers options and drive up sales.
Establish consumer trust
Customer trust is important for car dealerships. Dealer ads can help incorporate buying strategy into your selling model. You can build trust in your customers and offer trade-in options to establish mutually beneficial relationships. You can use Google ads to promote both new and used cars and include a trade-in option to make customers feel more comfortable.
Promote trade-in opportunities
You can use car dealership ads to increase trade-in opportunities. Trade-ins can become part of dealership profits; not promoting this option could mean you’re missing out on this opportunity. People who don’t want to sell their car may be more willing to trade it in for a new model. Trade-in cars can be sold at auctions or in your lot. Both options can earn you a profit.
Challenges of Car Dealership Advertising
Car dealership ads face several significant challenges in today’s rapidly changing landscape. These challenges include:
Top Challenges Faced In Paid Advertising
Let’s explore the challenges faced in paid digital advertising, we have listed a few factors to consider for car dealership advertising :
1) Challenges in Ad Personalization
It’s often a tough task to make ads feel personal to customers. We want to show prices, promotions, and exclusive offers into ads but we also need to make sure those ads are still relevant to what the customer wants.
2) Real-Time Pricing Adjustments
The complexity of altering pricing elements dynamically within advertisements. imagine trying to change the prices in your ads as fast as they change in the store. It’s not as easy as it sounds. We need to make sure the numbers in our ads are always up to date.
3) Alignment of Ads with Landing Pages
Hard to ensure that ads direct users to landing pages that are contextually relevant. Think of it like this: You see an ad for a cool new product, but when you click on it, you end up on a page that doesn’t even mention that product. That’s a problem we’re trying to fix—making sure the ads and the pages they lead make sense together.
4) Managing Ad Performance
Dealing with an overrun of underperforming high and mid-funnel campaigns. Sometimes, we have too many ads that don’t bring in the customers we want. They’re like doors that lots of people walk by but never go through. We’re working on making our ads more effective so that more people come in.
Top Challenges Faced in Advertising
Let’s explore the challenges faced in advertising, we have listed a few factors to consider for car dealership advertising :
1) Supply Chain Delays
Like many industries, the automotive sector is dealing with supply chain disruptions. Delays in obtaining new and used vehicles, vehicle parts, and value-added products can lead to lost opportunities, excess inventory, lower profit margins, and reduced customer satisfaction. Effective inventory management is crucial to mitigate these challenges.
2) Evolving Customer Needs
While digital options are growing, customers still value in-person experiences. Dealerships need to continually improve their parts-and-service departments to boost revenue. Implementing automotive service scheduling software and production efficiency platforms can help streamline workflows and provide efficient service to customers.
3) Changing Sales Strategies
Traditional high-pressure sales tactics are becoming less effective. Customers now seek consultative, personalized experiences. Dealerships can adapt by adopting a customer-centric approach and using technology to enhance the sales process. Expanding into parts-and-service departments can also provide a one-stop-shop experience for customers.
4) Preference for Digital Communication
Customers increasingly prefer digital communication channels such as text and email. Effective two-way communication between dealerships and customers can improve the in-shop experience. Production efficiency platforms can facilitate direct communication, leading to higher customer satisfaction and increased revenue.
5) Inefficient Dealership Processes
Time is of the essence in the automotive industry, and inefficiencies can reduce profit margins. Common reasons for inefficiency include time-consuming reporting processes, outdated software, fragmented data storage, and communication bottlenecks. Best auto advertising for car dealerships needs to address these issues to maximize productivity and profitability.
To overcome these challenges, vehicle advertising should invest in technology solutions, embrace digital marketing strategies, optimize their supply chain management, prioritize customer-centric approaches, and streamline their internal processes. Adapting to the evolving automotive landscape is crucial for long-term success in the industry.
Best 17 dealership marketing strategies
Here’s a summarized list of the best car dealership marketing strategies that work like wonder, must utilize these strategies in your dealership marketing purpose, Let’s explore these strategies in detail:
1) Build Your Online Presence
Most people start their car-buying process online. To reach them, you need a strong online presence. This means having a good website and profiles on platforms like Facebook, LinkedIn, Instagram, Twitter, Yelp, Google Business, Angi, Edmonds, Carfax, DealerRater, and Cars.com. This way, potential car buyers will know about your dealership and what you offer.
2) Utilize Search Engine Optimization (SEO)
Buyers often start online, not at a dealership. To reach them, invest in SEO. It helps your website show up on Google’s first page, where most clicks happen. Key SEO tips: quality content with keywords, originality, fast website, and image descriptions. In short, great content and a user-friendly site lead to success.
3) Share High-Quality Content
Create top-notch content for your dealership’s website. Share valuable information, answer common questions, and provide useful guides. Be a trusted source for car info. Write about reliable cars, vehicle longevity tips, or SUV comparisons. Consistent, high-quality content builds trust, drives website traffic, and attracts more buyers to your dealership.
4) Encourage Customers to Post Reviews
Positive reviews can significantly influence purchasing decisions, so actively encouraging satisfied customers to leave reviews will help not to make false vehicular advertising for car dealerships.
5) Invest in Paid Advertising
Start paid advertising to attract car buyers. People often search for phrases like “cars for sale in San Diego” or “top dealerships near me.” With local paid search ads, you can target these keywords and appear at the top of search results. This gets your dealership in front of potential buyers. For instance, when you search for “cars for sale near me,” Google Search ads show up first.
6) Perfect the Test Drive Experience
Test drives are essential for the car-buying process. Here’s how to make them count:
1) Make unaccompanied test drives available.
2) Be transparent with upfront pricing.
3) Offer discounts after the test drive.
4) Avoid aggressive sales pitches; be a trusted advisor.
5) Give customers time by spacing out test drives.
7) Provide Clear Pricing and Financing Options
Car prices matter to customers, especially when they trade in their old cars. Transparency and fair pricing stand out. Fixed, non-negotiable pricing is appealing, especially to younger buyers who want a hassle-free experience. Regularly adjust prices to stay competitive, and offer quick trade-in quotes to help customers.
8) Respond Quickly to Inquiries
Quick responses to customer inquiries significantly impact conversions. A study found that 78% of customers choose the first respondent, and responding within an hour increases lead qualification by 60 times.
9) Invest in Sales Team Training
Knowledgeable sales teams are vital, as customers do extensive online research. Training helps your team provide valuable information, answer questions promptly, and close sales.
10) Make It Easy for Customers to Contact You
Make it easy for potential customers to get in touch. Provide various contact methods, including email, phone, text, and online forms.
11) Nurture Leads with Email or Text Sequences
Most customers don’t buy on the first visit. Nurturing leads through email or text sequences can help convert interested prospects into buyers, with multiple touchpoints in the buying journey.
12) Focus on Building Customer Loyalty
Customer loyalty is essential. Human interactions, timely responses, loyalty programs, and special offers can foster lasting relationships with customers.
13) Re-Engage Past Customers
Proactively reach out to past customers to upsell or cross-sell, boosting sales when leases are about to expire.
14) Leverage Local Marketing Strategies
Utilize local marketing, including mailers, newspaper ads, and personalized promotions to raise awareness and drive traffic to your dealership.
15) Leverage SMS for Marketing and Sales Follow-Up
SMS is a valuable tool for marketing and sales follow-up. It provides a high open rate and response rate, making it an effective way to engage customers and speed up the sales process.
16) Leverage Business Texting
Texting is a powerful tool for instant customer engagement. Text messages are read within three minutes, get faster responses, and outperform email with a 9% click-through rate.
17) Reengage Past Customers
This strategy goes hand in hand with building relationships and loyalty. But another good strategy is to reengage past customers to retain them.
By implementing these strategies and embracing the benefits of auto dealership marketing and sales, you can enhance your dealership’s performance, attract more customers, and increase revenue.
Constructing a Successful Car Dealership Advertising Campaign
Around 75% of car buyers use social media for research, while 38% of visitors on the car dealership websites visit through a paid search on Google. Whether social media or search engines, advertisements are an essential tool to reach out to your target market.
That being said, these are five tips that might help construct a successful car dealership campaign:
1. Don’t just sell cars; build an emotional connect
Buying a car is an emotional decision. From spending years-long savings to fulfilling a childhood dream, everything about selling cars involves sentimental values. Don’t just ask a customer to buy your car. Talk to their emotions. It doesn’t mean you should craft a high-budget campaign with professional actors and a production team. Writing copy content that is only two lines long but stimulates the buyer’s psychology fulfills the purpose.
That is the power of storytelling. Give a soul to your car ads and see your conversions skyrocket. To stand out, dealerships should consider taking an unusual marketing angle- like presenting faux testimonials from happy garages or showing a series of jealous family members with big frowny faces.
2. Create video ads
As potential car buyers are turning to videos to help them make purchasing decisions, it’s more important than ever that your adverts include walk-around videos. In this regard, these are some of the types of video ads for car dealers:
- Bumper ads
- In-stream ads
- Out-stream ads
- Interstitial ads, and more
The most important part of making video ads is deciding what should go in them. Vehicle walkaround videos and 360-degree car view videos make for the best car dealership ads. They are highly interactive and provide 50% better conversions than normal ads, as noted by Google Research. Such video visuals of your car can also be used on the VDP to increase sales.
So, how do you make vehicle walkaround videos that are also not expensive and look highly professional?
Try Spyne AI, It has developed a one-of-its-kind AI editor that helps dealerships and sellers create high-quality car images and 360-degree videos without the need for an actual shoot. All you have to do is click pictures through your smartphone. Our innovative AI editor converts the shots into high-quality studio-like images and videos 80% faster.
This technology helps you save 75% of the cost that is incurred in the process of shooting inventory for catalogs. Bonus- the professional-looking images created with our AI convert 40% faster than regular smartphone shots.
3. Optimize not just your car ads, but your whole digital presence
Customers were not always tech-savvy. Therefore, dealerships have maintained a bare minimum website until now. The same is true for social media handles. However, websites and social media are of utmost importance now.
These platforms not only need to be optimized well with keywords, backlinks, and meta details, but should include high-quality photos, videos, infographics, and shareable content to capture a visitor’s eyes. Most of your buyers are either using Google or at least one social media platform. You should also optimize your VDPs (Vehicle Detail Pages) for online shoppers.
4. Follow the industry trends
Adaptability is the key. While you’re thinking about how to divvy up your media spend, keep in mind how different circumstances can affect your ROI. For example, seasonality and the release of new car models can have a pretty big impact. To get a handle on what’s coming down the road, try to familiarize yourself with popular trends in the automotive industry. That way, you can adjust your plan as needed and ensure you get the most bang for your buck.
5. Repurpose customer reviews for car ads
So you have got awesome reviews and testimonials from happy customers. Why not make it the face of your selling pitch? Customer reviews can be a solid element for car advertising. Let the potential buyers know how happy other buyers are after purchasing a car from you. Give proof of trust.
6. Advertise on as many channels as possible
There’s a lot of competition out there. So how do you make sure your car dealership is the one that potential clients see? Well, by promoting your car ads on every marketing channel possible. In this regard, don’t just run Google ads for car dealerships. Understand where your competitors are advertising and where your buyers spend most of their time digitally. Facebook, YouTube, online Car Marketplaces, etc., are prime examples.
7. Utilize Facebook Ads for car dealers
Facebook is a great place for car sellers and dealerships to advertise their offerings. Plenty of groups to buy and sell used and new cars add to the popularity of this platform. Therefore, you MUST consider running car ads on this social media platform. Facebook ads can bring better CTR to dealers when compared with other platforms. However, you must monitor the performance of your ads to ensure that they are working well.
8. Car advertising through direct mailers
Direct mailers can be quite valuable, but they often go to waste because dealers don’t utilize them very well. Context is the key when it comes to making the most out of direct mailers. Instead of just mass-mailing consumers, target specific types of customers with specific services. Ads with context are more likely to be noticed and appreciated.
9. Use social media to its best
Social media is for people of all ages. Whether you’re a teenager or a baby boomer, you likely have at least one social media account that you check regularly. While it may take some time to find the specific groups of people that you want to target with your brand, it’s not as difficult as it may initially seem. 75% of consumers use social media as the medium to select a car dealership.
Your dealership’s social media posts are only one aspect of what helps your brand grow. It’s important to remember that your posts come off as relatable. Only then does it have the potential to resonate more effectively with potential customers? Additionally, presenting your dealership in a relatable light will also help improve its reputation in the community.
How to Measure Car Dealership Advertising Success
To effectively measure the success of your dealership ads and auto dealership advertising campaigns, it’s crucial to track specific KPIs and metrics. Here are key performance indicators that will help you gauge the effectiveness of your dealer digital advertising and automotive dealer advertising efforts:
1) Website Visits
Regularly monitor the number of website visits to your dealership’s online platform. Analyzing the data for keywords used to find your site can provide insights into the impact of your advertising on web traffic.
2) Click-Through Rate (CTR)
Assess the CTR of your dealer digital advertising campaigns. This metric indicates how effectively your ads entice users to click through to your website, showcasing the relevance of your chosen keywords.
3) Conversions and Conversion Rate
Track the number of conversions resulting from your automotive dealer advertising efforts. This could include form submissions, test drive requests, or online purchases. Analyze which keywords are driving the most conversions and their conversion rates.
4) Email Leads
Measure the number of email leads generated through your dealership ads and dealer digital advertising. Identify which keywords are associated with higher lead generation.
5) Inventory Turn Rate
Utilize keywords to assess the turn rate of your inventory. Keywords related to specific vehicle models or types can help you understand which cars are selling well and which may need further advertising attention.
6) Reconditioning Time
Use keywords related to vehicle servicing and reconditioning to monitor the time it takes to prepare vehicles for sale. Efficiently managing this process can be influenced by keyword performance.
7) Cost to Market
Analyze the cost associated with each keyword-driven advertising campaign relative to its impact on sales revenue. Evaluate the return on investment (ROI) for different keywords to allocate your budget more effectively.
8) Aged Wholesale Loss Per Vehicle
Keywords related to wholesale and trade-in vehicles can help you track the performance of these specific inventory segments. Optimize your advertising efforts based on the performance of these keywords.
Top 10 Car Dealership Advertising Ideas
We have curated a list of top 10 great car advertising ideas to enhance your advertising and marketing strategies for your car dealership. Here’s a brief breakdown of each point:
1) Partner up
Partner up with content creators to boost video ads on different platforms like YouTube. It is a quick way to reach your target audience. By means, you will reach your audience through a company they already trust. Partnering up can be compared to informal word-of-mouth advertising for your car dealership. The performance of this idea should be carefully measured to ensure your dealership is gaining business equivalent to what you are provisioning your partner.
2) Invest in review site placement
Positive online reviews can influence potential customers. Invest in placements on review sites and encourage satisfied customers to leave positive reviews. Monitoring and managing your online reputation to build trust with prospective buyers.
3) Build a Memorable Brand Persona to Attract Youth on Social platforms
Create a unique brand persona that sets your dealership apart from competitors. Use social media platforms to reach a younger demographic, using engaging content and social advertising to create brand awareness and attract a younger customer base.
4) Be Unique: Stand Out from Competitors
Differentiation is key in a competitive market. Identify areas where your competitors are not excelling or focusing and explore opportunities to stand out.
5) Explore the Programmatic Advertising
Invest in programmatic advertising to ensure your ads reach the right audience at the right time, optimizing your advertising budget.
6) A/B Testing for PPC Campaign Copy, Imagery, and CTAs
Include effective test copy, impressive visuals, and an attractive call to action. running A/B tests on your pay-per-click campaigns can help you identify what resonates best with your audience. Experiment with different ad copy, visuals, and calls to action to find the most effective combination for driving clicks and conversions.
7) Offer Point-of-Sale Incentives for Customer Reviews
Offer discounts or cashback for customers to leave reviews immediately after their purchase. This can include discounts on future services or other perks.
8) Customer Experience Optimization
Continuously improve the customer experience at your dealership. Then, promote these improvements through your marketing efforts. Customer testimonials and success stories can be powerful tools for building trust and attracting new customers.
9) Be Unconventional
Your dealership advertising should break you apart from negative stereotypes associated with car dealerships, such as pushy salespeople and dishonest prices. Your ads must establish you as honest, straightforward, and low-pressure, i.e., ones who don’t pressure people into buying rather than letting them take their time.
10) Bring In the Trade-Ins
The popular idea is to host a carwash and offer a trade-in. This idea helps people, engages the community, and brings you opportunities simultaneously. In winter, when car washes are not a popular idea, you can offer winter inspections, safety checks for charity drive-throughs, etc. When pitching a trade-in, make it a low-pressure pitch
Car Advertising Campaigns
Car advertising has a rich history of combining powerful storytelling with iconic visuals, exemplified by David Ogilvy’s Rolls Royce campaign. The best campaigns inspire, innovate, and evoke emotions. However, the industry is changing rapidly, driven by trends like electrification and shared mobility. Car dealership advertising must evolve to align with these shifts. Moreover, the audience itself is evolving. Gen Z, the future car buyers, consume media differently. Advertisers must adapt to reach them effectively.
Let’s explore some iconic car campaigns to draw valuable insights.
1) Green Flag toy car assistance
This campaign is designed to promote Green Flag’s roadside assistance services to families with young children. The campaign features a series of short videos that show how Green Flag can help when a toy car breaks down. The videos are humorous and engaging, and they highlight the fact that Green Flag is there to help with all kinds of breakdowns, big or small.
2) The Power of Dreams
This is a long-running campaign from Honda that celebrates the human spirit and the power of dreams. The campaign features a series of inspiring and emotional ads that show people achieving their dreams with the help of Honda cars. The campaign is highly effective at building a positive emotional connection with viewers, and it has helped to make Honda one of the most popular and trusted car brands in the world.
3) Big Hitting Minis
This campaign is designed to promote the Mini brand to young, urban drivers. The campaign features a series of stylish and edgy ads that show Minis driving through exciting locations and performing impressive stunts. The campaign is effective at appealing to the target audience’s sense of adventure and excitement.
4) The Ford Mustang Mach-E
This campaign is designed to promote the Ford Mustang Mach-E, an all-electric SUV. The campaign features a series of action-packed and visually stunning ads that show the Mach-E performing incredible feats, such as driving up the side of a mountain or jumping over a canyon. The campaign is effective at showcasing the Mach-E’s power, performance, and innovative features.
5) #BestDayEver
This campaign is designed to celebrate the joy of driving a Chevrolet car. The campaign features a series of heartwarming and aspirational ads that show people having the best day of their lives while driving a Chevrolet. The campaign is effective at building a positive emotional connection with viewers, and it reinforces the idea that Chevrolet cars are fun and reliable vehicles that can enhance people’s lives.
6) Virtually Porsche
This campaign is designed to promote the Porsche brand to a younger audience. The campaign features a series of interactive online experiences that allow people to explore Porsche cars and racing in a virtual world. The campaign is effective at engaging the target audience for car advertising and building a sense of excitement and anticipation for Porsche cars.
7) The Rise of Uber
This campaign is designed to promote the Uber ride-hailing service. The campaign features a series of ads that show how Uber can make people’s lives easier and more convenient. The campaign is effective at highlighting the benefits of Uber, such as its affordability, convenience, and reliability.
8) Auto Trader World Cup giveaway
This campaign is designed to promote the Auto Trader car-buying website. The campaign features a giveaway contest where people have the chance to win a brand-new car. The campaign is effective at generating excitement and buzz around the Auto Trader brand.
9) Ford Mach – Eau
This campaign is designed to promote the Ford Mustang Mach-E GT Performance Edition, an all-electric SUV with even more power and performance than the standard Mach-E. The campaign features a series of ads that show the Mach-E GT Performance Edition driving through stunning scenery and performing impressive stunts. The campaign is effective at showcasing the Mach-E GT Performance Edition’s power, performance, and exciting driving experience.
10) Toyota virtual road trip
This campaign is designed to promote the Toyota Sienna minivan. The campaign features a virtual reality experience that allows people to take a road trip in a Sienna minivan to different locations around the world. The campaign is effective at showcasing the Sienna’s spacious interior, comfortable ride, and family-friendly features.
To Conclude
Car dealership advertising has shifted online as modern car buyers spend most of their time researching on the internet. This form of advertising targets consumers actively looking to purchase vehicles. Effective strategies include emotional storytelling, video ads, optimizing online presence, adapting to industry trends, using customer reviews, and advertising across multiple channels like social media and direct mailers. Dealerships must embrace technology, customer-centric approaches, and streamline processes to overcome challenges and succeed.
Measuring success involves tracking website visits, click-through rates, conversions, email leads, inventory turnover, reconditioning time, cost to market, and aged wholesale loss per vehicle. These strategies help attract customers and stay competitive in the digital age, and with the right car ads tracking and reporting in place, you’ll be able to figure out which channels work the best. That way, you can focus your efforts where you’re reaping success. Car dealership advertising is guaranteed to bring growth.
