Performance-based marketing to grow your Automotive company.
What is Automotive Marketing?
The average car sales business in the United States makes $7.5 million per year in revenue. Automotive marketing is the process of promoting the business to increase that number, or removing obstacles that are causing the ROI to be low. This can include paid social ads, paid search ads, local ads, radio ads, TV ads or traditional ads.
Most Automotive companies struggle with a variety of factors such as an expensive workforce, finding adequate experts in each area, producing new creative content fast enough, and overseeing all aspects efficiently of their digital marketing. Let our team of Automotive digital marketing and advertising experts manage the groundwork it takes to grow your Automotive company. If you are looking to increase sales for your car business, please contact AdvertiseMint.
“Every car sales business pays for advertising. You either pay for advertising or you pay in lost revenue to your competitors.” – Brian Meert, CEO, ADVERTISEMINT
Popular ways to increase revenue for Automotive companies.
- Increased demand for electric vehicles: The popularity of electric cars is on the rise, driven by increasing consumer awareness of their environmental advantages. In 2022, global sales of electric vehicles reached 10 million, marking a 63% surge from the previous year. This trend is set to continue in the future, with more automakers adding electric vehicles to their product portfolios. The growth of the electric vehicle market offers a substantial opportunity for the automotive industry, as these cars have a higher price tag than conventional gasoline-powered vehicles.
- Expansion into new markets: The automotive industry is expanding into new markets like China and India, which have a growing middle class with more disposable income to spend on cars. This offers significant growth potential. Additionally, the industry is exploring emerging markets in Africa and Latin America, which also offer growth potential. However, they present challenges such as a lack of infrastructure and a shortage of skilled workers.
- Development of new technologies: The automotive industry continuously advances its technologies, including self-driving and connected cars. These innovations can potentially transform transportation and even create new sources of revenue for the industry. For instance, ride-hailing services could employ self-driving cars, providing a source of income for the companies that design and manage these vehicles.
- Improved fuel efficiency: The automotive industry is striving to enhance the fuel efficiency of their vehicles. They are achieving this by utilizing lighter materials, implementing more aerodynamic designs, and developing more efficient engines. The benefits of improved fuel efficiency include reducing emissions and saving consumers money on fuel expenses. Consequently, it may result in a higher demand for vehicles that have better fuel efficiency.
- Personalization of vehicles: Consumers are increasingly demanding personalized cars that meet their specific needs and preferences. The automotive industry is responding to this demand by offering a wider range of customization options. For example, consumers can now choose their vehicle’s color, interior, and features to create a truly unique vehicle. This personalization trend could increase sales and profits for the automotive industry.
Automotive industry facts
Average Revenue for Automotive companies: $7.5 million
Average Profit Margin for the Automotive industry: 7.5%
Average Employees for the Automotive Industry: 10,000
Average ROI for the Automotive Industry: 10%
Average Growth Rate for the Automotive Industry: 3%
Total number of Automotive companies in the US (2021): 12,663 ( excluding tire manufacturers and parts suppliers)
Average CPC on Google for the Automotive Industry: $5.20
Car Sales Paid Social Ads
Paid social is a powerful way to help reach consumers interested in automotive products or services. Paid social provides the ability to reach a wide range of people and then target your ads based on key attributes like age, gender, location, interest, behaviors or using custom audiences and lookalike audiences. Paid social ads are the leading advertising option to reach consumers on mobile devices. Paid social is also typically less expensive than other forms of advertising making it a powerful combination, however the pricing for paid social can increase as you get more targeted or if your ads appear to not be relevant by the ad platform algorithm. The most popular paid social ad platforms are:
- Car Sales Facebook Advertising
- Car Sales Instagram Advertising
- Car Sales TikTok Advertising
- Car Sales Snapchat Advertising
- Car Sales LinkedIn Advertising
- Car Sales YouTube Advertising
- Car Sales Twitter Advertising
- Car Sales Reddit Advertising
- Car Sales Pinterest Advertising
Automotive Paid Search Ads
Paid search is the most efficient way to reach consumers who are actively searching for Automotive products or services. Consumers often search the internet for questions pertaining to where they are in the buying cycle. A general search would indicate they are just beginning to research companies. A specific search would indicate that the consumer is already knowledgeable and close to making a selection or purchase. Car sales advertisers can bid specifically on the keywords that are most valuable for their business, which help them appear above their competitors for the most profitable keywords. Paid search ads are generally used for lead generation, local awareness or ecommerce. Paid search ads can also be run on YouTube, where your business can advertise a specific video to appear first when consumers are searching on specific keywords or for competitors. The most popular Automotive paid search ads are:
- Automotive Google Ads
- Automotive YouTube Ads
- Automotive Microsoft Ads
- Automotive Amazon Ads
- Automotive Wal-Mart Ads
Car Sales Local Ads
Local ads are extremely important for automotive companies and often overlooked because of the focus on larger ad platforms. Local ads allow you to reach customers that are physically located near your business and offer them a reason to visit your business instead of your competitors. Local digital ads typically include promotions, deals or coupons and often align with your current business reviews on that platform. This means having great customer service along with reputation management to help grow your five star reviews. Other physical ads like billboards, digital billboards, bus and metro ads allow you to ensure you are reaching customers located in your targeted area. Many times, the cost to reach a new local customer is small in comparison to the lifetime value that customer will bring to your business. The most popular local ads for car companies are:
- Automotive Facebook Ads
- Automotive Google Local Ads
- Automotive Yelp Ads
- Automotive Nextdoor Ads
- Automotive Billboard Advertising
- Automotive Metro Ads
- Automotive Bus Ads
Car Sales Radio Ads
Radio ads allow Car sales companies to reach a captive audience often listening while commuting in the car, at the gym or while working. Radio ads allow you to talk directly to your customer and present . Radio ads are fixed in length and cannot be skipped, ensuring that your audience will hear your message. Due to the passive nature of radio listeners, it’s essential to have optimized audio creatives and a large enough ad budget to ensure that the average listener is reached at the recommended frequency. It’s recommended when possible to use the radio personality to read your ads as they have built Some of the most popular Car sales radio advertising options are:
- Car Sales Local iHeartRadio Ads
- Car Sales Spotify Ads
- Car Sales Pandora Ads
- Car Sales Podcast Ads
- Car Sales National Radio Advertising
- Car Sales Talk Radio Advertising
Car Sales Direct Mail
Direct Mail can be a powerful tool for Car Sales companies to reach new and existing customers. With the increase of online advertising, direct mail can often be a hidden gem regarding reaching people inside their inbox with targeted messages. Direct mail can be sent in mass with new automation tools and can also be personalized prior to sending. The cost of the direct mail often depends on the size of the mail (postcard vs full size letter envelope) and while postage can be purchased at bulk rates, is still a rising cost to be considered. If you are interested in learning more about how your company can send out Direct Mail, please contact AdvertiseMint and our team would be more than happy to walk you through the options.
Automotive TV Ads
There are several things that Automotive companies should be aware of when running TV ads. TV advertising for car sales can be targeted to users on a local level which are perfect for a company with just one location, or can be shown on a DMA, state or national level for companies that have multiple locations. The price for TV ads will depend on the targeting of the ad, which often include channel, programming, time of day and frequency you wish to display the ad. If you have exact requirements, expect to pay more. If you are flexible on when and to who your ad is shown, the price is often much lower. TV ads often fall in 30 or 60 second video formats, so you’ll need to ensure all video requirements are met prior to submitting the ad to run. Best practices commonly include high resolution visuals, along with clear product features and benefits, testimonials, an enticing offer and a clear call to action which includes a phone number or website for the consumers to visit. There are also options for paid programming, which includes 30 minute or 60 minute segments that are played without interruption, typically between 11pm and 5am. If you are interested in TV advertising for your car sales company, please contact AdvertiseMint for more details and pricing.
How important are reputation management and online reviews for Automotive companies?
Every automotive company knows that online reviews are essential for the growth of sales. In a digital world, online reviews on Google local, Yelp and many rating websites are used by your customers to validate your business and the products or services you provide. Most of the review sites will penalize you if you try to actively solicit reviews for your business, however, there are a variety of strategies that can be used to help ensure your online reputation is safe from negative reviews. In addition, you’ll need a plan to praise five star reviews while professionally addressing lower reviews, which are often read by potential customers. If you are looking to improve your total online reviews, average rating and help lower negative articles on your company from the organic search engine rankings, please reach out to AdvertiseMint to talk more.
Frequently asked questions about Automotive advertising and digital marketing.
Who is the best Automotive advertising agency?
Advertisemint is the best automotive marketing agency. Our team of car sales advertising experts have proven experience in the automotive industry. We bring a full-service team of expert account managers, copywriters, graphic designers, video editors and media buyers who are all ready to help you implement your marketing strategy and grow your car sales business.