Performance-based marketing to grow your Car Dealer company.
What is Car Dealer Marketing?
The average car dealer business in the United States makes $74 million per year in revenue. Car Dealer Marketing is promoting the business to increase that number or removing obstacles 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 Dealer companies need help with various factors, such as an expensive workforce, finding adequate experts in each area, producing new creative content fast enough, and overseeing all aspects of their digital marketing efficiently. Let our team of automotive dealer digital marketing and advertising experts manage the groundwork it takes to grow your car dealer company. If you want to increase sales for your car dealer business, please contact AdvertiseMint.
“Every car dealer 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 Car Dealer Companies.
The Car Dealer Industry, comprising both new and pre-owned automotive dealers, plays a pivotal role in the automotive sector. As market dynamics change, it’s imperative for dealers to adapt and leverage growth strategies. Here are five factors that can significantly increase revenue for automotive dealers:
- Digital Presence and Online Sales: The modern consumer often begins their car buying journey online. Car dealers that prioritize a strong online presence, complete with virtual showrooms, online consultations, and digital sales platforms, stand to benefit enormously. By adapting to the digital age, automotive dealers not only reach a broader audience but also cater to the evolving expectations of tech-savvy consumers.
- After-sales Services and Maintenance: It’s no secret that after-sales services, such as repairs, maintenance, and part replacements, can be a significant revenue stream. By offering top-notch after-sales support, automotive dealers can foster long-term relationships with clients. This not only assures consistent revenue from service charges but also ensures customers return to the same dealer for their next purchase.
- Diversifying Inventory: Every consumer has unique preferences. By diversifying their inventory to include electric vehicles, hybrids, luxury cars, and budget-friendly options, car dealers can cater to a broader demographic. The key is to understand market trends and stock vehicles that resonate with the local audience’s preferences.
- Value-added Services: Additional services like financing options, insurance partnerships, extended warranties, or trade-in programs can greatly enhance the purchasing experience. When automotive dealers offer these value-added services, they facilitate easier purchases for consumers and add additional revenue streams to their business.
- Customer Engagement and Loyalty Programs: Engaged customers are repeat customers. To retain their existing clientele, car dealers can introduce loyalty programs, special offers, or customer appreciation events. By fostering a sense of belonging, automotive dealers can ensure that their customers return for services and future purchases and act as brand ambassadors, recommending the dealership to friends and family.
Car Dealer Industry Facts
Average Revenue for Car Dealer Industry: $2 trillion
Average Profit Margin for Car Dealer Industry: 7.5%
Average Employees for Car Dealer Industry: 50
Average ROI for Car Dealer Industry: 10-15%
Average Growth Rate for Car Dealer Industry: 1% :
Average CPC on Google for Online Car Dealership: $10.30
Car Dealer Paid Social Ads
Paid social is a powerful way to help reach consumers interested in car dealer products or services. Paid social allows you to get a wide range of people and then target your ads based on key attributes like age, gender, location, interest, and behaviors or using custom 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 irrelevant by the ad platform algorithm. The most popular paid social ad platforms are:
- Car Dealer Facebook Advertising
- Car Dealer Instagram Advertising
- Car Dealer TikTok Advertising
- Car Dealer Snapchat Advertising
- Car Dealer LinkedIn Advertising
- Car Dealer YouTube Advertising
- Car Dealer Twitter Advertising
- Car Dealer Reddit Advertising
- Car Dealer Pinterest Advertising
Automotive Dealer Paid Search Ads
Paid search is the most efficient way to reach consumers actively searching for automotive dealer products or services. Consumers often search the internet for questions about where they are in the buying cycle. A general search would indicate they are just beginning to research companies. A specific search would suggest the consumer is knowledgeable and close to selecting or purchasing. Car dealer advertisers can bid specifically on the most valuable keywords for their business, which helps them appear above their competitors for the most profitable keywords. Paid search ads are generally used for lead generation, local awareness, or e-commerce. Paid search ads can also be run on YouTube, where your business can advertise a specific video to appear first when consumers search on particular keywords or for competitors. The most famous car dealer paid search ads are:
- Car Dealer Google Ads
- Car Dealer YouTube Ads
- Car Dealer Microsoft Ads
- Car Dealer Amazon Ads
- Car Dealer Wal-Mart Ads
Car Dealer Local Ads
Local ads are essential for car dealer companies and are often overlooked because of the focus on larger ad platforms. Local ads allow you to reach customers 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 excellent customer service and 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. The cost to get a new local customer is often tiny compared to the lifetime value that customer will bring to your business. The most popular local ads for car dealer companies are:
- Car Dealer Facebook Ads
- Car Dealer Google Local Ads
- Car Dealer Yelp Ads
- Car Dealer Nextdoor Ads
- Car Dealer Billboard Advertising
- Car Dealer Metro Ads
- Car Dealer Bus Ads
Car Dealer Radio Ads
Radio ads allow car dealer companies to reach a captive audience, often listening while commuting in the car, at the gym, or working. Radio ads will enable you to talk directly to your customers and present. Radio ads are fixed in length and cannot be skipped, ensuring your audience will hear your message. Due to the passive nature of radio listeners, it’s essential to have optimized audio creatives and a significant 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 dealer radio advertising options are:
- Car Dealer Local iHeartRadio Ads
- Car Dealer Spotify Ads
- Car Dealer Pandora Ads
- Car Dealer Podcast Ads
- Car Dealer National Radio Advertising
- Car Dealer Talk Radio Advertising
Car Dealer Direct Mail
Direct Mail can be a powerful tool for automotive dealer companies to reach new and existing customers. With the increase of online advertising, direct mail can often be a hidden gem regarding going people inside their inboxes with targeted messages. Direct mail can be sent in mass with new automation tools and personalized before sending. The cost of 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, it 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.
Car Dealer TV Ads
There are several things that car dealer companies should be aware of when running TV ads. TV advertising for automotive dealers can be targeted to users locally, which is perfect for a company with just one location, or can be shown on a DMA, state, or national level for companies with multiple locations. The price for TV ads will depend on the ad’s targeting, which often includes channel, programming, time of day and frequency you wish to display the ad. If you have exact requirements, expect to pay more. Suppose you are flexible on when and to whom 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 before submitting the ad to run. Best practices commonly include high-resolution visuals, apparent product features and benefits, testimonials, an enticing offer, and a clear call to action, including a phone number or website for the consumers to visit. There are also options for paid programming, including 30-minute or 60-minute segments played without interruption, typically between 11 p.m. and 5 a.m. If you are interested in TV advertising for your automotive dealer company, please contact AdvertiseMint for more details and pricing.
How vital are reputation management and online reviews for Car Dealer companies?
Every automotive dealer company knows online reviews are essential for sales growth. 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 solicit reviews for your industry actively. However, a variety of strategies can be used to help ensure your online reputation is safe from negative thoughts. In addition, you’ll need a plan to praise five-star reviews while professionally addressing lower reviews, which potential customers often read. If you want to improve your total online reviews and average rating and help lower negative articles on your company from the organic search engine rankings, please contact AdvertiseMint to talk more.
Frequently asked questions about Car Dealer advertising and digital marketing.
Who is the best car dealer advertising agency?
Advertisemint is the best car dealer marketing agency. Our automotive dealer advertising expert team has proven experience in the car dealer industry. We bring a full-service team of expert account managers, copywriters, graphic designers, video editors, and media buyers ready to help you implement your marketing strategy and grow your car dealer business.