Auto Dealers: NOW is Your Time to Shine.

With recent government policy changes expected to affect the U.S. auto supply chain and ultimately the GDP, automakers are scrambling to increase market share by way of deep discounts and strong incentives. What does that mean for local dealers?

The iron is hot, and it’s time to strike. The next few weeks are pivotal. 

With price and policy adjustments in the works, your dealership’s future success will be directly affected by what you choose to do NOW. Let’s talk about how you can position your dealership for short-term success and long-term growth during this crucial time.

Your inventory is a short-term opportunity.

Dealerships across the country have an average of 96 MDS (market day supply), significantly higher than this time last year. Market supply is in great shape right now. With aggressive manufacturer incentives rolling out like Ford’s “employee pricing” and Stellantis’s (formerly Fiat Chrysler Automobiles US LLC) very similar “employee pricing for all” offering employee-level discounts on new Chrysler, Dodge, Jeep, Ram, and Fiat vehicles to US customers on select models, that inventory is incredibly lucrative. 

Current incentives are expected to drive substantial sales as pricing adjustments ahead are still fuzzy at this point. We know that vehicles manufactured outside of the U.S. are subject to a 25% tariff as of last week. Most questions are more centered around vehicles that are partially manufactured outside the country, or those with imported parts. Automakers are still trying to figure out what that means for future pricing. 

Now, what should you do? Most importantly: Stand on the value of your own name. Build market share for your dealership while you’re helping manufacturers move products throughout market pandemonium! It’s going to be tempting to rely heavily on low-funnel, targeted tactics that reach consumers in the buying cycle at this moment, but that’s only one piece of a polished, results-driven strategy.

Long-term success is in your dealership’s story.   

The manufacturer has one goal in mind: sell more of its products. It doesn’t matter if it’s sold by you or your competitors. 

Remember, your dealership is your business, and you have a voice of your own, outside of your makes and models. 

As a dealership selling new cars, it’s possible — even probable — that you rely on your manufacturer(s) for advertising guidance. You probably have a plethora of manufacturer-backed digital advertising opportunities to choose from. With certified advertising providers or programs, and automatic co-op submissions, they make it easy to move more metal with sophisticated targeting techniques and pre-made ad templates. (Almost too easy, right?) These resources save time, but at what cost? They’re simply focused on the product, not your dealership. 

Your road to sales, now and in the future. 

Why do customers buy from your dealership? Is it because your inventory is deeper than your competitors? Maybe your new vehicles are sold with “lifetime powertrain warranties” (vehicle service contracts)? These are great tactics, but are they your customers’ why? Probably not. 

The point is it’s not the price that keeps your customers coming back — it’s the buying experience. People buy from people (and businesses) they like. Use this knowledge to refine your USP (unique selling position), and craft your messages around it. This strategy makes your dealership’s name more memorable, which strengthens the impact of your advertising. 

You can strategically customize your messages this way, and still collect co-op. Remember to be mindful of co-op guidelines and include sales event logos, of course. Next, let’s talk about where to place these messages to drive sales. 

Step 1: Build the foundation. 

Based on its effectiveness in building awareness and overall low CPM, traditional TV is a powerful building block to use in the foundation of a strong automotive ad campaign. New car shoppers spend an average of 9.6 hours watching traditional TV, every week (Scarborough 2023, Release 2, New Vehicle HHLD Plans to Buy in Next 12 Months). 

Optimum Media offers traditional TV in 21 states, with placements on top networks like Fox News, CNN, ESPN, TBS, Discovery, HGTV, News 12, and more. Our experienced automotive advertising professionals know your market and can share tools and insights that help you build a solid advertising foundation that promotes return on ad spend. 

Step 2: Hold steady.  

Longevity is the key to success. While your ad investment may vary monthly, it’s vital to stay the course and keep your message visible at all times. Maintaining consistent messaging is one way top dealers gain their competitive advantage. They have established brand awareness. Awareness takes time to build, and will exponentially increase your sales down the road. 

Consistency helps make your dealership memorable to consumers mid-way through the buying cycle, as they’re researching products and dealerships. Streaming TV is a highly effective way to reach customers who are in this research phase. These placements allow you to target based on browsing behaviors, demographics, vehicle registrations, and other definitive characteristics that can help refine your audience. 

Optimum Media’s streaming TV offerings include placements on platforms like YouTube TV, which is the fourth-largest pay-tv platform in the U.S., as well as free ad-supported platforms like Pluto and Tubi.

Step 3: Drive them home. 

This is the fun part: motivating in-market consumers to choose your dealership! Adding low-funnel, highly-targeted placements on platforms like mobile and online video are the perfect way to capture the attention of customers in the buying cycle, and here’s where the previous tactics we talked about come in. This type of advertising, often labeled “lead generation,” is drastically improved by building brand awareness. 

Optimum Media’s mobile AdMessenger product allows you to reach in-market customers where they are, anytime, anywhere, and drives 5 times higher engagement than traditional mobile advertising. 

Closing the deal. 

The sale doesn’t stop when your customer signs the bill of sale. No matter what market conditions are, one common denominator will always remain: It’s still about people. Customers crave personalized, memorable buying experiences. Buying a vehicle is one of the largest purchases your customers will make; it’s a milestone! Having a comfortable lounge area, refreshments, and a friendly, courteous atmosphere help your customers feel more at home and welcome throughout the process, especially if they have small children. And, with a solid, multiscreen advertising plan, you can expect to see more new customers and watch your business grow. 

Now is the time to grow your dealership’s brand awareness, and prepare for a successful future. Are you ready?