Coinciding with the close of the third quarter, PureCars rolled out its latest whitepaper to help dealerships sharpen their advertising strategies.
The provider of digital marketing technology and services for automotive dealers called its new whitepaper: “5 Key Takeaways from the 2022 PureCars Digital Advertising Survey.”
The paper looks at specific digital advertising trends facing dealers in today’s economy and offers key takeaways to help their businesses overcome industry challenges heading into 2023.
Pulling back on ad spending
With softening sales this year due to tighter Inventories and higher prices and interest rates, PureCars said dealers have reported pulling back on their digital advertising. However, rather than pulling back, today’s leading dealers are reallocating their spend to focus on other key areas.
The whitepaper can help dealers understand that if their issue is that they have more customers than cars, there are effective uses of their advertising budget.
“The first is to run pre-order campaigns to keep in-demand models top of mind and establish a pipeline of future sales,” PureCars said. “Secondly, when inventory is low, this is a perfect opportunity to focus on fixed ops to keep a consistent revenue stream. Use digital ads to promote service offers, reasons to schedule service, and amenities the dealership offers to enhance the customer experience.
Conflicting appetite for streaming media
PureCars determined that few dealers say they are including streaming audio and video in their digital advertising budgets.
However, a large majority also say they believe streaming media offers great ROI, according to PureCars.
With traditional TV and radio in decline, combined with the expanding popularity of streaming video and audio, dealers should consider adding channels like Amazon, Spotify, or Disney/Hulu to their marketing mix,” firm experts said.
“Streaming video and audio also provide advanced targeting options. This gives dealers the opportunity to have their messages seen and heard by some very specific audience segments,” they continued.
Search, social, email still significant investments
The whitepaper explains that search/display, social, and email are still considered to be the highest drivers of traffic to dealership websites.
However, PureCars pointed out that today’s dealers can’t just think about driving traffic, they also must position for higher conversions.
Newer advertising channels, such as online video, are growing in consideration for many dealers, who should always review their results to make informed decisions about budget and strategy. PureCars recommends a mix of online video for reach and awareness with higher converting social and search campaigns to effectively balance the channel mix.
“This year and entering 2023 have brought about new obstacles for dealers and their digital advertising partners because of continued inventory and new economic challenges,” PureCars senior vice president of client experience Lauren Donalson said. “As a leading digital advertising partner for dealers nationwide, we are continuously providing them with the tools, insights and education they need to help them make informed decisions for their business.
“This latest whitepaper report looks at new and changing dynamics in the industry and offers tips on how to leverage advertising and marketing opportunities for continued growth potential,” Donalson continued.
To download the whitepaper, go to this website.