The automotive market has undergone a rapid transformation since the start of 2020. As consumers continue to practice social distancing, car shoppers and dealership customers are adjusting their behaviors in order to get the job done. This means they are embracing an increasingly digital experience, from browsing vehicle inventory, to learning about your dealership, to making contact with your sales team, to scheduling a remote test drive. So, if in-market shoppers are doing more online, what types of media are they consuming? What channels should you invest in today?
In part one of this blog series, Digital Marketing Strategies for Spending Smarter, we looked at the need to evaluate where your resources are going. Why is this an important first step? Since March, the number of in-market shoppers has dropped by 25%, according to the 2020 Cox Automotive COVID-19 Dealer and Consumer Impact Study. With a smaller market, efficiency is key. Dealers must deliver the connected experience car shoppers want.
Over 85% of consumers reported that COVID-19 is shifting the types of media they consume online, according to the 2020 Cox Automotive COVID-19 Dealer and Consumer Impact Study. Utilizing the media channels that your customers are consuming is key to stretching your marketing spend.
Many dealerships mistakenly believe that creating video to use in marketing is too costly and labor intensive, but video is actually an underpriced channel. You can buy an audience’s focused attention through digital channels for far less than is possible through traditional channels like television. Digital video advertising campaigns built using Dealer.com’s Video Advertising solution are achieving a $0.02 and $0.03 cost per 15-second video view.
Both paid social media advertising and organic social media channels present an efficient way to communicate with customers. On the paid side, engagement is high, and cost is low. Due to increases in available ad inventory, Facebook has become a highly cost-effective way to connect with consumers. Just as importantly, on the organic side, keep your dealership top-of-mind with shoppers by being present and responsive on your dealership pages.
From shepherding kids through distance learning to working from home to staying safe, most of your customers have a lot on their minds. Retargeting is one of the simplest and most cost-effective means for reminding shoppers that your dealership has the vehicle, service expertise and experience they need.
Now is the time for dealerships to deliver the connected experience car shoppers want. Spend your marketing budget smarter by updating your strategy to focus on the today’s media, keeping up to date with where and how information is obtained. Engage with your customers through high ROI channels to stay on track with your dealership targets and be better positioned for future growth.