Discover 20 marketing strategies for new car dealer businesses that improve sales, customer engagement, and local SEO.
Car dealership marketing is a comprehensive field that aims to increase your automotive business’ leads, traffic, sales, and bottom line. It includes everything from establishing an online presence through SEO, websites, and advertisements to attracting new clients and reconnecting with old ones.
Dealership marketing capitalizes on the trend that 95% of car buyers are beginning their purchasing journeys online rather than visiting physical dealerships immediately.
Benefits of Marketing for Car Dealerships
Effective automotive marketing strategies can help your car dealership increase customer engagement, draw in new clients, establish credibility, and ultimately boost sales.
Attract more clients
In today’s information age, building an online presence is the best place to start for car dealerships. Car dealer advertising helps by putting your service out where prospects will likely see it, such as on social media platforms, digital marketplaces for cars, online resources for automotive inventory and information, and car dealership reviews and research.
Targeted marketing
An effective marketing campaign allows you to target the customers who are most likely to be interested in your offerings. Through personalization and refining your audience segment based on preferences, your campaign can head straight to leads or customers with the highest potential to convert. This improves your return on investment and helps you build a solid client base.
A relevant example of this strategy in action would be sending a text message marketing campaign to prospects who’ve indicated they might be interested in buying a new vehicle in the next 6 months to a year. The timing might be right to sway them into coming in for a test drive. This is in contrast to sending a bulk campaign to everyone in your customer relationship management (CRM) database.
Establish trust
Customers don’t want to deal with non-reputable dealers, especially with current auto prices. Effective marketing strategies use various ways to increase your brand’s credibility. This includes aligning with respected parties and influencers and encouraging satisfied customers to leave positive reviews.
Increase customer engagement
Effective car dealership marketing helps retain current customers instead of just attracting new ones. It also provides several opportunities for upselling and cross-selling to increase revenue. For example, a few months before their lease expires, your team could proactively contact current customers to inform them about new vehicles in the inventory or about alternatives for buying the car.
Gain campaign insights
When auto dealership marketing is done right, you can monitor your progress. Reviewing analytics can provide insights into performance. You can then determine whether your campaigns are reaching their target audience and how customers respond to them. Additionally, you can use the insights to find new markets and adjust your automotive dealership marketing strategies.
Car Dealer Marketing Tools
Thanks to technological advancements, the tools you can use for marketing car dealerships aren’t limited to conventional newspaper ads, direct mailers, and TV commercials. You can now find a nearly endless number of solutions. If you don’t know where to begin, consider checking out the car marketing platforms on this list.
Instagram and Facebook
Facebook and Instagram are powerful car dealership marketing tools, but not just because of their large audience. These social media platforms offer feature-rich Automotive Inventory Ads that help you easily reach users interested in purchasing a vehicle. You simply upload your car inventory with details such as location, make, model, and year. This automotive dealership marketing tool will automatically create and show tailored ads to people in the market for such a purchase.
Aside from ensuring your ads are seen by the right audience, Facebook and Instagram let you showcase the beauty of your inventory to potential buyers from the comfort of their homes. You can upload quality videos and images of your showroom to capture people’s attention. You can also use the platform to generate buzz around events and sales promotions or bring back interested shoppers with retargeting ads.
Google Ads
Google Ads is another powerful tool for auto dealership marketing, especially with its Dynamic Search ads. You only have to submit a list of vehicle description pages on your website to Google and let the platform do its thing. Google will automatically create advertisements using the data you provided and link them back to relevant pages. People searching for vehicles on Google will likely find you.
Online Classified Ads
Classified ads are relatively low-cost, especially compared to most digital and traditional marketing, making them ideal for small businesses on a tight budget. Some online classified sites even allow you to publish small ads for free. And since classified ads often do not contain images, you won’t have to invest in graphic design, so you can save more.
Email Text Marketing
After finding potential buyers, you can use email or text to communicate with them. Effective text and email marketing can boost conversion. Text marketing is cheaper, and recipients are more likely to open and read your messages than email. But email also has its own charm. You can use both tools to follow up on car sales, send reminders, conduct polls and surveys, etc.
If you have a small car dealership or you’re just starting an auto business, Podium offers marketing solutions tailored to an auto dealer’s needs. Gain a competitive advantage and boost your sales by simplifying communication and bringing speed and efficiency to every customer experience.
Top 20 Marketing Strategies for New Car Dealers
Running a successful OEM/New Car Dealer business can be a lot of work. But we’re here to help with digital marketing for car dealerships.
Read on for our top 20 digital marketing for car dealerships tips for becoming the titan of your industry without breaking a sweat.
1. Highlight Special Incentives and Offers
Offering incentives and special deals, like manufacturer rebates, discounted financing, or low APRs, can attract more customers. Advertise these specials on your website, social media platforms, and in-store promotional materials to maximize exposure and entice prospective buyers.
Focus on short-term offers or seasonal promotions to create a sense of urgency and drive immediate sales.
2. Showcase Testimonial Videos
Real customer experiences can make a significant impact on a potential buyer’s decision-making process. Gathering testimonial videos from satisfied customers and sharing them on your website and social media channels can help build trust and credibility with your audience.
Pick diverse testimonials that focus on different aspects of your dealership such as excellent customer service, an easy purchasing experience, and vehicle quality.
3. Utilize Podium Reviews
In a digital world, potential buyers rely heavily on customer reviews to make decisions. Using a solution like Podium Reviews can help you manage your online presence, collect and respond to reviews, give you valuable data insights, and build a strong reputation for your dealership.
Use Podium Reviews to enhance the customer experience, identify areas for improvement, and use positive feedback to attract new customers to your OEM/new car dealer business.
4. Maximize Virtual Showroom Experiences
Nowadays, customers often start their car-buying journey online. By investing in a virtual showroom, you can provide a fully immersive experience for customers, allowing them to explore each vehicle in detail with interactive 360-degree visuals and relevant information.
Complement the virtual showroom with live chat support and online appointment scheduling to make the customer journey as seamless and easy as possible. Tools such as Webchat use asynchronous text messaging, allowing customers to switch from their mobile phones to desktops with ease and experience the luxury of ultimate convenience.
5. Implement Targeted Retargeting Campaigns
Retargeting campaigns use browser cookies to follow users who have previously visited your website, showing them relevant advertisements as they browse other sites on the internet. These ads can remind potential customers about your dealership and encourage them to return.
Implement targeted retargeting campaigns based on the user’s browsing behavior, such as visiting a specific vehicle model page or using the financing calculator.
6. Optimize Local SEO
Local SEO is crucial for your dealership’s online visibility, helping your business rank higher in local search results. Elements like Google Business Profile listings, local citations, reviews, and keyword optimization play a vital role in improving your local SEO strategy.
Keep your listings up-to-date, encourage reviews, and optimize your website content for local searches to increase your dealership’s online visibility.
7. Utilize Cross-Promotion Opportunities
Forming partnerships in your local community with other businesses can enhance exposure and create mutually beneficial marketing opportunities. For example, you could partner with a local rental car agency or host an event in collaboration with a nearby restaurant.
Explore a variety of partnership and collaboration opportunities to tap into new audiences and expand your dealership’s reach in the community.
8. Develop Expert Educational Content
Content marketing is still important and effective in reaching prospective buyers and driving revenue. Educational content like blog posts, videos, or buying guides can help establish your dealership as an expert resource, offering valuable information to potential customers while helping them make informed decisions. High-quality educational content can also help with dealership marketing by way of search engine optimization (SEO) efforts, driving more organic traffic to your website.
Maintain a consistent content schedule to keep prospects interested and engaged. An erratic schedule can reflect poorly on your brand. You can use tools to automate publishing so that you don’t have to worry about dedicating time each day to posting.
9. Offer Trade-In Appraisals Online
By offering online trade-in appraisals directly on your website, you can make it convenient for customers to begin the vehicle buying process from the comfort of their homes. This feature and other automation could lead to increased customer engagement and interest in your inventory.
Integrate a user-friendly appraisal tool on your website and promote this service on multiple marketing channels for added exposure.
10. Create and Share Compelling Visuals
High-quality visuals, such as vehicle images, videos, and infographics, can significantly enhance user engagement, convey key information, and persuade potential buyers to visit your dealership. Share these visuals on your website, social media platforms, and email marketing campaigns to attract and engage prospective customers.
Design eye-catching, branded visuals that help tell your dealership’s story and showcase the value of your inventory selection.
11. Offer Transparent Pricing and Financing Options
Cost is always top of mind for customers when shopping for a brand-new or used car. An upfront pricing strategy may not allow you to maximize the profit potential of a vehicle, but it will help you attract more car buyers. A lack of transparency on vehicle pricing may deter customers wary of making negotiations.
Offer financing options to attract shoppers in the market for a new vehicle but can’t make a cash purchase or want to lock in an attractive rate. Financing allows customers to pay in installments that fit their budget instead of paying the full price upfront.
12. Invest in Paid Search
A car-buying journey usually begins online, with customers searching for their preferred vehicles on Google and other browsers. But even if you have a website, there’s no guarantee your target audience will find you.
Invest in proven dealer strategies like paid search. Pay-per-click (PPC) advertising, a type of paid search, provides highly targeted traffic and immediate visibility. When someone searches for a specific keyword that you have bid on and paid for, your ad will appear on the top of the search engine result page (SERP).
13. Leverage Social Media
Auto dealers need to go where their customers and prospects flock online. Facebook, Instagram, and other social media platforms offer a cost-effective way to reach a broad audience. Create accounts on these platforms and post content regularly.
Don’t stop here or your strategy will likely fall flat. Share behind-the-scenes glimpses, special promotions, and other valuable content that will keep your followers informed and entertained. Interact with your followers through direct messages and comments to foster a sense of community and build trust.
14. Collaborate with Influencers
Collaborating with influencers in the automotive industry to promote your dealership can help in increasing brand awareness. It’s also an opportunity to tap into new and engaged customers who trust the recommendations of influencers. Some of these online personalities have thousands of followers, which means you have the potential to make an impression on legions of consumers.
Entice your chosen influencer to review the vehicle. Invite them for a showroom tour, or let them test drive the car in exchange for promotion.Influencer partnerships can provide long-term benefits in the form of increased engagement, conversions, and brand loyalty. But make sure to choose an influencer who aligns with your dealership’s values and image.
15. Optimize Website for Mobile
Making your website mobile-friendly reduces bounce rates and increases conversion. There will be customers who will access your dealership website from their mobile phones. By optimizing a website for mobile, you can guarantee visitors will have a seamless experience and will not immediately leave your website and go to your competitor.
Test how your website appears to users in various contexts, like desktop, smartphone or tablet. Mobile optimization is all about ensuring your website will perform well on mobile devices like tablets or smartphones.
16. Improve Response Times to Leads
Quick response time can increase your conversion rates. Aim to respond to the concerns and questions of your potential and existing customers in under an hour. The best dealerships aim for less than 15 minutes.
Set your dealer up for success with the right solutions. Chatbots and automation tools can be useful in ensuring customers get the information they need immediately. Text messaging can also help boost response times since texting is easy and you can do it from anywhere.
17. Optimize Vehicle Description Pages (VDP)
A vehicle description page (VDP) is a webpage that lists all details about a specific vehicle, including videos and photos. A good VDP can help you get a vehicle off your lot faster. It’s no secret that inventory financing costs can hit dealers hard.
Optimize your VDP and increase views by using up-to-date, high-quality, real-life photos of the car, using relevant keywords throughout your page. Include as much information about the car as possible.
18. Build Customer Loyalty
Another car marketing idea that can get your vehicles off the lot is reward loyalty. Loyal customers can help bring in more car buyers by recommending your dealership to their friends, family, and friends. After all, satisfied customers can be the best sources of leads. You just have to make the ask.
Encourage loyalty through referral marketing. Offer discounts, a free oil change, or any money-saving deals for referrals. Building customer loyalty also increases retention, saving you money on automotive marketing strategies.
19. Provide an Impeccable Test Drive Experience
Most potential buyers want to experience the car in action before they commit. That’s understandable, as it’s a large purchase. An impeccable test drive experience can push customers from the consideration phase to the buying phase.
Consider offering dealership strategies, like unaccompanied test drives, especially to car buyers who prefer driving without a salesperson present. If you accompany the customer on the test drive, act as a trusted advisor instead of a salesperson. Some customers may need more time to consider the car, so spacing out test drives will ensure they won’t feel rushed.
20. Offer Gift Cards and Promote Giveaways
Looking for other promotion ideas? Try offering gift cards and promoting giveaways to increase excitement about your business and awareness of your brand. You can offer gift cards as part of a deal for a car’s first service or in return for a helpful referral. Giveaways are often successfully executed via social media posts and can often increase engagement and generate buzz for your dealership.
Start with clear goals: Are you trying to grow your social following, drive more web traffic, gather reviews, or increase brand awareness? Next, select a prize that aligns with your target audience. This could include a service package, discounted maintenance, popular accessories, a discount, or a new product you’re trying to get off the ground. Choose entry requirements (following on social media, liking/commenting on posts, sharing posts, subscribing to texts, etc.), choose a platform, design a post and appropriate imagery, and get started!
Car Dealer Relationship & Reputation Management
You won’t be able to make the most of your automotive marketing efforts if you have a bad online reputation. Modern consumers consult online reviews before making a buying decision. If people talk ill of you online, you cannot expect more customers to choose your business. That’s why it is critical to include reputation management in your digital marketing strategies.
There are various places online where customers can share their experience doing business with you. The big three are Facebook, Google, and Yelp. Keeping a watchful eye on these review websites is one of the ways to manage your dealership’s online reputation.
While you should focus on those big three, don’t forget about industry-specific websites your prospects and customers frequent, such as DealerRater and Cars.com.
People will often have something bad to say. If you happen to get a negative review, do not ignore it. Nothing is worse for your dealership’s social proof than negative feedback left without a response. It can make you look like you don’t care about your customer’s experience and what they think about your business.
Always leave polite and helpful responses to prevent negative reviews from tainting your online reputation. Also, remember to offer a solution to their issues and concerns. Ultimately, be honest and authentic in your responses.
If you’re new in the business (and to dealership marketing) and haven’t gotten any online reviews yet, consider sending review requests to your customers. But do not manipulate them to give you positive reviews. Let them share their genuine experience. If they leave negative feedback, use the information to make improvements.
Try Podium for Free
You can use Podium Reputation Manager to request customer reviews to support automotive dealership marketing. It can also help double your review volume. The number of reviews influences customer’s decisions, so collecting more can be good for your dealership.
Car Dealer Marketing Costs
According to the National Automobile Dealers Association (NADA), car dealers spent over 8 billion dollars on advertising in 2021. Two-thirds of what dealers spent went to digital marketing.
Automotive dealer marketing can get quite expensive. You can use different methods, including percentage of sales, available funds, objective and task, and competitive parity, to determine how much to spend on your marketing efforts.
Percentage of sales refers to the percentage of the previous year’s sales. Small businesses usually allocate between seven to eight percent of their total revenue to their marketing. You can also simply determine how much to spend based on your dealership’s available funds.
The objective and task method is a system where a dealership allocates marketing funds based on specific objectives. You have to define your marketing objectives, list the tasks needed to accomplish the goal, and then estimate the cost of carrying out those tasks.
Defining a car marketing budget using the competitive parity approach is easier. The competitive parity strategy involves using your competitor’s marketing spending as the benchmark for your dealership’s spending. But remember that spending as much money on automotive marketing strategies as your competitor does not guarantee the same result. Use this method of car marketing with caution.
There are many other factors to consider when determining how much money to spend on auto dealer marketing. If you’re running advertisements, considerations include the platform you’re going to run your ads and the advertisement type.
Use Podium to Win
By following these recommendations, your OEM/new car dealer business will be better equipped to effectively market and promote in the digital age. And we’ve got a secret to lighten the load when it comes to digital marketing for car dealerships.
Podium offers a variety of tools to execute dealer strategies, such as reviews and text marketing, to help streamline your dealership’s online presence and customer communications, leading to increased sales and customer satisfaction.
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