PureCars will also host a webinar on Sept. 22 where they will talk about the below data in more detail. Click here to register.
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PURECARS DEALER SURVEY OF DIGITAL ADVERTISING TRENDS SHOWS A MAJOR DISCONNECT BETWEEN THEIR CURRENT SPEND VERSUS WHERE THEY GET THE MOST ROI
ATLANTA, GA – (September 20, 2022) – PureCars, a leading provider of digital marketing technology and services for automotive dealers, today announced the results of its recent industry survey. Responses gathered from dealers across the country gave valuable insights into current digital advertising trends, challenges, and opportunities. One notable highlight was that many dealers are interested in exploring new digital advertising mediums, but continue to rely on legacy and traditional platforms.
PureCars commissioned an online survey of 3,000 dealership executives from across the U.S. in early summer where it asked about several digital advertising topics. Given current market conditions, a third of respondents said they have decreased their ad spend by less than 50%, and a quarter of respondents said their ad spend is similar to 2021. A little more than half said they decreased their ad spend because they are focused on inventory acquisition or they are re-thinking where they should focus their advertising dollars.
In terms of where dealers are spending their advertising budgets today, the majority (81%) said online video (YouTube), social media (73%), and search (66%). This is especially interesting since most dealers (77%) said they believe they get the most ROI from advertising spend through streaming audio (Spotify, Pandora), followed by streaming TV and online video (both at 70%).
Most dealers (70%) said they believe search advertising drives the most traffic to their website, followed by social (64%) and email marketing (43%). However, in terms of driving traffic to a physical showroom most dealers turn to email (74%), followed by search (71%), and traditional media (62%).
Ultimately, when asked which media channels they would like to try most, the majority of dealers said streaming audio (73%), streaming TV (72%), and online video (69%).
The disconnect between the focus of still-heavy legacy media versus the curiosity of newer media channels begs the question of how proactively advertising partners are advising dealers, since more than half of dealers (53%) said they are learning about new media channel opportunities from their advertising agency partners. What’s more, proven ROI (82%) and recommendations from the advertising vendor (76%) are the top influencers driving a dealer’s decision to try new media channels.
“We found it particularly interesting that dealers are still relying on traditional media even though they also believe they get the most overall ROI through new media channels, such as streaming audio and streaming TV,” said Kate Colacelli, Chief Marketing Officer at PureCars. “Much of the data in our survey shows that dealers continue to require additional education on the right media channels. We continue to believe that the right digital advertising strategy leverages the most efficient channels while reducing wasteful media spend.”
“It’s encouraging to see dealers ready and willing to expand their advertising mix to include newer channels such as streaming audio and video,” said Lauren Donalson, Vice President of Client Experience and Strategic Partnerships. “With the unique targeting these channels offer, it’s a great opportunity for dealers to get in front of specific buyers to have their messages seen and heard.”
Since 2007, PureCars has helped thousands of dealers improve their advertising effectiveness, lower ad costs per unit sold and per repair order. Through our unique combination of advanced advertising solutions, digital merchandising and market analytics, we provide dealers and partners with best-in-class solutions that increase efficiency and profitability. We are a certified digital provider for 16 OEMs in the U.S. and 1 in Canada, compliant with 40+ brands and serve 65 of the top 100 dealer groups in North America. To learn more, please visit http://www.purecars.com.
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