Co-op advertising driven by OEM support has proven to be an effective tool to engage customers, promote brands and make sales while sharing advertising costs. Moving into the second half of 2024, dealers should ensure they’re maximizing their advertising budgets and not leaving any free money on the table.
In this WardsAuto FastChat episode Michele Wright, Director of Sales for Autotrader and Kelley Blue Book, shares how dealers can use co-op funds to share the cost of advertising their dealership.
Dealers have more opportunities than ever before to engage shoppers with personalized messaging that anticipates their specific needs. Consumers understand that their shopping behaviors are being tracked, so they expect that the offers and outreach they receive from dealerships will enhance their buying experience and save them time.
Integrating Data to Fuel Campaigns
When you’re looking for opportunities to create customized, personal experiences for shoppers, knowledge is power. Cox Automotive recognizes that the strengths of Dealer.com marketing tools could be magnified with an integration with VinSolutions. This connection led to the creation of Automotive Marketing Platform.
Automotive Marketing Platform is an omni-channel marketing solution that uses Cox Automotive’s first-party consumer data integrated with VinSolutions CRM to deliver personalized campaigns. It lets you target known customers across multiple channels, based on things like vehicle equity, term expiration, and service history.
When your marketing solution is integrated with your CRM, your sales team has more information to help them connect with consumers and close deals. Not only will they be able to see shopper data, but they’ll be able to access the personalized marketing communications that each customer has received. These informed conversations can pick up from there with a greater chance of closing the deal.
The platform also makes monitoring campaigns easy, with dashboards that measure a campaign’s effectiveness so you can make changes swiftly as needed.
Targeting Communications
Using existing customer data, Automotive Marketing Platform segments customers who are most likely to buy, including customers who may be interested in trading up to a newer vehicle. Automotive Marketing Platform can also use artificial intelligence to identify vehicles of interest and automatically send personalized offers that let customers start the deal process right from their phone. Basically, you can use data to target your customers in whatever way works best to achieve your campaign strategy and goals.
Automating Your Marketing Workflows
With automated marketing workflows, you can deliver personalized content to shoppers, without having to manually handle every step. You’ll choose the content and timing based on real-time data about each shopper to deliver the right message, to the right person, at the right time. This personalized approach is designed to create a car buying experience that builds brand loyalty and creates lifetime customers.
How does this affect your bottom line? Dealers with Automotive Marketing Platform have seen an average 10x return on investment.*
*Source: Based on analysis of customers receiving messages from Automotive Marketing Platform from August 2022 to August 2023, analysis performed August 2023
Digital marketing managers and automotive digital marketing managers are constantly juggling numerous strategies to capture the attention of potential car buyers. To ensure your dealership remains competitive, you must adapt to emerging trends that are reshaping how car shoppers interact with brands.
This guide will delve into the latest automotive marketing trends and offer actionable insights on how to leverage these trends effectively. By understanding and implementing these strategies, you can enhance your dealership’s visibility, engagement, and sales performance.
The Importance of Behavioral Data and Audience Targeting
Successful marketing hinges on understanding your audience’s behavior and preferences. Leveraging the intelligence of behavioral data and utilizing audience targeting can significantly increase your marketing efforts’ efficiency. By serving tailored messages to the right audience segments, you can influence car shoppers who are most likely to make a purchase.
Multichannel Experience: Meeting Car Shoppers Where They Are
A recent study by the 2023 Car Buyer Journey, “Digitization of End-to-End Retail,” reveals that 43% of car shoppers prefer a multichannel experience at the dealership, combining online and offline steps. This trend underscores the importance of integrating both digital and physical touchpoints in your marketing strategy. Providing a seamless multichannel experience can enhance customer satisfaction and drive higher conversion rates.
The Cookieless Future: Adapting to Changes in Data Privacy
As data privacy regulations evolve, third-party cookies are set to be phased out by 2025. This shift necessitates a reevaluation of how automotive marketers track and engage with potential buyers. Embracing first-party data and investing in cookieless tracking solutions will become essential to maintaining effective targeting and personalization efforts.
Embracing Online and Offline Blends
The same study indicates that 71% of car buyers opt for a blend of online and offline interactions during their purchasing journey. This trend emphasizes the need for targeted advertising to initiate potential buyers on the path to purchase. By leveraging digital marketing channels to attract and engage customers, you can guide them seamlessly into your dealership’s sales funnel.
Automation: Enhancing Efficiency with Google Ad Buys
Automation is revolutionizing the way businesses manage their marketing campaigns. With Google Ad buys, you can automate various aspects of your advertising strategy, allowing you to reach customers more effectively and drive better results. Automation not only saves time but also ensures that your ads are delivered to the right audience at the right time.
Building a Data-Driven Advertising Strategy with Dealer.com
To stay ahead in the competitive automotive market, partnering with the right digital marketing platform is crucial. Dealer.com offers a comprehensive solution that empowers your dealership to build an effective advertising strategy. Powered by exclusive Cox Automotive data, Dealer.com delivers real results through data-driven insights and personalized marketing efforts.
Power tip: Personalize your car shopping experience! Today’s consumers expect tailored journeys, and failing to deliver can lead to lost sales and unhappy customers. A Cox Automotive study shows that dealerships using personalized marketing see a 12% increase in inventory leads, driving significant revenue gains and stronger customer relationships.
Power tip: Personalization pays off! Consider a dealership that sells 300 cars a month. A 12% lift in leads can result in an additional 12 cars sold each month, adding up to over 140 cars annually. With an average profit of $1,400 per car, this amounts to an extra $196,000 in revenue per year. These figures highlight the substantial financial impact of leveraging personalization in your marketing efforts.
Power Tip: Personalize your website and marketing content! Without personalization, customers may struggle to navigate, leading to frustration, high bounce rates, and longer purchase times. Happy customers are more likely to buy more!
Power Tip: Use Dealer.com to create personalized digital experiences for shoppers! Leverage actionable consumer insights to offer relevant vehicles, incentives, and specials.
Automate to free up resources and focus on building meaningful customer relationships. 🚀Real Results from Personalized Recommendations. Dealerships that implement personalized recommendations through Dealer.com experience impressive results:
12% lift in inventory leads submitted
2-2.5x higher click-through rates
These metrics demonstrate the tangible benefits of adopting a data-driven, personalized marketing strategy.
Embrace Innovation for Competitive Advantage
As the automotive industry continues to evolve, staying ahead of marketing trends is essential for maintaining a competitive edge. By leveraging behavioral data, embracing multichannel experiences, adapting to the cookieless future, and automating your advertising efforts, you can position your dealership for success.
Partnering with Dealer.com provides you with the tools and insights needed to build a data-driven advertising strategy that delivers real results. Don’t let your marketing strategy fall behind—keep up with changing trends and drive your dealership’s growth.
Ready to take your marketing strategy to the next level? Book a demo with us today to learn more about how Dealer.com can help your dealership thrive: https://www.dealer.com/demo/
In today’s fast-paced digital age, ensuring your inventory is getting prominent placement within shoppers’ search results is vital. Find out how to boost your engagement without boosting your costs with merchandising best practices.
In this WardsAuto FastChat episode David Lumpkin, Senior Director of Inside Business Development for Autotrader and Kelley Blue Book, shares how dealers can boost their performance without boosting their spend.
The right automotive marketing strategies can boost your business’s profitability. We’ve identified several best practices for success: personalizing customer interactions, integrating multi-channel approaches, and continuously analyzing performance metrics. By focusing on these, you can unlock the true profit potential of your marketing automation tools. Let’s dive into these practices and see how they can transform your marketing efforts.
Connect Your Digital Marketing Solutions to Your Marketing Strategy
Failing to fully integrate your digital marketing solutions with your overall strategy can spell disaster. A disjointed approach risks missed opportunities and crippling inefficiencies. Don’t let your business fall behind—ensure seamless integration now.
Align Goals and Metrics: Ensure that your digital marketing KPIs are in sync with your overall business objectives. This alignment helps in tracking performance and making data-driven decisions.
Unified Platforms: Use unified marketing platforms that bring together various digital tools such as CRM systems, email marketing, and social media management. This will allow for a more cohesive strategy.
Cross-Department Collaboration: Encourage collaboration between your marketing, sales, and service departments. For instance, integrating fixed operations into your digital strategy can significantly boost profitability, as highlighted in the DDC Managed Services document.
Connect Consumer Behavior Using Data
Understanding and leveraging consumer behavior is fundamental to creating a personalized shopping experience. Here’s how you can do it:
Data Activation: Utilize activated data to tailor personalized experiences for each lead. Whether it’s through targeted ads, personalized email campaigns, or tailored website content, data-driven personalization can capture both the consumer and the deal.
Behavioral Insights: According to the 2022 Cox Automotive Car Buyer Journey Research Summary, consumers are eager to do more online. Use these insights to enhance your online presence and provide a seamless experience that meets consumer expectations.
Predictive Analytics: Employ predictive analytics to anticipate consumer needs and behaviors. This can help in crafting more effective marketing messages and offers.
Turn Your Data and Insights into Actions
Data and insights are only valuable if they lead to actionable strategies. Here’s how to turn your data into impactful actions:
Real-Time Decision Making: Implement AI tools that allow for real-time analysis and adjustments. This agility will enable you to respond quickly to market changes and consumer behavior.
A/B Testing: Continuously test different strategies to see what works best. This iterative approach can lead to significant improvements in your marketing efforts.
Performance Metrics: Track key performance metrics to evaluate the success of your campaigns. Use this data to refine and optimize your strategies continually.
Build Trust and Transparency Through Data-Based Decisions and AI
Building trust and transparency with your audience is essential, especially when leveraging advanced technologies like AI. Here’s how you can achieve this:
Transparent Communication: Be clear about how you use consumer data. Transparency builds trust and fosters a positive relationship with your audience.
AI-Powered Personalization: Use AI to create personalized experiences that feel genuine and tailored. This can significantly enhance customer satisfaction and loyalty.
Ethical AI Practices: Ensure that your AI practices are ethical and unbiased. This will not only build trust but also enhance your brand’s reputation.
Conclusion
Unlocking the profit potential in your marketing automation is not just about implementing the latest technologies; it’s about creating a cohesive, data-driven strategy that aligns with your overall business goals. By connecting your digital marketing solutions to your marketing strategy, leveraging consumer behavior data, turning insights into actions, and building trust through transparency and AI, you can transform your marketing efforts and achieve unparalleled success.
Ready to take your marketing automation to the next level? Don’t miss out on our Bridging the Gap series for more tips and best practices. Watch the series now
Gaining insights into auto industry best practices is crucial. Understanding the car buyer’s journey is an essential step for automotive marketing professionals looking to drive engagement and boost sales. The 2023 Cox Automotive Car Buyer Journey study has provided a wealth of information that can significantly enhance your digital marketing strategy. Here, we distill the top five insights and actionable steps you can take to elevate your efforts.
1. Vehicle Ownership is Not Going Anywhere
One of the most eye-opening findings from the study is that vehicle ownership remains a priority for most consumers. An impressive 91% of consumers intend to use their own vehicle as their primary mode of transportation in the future, a significant increase from 77% in 2018. Additionally, fewer consumers believe ownership is unnecessary, with this belief dropping from 43% in 2018 to 35% in 2023.
Actionable Steps:
Highlight the benefits of vehicle ownership in your marketing campaigns. Emphasize the control, convenience, and safety personal transportation provides.
Create content that reassures potential buyers about the value of owning a vehicle, especially in a post-pandemic world where safety and personal space have become paramount.
2. Satisfaction with the Shopping Journey Increased
Consumers are increasingly satisfied with their car-buying journey, both for new and used vehicles. Satisfaction for new car buyers has risen to 73%, up from 70% in 2022. Similarly, satisfaction for used car buyers has improved to 68%, up from 58% in 2022.
Three key factors contributed to this rise: better vehicle selection, with only 39% feeling there was limited inventory in 2023 compared to 56% in 2022; better prices, as although prices remain high, dissatisfaction decreased slightly from 54% in 2022 to 49% in 2023; and increased dealer outreach, with more consumers reporting being contacted by dealers with appealing incentives or deals (17%, up from 14% in 2022).
Actionable Steps:
Ensure your inventory is well-stocked and diverse to meet various customer needs.
Train your sales team to reach out proactively with personalized deals and incentives.
Enhance your digital presence by showcasing your inventory online with detailed descriptions and competitive pricing.
3. Improved Online Efficiency
Shoppers are spending less time overall on the car-buying process. The time spent shopping decreased by 1 hour and 8 minutes, from 14:39 in 2022 to 13:31 in 2023. This shorter window means you must be more strategic and targeted in your interactions.
Actionable Steps:
Optimize your website for quick, efficient browsing. Ensure it’s mobile-friendly, fast-loading, and easy to navigate.
Use personalized marketing to keep shoppers engaged throughout their journey. Leverage data to deliver relevant content and offers at each touchpoint.
Utilize third-party sites: Consumers trust these sites for unbiased information. Make sure your listings and reviews on these platforms are up-to-date and positive.
4. The Retailing Experience was Top Notch
Satisfaction with the overall shopping journey surged in 2023, with overall satisfaction jumping from 61% to 69%. Satisfaction with dealerships increased by 10%, and 21% rated their experience as better than their last purchase. Several factors contributed to this improvement, including heightened vehicle availability, the return of incentives, and a shift toward a more digital process.
Actionable Steps:
Encourage enhanced lead submissions: The more detailed the information you gather from potential buyers, the better you can personalize their experience.
Invest in digital retailing tools: Provide a seamless experience between your online platform and in-person dealership interactions.
Promote your inventory effectively through digital channels, ensuring that high-demand vehicles and deals are prominently featured.
5. Digital Retailing Continues to be Highly Beneficial
Consumers are increasingly leaning towards an omnichannel experience, seamlessly blending online and in-person steps to create a more cohesive and integrated shopping journey. This approach allows for greater convenience, flexibility, and personalization, catering to the diverse needs and preferences of modern consumers.
Actionable Steps:
Offer multiple buying pathways: Allow consumers to choose how they want to interact—whether online, in-person, or a mix of both.
Ensure seamless transitions: Make sure the deal carries forward smoothly, regardless of whether the customer starts their journey online or in-person.
Focus on customer satisfaction: Modern dealers who prioritize a seamless, omnichannel experience see significant payoffs in consumer satisfaction and profitability.
Ready to Take Your Digital Marketing to the Next Level?
The insights from the 2023 Cox Automotive Car Buyer Journey study provide a roadmap for automotive marketing professionals to enhance their strategies. By implementing these top five takeaways, you can ensure your digital marketing efforts are more effective, engaging, and ultimately, profitable.
For a deeper dive into these insights, download our top five takeaways and start transforming your digital marketing strategy today.
The electric vehicle surge has been steadily rising. Over one million EVs were sold in 2023, a monumental achievement for EVs in the automotive industry. Fast forward to January 2024, and now there are more than 3.2 million EVs in the U.S. 1 More OEMs are entering the market and different models are being made available to consumers, which means pricing is getting more competitive and more people can afford them.
While EV sales have hit record highs, the growth rate seems to be decreasing. To keep up with the changing demands of the industry, the annual Cox Automotive Path to EV Adoption study allows dealers and OEMs to stay informed about the state of EVs.
This study reveals that an increase in supply and more available models have outpaced consumer demand. EV consideration among car shoppers has begun to wane and inventory is sitting on dealership lots longer.
So, what’s on the horizon for the EV market? Here are our top takeaways.
Shoppers Are Skeptical About Making the EV switch…for Now
An EV Skeptic is defined as a car shopper who is only considering vehicles powered by traditional internal combustion engines (ICE). According to the 2024 Path to EV Adoption Study by Cox Automotive, nearly half of vehicle shoppers in the market today are Skeptics. These shoppers are hesitant about the idea of switching to an electric vehicle.
Why aren’t most car buyers ready to take the leap into the electric vehicle segment? There are multiple barriers to adoption that dealers and OEMs will need to overcome to move Skeptics into a consideration and purchase mindset:
Driving Range and Lack of Infrastructure: Consumers worry about the range of electric vehicles (EVs) and the availability of charging stations, especially if these issues impact their travel plans.
Battery Fears: Concerns about battery capacity and charging time deter some buyers.
Affordability: While EV purchase prices are decreasing, consumers still perceive ownership costs as higher than comparable ICEs and hybrids.
OPPORTUNITY: Incorporate More EV Content
EV buyers actively seek information online, consuming more content than their (ICE) counterparts.3 Since the concept of EVs is still new to some shoppers, they rely heavily on content, especially videos, when researching online. Expert reviews and ratings, vehicle awards, and more help consumers better understand the new world of electric vehicles.
Your EV content should highlight the different types of EV vehicles manufactures are making. With different models entering the market, shoppers need to identify key differentiators with different makes and models. EV considerers also tend to be technology driven. Focusing on tech enhancements and features in your vehicle descriptions is a critical way to move shoppers closer to purchase.
Call out the key benefits of electric (EV) versus internal combustion (ICE) vehicles as well. As EV shopper demographics are skewing younger, lower income and multicultural, helping these audiences understand the benefits of EV will move them closer to their purchase.
Additionally, 74% of new EV buyers took action after viewing an online auto video ad compared to 65% of new ICE buyers.4 Incorporating more video advertising can encourage EV shoppers to browse more website pages, submit a lead or even visit your dealership for a test drive.
EV Shopper Demographics Becoming More Mainstream
One finding in the study reveals that the EV market is slowly becoming more mainstream. While current EV ownership is heavily tilted toward luxury and high-earning households, the study shows the EV market is casting a wider net, attracting Gen Z, multicultural, and less-affluent shoppers.
OPPORTUNITY: Expand Your Advertising and Marketing Reach
With a more diverse set of consumers considering EVs, dealers must adjust some of their advertising budget and strategy to include these new sets of shoppers. Use data to your advantage and work with your digital marketing partner to ensure your EV advertising is getting in front of more consumers that are interested in EVs.
The market is also seeing a notable uptick in used EV consideration. In 2021, 62% of EV Considerers were looking at used EVs. Today, 77% are considering used electric vehicles.
While Tesla remains the most considered EV manufacturer, several mainstream brands are gaining traction. The new report highlights that electric vehicles from Toyota, Hyundai, and Kia have seen significant increases in awareness and consideration since 2021. However, Ford continues to be the most-considered non-Tesla EV brand. The study also reveals that most shoppers are unaware of EV options from other major automakers, indicating a lack of research into EV products. For instance, only 33% of consumers in the market are aware of Nissan’s EV offerings, despite the brand being an early pioneer in U.S. EV sales.
OPPORTUNITY: Provide More Education Around EVs
In addition to increasing your advertising reach, consider incorporating educational content about non-Tesla EVs. If it’s one thing the study reveals, perception seems to be a high deterrent for some EV skeptics. Getting ahead of the curve and providing education on not only what manufacturers sell EVs, but the different models and varying price ranges can help with awareness. This awareness could attract shoppers who are more likely to buy from a manufacturer they are loyal to if they knew they sold EVs. It can also ease apprehension as consumers see more manufacturers believe EV adoption is the way forward and will steadily increase over the next few years.
EV consideration will notably increase with 54% of current Skeptics saying that 3-5 years from now will be the right time to purchase an EV. By 2033, 90% of vehicle shoppers will be considering an electric vehicle.2This shift will be driven by continued advances in technology, more EV charging infrastructure and consumer education. More models and price reductions will cast a wider net attracting Gen Z, multicultural and less-affluent shoppers.
Increasing Dealer Confidence to Sell EVs
The new EV study highlights the importance of dealers and OEMs fostering a balanced, more strategic relationship to accelerate EV adoption.
Since 2019, dealerships have benefited from their OEM partners with enhanced support in marketing, sales, and service. However, dealers indicate a need for more resources beyond EV sales training, including increased EV incentives, free maintenance programs, and additional advertising funds. Additionally, 65% of dealers report feeling increased pressure from automakers to meet EV sales targets, a significant rise from 39% in 2019, with luxury dealers experiencing the most pressure.
OPPORTUNITY: Ensure Support from OEM Partners
Getting support is crucial as dealers enter this new space of selling EVs. 67% of franchise dealers prefer that OEMs share in the responsibilities for upper funnel activities, while they take charge of the lower funnel steps.2 As a dealer, ensure you are reaching out to your OEMs to help educate consumers on their line-up, on the key differences and benefits of EV vs. ICE, as well as provide information on EVs listed for sale.
Being proactive about the specific support you need—whether more advertising, sales incentives, lead generation—is important so OEMs know how to assist. The shift to EVs is imminent and as the industry addresses barriers to EV adoption, your dealership does not want to be left behind.
What Else Can I Do as a Dealer?
Entice EV shoppers and skeptics with key offers. Offering free charging and maintenance could encourage both EV Considerers and Skeptics to make a purchase. Providing incentives such as a complimentary at-home charger, a free maintenance or service plan, and free charging at public stations would likely boost EV sales. According to survey respondents, an ideal trial period includes six months of free maintenance and free charging.2
Prepare for the EV Surge
Automotive shoppers are gradually embracing electric vehicles. While maybe not as quickly as dealers and OEMs would like, there’s an opportunity to accelerate this transition. It is important to understand and address why Skeptics and Considerers are not ready to switch and fill the gaps by incorporating more EV content, expanding your advertising and marketing reach, and collaborating with your OEMs for more specific support.
For more insights from the Cox Automotive Path to EV Adoption study, CLICK HERE.
Auto dealers have been quick to jump on advertising opportunities since the first newspaper ad for a car company was published in 1898. Today, your dealership has a wide variety of advertising options, so it can be challenging to build out a digital marketing plan that reliably powers lead generation and improves profit. But although advertising is constantly evolving, it remains extremely valuable because it is:
One of the first touchpoints between your dealership and customers
The way most consumers find your website
The first step into your digital retailing process
Dealership websites are a vital first step to help shoppers navigate your dealership’s inventory, and they also play a role in convincing them they should buy from you rather than a competitor. While a good website is important for getting more quality leads and turning cars on the lot, dealers must take a more holistic approach for the website to be able to do its job. Maximizing sales opportunities requires a broader digital marketing strategy that actively engages the right shoppers at the right time with the right messaging.
KEEPING YOUR MARKETING STRATEGY UP WITH THE CHANGING AUTOMOTIVE MARKET
To reach in-market auto shoppers, it’s important to understand what is driving their decisions throughout the shopping journey. Considerations such as fluctuating interest rates, inflation concerns, inventory shortages, and more, affect what grabs a shopper’s attention. Today’s consumers follow the purchase path in different ways, at different times, and take different steps in a different order. A successful strategy should be firmly centered on meeting consumers where they are in the journey.
There was a time when you could rely on contextual targeting to capture the attention of the right buyer at their most impressionable moment. But now contextual placements have become too broad, generating wasted effort and ad spend through low-value impressions and low engagement.
The most efficient solution is to leverage the intelligence of behavioral data and use audience targeting to serve your message to the shoppers who are most likely to buy.
MODERN SOLUTIONS FOR MODERN CHALLENGES
There are several key reasons that now is the ideal time to work on perfecting your advertising strategy:
Consumers spend more time online. 43% of car shoppers prefer a multichannel experience at the dealership, a mix of steps completed online and offline.1 This presents an opportunity to strategically target shoppers with cars they want to see based on their shopping behaviors. With access to exclusive Cox Automotive data, you can leverage these insights to serve up the exact car consumers are looking for.
The cookieless future is here. In 2025, third-party cookies are finally going away. To effectively market and advertise to car shoppers, it’s now vital to have access to first-party data that allows you to gain insights on your customers.
Digital retailing is the path forward. Advertising can feed the funnel into your dealership’s digital retailing process. With 71% of car buyers opting for a blend of online and offline interactions in their future purchasing journey1, leveraging targeted advertising becomes paramount in initiating potential buyers on the path to making a purchase with your dealership.
Google Ads buys are now more comprehensive. Google PMax is designed to help advertisers reach customers more effectively and drive better results through automation. These ads allow you to promote your inventory to interested and relevant shoppers online by featuring it in the most desirable real estate on Google’s search results page.
So, how do you address these factors to build the right advertising program for your dealership? Dealer.com Advertising works with you to deliver data-driven, intelligent advertising so you can own the moments that matter most for your customers.
We can help you create a superior dealership experience with the right data and the right innovations to reach the right consumer with the right message at precisely the right time.
Here’s what that partnership looks like:
+ 3.5X MORE ADVERTISING LEADS2
An effective advertising strategy requires three things:
The Right Data: In the absence of third-party cookies, you can use our Cox Automotive proprietary data to build audiences based on each buyer’s intent.
The Right Technology: Choose the advertising channels that work best and adjust your strategy in real time. Using our proprietary Advertising Management software, you can identify opportunities for growth and optimization to shift with your market and maximize the impact of your advertising spend.
The Right Expertise: Our highly trained advertising architects will help you achieve your advertising goals. The specialists on this team cover every area of marketing strategy, understand how to leverage the largest first-party data source in the automotive industry, and help you get the most value from your advertising spend.
Dealer.com gives you a data-driven partner that delivers real results, powered by exclusive Cox Automotive data.
+2.7X MORE WEBSITE VISITS2
+3.8X MORE VEHICLE DISPLAY PAGE VIEWS 2
Advertising works best as the centerpiece of your marketing plan. The right advertising program is key to fueling website reach and closing deals.
2023 Car Buyer Journey, Digitization of End-to-End Retail.
Average performance of 391 dealers using paid search and retargeting channels vs. 133 using paid search, display, retargeting, Facebook, and Premium SEO. January – June 2023.
The automotive industry is constantly evolving. To keep up with the changing demands of the industry, the annual Cox Automotive Car Buyer Journey (CBJ) allows dealers and OEMs to stay informed about the state of car buyer satisfaction with the overall vehicle shopping and buying experience.
The 14th annual Car Buyer Journey study was released earlier this year, based on nearly 3,000 respondents who purchased or leased vehicles in the previous year. It sheds light on two significant points: 1.) The industry is NORMALIZING, and 2.) Dealers and third-party aggregators are RESILIENT.
While we all might define ‘normal’ differently, particularly because of inflation, record profits, inventory fluctuations, and rapid digitization, we may finally be transitioning from those not so ideal times into a more stable place. The CBJ findings mark a turning point.
Let’s explore the top 5 takeaways from the study and how they can contribute to enhancing your digital marketing strategy.
#1: Vehicle Ownership is Not Going Anywhere
91% of consumers told us they intend to use their own vehicle as their primary mode of transportation in the future, up significantly from 2018 (77%). With ride sharing and vehicle subscription trending in the last 5-8 years, there were predictions that consumers were moving away from personal ownership. However, we’re seeing the opposite.
With personal transportation needs rising due to personal safety concerns since the pandemic, we see personal vehicle ownership is here to stay.
Fewer consumers agree that ownership is NOT necessary (down from 43% in 2018 to 35%). And, nearly all consumers tell us they intend to leverage their own vehicle as their primary mode of transportation in the future (91% vs. just 9% who plan to use an alternative).
WHAT TO DO: It’s more important than ever to enhance the customer experience – with personal vehicle usage up and the desire to own more than one car. In fact, there was a 36% increase in the number of buyers motivated to own more than one car in their household from 2022 to 2023. Ask yourself:
What re-targeting campaigns are in place to retain your existing customers?
What advertising strategy do you have in place to attract new customers?
Leverage your CRM and activate your first-party data. Reach out to consumers in their preferred method and follow up with past customers to ensure they know how much you appreciate their business.
#2: Satisfaction with the Shopping Journey Increased
Overall satisfaction with the shopping experience is higher for both new and used car buyers: 73% for new (70% in 2022), and 68% for used (58% in 2022). The increase was influenced by three factors:
Better vehicle selection. Fewer consumers felt that there was limited inventory to choose from—39% in 2023 compared to 56% in 2022.
Better prices. 49% of consumers said prices were higher than expected in 2023 compared to 54% in 2022. However, these numbers are still significantly higher than they were in 2021. This indicates that affordability is still a pain point and even more so among the price-sensitive used buyers.
More dealer outreach with good deals. There’s been a significant increase in the number of consumers who mentioned that a dealer contacted them with some appealing incentives or some type of deal – 17% compared to 14% in 2022 and 12% in 2021.
WHAT TO DO: It’s no secret that as inventory rebounded, so did shopper satisfaction with the overall purchase journey – now, with incentives rolling back in, ensure you are getting the right message in front of the right customer at the right time and in the right way.
This starts with taking an in-depth look at your digital marketing strategy and focusing on your:
Website: Ensure your website showcases relevant information your shoppers want to see. You have a short window to grab their attention, so your website should be personalized, easy-to-navigate, and data-driven.
Advertising: Ensure you are utilizing the correct channels to target your in-market shoppers and serve them the information they want to see. Dealer.com’s Machine Learning and Real-time Bidding platform can analyze prior ad performance, vehicle detail page engagement, and browsing trends in real-time to ensure your ads are served to the most relevant buyers in your market.
#3: Improved Online Efficiency
Shoppers spent 1 hour and 8 minutes less when shopping in 2023 (13:31) than 2022 (14:39) as the experience became more efficient. This time spent means you have a shorter window to influence shoppers during their journey, so you must be more strategic and targeted. Delivering personalized content during the entire purchase process to keep shoppers engaged is crucial.
Third-party sites have been resilient throughout the pandemic and chip shortage – consumers find them to be trustworthy, reliable, and unbiased. We found in our data that buyers are 57% more likely to visit third-party sites exclusively without having to visit the OEM sites especially among used buyers.
WHAT TO DO: Take the data and insights you receive from third-party sites such as Autotrader and Kelley Blue Book™ and ACTIVATE them. These insights can be used to personalize messaging to stand out as the one to do business with because you know the shoppers wants and needs and can provide them with the experience they’re seeking.
#4: The Retailing Experience was Top Notch
Overall satisfaction with the shopping journey surged in 2023 from 61% to 69%. With inventory levels returning to pre-pandemic levels, your buyers are back heavily shopping your vehicle inventory. Contributing factors include heightened vehicle availability, the return of incentives, and a continued shift toward a more digital process.
Encouraging shoppers to submit an enhanced lead yields higher satisfaction than a basic lead. In fact, satisfaction with the dealership was 10% higher AND 21% more rated their experience as better than their last purchase in 2023. The more you know about your shoppers, the more you can provide a personalized experience, and in turn, shoppers will be more satisfied with their interactions.
WHAT TO DO: Elevate customer satisfaction to new levels by promoting enhanced lead submissions from your shoppers. The more shopper information you have means you can foster a more personalized experience that ultimately results in higher satisfaction throughout the buying journey.
#5: Digital Retailing Continues to be Highly Beneficial
Buyers are moving toward an omnichannel experience—a mix of both in-person and online steps. The key is to have different ways to buy based on the shopper’s preference, then ensure that the deal carries forward no matter online or in-person. Seamlessness is the name of the game, and the modern dealers that make this the focus of their strategy are seeing some pretty big payoffs in both consumer satisfaction and driving profits.
WHAT TO DO: There’s ongoing opportunity for improvement in dealmaking processes, particularly with the ongoing shift towards digital retailing. 81% of shoppers surveyed said digital retailing improved the overall buying experience. Consider mapping out the necessary steps for your dealership to embrace a more digital future, while addressing current gaps such as financing. This includes integrating digital retailing solutions seamlessly onto your website and providing comprehensive content to educate customers on utilizing the available tools effectively.
Adapting to consumer behavior, regardless of economic challenges or industry shifts, is key to staying ahead. By aligning your dealership and digital marketing approach with the desires, needs, and preferences of today’s shoppers, you can provide a customer experience that not only attracts their attention but also leads to successful sales.
Utilize these insights to elevate your digital marketing efforts and access our latest infographic for a bite-sized overview of the top five takeaways.
The next great phase of the automotive consumer experience is happening online. Your buyers are not only purchasing online, but they’re also making intelligent decisions about payment plans, researching competitors, and weighing their options. And they’re doing it all in a matter of minutes.
The good news is—if you’re smart—you can have an important role in this journey from the very first moment using insights and data from connected technologies and solutions designed to deliver the best-in-class consumer experience.
Delivering the digital promise of a faster, more convenient experience for your buyers is within reach for any dealer looking to modernize. And when you follow the following five key steps, that are pillars for delivering an extraordinary online experience, your future will include higher quality leads that result in higher profits and increased business.
#1: Build a Strategy to Capture More Leads
More of the car shopping process is indeed moving online. But capturing a virtual shopper isn’t as simple as publishing or updating your website and waiting for your next buyer to offer up their information.
Car shoppers are leaving hints about their intentions in various ways and it’s up to intelligent data and insights to connect and decipher who and what to do with that information. According to the most recent Car Buyer Journey study from Cox Automotive, 57% of those surveyed visited a third-party site without visiting an OEM site.1
What does this ultimately mean to your business and marketing strategy? There’s no more room to sit back and passively wait for your next buyer to hand over their information. Dealers need to build a strategy focused on taking the data and insights from third parties like Autotrader and Kelley Blue Book and turn them into actions to take. That their solutions and team can act on easily and swiftly.
How much of a difference could those third-party listings sites possibly make? Consider this: Autotrader attracts over 29 million unique visitors each month. How many additional car shoppers would you like viewing your listings? Build a strategy around that and align your business objectives with the partners that can deliver.
Autotrader sees 29 million unique visitors per month. 2
#2: Measuring Quality in a Quantity Focused World
Once you set into motion the right strategy mix of tools and digital marketing solutions needed to drive higher volume to your listings, you’ll notice that not all leads are created equal. Although quantity is typically a focus, quality should be the true measure.
It’s no longer about how many leads you get each day, but whether those leads are quality leads comprised of ready-to-buy shoppers — and how quickly your solutions and sales teams can tell the difference.
There’s a stark difference in leads more likely to convert vs. leads that simply clog up your sales pipeline. So, what’s the primary driving differentiator? Smart data. Take for example Cox Automotive’s vast treasure trove of first-party shopper data drives nearly twice as many purchases to dealerships than any other third-party listing site.
Chasing a few bad leads here and there may not seem like a big deal… until you do the math. Let’s say two salespeople working on 200 bad leads per month, at 10 minutes per lead, making calls, sending emails, videos and texting. Add it up and you’ve just wasted 16 hours of their time per person, every single month. Now look at what that looks like over a calendar year and you’re looking at 192 hours – that’s close to 5 full work weeks!
Be sure to set up metrics and have discussions with your marketing team and leaders at your dealership or within your organization to discuss why quality vs. quantity should be your goal and map out how you’ll reach that.
#3: Connect with Digital Consumers with Powerful Personalization
As the old saying goes… It’s not just what you say, but how you say it. Now layer in and how the message is received when it comes to marketing around any large purchase decision—especially one as big as your next car.
Total time spent by consumers researching and shopping is 13:31
Personalization in digital marketing matters to your car shopper. Before you even begin building your strategy, make sure you have a partner by your side willing to work just as hard to understand your unique business goals, to provide personalized solutions and give expert guidance. At Autotrader, we’re constantly innovating our consumer experience to attract and retain more qualified, ready-to-buy shoppers and deliver higher-quality leads that close.
Every month, over 4 million unique shoppers use Kelley Blue Book® My Wallet to help them find a vehicle within their budget and determine their estimate monthly payment.2
2 Source: Autotrader and KBB.com Google Analytics January – August 2023
Here are some insights revealed in the annual Car Buyer Journey Study to help you with delivering an experience with personalization which ultimately increased consumer satisfaction levels even more. Consider this a check list for you and your team to strategize around how to be the one that stands out to the consumer:
Are you leveraging your consumer data to uncover shopper insights?
Everyone has data – first party, second party and third party – but what are you doing with that data to activate it and turn it into actions you and your team can take to drive profits? That’s the key to data, use it to personalize your interactions and show you know who the shopper is, what they want, and you are the one they should do business with.
Are you taking it a step further and tailoring your strategy to meet the consumer’s needs?
Data and insights should reveal actions you should take, especially when it comes to how to personalize your marketing strategy. When you do this, you’ll have the ability to tailor the experience based on what the consumer is showing you they prefer and prioritize.
Are you utilizing the power of personalization to lessen the chance of attrition?
With increased cross-shopping happening due to affordability hurdles many of today’s shoppers are facing, it’s important to remember you can use personalization to not only capture new shoppers to you and your brand, but also to re-conquest previous customers and retain existing ones. Make sure to stay in front of your customers, in the right way, at the right time. Remind them why you are their dealer of choice… because you KNOW them! They already like and trust you – so build off that. If you lost some clients over the past few years, reach out to them showing you still know and value them and are ready to deliver the personalized experience they both want and deserve.
Kelley Blue Book ® My Wallet Enhancements
To lead more shoppers successfully through the early stages
of the shopping funnel and into the buying funnel,
Autotrader is adding new features to Kelley Blue Book My Wallet,
including Payoff Quote, Credit Verification and Lease Configuration tools,
which will allow shoppers to get more personalized, accurate payment
and price information, resulting in richer sales-ready leads for dealers.
#4: Deliver the Digital Retailing Experience that Drives Shoppers to Purchase
As more of the deal becomes digital, the car buying experience will become faster and more personal for your buyers. (That’s the goal, at least.) Miss the mark at that, and your buyers will go looking for a smoother, easier experience somewhere else—and quickly!
90% of dealers surveyed claimed digital retailing had positively impacted at least one area of their business.
Fortunately, on-line deal building has been a bonus to businesses as 90% of dealers surveyed claimed digital retailing has positively impacted at least one area of their business. As you unlock newdigital paths, each newsolution should pull shoppers deeper into the purchase funnel to drive faster, smoother and even more profitable deals.
#5: Leverage the right experts and partners to accelerate profits
Leveraging the right partners is essential to amplify your digital presence. Be sure to align your partnerships with experts that can show with data (and results!) active in-market car shoppers are on, active and engaged on their sites. Saying it is one thing, but showing results in the form of consistently accelerated profits is another thing – the thing you should be most focused on.
Third party sites have proven they weather the changing conditions in the marketplace. In the most recent Car Buyer Journey study, it was discovered in the data that buyers are 57% more likely to visit third party sites exclusively without having to visit the OEM sites, especially among Used buyers.
So stay in front of consumers on third party sites because that’s where they are, and they’re entertaining different brands, different makes and models, and different types of vehicles than they might have originally intended.
36% Higher Gross Profit Per Lead than the closest competitor2
It goes without saying, having the right experts and partners in your corner can make a huge difference in driving business. Enhanced dealership marketing solutions from Autotrader crush the competition resulting in higher profits than the closest competitors. It’s possible to reach farther, close faster and profit more when you lean into automation, digital retailing and solutions designed to deliver quality leads.
For the Road Forward
When you deliver, meet and exceed today’s consumers’ expectations by creating a more personalized shopping and buying experience, you end up with more sales-ready leads for your sales team. It’s a win-win!
At Autotrader, we’re constantly innovating our consumer experience to attract and retain more qualified, ready-to-buy shoppers and deliver higher-quality leads that close.
