BY Kathy Crosett
Consumers notice online ads, but they don’t always make their purchases online. In fact, there’s still a big place in the market for traditional advertising. TV ad spots, for example, drive consumers to retail locations for one particularly large purchase: personal vehicles.
The Value of Auto Dealerships
A personal vehicle purchase represents one of the most significant expenditures that most consumers face. Yes, they research their options online. But they also visit auto dealerships in person.
New research shows that 84% of vehicle buyers are heavily influenced by the dealership experience.
In new findings by ChangeUp, younger buyers were far more likely than older buyers to rely on dealership assistance. Specifically, these buyers counted on the sales professionals at the dealership to help them determine which vehicle to buy.
As part of the purchase process, they are able to get their questions answered quickly when they visit the dealership. They can also compare different models of their desired brand.
Exciting TV Ad Spots Drive Foot Traffic
But what drives buyers to the dealership in the first place? TV ads.
Consumers notice these ads, and dealership are ready to spend on this format. This year, BIA reports that local ad spending in the automotive vertical will amount to $12 billion. They will spend $12.5 billion in 2025.
Those figures include new and used car sales, vehicle service and categories such as repairs and tire sales. The spending by local dealers on cars will be $3.5 billion in 2024 and $3.6 billion in 2025.
A significant 56.8% of that spending will go to digital advertising. However, over-the-air (OTA) TV ad spots will capture 19.7% of dealer spending.
Shopper Response to Dealer Ads
Your auto dealer clients may ask if potential clients notice their ads. AudienceSCAN research shows that consumers notice TV ad spots. 45% of new vehicle purchase intenders took action after seeing these ads in the past 30 days.
Keep in mind that over half of this audience watches up to three hours of TV a day. That habit leaves plenty of opportunity to influence their behavior.
25% of new vehicle shoppers say that the local news is one of their favorite types of programming.
Having your client’s ads run near trusted content is a bonus.
The sensory-rich environment of TV ads allows your clients to show off the attractive features of their dealership. Details like convenient locations and plenty of parking spaces matter. Auditory signals of happy buyers driving away in their new vehicle will attract attention. And don’t let your clients forget to mention financing. Over 80% of new vehicle buyers are looking for financing.
Multiple Media Formats
Your clients may also ask what action new vehicle intenders take after seeing ads. For 52%, the action was to conduct an internet search.
This behavior represents another opportunity for you. If your client’s dealership website needs attention, sell your services to improve page loading speed and navigation.
Spending on OTT ads can also be a good addition to the TV ad spots strategy. Consumers are watching more streaming programs. As they do, they will notice the dealership’s ads.
In addition, the format makes it easier to target audiences that may not be watching traditional TV.
Promoting the Service Department
Remind your auto dealers that they can build revenue by featuring their service department in their ad camps. Consumers want to get their vehicles serviced by trustworthy partners. They want to know if they can expect a loaner vehicle or transportation to and from the dealership.
A good ad campaign can promise a clean and welcoming waiting area for consumers who choose to stay during servicing.
Positioning the trust and convenience of the dealership’s service department in TV ad spots ensures a profitable revenue stream.
Photo by Antoni Shkraba on Pexels.