Hello. Trying to understand how American car dealers and their marketing work. Nowhere could I find marketers in the staffing sections of car dealers. How do they work, does anyone have any experience? How much does it cost to attract one used car buyer to a car dealership, maybe even outdated information?
It is a nearly impossible question to answer with any consistency.
For the year, I have spent $260.79/vehicle sold. That number includes absolutely every penny spent for anything that remotely resembles advertising including my website and any charitable contributions or sponsorships.
The problem is that we see successful dealerships that spend $50/vehicle sold and we see them spending $1,050/vehicle sold. Any industry averages are nothing more than a pile of numbers that don't really help us understand the industry as a whole. There are just so many variables.
Maybe this helps.
For the year, I have spent $260.79/vehicle sold. That number includes absolutely every penny spent for anything that remotely resembles advertising including my website and any charitable contributions or sponsorships.
The problem is that we see successful dealerships that spend $50/vehicle sold and we see them spending $1,050/vehicle sold. Any industry averages are nothing more than a pile of numbers that don't really help us understand the industry as a whole. There are just so many variables.
Maybe this helps.
Very helpful, thanks. Is my logic correct? Big sellers of new cars may have some kind of exclusive contracts with suppliers or brands of cars, and they may spend more on advertising (but they also have more expenses for staff, rent, etc.). But all dealers buy used cars for about the same money, and they can spend about the same money on the sale of these cars. Is it not? What competitive advantages can there be in a dealer buying used cars for sale? And who generally buys advertising from dealers, medium or large? For small ones, most likely, this is done by the leadership.
- Aug 23, 2022
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NADA average is $602 per unit retailed. Depending on where my clients are located, most of my campaigns are south of $200 per unit retailed in advertising cost.
Hope that helps.
Very helpful, thanks! Do dealers have marketing departments, if so, why are they not listed in the staff on the pages?
- Aug 23, 2022
- 27
- 8
- Awards
- 1
- First Name
- Tony
I would say that about 60% of my clients have someone within the dealership who is specifically responsible for marketing, but they still hire outside agencies like myself to manage their actual campaigns. As far as why some dealers don't list who their marketing person is, I can't answer that. Some do, some don't.
If I were a marketing director of an auto group, I would not want my name listed on the company website. To me, that would be an invitation for spam email and uncontrollable sales calls. Gate keepers are nice if you are in purchasing.
Thanks! But you cooperate with auto marketplaces and take traffic from there to sell used cars? Or is it an expensive and not convenient way to get customers?
Of course I do. Taking selling opportunities is much different than taking buying oppotunities.
My point was that if the whole world knows that I am the Marketing Director, and I post my picture, phone number, and email address on the dealership website......what do you think I am going to spend most of my day doing? Fighting off telemarketers and everyone selling the next big thing. Sure it is important to be aware of what is coming in terms of new product offerings, but not at the expense of getting things done.