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uditg

Lot Lizard
Aug 24, 2016
8
0
First Name
Udit
I was just thinking that what is going to drive the digital advertising market for automotive dealers in US?

Will it be Social Media Marketing or Video Ads or Mobile Marketing or Search Ads?

Today the dealers spend most of their ad budget on search ads, but what about tomorrow, what is their share going to be in 2020?

My analysis says that today an average of 18% of a dealers ad spend goes to search ad and 5% to display ad.

I would like to hear from anyone who could help me that what is going to increase its share and what will decline?
 
I agree with Mitch - social seems to be a big play that should hold strong as social networks and connectors evolve.

There's a big push by Apple and Facebook to take search away from Google and use tools like Siri and Spotlight to get you to your end result without having to see Google, and therefore seeing Google Ads. I think over time this will progress and the SERP ads will be reduced in visibility.

That said, their search network is still immense and I don't see internet activity going down, so the display and retargeting networks will probably continue to grow. Apple is also trying to expand it's own ad network with apple watch ads, in-app ads, etc.

Expect to see far more personalized and retargeting style ad networks make an appearance between now and 2020 - the more targeted the advertising, the more money they can charge for an advertising slot.
 
"Will it be Social Media Marketing or Video Ads or Mobile Marketing or Search Ads?"

I believe it will be all of these will continue to change the industry. The mix and effectiveness will depend on your dealership demographic and geographic location. I'm sure many dealers in certain areas still get effective response running TV ads.

The above all will heavily favor the use of technology in the buying process. As generations grow older and are more reliant of technology, it will be necessary to focus on which works best for your needs.

The dealership I most recently worked at, search ads were the most effective for driving quality leads. Social is working hard to take market share but believe it will take some time. Dealerships should be focusing on video heavily at this point and the UX. I'm surprised dealerships that are still running a mobile website still vs responsive design.