Automotive marketing empowers dealerships to reach shoppers in a crowded and shifting vehicle marketplace. From electric vehicles to the predominance of online shopping, dealerships are facing new challenges and opportunities. Amidst all this, a thoughtful multi-channel marketing strategy can help dealerships attract local and online shoppers to turn them into lifelong customers. 

This guide offers an up-to-the-moment look at the automotive industry and its customers. It explores the challenges facing dealerships and the marketing tools that can help them seize opportunities. 

With data based on authoritative industry reports and our experience helping dealerships and marketers turn websites into lead generators, we offer the automotive marketing advice your dealership needs to thrive in the modern market. 

Understand the Modern Car Buyer

Modern car buyers are price conscious, naming the cost of a vehicle as their number one decision factor when shopping. More car buyers are also looking for guidance from dealerships and sales staff. They’re doing more research online, and when they do finally talk to a sales person, they want that person to be knowledgeable and respectful.

It may be no surprise, then, that 84% of dealers are increasing their focus on the customer experience. That experience starts long before a customer enters the showroom. It includes website design and functionality, social and search advertising, and even third-party websites.

Getting all of these elements right matters, because US customers are keeping their current vehicle longer. Many stick with a brand they’ve purchased in the past. The overall nationwide retention rate for all brands is over 43%. Toyota is number one in brand retention with Honda about 10 percentage points behind. Several luxury brands lie between them. 

When consumers do enter the market for a new vehicle, their engine preferences are shifting. Sales of hybrid vehicles in the U.S. surged more than 50% in 2023 after a small drop in 2022. Worldwide electric vehicle market revenue is projected to top $828 billion in 2025. Even so, most modern car buyers show about equal interest in gasoline, hybrid, and fully electric vehicles. 

Challenges for Dealerships

Executive leadership and department heads of dealerships report that a few key issues are top of mind for them. Thoughtful marketing can help dealerships deal with these and other concerns.

• Volatile interest rates could deter customers from buying cars or push customers to lower-priced models. 
• Supply chain/inventory disruption can affect inventory resulting in lost sales, lower-value sales, or disappointed shoppers. 
• Inflation and recession fear will almost certainly impact customer demand and lead to smaller budgets for vehicle purchases.

Dealers can’t influence interest rates or inflation, but there are steps they can take to respond to these challenges. The good news is that customers will still buy based on value-related criteria. 

Thoughtful online marketing and positive in-person interactions with sales people make a difference. Also, changes in pricing strategies, increased investment in digital retail technologies and well-designed automotive marketing strategies give some power back to dealerships. 

Digital Automotive Marketing: Tools for the Modern Age

Customers may buy at the dealership, but about 79% start their shopping online. The majority say they use websites to look for inspiration and gather more detailed or car-specific information. They decide on specific models and, crucially, on where to make their purchase all based on web research. Clearly, well-designed websites and digital marketing tools are an essential part of effective automotive marketing.

Digital marketing encompasses a number of powerful tactics including: the dealership’s website, search engine optimization, search and display ads, social media, email, and third-party websites. With the majority of shoppers completing most of the buyer journey online, these strategies have an outsized impact on sales results. 

Dealership Websites

The moment a shopper lands on your website is an opportunity. You can either let them visit and leave without interacting, or you can start building a relationship immediately. The following tips will help you make the most of every visit from a potential lead to your site.

• Engage users with well-written content, eye-catching images, and interactive features.
• Optimize for mobile so shoppers can explore your inventory anytime, anywhere.
• Be transparent with clear pricing and real-time inventory updates.‍
• Capture first-party data with user permission as soon as they land on your site.‍
• Serve personalized ads and offers that align with shopper interests.‍
• Track visitor behavior to tailor future ads, offers, and remarketing campaigns.

Think of your website as a digital version of your dealership. You want visitors to have a positive, personalized experience that guides them from interest to purchase. That only happens if you have a responsive website that respects user privacy while serving personalized results. 

Ignite by Launch Labs can help you collect first-party data, serve personalized ads and offers, and transform visitors into leads. To see how it could work for your automotive dealership website, schedule your free demo.

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While Ignite by Launch Labs helps you collect, engage, and convert more visitors once they arrive on your site, attracting those visitors in the first place is essential. Proven digital marketing methods like search engine optimization (SEO), digital ads, social media, and email marketing play a key role in driving traffic to your website, ensuring you have a steady stream of potential leads ready to engage.

Search Engine Optimization (SEO) for Automotive Dealers

SEO helps your dealership website rank higher in search results, making it easier for shoppers to find you. With most automotive shoppers searching for dealerships near them, local SEO is essential. Simply using keywords isn’t enough, dealerships must optimize for location-based searches like “car dealerships near me” or “2024 Toyota Rav4 near [city].” Here are key tips for optimizing local SEO:

• Keep your Google Business Profile up to date.
• Ensure your business name, address, and phone number are consistent across all platforms.
• Create location-specific pages if you have multiple dealerships.
• Showcase community involvement to build local credibility.
• Use your city or region in titles and meta descriptions.
• Build service pages tailored to each dealership location.

Optimizing for local search ensures your dealership appears at the top of search results when shoppers are looking to buy. For faster results, pair SEO with pay-per-click (PPC) advertising.

Search and Display Ads

Search ads appear at the top of search engine results pages (SERP) on search engines like Google or Bing. These ads are generally pay-per-click, which means you’re charged when a user clicks on the ad, but not when the ad is served to them. You specify the keywords for which the ad is served so you can create a number of ads to match different user needs. 

• Keyword Research: Identify specific keywords your audience uses, like “2024 Toyota Camry lease near me” instead of generic terms like “sedan.”
• Location Targeting: Show ads only to users within a certain distance of your dealership.
• Audience Segmentation: Tailor ads to specific segments, such as new car shoppers, lease customers, or trade-in prospects.

Beyond search engines, you can use programmatic advertising to buy display ads across third-party websites, apps, social media, TV and podcasts. Specific targeting and well-chosen segments are equally useful here. 

Social Media Marketing for Automotive Dealerships

Social media platforms like Facebook, Instagram, TikTok, and LinkedIn offer a powerful way to connect with modern shoppers. Around 70% of U.S. adults use Facebook, and 50% use Instagram, making these platforms essential for reaching potential customers. Use social media to:

• Celebrate customer purchases with congratulatory posts.
• Introduce sales and service staff to personalize the experience.
• Promote sales, promotions, and special events.
• Share vehicle maintenance tips and safety information.
• Highlight community involvement and charity events.
• Feature customer reviews and testimonials.

All of these types of posts give shoppers a preview of what it might be like to shop with you. Taking a warm, knowledgeable approach on social media can pay off. 

Use the first-party data collected from your website to create targeted social media ads that reach both existing audiences and new prospects who match their profiles.

Email Marketing for Automotive Lead Nurturing

Email marketing is a powerful way to nurture leads and retain customers by delivering personalized content and offers that match their preferences. Best practices for email marketing include:

• Segment your audience based on their interests and stage in the buying journey.
• Write clear, concise subject lines that grab attention.
• Focus on one key message or offer per email.
• Use dynamic content to further personalize each message.
• Clean your email list regularly to remove unengaged recipients.

Once again, the information collected on your website comes in handy here to segment your audience and deliver targeted mailings. 

Third-Party Websites

Consumers may extend their research to third-party sites that they see as more trustworthy than a direct sales site. Sites like AutoTrader, Kelley Blue Book or Dealer Rater help consumers compare vehicles, check pricing, and read reviews. To reach a wider audience:

• List your inventory on these platforms to increase visibility.
• Monitor customer reviews and respond to feedback promptly to build trust.
• Use first-party data to retarget users who visit these sites with relevant ads.

Traditional Automotive Marketing Strategies That Still Deliver

While digital marketing plays a major role in influencing customer decisions, enhancing traditional automotive marketing strategies with modern touches can still drive impressive results. Here’s how:

• Commercials - Television and radio commercials on local channels still help you reach broad local audiences. Consider also advertising on YouTube and podcasts with local interest.
  
• Direct Mail - Still a vital part of any omni-channel marketing strategy, direct mail can now include custom links, QR codes, and personalization that make it extra effective.
  
• On-location Incentives - Offering special deals and incentives can help attract visitors to your dealership. Share information about these deals on your website, social media and advertising to reach the widest possible audience.
  
• Print Ads - Print isn’t dead, it’s just different. Look for local publications that reach your target audience. And include short links or QR codes to make shopping simple.
  
• Community Engagement - Sponsoring or hosting local events can transform your dealership from a retail space into an integral part of the community. Also consider how you might partner with local schools, food pantries, community service groups, or nonprofits. 

Combining traditional and digital automotive marketing strategies can take your marketing to the next level. Not only can you attract new customers, but you’ll also strengthen relationships with your existing customers, driving long-term growth and loyalty.

Automotive Marketing For Re-engagement

While attracting new shoppers is essential, dealerships also have a valuable opportunity to re-engage current owners as they re-enter the shopping cycle. By identifying key signals and personalizing outreach, dealerships can retain more customers before they consider competitors. Successful re-engagement involves:

• Tracking Shopper Behavior: Monitor website visits, service appointments, and mileage benchmarks to identify customers ready to upgrade or trade in.
• Targeted Outreach: Use personalized emails and targeted ads to engage customers before they explore other dealerships.
• Customized Offers: Deliver tailored offers, such as financing options, trade-in deals, or upgrade opportunities, that align with each customer's needs.

The Future of Automotive Marketing

Whatever happens to interest rates, supply chains and inflation, the future of automotive marketing is likely to be increasingly digital. At the same time, customer relationships and customer experience will remain key leverage points for dealerships. Investment in smart AI technologies that respect shopper privacy will free dealerships to deliver a quality, personalized experience. 

Future-Proof Your Dealership Website with Ignite by Launch Labs

Ignite by Launch Labs is a friction-free customer identity platform that transforms website visitors into qualified sales leads. It integrates effortlessly with your existing marketing tech stack, enabling your dealership to maximize leads while minimizing manual effort.

Download our free e-book to discover how to drive more automotive leads to your dealership.