Boosting Awareness and Market Share for Auto Dealers
There are several reasons a local dealer might decide to pause or cut back on their advertising efforts. Car dealerships may stop their promotions not only when they encounter difficulties in selling due to inventory shortages or economic conditions but also when they find themselves unable to effectively serve, represent, or fulfill customer expectations. The following success story occurred during the COVID pandemic.
According to the Department of Health and Human Services (HHS), the COVID-19 Public Health Emergency began on January 19, 2020, and officially concluded on May 11, 2023. Throughout this period, the automotive industry experienced significant vulnerability and negative effects, with U.S. vehicle sales dropping by 15 percent from 2019 to 2020. This decline was nearly double that of the 2008-09 global financial crisis, which saw an 8.1 percent decrease in sales.
During this time, the automotive sector encountered two major disruptions due to the COVID-19 pandemic. The first was the initial closure of automotive facilities in the first half of 2020 amid the first outbreak in the United States, which severely restricted the supply of vehicles. The second disruption involved the persistent shortage of semiconductor chips across the automotive supply chain, which hampered production needed to meet the recovering consumer demand. As a result, vehicle sales in 2021 remained almost 12 percent below the figures from 2019.
The information below illustrates the pandemic’s impact on a local automotive dealer in the Northeast.
Question: Are you aware of ABC Motors?
Note: Click to enlarge the image
When the automotive supply chain was disrupted by COVID-19, ABC Motors faced crucial decisions. With inventory dwindling and sales leads dropping; they had to determine the fate of their employees and overall operations. The choice was made to reduce staff and brace for the challenges of the pandemic.
Advertising was halted entirely for three years. The impact of having Marshall’s trending research during this period is illustrated in the slide below, highlighting the decrease in awareness across different trade zones around the dealership. Over three years without advertising severely impacted ABC Motors’ visibility, with the most significant decline occurring in the 11–20-mile trade zone, which saw a 16% drop from 2020 to 2023. After analyzing Marshall’s data from recent years, ABC Motors decided to restart their advertising efforts in the first quarter of 2024.
Their primary goal is to enhance the overall brand awareness of the dealership while strategically establishing a robust digital presence within the 11–20-mile trade zone.
Twelve months later, sales continue to rise, and dealership awareness has improved across all trade zones. Notably, the 11–20-mile trade zone, where the dealership focused additional digital efforts, experienced the most significant awareness boost of all zones, showing an increase of 9% from 2023 to 2024. You can easily create different trade zone targets in your Marshall software by utilizing the GEO function.
Remember, you can always use your trending data to illustrate the awareness of a client when they are advertising versus a decline or cut in spending on your station. It’s like conducting a Pre & Post advertising awareness study.
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