OUR THOUGHTS ON:

Advertising Check - Reaching Millennials

Automobile|Retail

By Jason Pierce

Auto dealerships budget and spend, on average, close to 1% of sales on advertising and other marketing efforts.  It may not seem like a large expense, but in a volume-intensive industry, the amounts can be extraordinary.  So is your dealership getting the most bang for your buck?  Are your efforts being concentrated in the appropriate manner to reach the right audience?

In 2014, the millennial generation made up 27% of total new vehicles sales in the United States.  This is no surprise, as vehicle manufacturers continue to build cars that are targeted to this generation.  But, does your dealership have a marketing plan to reach this group of consumers?  Here are a couple of things to consider:

Marketing Tips for your Dealership

  1. Is your dealerships website mobile friendly?  How are the loading times?  Many consumers in the millennial generation spend a considerable amount of their time shopping on internet.  In this scenario, they are researching vehicles, scouring local dealerships’ inventory and searching for the best deals.  Oh and by the way, if your website does not load in 3 – 5 seconds, chances are millennials have moved on to your competitor’s site.
  2. How is your dealership’s social media presence?  Do you have specific efforts to flood the social media channels?  What is your dealership’s response to negative consumer experiences that may be shared on social media?  These can be easy avenues to market, but you need to ensure that you have a plan.  And not to mention, social media advertising can be much cheaper than running ads in the local newspaper, at sporting events and on television.

So, as we get ready to move in 2016, now may be the time to re-evaluate how your dealership plans to spend advertising and marketing dollars.  In order to properly reach the millennial generation, your dealership may want to consider hiring a millennial to head your dealership’s social media marketing efforts.  In may be just worth it if this generation is going to account for a quarter of your sales in 2016 and the years to come.

Contact us if you have questions in budgeting your marketing efforts for your dealership and visit our Automotive Industries page to learn about the services that the Schneider Downs Automotive Services Focus Group offers.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments