Which marketing channels deliver the best ROI for car dealerships? - NextGear Capital Ireland
When it comes to marketing your dealership, you want to make sure the channels you invest your time and money in are worthwhile and deliver a substantial return on investment (ROI). Though, with a plethora of platforms available, which ones should you be focussing on?
AM-online seeked to answer this question by conducting a poll among its readers, all of whom are involved in the automotive industry. The firm favourite in terms of both ROI and effectiveness was a dealer website, with 88% of respondents using the channel as part of their marketing mix. Of those, nearly all (95%) said that their website was “somewhat or very effective,” and the same percentage believed it offered “good or very good [ROI].”
However, AM’s survey raised questions about the relationship between the most popular channels and their ROI.
Facebook ranked as the second most popular channel, with 83% harnessing its unmatched potential to reach targeted demographics, with online classifieds completing the top three (63%). But the tables were turned when it came to effectiveness and ROI: 74% of respondents gave ratings of “somewhat or very effective” and “good or very good ROI” each for Facebook, but this jumped to respective 85.7% and 78.6% for online classifieds. We recently launched our NextGear Capital Facebook page due to this potential and with an aim of keeping dealers like yourself up-to-date with industry news and expert insight.
While Facebook proved itself as an effective marketing channel, AM’s survey suggested other social media sites were shown to be less effective. Take Twitter; the platform was used by half of respondents, yet just 25% said that it was effective and only one-third believed it offered good ROI.
Snapchat, meanwhile, matched print classified listings as the least-used marketing tool among those polled, utilised by just 8%. Of the 54% that still use the local press to advertise their business, half believed it was an effective channel, though just 8.3% thought it was good value for money. But the question is, does a mix of social media sites together become more effective overall?
Survey participant Camille Johnson, from marketing agency PAB Studios, commented that “each media channel has its own unique features and benefits,” depending on the service or product being promoted. She added: “A multi-channel approach that leverages the unique benefits of paper with the convenience and accessibility of digital will perform best.”
As we know, the modern-day consumer is likely to carry out research across a number of channels and devices before making a purchase, so having a strong presence on each is essential. For dealers, the key to success lies in defining the target audience, knowing which channels they utilise most, and devising a robust marketing strategy that will positively promote the business and encourage loyalty and sales.