For agencies: a perspective on advertising budgets during this difficult time
Many auto dealers are reporting a drop in showroom ups. As a result, they feel a need to cut advertising spend, but they aren't sure what to cut. Website traffic is actually up for most but lead volume is down -- a classic representation of a consumer whose free time is plentiful but whose major purchase confidence is low.
Automotive Advertising Best Practices during COVID-19
- Shift advertising to focus higher in the funnel. Work now to build business for June. Target that 90-days-out customer. OEM programs will be in place to help the recovery. It appears Federal assistance will give many customers the means to capitalize on a great deal.
- Change retargeting ads to hybrid conquest/retargeting ads, or perhaps to just conquest. Again, this is to move the ad target further up the funnel.
- Cut television ads that are promo-based, and shift any contractual spend to branding pieces. Focus messaging on core competencies and key differentiators.
- Take the available time to health check dealer websites and test forms.
- Review chats and lead quality and make sure the responses are the best they can be.
- If a dealer has the ability to do virtual test drives, home delivery, home test drives, or digital retailing, put all of the low funnel ads toward those avenues immediately.