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.
When speaking with a dealership client, this Forbes article from 6 months ago may be helpful.
Automotive Advertising Best Practices during COVID-19
For the stores who continue to retail in the coming weeks, here are some best practices:
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.
The Perspective
Prepare now for the customers to return. The current leads are responding to money already spent. We cannot control that, but we can prepare for the days ahead. We know consumer demand will return with their confidence. Social distancing will wear thin its welcome and economic incentives will make factory financing attractive. We should be prepared as an industry to meet the demand.
And, of course, let your SocialBot rep know if we can provide any help in the meantime. We can help transition to service ads by communicating to verified owners. Your rep can shift campaign types, try different messaging, or pause campaigns. You might also consider advising your clients to continue pixel matching to target current shoppers later...Whatever it is, we're here to help.