Every Auto dealership Needs to Utilize Targeted Digital Advertising
The rapid digitalization of the economy has forced all businesses to adapt. Sadly, the automotive industry has been slow to adopt the most effective, modern digital marketing tools and target consumers using data.
In this post, we will explain why car dealerships must transition from outdated strategies and embrace data-driven campaigns through targeted digital marketing.
The Problem with Traditional Advertising
In the past, the automotive industry has been highly successful utilizing traditional media outlets such as TV, radio, and print. For example, a car dealership could advertise a seasonal sale or new product, and they could reach their target market by purchasing ads on one or a combination of the dominant media outlets.
Today it is much harder to reach a demographic solely with TV, radio, or print. More and more people (especially younger audiences) have devoted their attention to online sources of entertainment such as Google, Meta, YouTube, social media, and streaming platforms.
Not only are fewer people consuming traditional media, but ad space is also less effective than digital platforms. Only having access to ratings based on broad demographics puts your campaign at a disadvantage. Paid digital ads allow you to hyper focus on customers searching for a new automobile without wasting money on everyone else.
Challenges Facing the Auto Industry
Digitalization has changed how we consume media; it also has altered the purchasing journey. Consumers have access to an infinite amount of information at their fingertips, allowing them to shop and research their next purchase without setting foot on a car lot.
The primary goal of the automotive industry marketing is no longer getting buyers on the lot; it’s advertising directly to customers already interested in the existing inventory.
The Power of Data-Driven Digital Marketing
Advertising online takes the guesswork out of marketing. Instead of choosing TV channels, radio stations, or a news publication you think your target audience would enjoy, you can find customers already looking for the vehicles on your lot and advertise directly on their phones, tablet, or desktop computer.
Ad platforms like Meta (Facebook), Google, and YouTube actively collect extremely valuable data from users. Advertisers can access the data points to target customers that are more likely to be actively shopping for one of the vehicles on your lot.
How can Artificial Intelligence Help Car Dealerships?
While digital marketing is much more efficient than traditional media, a successful advertising campaign is still extremely challenging. Even the most experienced digital marketers will tell you they make adjustments and rely on what has worked in the past to allocate future ad dollars.
Artificial intelligence expedites the process, making adjustments that aren’t apparent to humans and finding ways to maximize spending. AI-driven technology has more capacity to learn consumer behavior and key metrics that identify potential car buyers.
Introducing Cara from Carfeine
At Carfeine, we understand the challenges of the automotive industry and the steep learning curve of paid digital marketing. To help accommodate car dealerships, we’ve built Cara, an AI-powered ad platform reflective of today’s automotive buying journey.
Cara helps the auto industry utilize thousands of data points connecting dealers with buyers through personalized campaigns. The platform catalogs all dealership and inventory data, identifies potential buyers, and automatically optimizes the most efficient strategy to reach each individual buyer. Digital marketing is undoubtedly the future of automotive advertising but without experience and the right tools, you will likely waste money reaching your target market. With Cara, we use artificial intelligence and machine learning to create highly intuitive targeted campaigns specifically for car dealerships. If you’d like to hear more information about Cara, reach out to us today for a free consultation.