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Co-Op Compliance: A Crucial Element in Automotive Advertising

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In the realm of automotive advertising, co-op compliance stands as a major cornerstone for the success of most new-car dealerships. As most dealers well know, co-op reimbursement dollars from their brand’s corporate entity play a pivotal role in fueling their advertising efforts. These funds provide the necessary resources for reaching out to potential customers effectively, ensuring the effectiveness of their advertising campaigns.

Relieving the Burden
Dealerships are well aware that creating a “co-op-able” advertisement involves adhering to specific guidelines; and the failure to meet these criteria can lead to the rejection of co-op claims. Moreover, the process of obtaining co-op dollars involves a meticulous pre-approval and paperwork submission procedure, adding complexity to an already demanding task.

At JKR Automotive Advertising, our specialists understand the challenges dealers face in navigating the co-op compliance landscape … and we make it a point to stay on top of each change so we can be proactive rather than reactive.

JKR streamlines the co-op compliance process by ensuring that all creative content aligns with corporate guidelines, making the dealership eligible for co-op dollars entitled to them. Additionally, we take on the responsibility of co-op submission, relieving dealers of this time-consuming task.

Co-Op Guidelines Don’t Affect Our Creativity
One of the key benefits our clients appreciate is that while we operate within co-op guidelines, it doesn’t stifle our creativity. Despite the regulatory framework imposed by corporate entities and the time constraints inherent in advertising, JKR continues to produce compelling advertisements that resonate with consumers, driving viewers and listeners to buy cars.

How Can We Help YOUR Dealership?
What can JKR Automotive Advertising do for you? We free up your time by handling the everyday aspects of co-op compliance, allowing you to focus on what you excel at – selling cars! We alleviate the stress and complexities associated with the co-op pre-approval and submission processes, ensuring you receive your reimbursement promptly. In essence, we simplify the process for our clients, making their advertising journey smoother and more efficient than ever.

JKR Automotive Advertising: We Move Cars.

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New Studies Show Radio Advertising Effectiveness Still Very High

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We have discussed the subject of radio advertising effectiveness in previous blogs; however, it’s one that deserves repeating every now and then. It’s important that automobile dealers – and for that matter, any company looking to advertise – to understand that the common perception of radio advertising is far different from reality.

That’s why we are big fans of a recent article found on adresultsmedia.com. The statistical data and sound logic doesn’t lie; in fact, it shows that AM/FM radio should be a significant part of a successful dealer’s advertising strategy.

Marketing Professor Mark Ritson believes this false narrative isn’t being done on purpose but it still persists. “There is increasing global evidence that marketers are basing their media choices on their own behavior … (and) the first law of marketing is that you are not the market. You are an urban, professional, well-paid media executive.” In other words, personal feelings should be taken out of the equation when advertising strategies are planned.

The bottom line? AM/FM radio advertising effectiveness cannot be denied when the real numbers are examined. It’s the most cost-effective form of broadcast media. It has a far larger audience than podcasts, ad-supported Pandora or Spotify, and ad-supported Sirius XM. In addition, recent Edison research says that AM/FM’s reach has expanded among Gen Z consumers, reaching 55% of those in the 13-24 age bracket. Further, a whopping 84% of those 55 and up are reached each week by radio, while a similar number (83%) are tuning in weekly to AM/FM radio.

AM/FM radio is also fantastic at driving potential customers to a dealer’s Website. In fact, a LeadsRX/iHeart study showed that 40-plus radio ads per day in a given media market resulted in a massive 55% increase in automobile dealer Website traffic!

So if you aren’t advertising on radio, you are missing out on a fantastic opportunity to change the fortunes of your dealership. No other broadcast media option can give you the combination of reach and frequency like radio can – and it can do it in a way that you can afford.

Contact Richard Brauns (407) 701-4233 or Jon Albert (407) 718-2494 today for a complimentary automotive advertising and marketing review. We’ll explain in detail why harnessing the power of radio is such a game-changer for automobile dealers.

JKR Automotive Advertising: We Move Cars.

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Don’t Forget the Fundamentals: Be Problem Solvers for Your Customers

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When a customer visits your dealership, regardless of their reason, they seek solutions. Whether it’s for a new or used vehicle, parts, service, or other needs, they rely on you and your team to provide answers. Unfortunately, some dealerships overlook this core principle and fail to adopt a solution-focused approach with their customers.

To truly excel as problem solvers across all departments, it’s crucial for employees to be attentive listeners. By practicing patience, asking pertinent questions and actively listening to customer feedback, identifying their needs and priorities becomes straightforward.

Additionally, possessing comprehensive product knowledge and maintaining transparency by being truthful and upfront with customers fosters long-term relationships. This approach demonstrates genuine concern for their well-being and interests.

FREE Advertising Review
Looking for a boost in dealership traffic? Turn to JKR Automotive Advertising’s team of adept problem solvers. Even if you’re already successful, envision the possibilities with an expanded market share. JKR, as an exclusive automotive advertising agency, ensures clients are memorable and impactful. Contact Jon Albert (407) 718-2494 or Richard Brauns (407) 701-4233 for a complimentary automotive advertising and marketing review, and discover how JKR can elevate your dealership.

Once you experience our capabilities firsthand (hint: we can do it all), you’ll realize the difference.

JKR Automotive Advertising: We Move Cars.

Gross Profits

Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!

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It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

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Making Waves: Kia of Old Saybrook’s Successful Switch from Cable to Radio Advertising

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In the always-evolving landscape of automotive advertising, making the right choices is vital to a dealership’s success. Landon Sock, owner of Kia of Old Saybrook in Connecticut, recently took a leap of faith by making waves, switching from cable to radio advertising, and the results have been nothing short of impressive.

Initially hesitant about the transition, Sock trusted the advice of JKR Senior Partner Richard Brauns, a decision that has proven to be a game-changer for his dealership. The move to radio advertising has paid off handsomely, with January marking the dealership’s first time on the airwaves. In a month where many dealerships struggled, Kia of Old Saybrook experienced an immediate surge in sales, boasting a 50% increase as soon as JKR’s suggested advertising campaign was implemented.

Brauns is quick to point out that Kia of Old Saybrook’s successful transition to radio doesn’t negate the value of cable – or television in general – in automotive advertising in every case. He explains that each client’s situation is unique, and the effectiveness of a marketing strategy depends on a number of factors, with reach, frequency and overall cost leading the way. “It isn’t always about who spends the most; it’s about who spends the smartest,” says Brauns, highlighting the importance of making informed decisions in the competitive world of automotive sales. “Spending big doesn’t guarantee attention; it’s about creating campaigns that reach consumers and resonate with the target audience.”

Need Some Direction?
Because Americans are inundated with advertisements on a daily basis, it’s crucial to stand out and connect with potential buyers. For dealerships navigating these changing times, JKR’s experience and expertise is as important now as it’s ever been. If you’re curious about what JKR can do for your dealership, especially in the changing landscape of automotive advertising, don’t hesitate to reach out. Give us a call today at (321) 397-0777 to explore tailored solutions that align with your dealership’s goals and ensure you’re spending your advertising dollars wisely.

JKR Automotive Advertising: We Move Cars.

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