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Traditional Advertising Still Wins the Day; Here’s Why.

Traditional Advertising Still Wins the Day; Here’s Why.

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As an auto dealer, you have important products and services the people in your community need. But that by itself isn’t enough to make you successful; you have to let them know you’re there to satisfy those needs and persuade them to visit your dealership. That’s where advertising comes in, and the automotive advertising channels you choose make a big difference between just surviving and thriving!

While many dealers opt for online ads, dealers should never forget their bread and butter: radio and TV advertising, otherwise known as “traditional advertising”! While social media advertising certainly has benefits, radio and TV advertising remain the more effective option for dealers. Why? There are a number of reasons.

First, traditional advertising has a wide reach and, when coupled with a high frequency, can effectively target specific audiences at the lowest cost per thousand. According to this article from Nielsen, radio and television still reach more Americans than any other advertising medium. This means dealerships will reach customers who are most likely to be interested in their products or services multiple times over the course of a week, presuming an appropriate campaign is being deployed. As a hidden benefit, they also reach people who are not yet in the market for a vehicle, but soon will be.

Second, radio and TV ads can help to build brand recognition and establish a dealership as a reputable business. By consistently airing well-produced ads, dealerships can create a strong brand image and increase their visibility in the market. This is all part of the dealer’s effort to earn increased customer loyalty and repeat business.

Third, traditional advertising allows for more creativity than social media advertising. With radio and TV ads, dealerships can create engaging, memorable advertisements that stick in the minds of potential customers. They can use humor, music and other creative elements to make their ads stand out. Social media advertising, on the other hand, is often limited to a few seconds of video or a static image with a short caption. And even the best social media campaigns don’t yield the same amount of net profit as radio or TV.

The Takeaway
The tried-and-true traditional forms of advertising – radio and television – are still proving to be effective in terms of reaching a broad audience and generating new leads. To get more than their fair share of their respective auto-buying market, reaching potential customers at the beginning of the buying cycle (or better yet creating a buyer by solving their current problem) – something radio and TV excels at – is of utmost importance.

In the next blog, we’ll discuss the types of radio and TV creative that JKR Automotive Advertising offers its clients … which ones are right for specific dealerships … and the elements that make our ads so successful. If you don’t want to wait until then, feel free to call us at (321) 397-0777 and we’ll give you the details that will change the way you do your advertising.

JKR Automotive Advertising: We Move Cars.

Has Post-COVID Automotive Advertising Changed for Good? Yes and No.

Has Post-COVID Automotive Advertising Changed for Good? Yes and No.

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When the COVID period is looked back upon in the future, it will be remembered as one of the craziest times in automotive advertising history. On one hand, computer chip shortages and supply chain issues made it difficult for dealerships to get new inventory. On the other hand, however, people were lining up to buy new cars sight unseen, often for little or no discount off the MSRP, meaning better profit margins than ever before. It was the Wild, Wild West!

During that time, dealers made adjustments in the way they did business, including changes in the way they advertised. Prior to COVID, the automotive advertising industry was the clear leader in the purchase of traditional advertising (think: TV, radio, print, billboard and the like). But when the pandemic changed the marketplace, many dealers switched from a mix of traditional and digital to mostly just digital advertising, figuring they could save money that way. As part of this seismic switch, dealers were persuaded to buy leads from dot-com companies such as cars.com and kbb.com to gain new customers.

But here’s the thing about these dot-com companies: They are some of the biggest purchasers of traditional media! Think about it … in your everyday life, you see and hear any number of dot-com companies that advertise on traditional media every day – and not just automotive. There’s Amazon, Google, Facebook and all the big companies of various industries that conduct their business online. According to this article from Advertising Age, Amazon alone spent $56.1 million in advertising on radio from January through November of last year; and companies like Geico ($21.04 million), Progressive ($19.15 million) and AT&T ($15.12 million) spent big dollars on TV advertising (See this Statista report for more information.)

What was Old is Becoming New Again
We at JKR Automotive Advertising have noticed that the winds of change are beginning to calm down in the post-COVID world, and things are making a slow but steady return to the pre-pandemic way they once were. In part, it’s because automobile dealers are realizing two things: (1) By the time you add up all the digital channels it takes to do what dealers perceive to be a well-rounded ad campaign, it often costs a similar amount (or more) as a traditional campaign, which is seen and/or heard with frequency by almost everyone in their area rather than just a select, targeted few; and (2) They are figuring out that there’s less of a need to buy leads from third-party entities when they can produce the leads themselves without additional help – much like they did during their pre-COVID ad campaigns using traditional media.

Why do you suppose those big companies spend so much money on traditional media? The answer is simple. They use it as the vehicle through which they constantly remind everyone of their existence and the perks they can offer their customers. Attention, automobile dealers: Does that sound familiar?

We are not saying there’s no place for online advertising; not at all! We are merely pointing out that on part of a multi-pronged advertising approach that should include a healthy dose of radio and television! Think about it this way: It isn’t who sells the most cars; it’s who has the most net profit at the end of the day!

Next time, we’ll discuss what you do with your customers once you get them to your physical and/or virtual dealership … and how to increase your odds of turning these opportunities into sales.

JKR Automotive Advertising: We Move Cars.

To find out what JKR Automotive Advertising can do for your dealership, call us today at (321) 397-0777 to get the wheels in motion.

Kia Presidents Club Logo

The Best of the Best: Five JKR Advertising Clients Win Kia’s President’s Award

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JKR Automotive Advertising & Marketing is pleased to report that five of our Kia dealer clients have been chosen by Kia America for inclusion in the brand’s prestigious President’s Club. The Kia President’s Club recognizes dealers that have achieved the highest levels of overall sales volume and provided outstanding customer satisfaction.

It’s a Big Deal!

How big a deal is being part of the President’s Club? When you consider that there are more than 800 Kia retailers nationally and only 39 dealers that were selected for this prestigious honor, you understand why we at JKR celebrate our clients’ success.

Because the President’s Club is not only a sales-oriented award but also a service-oriented one, JKR congratulates the management and staff of each dealership fortunate enough to achieve this lofty status.

“There are a lot of dealers who sold a large volume of new Kias last year, but to be part of the President’s Club, it means a dealership’s employees share the owner’s passion for their jobs every day they come to work, making it a priority to provide top-notch service. That’s what separated them from the rest of the pack,” said JKR Senior Partner Richard Brauns. “This status means each President’s Award dealership recipient is among the top five percent of all Kia dealers nationwide, recognized by both their customers and Kia America. I’m sure it’s very gratifying for each dealership’s staff that their efforts have been recognized in this way by Kia corporate.”

List of Winning Clients

Here are the five JKR clients chosen for inclusion in the Kia President’s Club:

Boomer Kia (Oklahoma City, OK)

Greenway Kia West (Orlando, FL)

Halleen Kia (North Olmsted, OH)

Matt Blatt Kia (Egg Harbor Township, NJ)

Matt Blatt Kia (Toms River, NJ)

Each winner receives a custom-made crystal Kia President’s Club statuette, as well as promotional materials that can be used to promote their President’s Club status to their local communities.

JKR Automotive Advertising: We Move Cars.

To find out what JKR Automotive Advertising can do for your dealership, call us today at (321) 397-0777 to get the wheels in motion.

Don’t Fall Victim. Buzz-Words Inflate Value of Services that Don’t Help You

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You’ve likely heard advertising agencies tout about how they’re “Facebook Partners” and “Google Certified” as if this makes the difference in their ability to deliver results. 

The truth is, it takes about an hour for anyone to become “Certified” by Google, and with one phone call and some online “paperwork”, even you can become “a Facebook Partner”.

Our team has successfully brought all types of Google campaigns and Facebook Advertising Campaigns, and many other online SEO processes full circle thousands of times for hundreds of dealerships. Yes, we’re Google certified. Yes, we’re Facebook Partners, but more importantly, we are our clients’ partners in this challenging journey of owning a successful dealership.

Call us to learn more. (321) 397-0777

NADA Issues Analysis of 2021 First Quarter Auto Sales

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NADA Issues Analysis of 2021 First Quarter Auto Sales

TYSONS, Va. (April 8, 2021)—The National Automobile Dealers Association (NADA) issued its analysis of U.S. auto sales and the economy following the end of the first quarter of 2021.

“The coronavirus pandemic definitely had an impact on vehicle sales in 2020; while demand was strong, inventory was challenging given manufacturing facility closures and the chip shortage that began to heat up at the end of the year,” said NADA Chief Economist Patrick Manzi. “New light-vehicle sales in 2020 came to a close with 14.46 million units.”

While 2020 sales were down 14.7% compared to 2019, sales in the first quarter of 2021 were extremely strong. The seasonally adjusted annual rate (SAAR) for March was 17.75 million units, the second-highest March of all time, coming in slightly behind the SAAR in March 2000, with the 2021 first quarter SAAR at 16.8 million units, up significantly from the first quarter of 2020 SAAR of 14.8 million units.

NADA now estimates new light-vehicle sales at 16.3 million units for the year, up from the original 2021 sales forecast of 15.5 million units and a 12.7% increase compared to 2020 sales.

Average incentive spending per unit totaled $3,452, a decrease of $963 and $336 relative to March of 2020 and March of 2019 respectively.

As demand remains high for new vehicles, vehicle production continues to be negatively impacted by the shortage of microchips. Inventory at the end of the first quarter of 2021 was 12.8% lower than at the beginning of the year with fewer choices on dealer lots. At the end of the first quarter of 2021, industrywide supply fell to 39 days from 48 days at the beginning of the quarter. If sales remain strong in April without a significant boost of inventory, a decline in sales by late in the second quarter is expected due to low inventory levels.

In the first quarter of 2021, production was also impacted by a reduced supply of resins used in many automotive parts, as well as by severe winter storms that caused manufacturing closures. The chip shortage is extending into the second quarter and will cause further vehicle production losses; North American vehicle production is expected to total 15.8 million units in 2021.

“We expect that production shortages will continue to impact new-vehicle sales for at least the second quarter and likely spill over into the third quarter,” added Manzi. “The longer these production disruptions linger, the longer it will take for automakers to rebuild inventories to levels necessary to meet demand, and the less likely it is that automakers will be able to make up sales lost to both retail and fleet customers.”

Inventory shortages for new vehicles continue to support robust used-car sales and values alike. After moderating for the final months of 2020, used-vehicle prices began to climb in the first quarter of 2021. NADA anticipates used-vehicle market activity will remain elevated into the summer as the industry continues cope with new-vehicle production and inventory difficulties.

At the macro level, GDP is anticipated to grow at an annualized rate of 6% in the first quarter of 2021, according to the Federal Reserve Bank of Atlanta. NADA anticipates that real GDP for the 2021 to reach 6% to 6.5%. In the labor market, initial jobless claims have fallen below one million per week, but remain at historically high levels. According to the Bureau of Labor and Statistics March jobs report, 916,000 jobs were added and revisions upward were made to January and February reports. As vaccinations continue, jobs gains are expected in the second quarter of the year with more Americans returning to daily life. At franchised new-car dealerships, employment totaled 1,077,900 at the end of 2020, a strong improvement after bottoming out in April 2020 at 888,000. NADA anticipates pent-up demand for travel and services spending as the economy reopens; the savings Americans have built during the pandemic will also play a role, but will not be a major driving factor of economic expansion.

“The economy continues to show strong signs of recovery from the coronavirus pandemic,” said Manzi. “The widespread dissemination of the COVID-19 vaccine and the stellar new light-vehicle sales in March are reasons to be optimistic for the remainder of 2021.”

Read the full March 2021 NADA Market Beat report.

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