Social media marketing in the automobile business is rapidly expanding. What worked yesterday may not work today. Why? Because the industry itself evolves year after year. Even before the epidemic, the writing was on the wall: certain auto dealership techniques and procedures needed to alter. Contemporaries willing to take chances will quickly surpass dealerships that cling to traditional techniques.
That being said, marketing is not intended to be dangerous. On the contrary, clever and customer-centered marketing reduces corporate risks. And this is what industry experts are seeing on social media.
National Automobile Dealers Association Industry Update
Marketing and strategy go hand in hand. And the approach is determined by how the industry performs. That is why we need to take a step back and look at the larger picture. National Automobile Dealers Association is a well-known source of industry statistics. Here is what has been published so far in 2021.
Demand Resilience: When the pandemic struck the vehicle markets in the United States, most people expected private transportation to suffer. People would prefer not to own vehicles because they would want to remain at home. In contrast, even throughout the epidemic, demand was very high. The true issue was on the opposite end of the spectrum: production units were closed, which had a significant effect on available inventories. The seasonally adjusted annual rate in March 2021 was around 17.75 million units, the second-highest rate ever recorded in March!
Decreasing Cost Per Acquisition: As natural demand grows, the requirement for incentives diminishes. Incentives for the sector have decreased by more than 20% on average since March 2020. This is a wonderful moment to review your marketing budget. If your budgets have grown in the recent year, you must have a very different reason, or you may need to change them to meet industry developments.
Used Vehicle Sales: Demand for new automobiles has not decreased. However, stockpiles have been declining due to manufacturing and chip shortages. According to some industry analysts, this is the ideal environment for used-car sales to increase. That viewpoint is supported by industry statistics. Used-car sales have been steadily increasing over the previous year and are expected to rise further by 2021.
The industry statistics might have provided you with some intriguing ideas for tackling car dealership social media marketing. However, here are some hidden insights you should not overlook:
Marketing tactics must evolve. The CPA has decreased for the majority of dealerships. This implies you can’t depend on sponsored advertisements to generate earnings that are larger than the industry average.
If your sales are not rising at the industry pace, you may have a flaw in your marketing plan. However, demand has been fairly stable over the previous year. If you aren’t obtaining enough leads or conversions, you should reconsider your whole lead acquisition to conversion strategy.
Understanding client demands is more crucial than ever before. Who would have guessed that people would choose to buy a secondhand automobile when new ones are scarce? Such information is already accessible to auto dealerships who actively use social media.
It seems obvious that social media is the way to go. But where do you begin? Most companies utilize influencers to create a social media impression. Is this the best course of action?