With the automotive industry being fiercely competitive today, car dealerships need to use the right advertising methods to gain customers, leads, and sales. The days of potential buyers wandering into a dealership to browse a few vehicles are over — car shoppers today do extensive research online, compare prices and seek the best deals before deciding to buy. In this guide, we will go over the best car dealership advertising strategies, from Google Ads and social media campaigns to traditional advertising and customer referral programs. Utilizing these strategies can help dealerships target high-intent buyers, increase brand awareness, and make the most out of their advertising budget for ROI.
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In such a technology-driven market, the dealerships must be multi-channel focused and combine digital marketing with traditional advertising and local market engagement programs. Not only does the right advertising strategy generate new leads, but it also guides them through all stages of the car-buying process, all the way to the point where they drive to your dealership and not to a competitor.
Understanding the Car Buyer’s Journey
Understanding the buyer journey of a car buyer is critical before moving into ad strategies. Understanding how potential customers research and make decisions allows dealerships to target their marketing campaigns with the right message at the right time.
1: Awareness – The Research Phase
Think of someone at the awareness stage like a potential buyer who knows that they need a new vehicle but has yet to drive or research a vehicle. They may be shopping online, reading reviews, and off comparing makes and models.
Buyers at this stage may:
- Look up things like Best SUVs under $30,000 or Top-rated family sedans. Study automotive blogs and expert reviews.
- Watch YouTube videos of car comparisons and test drives.
Customers seeking information and reviews before making a purchase are a key market for dealerships, and relevant educational content targeting those customers, like blog posts, video reviews, and even Google Search Ads targeting those searching for a review, will position the dealership as an authority on the subject.
2: Consideration – Narrowing Down Options
At this point, they’ve narrowed down a few vehicles and are comparing dealerships based on price, financing options, and promotions. They are seeking reasons to buy from one dealership instead of another.
Buyers at this stage:
- Visit dealership websites to check inventory availability and pricing.
- Seek out incentives, financed deals, and trade-in offers.
- Check online reviews to learn which dealership has the best customer service.
Google Ads, social media ads, and even customer testimonials come into play here and can help persuade buyers.
3: Decision – The Final Purchase
The buyer is a little inclined to buy at this point. Perhaps they arrange a test drive, apply for financing, price shop or negotiate a deal. The dealership wants to remove friction in the process of buying and present incentives to close the sale.
At this stage, buyers tend to respond well to:
- Temporary sales or special dealership incentives
- Custom email follow-ups after a test drive.
- Retargeting ads serving them vehicles they visited.
Dealerships need to provide highly targeted advertising campaigns that help potential buyers progress through their buyer’s journey from research to purchase more efficiently.
Related – Retargeting Ads for Vehicle Buyers
Digital Advertising Strategies for Car Dealerships
Since the majority of car buyers begin their search online, digital advertising is key to reaching potential customers. Here are a few of the top online marketing techniques that work for car dealerships.
1. Google Search Ads – Capturing High-Intent Buyers
Google Search Ads enable car dealerships to present at the top of search engine results when potential buyers search for cars over the internet. As buyers typically search for a specific car models and dealerships, these ads have a high conversion rate.
Best Practices for Google Search Ads in Car Dealership Marketing:
- Include high-intent keywords like “New Honda Accord for sale near me” or “Best lease deals on Toyota Camry”.
- Apply strong CTAs such as Schedule a Test Drive Today or Claim Your Special Offer.
- Show your contact information as well as customer reviews or current promotions with ad extensions.
Example of an effective Google Search Ad:
Headline: New SUV at Best Price – Get $1,000 Off Today!
Description: SUVs rated on top offer you. Special financing is available. Schedule a test drive now!
Focusing on specific keywords and tailoring ad copy allows dealers to generate qualified traffic to their websites and create leads.
2. Google Display Ads – Building Brand Awareness
Google Display Ads are a way for dealerships to advertise using banner ads on websites such as automotive sites, auto blogs, and news sites. These ads are primarily used for branding and retargeting website visitors as opposed to search ads.
How to Use Display Ads Effectively:
- Showcase high-quality images of featured vehicles.
- Offer time-sensitive deals to incentivize a purchase.
- Follow up with users who visited the dealership website but failed to convert.
For instance, if a user browses a dealership’s site but does not book a test drive, they might later see a Google Display Ad stating:
“Still Thinking About That Ford Explorer? Book a Test Drive Today!”
This approach ensures that the dealership remains relevant and actionable in the eyes of prospective customers.
3. Facebook & Instagram Ads – Engaging Local Buyers
Car dealers can use social media platforms like Facebook and Instagram to target the audience. These platforms enable dealers to:
- Instead, run geo-targeted ads that reach buyers in a predefined location.
- Showcase multiple vehicle models via carousel ads.
- Share dealership events, trade-in programs, and financing incentives.
Example of a High-Performing Facebook Ad for Car Dealerships:
- Image/Video: A snazzy new car with a sticker that says “Hot Deal.”
- Caption: Switch to a new Honda Civic! Get special financing & trade-in bonuses only this weekend!
- CTA: Learn More or Schedule a Test Drive.
This enables dealerships to engage with potential buyers much earlier in the research journey, improving the effectiveness of ad campaigns through likes, shares, and inquiries.
4. YouTube Video Ads – Showcasing Virtual Test Drives
Automotive marketing is heavily dependent on YouTube, as many car buyers consume video reviews and virtual test drives before making a purchase decision.
Best Video Content for YouTube Ads:
- Walkarounds of highlighted vehicles.
- Have success stories or testimonials from customers.
- Comparisons between different car models.
Here is an example of a good YouTube pre-roll ad:
“Considering the New Ford F-150? Check out this quick tour & see it in action!’
With video marketing being arguably the most engaging form of advertising, dealerships can easily increase brand familiarity and also convert more serious buyers to appear for additional advertising through video-based ads.
5. Retargeting Ads – Bringing Back Interested Buyers
The majority of potential car buyers do not convert the first time they go to the dealership’s website. Retargeting ads also keep the vehicles that these visitors were interested in top of mind, which improves the likelihood that they’ll return to your dealership to make a purchase.
For instance, a customer who had visited the dealership website and viewed a 2023 Toyota RAV4 but hadn’t scheduled a test drive might later see an ad stating:
“Head On Over for a Test Drive of the 2023 RAV4 — Your Dream SUV Awaits!”
Retargeting ads remind potential buyers of their interest, so more conversions are generated and return on investment (ROI) is maximized for spend on advertising.
Traditional Advertising Strategies That Still Work for Car Dealerships
Although digital marketing has taken the lead in the marketing world today, there are some traditional marketing techniques that are still relevant, particularly in local markets where personal relationships are important. With both online and offline advertising, dealerships can target a wider audience and attract different types of customers.
1. Television and Radio Advertising
Television and radio are still powerful ways to market a car dealership, with a focus on seasonal sales events, clearance deals, and special financing promotions. Car commercials fill our TVs and radio ads bombard local media during daily commutes.
Best Practices for TV & Radio Advertising:
- Highlight Limited-Time Offers: Ads must convey urgency with phrases like “Hurry! 0% APR Financing Through Weekend!”.
- Keep Messaging Simple & Engaging: Talk about your price points clearly and concisely, and hit key selling points like monthly payment numbers, free maintenance, and cashback.
- Include a Strong call to action: Inspire consumers to visit the dealership, call with inquiries, or check the website for specifics.
TV and radio ads may not offer audience targeting the way digital ads do, but they remain a powerful way to build brand awareness and gain traction among a large local audience.
2. Billboards & Outdoor Advertising
Billboards and outdoor signage are effective in high-traffic areas where thousands of potential buyers pass through each day. A strategic-outdoor billboard can reinforce the branding of the dealership and remind those buying a vehicle as to what promotions exist.
Tips for Effective Billboard Advertising:
- Use High-Impact Visuals: With a new car model featuring an attractive design, you readily remember your eyes on it.
- Include a Clear Message: Use very little text, such as “Find Your Dream Car at [Dealership Name] – Visit Us Today!” works best.
- Place Billboards Strategically: Look for busy roads, high-traffic highways, and areas close to competing dealerships.
Billboard advertising is especially effective for building brand awareness and driving people to your dealership.
3. Direct Mail & Print Advertising
Direct mail campaigns, including postcards, brochures, and letters, are still very effective, especially when you’re targeting previous customers and local buyers. Everyone checks their mail, and an effective offer will stand out and generate showroom traffic.
Types of Direct Mail That Work Well for Car Dealership Advertising Strategies:
- Exclusive VIP Event Invitations: Provide special offers or early access to new stock to previous customers.
- Seasonal Sales Flyers: Promote holiday specials, trade-ins, or clearance.
- Personalized Offers: Send letters to customers with personalized financing options or trade-in values.
While it may seem old-fashioned, quality printed material delivered by direct mail is still effective—especially when paired with a digital retargeting campaign.
4. Event Sponsorships & Community Engagement
Local community involvement add trust and long-term relationships for car dealerships. Supporting your community through sponsorships and local events builds brand loyalty since people like to buy from businesses who help their communities.
Ideas for Local Sponsorships & Events:
- Sponsor local sports teams, charity events, or festivals.
- Organize a no-cost car maintenance workshop or safe driving class.
- Provide a scholarship for local automotive industry students.
By participating in community events and initiatives, dealerships can position themselves as trustworthy, customer-oriented businesses, which automatically makes them the preferred destination when residents are looking to purchase a new vehicle.
Check Out – Local Auto Repair Shop Marketing
Leveraging Customer Reviews & Referral Programs
Viral marketing is one of the contractor’s benefits in car dealership advertising. Unlike advertising or marketing, customers trust recommendations from friends, family, and online reviews — which is why generating positive reviews and referrals is crucial.
1. Encouraging Positive Online Reviews
The number of online reviews has an immense effect on your dealership’s legitimacy and search status. Most customers check out Google, Yelp, and Facebook reviews before getting to a dealership to measure the strength of a business.
How to Get More Customer Reviews:
- Request Reviews After Every Successful Sale: Gently prompt happy customers to leave a review on Google and/or Facebook.
- Offer Small Incentives: Certain dealerships offer discounts on future services or free car washes in return for patrons’ honest reviews.
- Make It Easy: Send a text message or email with a direct link to where a customer can leave their review after a purchase.
A dealership with hundreds of positive reviews is much more likely to attract new customers than one that has little to no online presence.
2. Running a Referral Program to Boost Sales
A good referral program can produce quality leads while also boosting repeat business. So, customers who have had a good buying experience are more likely to share the dealership info with friends and family.
How to Create a Successful Referral Program:
- Offer a Cash or Service Reward: Pay $100 cash, or offer a free oil change, for every referral that results in a successful sale.
- Use a Simple Tracking System: Customers need a referral page on the website they can access to refer friends.
- Promote the Program on Social Media & Emails: Inform customers they can be rewarded for passing along referrals.
Referrals convert at a higher rate than traditional leads, making word-of-mouth one of the most cost-effective forms of advertising.
Retargeting & Email Marketing for Lead Nurturing
Most potential car buyers don’t decide on a purchase immediately when they visit a dealership website. Instead, they are still researching options, comparing financing deals, and holding out for better offers. This is the part where retargeting ads and email marketing kick in.
1. Using Retargeting Ads to Re-engage Website Visitors
Retargeting ads enable dealerships to target leads that visit their website without taking action. These adverts assist in recapturing warm customers and driving conversions.
Best Practices for Retargeting Ads:
- Show Ads Featuring Vehicles the Customer Viewed.
- Use Time-Sensitive Messaging: “Limited Stock – Reserve Yours Now!”
- Add Extra Bonuses: “Book a test drive to get a $250 bonus!
Retargeting ads keep the dealership top-of-mind until customers are ready to buy because it often takes car buyers weeks or months to finalize a purchase.
2. Sending Personalized Email Offers & Follow-Ups
Email marketing does the conversion part for us. It enables potential buyers to stay engaged with us by sending them personalized offers and updates on their purchases.
Effective Email Campaigns for Car Dealerships:
- New Inventory Alerts: Alerts potential buyers when a model they’re interested in is available.
- Special Financing Offers: Tell leads about lease offers or financing incentives that are limited to a certain time range.
- Test Drive Reminders: Nudge prospects who expressed interest but haven’t come to visit you yet.
Emails have to be short and sweet, visually pleasing, with prominent CTAs to get the recipient to act.
Measuring & Optimizing Advertising Performance for Car Dealership Advertising Strategies
Driving blindfolded is an analogy to running ad campaigns without performance tracking in place. To increase return on investment (ROI), dealerships should monitor which advertisements lead to enquirers and sales and use this information to adapt their strategies.
1. Tracking Key Performance Metrics (KPIs)
All advertising strategies must be scrutinized against certain, well-defined key performance indicators (KPIs). Some of the key metrics to consider when measuring car dealership advertising ROI are:
- Cost-Per-Lead (CPL): The price paid for receiving a potential customer’s contact information via ads.
- Click-through rate (CTR): The percentage of users who click on an ad after seeing it.
- Conversion Rate: The proportion of the leads who take the desired action (book a test drive, fill out a form, etc.)
- Return on Ad Spend (ROAS): The revenue generated versus money spent on advertising.
- Website Traffic & Engagement: How many visitors arrive at the dealership’s website and engage with listings?
By tracking these metrics, dealerships can determine which ads are most successful and put more budget behind these successful campaigns.
Check Out – Facebook Ads for Auto Sales
2. Using Google Analytics & Facebook Insights
Audience data and insights about audience behavior, engagement, and conversions can also be obtained through Google Analytics and Facebook Insights.
How to Use Google Analytics for Car Dealership Advertising Strategies:
- Know where website visitors are coming from (Google due to a search, paid ads, social media, etc.).
- Review which car listings get the most attention.
- Measure how long users spend on the website and which pages they visit.
How to Use Facebook Insights for Social Media Ads:
- Find out which creatives get the best engagement.
- Refine your audience segmentation by age, location, and interests.
- Know how to adapt ad budgets based on lead generation.
These same tools empower dealerships to make data-driven decisions that result in even higher advertising performance.
3. A/B Testing Ad Creatives & Messaging
With A/B testing, you show two variations of an ad to identify which is most effective.
What to A/B Test in Dealership Ads:
- Ad headlines (i.e., “Enjoy 0% APR Financing” vs. “Drive Home in a New SUV Today”).
- Photos & Videos ( car interior shots vs. exterior shots).
- Call-To-Action (CTA) Buttons (i.e., “Schedule a Test Drive” vs. “Claim Your Offer”)
Testing both variants not only helps determine which one is a winner in terms of ad effectiveness but also prevents wasted ad spending across any variant.
4. Adjusting Budget Allocation for Best Results
Once dealerships find out which ads are most effective, they should spend more on that ad and less on the less-performing ad.
Say Google Search Ads drive more test drives than Facebook Ads; boosting the Google Ads budget becomes the clear solution. Flex budget allocation provides the largest return on investment for dealerships.
Common Mistakes for Car Dealership Advertising Strategies
Despite great advertising strategies, countless dealerships are making avoidable mistakes that hinder their overall marketing success.
1. Focusing Too Much on Price Instead of Value
Most dealers only talk about discounts, price drops and financing deals, but do not even mention the value of their cars and the customer experience.
How to Fix This:
- Instead, focus on features such as quality, consistency, and unique aspects.
- Advertise on customer satisfaction, warranties, after-sales service, etc.
- Focus messaging on emotion, lifestyle, and personal benefit instead of cost savings.
For example, instead of saying:
$2,000 Off Today! Lowest Prices on SUVs
A better ad might say something like this:
“Upgrade to a Spacious SUV for Your Family – Get a Safe & Reliable Ride Today!”
2. Ignoring Online Reviews & Social Proof
People looking to buy a car trust online reviews over what dealerships say. Ignoring reviews or not responding to negative feedback can undermine credibility.
How to Fix This:
- The happy customer who walks into your store acts as a free salesperson for you.
- When faced with negative reviews, your response should be courteous and include solutions and assistance.
- In advertising campaigns, highlight the best comments from customers (5 stars).
3. Not Optimizing for Mobile Users
More than 70% of car buyers visit dealership websites on their smartphones. But if the website or ad landing pages are not mobile-ready, dealerships could potentially lose out on leads because of it.
How to Fix This:
- Ensure fast-loading, mobile-friendly websites.
- Make it easy for them to call you with click-to-call buttons.
- Optimize your ad landing pages to help you quickly browse and capture leads.
Related – Google Ads for Car Leasing Services
4. Failing to Retarget Potential Buyers
The majority of website traffic does not convert on the first visit. Dealerships that don’t use retargeting lose the opportunity to redirect interested buyers.
How to Fix This:
- Showcase Listings with Facebook Retargeting Ads.
- Automate web visit follow-up emails.
- Provide special discounts for repeat visitors.
5. Running Ads Without Tracking Performance
Quite a few dealerships run ads but don’t measure conversions, which leads to a wasted budget.
How to Fix This:
- Read about how to set up conversion tracking in Google Analytics.
- So be sure to monitor ad performance metrics regularly and adjust strategies.
- Use lead tracking systems to measure inquiries and showroom visits.
Frequently Asked Questions (FAQs) for Car Dealership Advertising Strategies
What is the best type of ad for selling cars?
The most effective ads depend on your goals:
- Google Search Ads for high-intent buyers
- Brand awareness and lead generation through Facebook & Instagram Ads.
- YouTube Video Ads for engagement and virtual test drives
- Retargeting Adverts to re-engage prospective customers.
How much should a dealership spend on advertising?
Car dealerships typically spend 5-10% of their gross revenue on advertising. The specific budget will depend on the competitiveness of the market, the size of your market, and the goals of your business.
What are the best social media platforms for Car Dealership Advertising Strategies?
Some of the social media platforms that you can use for dealership advertising are as follows:
- Facebook & Instagram – A Powerful tool for lead generation & engagement
- YouTube – Best for video ads and customer testimonials.
- TikTok – Great for engaging younger audiences with organic short-form content.
How can I get more leads without increasing my ad budget?
To get more leads, implement the following strategies:
- Research to create stronger audience targeting
- Generate Leads Organically with Referral Programs
- Writing for confluence on your website landing pages
- Use free Google My Business listings to capture nearby buyers.
How do I measure whether my ads are working?
Track the following:
- Cost-per-lead (CPL) – Lower is better.
- Click-through rate (CTR) – A higher CTR is an indicator of engagement.
- Conversion rate – How many leads become showroom visits?
- Return on ad spend (ROAS): The revenue generated from ads.
Conclusion for Car Dealership Advertising Strategies
Car Dealership Advertising Strategies include a combination of digital marketing, traditional advertising, customer reviews, and data-driven optimization. Dealerships can also implement Google Ads, social media promotions, referral programs, or retargeting campaigns to help visibility, generate leads, and increase sales.
