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How much do car dealerships spend on local advertising?

Discussion in 'BlackHat Lounge' started by air360, Mar 3, 2012.

  1. air360

    air360 Regular Member

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    I have a random question and would appreciate it if anyone who has inside knowledge could help me out ....educated guesses are good too but I am really looking for an accurate number.

    What I am wondering is when a car dealership snail mails out advertising like flyers or postcards to say 10k homes in their area how much does this cost them? When you include postage i am assuming this is a pretty big number.
     
  2. 7878

    7878 Executive VIP Premium Member

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    Most dealer clients I work with don't bother with small potatoes type campaigns like that (10k pieces). What you'll see instead are large, 20 inch, tri fold flyers with 5 scratch offs and a plastic key taped to the inside with scannable bar codes for tracking or some other gimmick. They go out personalized and each piece is trackable... Direct mail is big business in certain industries in this is one of them.

    A dealer I work closely with dropped 100k pieces last week at $.29 all inclusive and that's a small market dealer doing a monthly drop. I worked in the car biz for 10 years prior to my second career so Ive seen budgets all over the map. Small franchise dealers might have an advertising budget of $10k, while larger market dealers Ive worked for spent $150k+ a month just for the sales department.
     
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  3. honzarox

    honzarox Junior Member

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    Whats the margin on a car? I adore cars and always wondered and have received very different responces...
    Like, say a 150k Porsche. If they sell it under MSRP, what kind of a profit are they still playing with? And do they buy the cars outright from and then resell them for profit, or do they only work on a salesperson basis, i.e. once the car is sold, they get a cut from the manufacturer?
    I could go on and on :) Would love a dealership gig as a side hobby
     
  4. oxonbeef

    oxonbeef BANNED BANNED

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    I'm really pushing qr codes at the moment.
    used car sales are perfect.
    I can set up a platform where for every ad they have a qr code that links to pics
    of the car, service history, and previous history.
    The platform can have the dealer contact them or arrange a test drive,
    It's just a twist on what I have been doing for real estate.
     
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  5. 7878

    7878 Executive VIP Premium Member

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    Digital brochure delivery with QR codes on the lot using stickers on the windows is a home run too and an easy sale with a simple 10 minute demo. Physical brochures are costly to hand out and don't capture any client information.

    Think of it like this -

    You produce stickers with QR codes on a per model basis, i.e one for Maxima, one for Altima, one for Sentra.

    The dealer applies the stickers to the windshields of the cars on the lot with a simple CTA like "scan me to get a brochure delivered to your phone".

    Users scan the codes and are taken to a mobile optin page.

    User inputs their email/phone and gets the vehicle brochure delivered via autoresponder.

    The dealer captures the lead on the lot without ever sending a salesperson out the door.

    The same can easily be accomplished with SMS optins. A great way to pitch it is as a salestool that never sleeps, never goes home for the evening, never doesn't "feel like" getting a brochure for a customer, and captures leads on the lot even when you're closed, 24/7. They eat it right up. ;)
     
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  6. scc42

    scc42 Newbie

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    I work at a Lincoln dealership that pushes 30-40 cars a month. The GM's advert budget is around 30K/mo. We have a sister store that sells 150+Fords and they run 150K advert budget.
    So a rule of thumb is $1,000 +/- per car sold/per month... and that's monies put out by both the owner and by the car maker(they give dealers monies to help advertise based on volumn).
    I'll say that Ford and Lincoln are now putting Q codes on their stickers... maybe other car makers are doing the same...
     
  7. Nigel Farage

    Nigel Farage BANNED BANNED

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    I see more people walking around on car lots after-hours and on weekends than I see during the day. I think people go at these times delibarately, so they don't have some salesman constantly trying to diddle them.

    I think this method would go well with a TV campaign: "No Salesman Sale" "That's right folks, Barnstorming Bill's Toyota is having a No Salesman Sale Monday through Friday night. We'll leave the lights on for ya, we'll even have onsite security for you, but one thing we won't have are salesman. You can walk around with your mobile phone, and find out about any cars you are interested in like this: (demonstrates scanning the code into the mobile device). <Run motion graphic of what shows up on the phone>

    Night = convenience for customers.
    Night = Illuminated Event. People driving by will see people walking around, and wonder what's going on.
    No Salesman = people can show up just to look, no need to pretend they are interested. No pressure.
    Reason to Use their Mobile Device = People love to try new tech, and people love their phones. Especially iPhone users.
    Marketing data on who is interested in what.
    Unique Marketing Idea (I think) = Word of Mouth Advertising. "Hey, did you hear what Barnstorming Bill is doing?"
    "Evolutionable" - After the buzz of the first media campaign, part two shows hapless and former Barstorming Bill's Salesman in the unemployment line. They've been replaced by an Android Cell Phone. Later at the "Retraining Classes" (All sorts of different ways to have fun with this one. Learning to use the fryer at McBurgerland. Refusing to give a "Happy Ending" at a Chinese therapeutic massage parlor.)
     
  8. 44proseries

    44proseries Junior Member

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    Well, I have sold cars and RV's ever since I graduated high school. Biggest volume I ever worked with 250-300 cars, and about 50 RV's. RV dealer spent 4-5K/Unit, Car dealer $800-$1K/unit.