Due to the COVID-19 pandemic, most vehicle manufacturers shut down production for nearly 2 months. During the following months, many dealerships helped keep sales strong by offering big incentives on vehicles on their lot. This has resulted in the current drop in inventory for dealers across the country.
Below are screenshots taken from two different dealerships using our CARoi tool.
These two images show the further drop in inventory many dealers are currently experiencing. The green represents the inventory and the blue columns represent sales for that month.
So, what can be done on the digital advertising side of things to help dealerships remain profitable? Here are two strategies that can be implemented immediately.
Focus on Vehicle Trade-Ins
While waiting on production of new vehicles from manufacturers, not much can be done for new inventory. However, there is no doubt that used vehicle sales are a large source of profit for dealerships. Promoting that a dealership purchases pre-owned vehicles can keep the used inventory strong.
Creating more ad text in a dealer’s search campaigns revolving around vehicle trade-ins can be one way of doing this. Another way would be to add in this message to display campaigns. This is a cheap and effective way of building awareness.
Focus on Fixed Ops
A large percent of dealership revenue comes from the Service and Parts Departments. Moving some budget from new inventory campaigns to fixed ops campaigns could be a move worth making.
These are some of the techniques currently being used by our PPC Digital Marketing Team. At Dealer eProcess, our digital marketing strategists stay up to date on the latest automotive digital marketing trends so you don’t have to. Contact us today for more information about what our digital marketing team can do for you and your dealership!