AUTOMOTIVE ADVERTISING & MARKETING

TV Advertising Wins

TV Advertising Wins the Day, and it’s not Close

JKRAdvertising / TV Advertising, Uncategorized /

April 30, 2014

TV advertising wins the day when it comes to automotive advertising – and advertising in general. While the Internet is without question an ever-emerging force, there has never been anything quite as effective as an expertly crafted TV commercial for an automotive dealer.

Want proof that TV advertising wins? A recent report prepared by PricewaterhouseCoopers for the Interactive Advertising Bureau showed that, while online advertising brought in a record $42.7 million in 2013, it pales in comparison to the $74.5 billion sum spent on broadcast and cable TV.

Why TV Advertising Wins the Day

Why is this number so big? Advertisers (automotive dealers included) realize that TV advertising wins because Americans are glued to their television sets. Recent Nielsen data published in February shows Americans watched an astounding 185 hours of television in December 2013. That’s six hours more than the previous year … and nearly seven times more than the amount of time people spent on their computers.

It’s precisely why major companies like Yahoo, Amazon and Microsoft are increasing their TV spending, and why JKR Automotive Advertising often recommends a TV advertising campaign to its clients. Of course, each client’s situation is different for a variety of reasons that include budget and media market.

FREE Advertising Report

Broadcast or cable, TV advertising wins the day … and your dealership could, too! If your dealership is not running television advertisements, the first question that should be asked is why not? We at JKR Automotive Advertising can answer that question for you, completely free of charge, with absolutely no obligation. At your request, we’ll do a thorough analysis of your media market and your competition to see if you’re getting the most bang for your buck with your current advertising efforts. We’ll give you our expert feedback that will help you immensely going forward. Simply fill out the form on this page or give us a call at (321) 397-0777. We’ll do the rest.

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Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

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