AUTOMOTIVE ADVERTISING & MARKETING

Commercial Length

Discussing Commercial Length … at Length

JKRAdvertising / Automotive Advertising, Automotive Advertising Advice /

May 19, 2016

What commercial length is the best for an auto dealership? The media world of today can support ads of multiple durations … but at the end of the day, whatever you choose should be something that leaves a lasting impression upon your audience.

Thus, the answer to the commercial length question is simply, “As long as it takes to achieve the goal you have in mind.” There are a number of factors that come into play, and today’s blog will take a closer look at some of them.

Pros of Short Commercial Length (:15)

When you purchase shorter spots, your budget allows you to buy more of them. This helps increase your frequency.

If you are already an established brand, brief messages can be an affordable way to remind your community of your store (think: brand building).

Pros of Longer Commercial Length (:30)

These are obviously less expensive than 60-second spots, but they still give ample time to get your point across (your offer).

Research shows that a 30-second commercial is nearly 80 percent as effective as 60-second ads in terms of viewer/listener recall.

Pros of Longest Commercial Length (:60)

The additional length allows dealerships the opportunity to really expand on their offers and connect to their audience on an emotional level.

Longer spots are especially good for dealerships who are either new or are attempting to become more established in their communities.

FREE Advertising Review

The opportunities at JKR are endless … and your Account Executive and Media Buyer can help you make the best choice for you based on your needs, wants and budget. If you would like more information on what JKR Automotive Advertising can do for your store, call Eric Tigner today at (321) 397-0777. He will send you a FREE customized Advertising Review (prepared by our Media Buyers) that will give you information on your market you didn’t know. This alone is worth the phone call!

JKR Automotive Advertising: We Move Cars.

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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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