AUTOMOTIVE ADVERTISING & MARKETING

Pros and Cons

Pros and Cons of Super Bowl Advertising

JKRAdvertising / Automotive Advertising, Uncategorized /

January 25, 2016

The folks at Media Life magazine recently published an interesting article on the pros and cons of advertising during the Super Bowl. In addition to Hyundai and Kia, who announced their intention to advertise during the big game almost immediately, Mini, Acura and Honda have also thrown their hats into the ring. Did they make the right decision to spend $5 million on one spot? You can make your own decision using the stats below.

Pros and Cons: Worth the Cost?

Pro: Though it is $5 million to advertise, the audience is about 10 times the viewership of any other program that airs regularly on broadcast TV. When that is factored in, $5 million is actually a pretty good deal.

Con: No matter how many people see your spot, $5 million is far too much money to spend at one time, on one airing.

Pro: Brand recognition is part of the overall allure of the Super Bowl. After the game is over, everyone is still talking about the Super Bowl ads, giving advertisers an extra word-of-mouth advertising push. This is especially good for companies who are not big-name entities.

Con: Some would argue that people aren’t actually watching the ads for their advertising value; instead, they will be judged on whether they are funny, entertaining or poignant.

Pro: After the game is over, the Super Bowl spots typically turn up all over social media sites.

Con: Often, Super Bowl ads miss an important element. In trying to convince the public how cool and hip a company is, they often forget to give the viewer a reason to purchase their product or service.

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Of course, today’s blog deals with advertising on a national level – but what about the local dealers? They are why we exist! JKR Automotive Advertising is the industry leader in helping underperforming dealers realize their full potential in as little as 10 days. Give Eric Tigner a call today at (321) 397-0777 to find out more.

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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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