AUTOMOTIVE ADVERTISING & MARKETING

TV Advertising Revenue Grows

TV Advertising Revenue Grows Despite Audience Plateau

JKRAdvertising / Automotive Advertising, JKR Advertising News, TV Advertising /

December 22, 2014

Here is why TV advertising revenue grows year after year: advertisers understand the undeniable value of TV commercials in their advertising campaigns. No matter what product or service is being sold, research done by trusted sources such as Kantar Media and Nielsen show TV advertising is the most influential form of advertising (not counting the opinions of others). But even there, Advertising Age calls TV advertising the “dominant driver of word-of-mouth, both online and off-line.”

Why TV Advertising Revenue Grows

It’s for these reasons that TV advertising grows even during a time when the viewing audience has hit a plateau. In fact, recent Nielsen data found that consumers who routinely shop online still viewed TV ads as by far the most trustworthy of anything out there!

Further, TVB research shows that nearly 40% of American consumers singled out TV advertising as the medium they found most influential during the times they were ready to make a purchase decision. And Kantar Media data shows that, from 2009 to 2012, TV ad spending growth rates generally outperformed the growth rates for everything in the media and entertainment sector. The only small hiccup was during 2011, but that can be chalked up to the Olympic and political effect being more pronounced in TV than in other advertising formats.

That’s something to think about as you prepare your 2015 advertising budgets! Broadcast or cable, TV advertising wins the day … and your store can, too! If your dealership is not running television advertisements, the first question that should be asked is why not?

We at JKR Automotive Advertising offer you a review of your market and go over it with 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 give Eric Tigner a call at (321) 397-0777. We’ll do the rest.

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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