Manufacturers often use high-profile figures to front their car commercials, aiming for widespread brand recognition rather than immediate sales spikes. While these ads, like Matthew McConaughey’s Lincoln spots, capture attention, their direct impact on dealership traffic is often minimal. Dealerships then have the option to use co-op advertising funds for their own commercials, but the effectiveness of this approach in today’s market is a key question. Are dealership commercials still a valuable marketing tool, and what should their purpose be?
The Enduring Reach of Commercials
Despite the rise of streaming services, traditional television still holds a significant audience. Statistics from Statista indicate that a substantial portion of US households maintain cable TV subscriptions, with networks like FOX News leading in viewership. This means strategically placed commercials can still reach a broad consumer base. While cable TV penetration has decreased from its 2015 peak, the decline has slowed, suggesting a stable audience remains. For dealerships, this indicates that commercials can still effectively deliver a message to potential customers watching TV or online content. A clear and compelling commercial can indeed influence consumer perception and behavior.
Refocusing the Purpose: Beyond Sales, Towards Brand Building
Traditionally, car dealership commercials emphasized sales, service, and vehicle selection. However, current market dynamics, including fluctuating new car inventories and a robust used car market, necessitate a shift in focus. While co-op advertising often requires concise messaging aligned with specific criteria, dealerships can leverage commercials for more strategic goals. Customer retention and service department profitability are now paramount. Commercials can creatively communicate that a dealership is the optimal choice for vehicle maintenance, enhancing the dealership’s image and broadening its customer base.
Co-op advertising budgets offer a cost-effective avenue for commercials, but their true power lies in building brand visibility. Consider iconic advertising: a polar bear with a scarf instantly evokes Coca-Cola, and a checkmark is synonymous with Nike. These visuals don’t directly sell products but establish powerful brand recognition. For dealerships, commercials can serve as potent tools for car dealership commercial brand building. The goal is to cultivate an image that resonates with the local community and distinguishes your dealership group. This could be a memorable slogan, a distinctive advertising style, a polished and professional presentation, or even humorous commercials – anything that sets your dealership apart from competitors.
The ultimate success of dealership commercials is achieved when consumers recognize your brand instantly, even without explicitly mentioning the dealership’s name. By embedding a slogan or image in their minds, you ensure your dealership is the first that comes to mind when they need a vehicle, service, collision repair, or parts. This positive brand association is invaluable.
Although TV viewership is not at its historical peak, a strong argument remains for utilizing TV spots and online video commercials, whether funded through co-op programs or independently. The key is effective messaging. When strategically employed, commercials are powerful tools for car dealership commercial success, driving not just immediate sales, but more importantly, lasting brand recognition and customer loyalty.
