Understanding Digital Strategies for Auto Dealers in 2022

The auto industry is booming. Going rates for new and used cars are in the midst of one of the most exaggerated seller’s markets the industry has ever seen. With demand for new and used vehicles soaring above the current available supply, savvy dealerships are adapting ad content to match the modern car-buyer’s needs and fully utilizing digital marketing tools to make the most of this rare car-buying market. Here’s a quick look at the state of auto marketing for the coming year.

Winning in 2022 Means More Efficient Online Car Buying and Selling

Auto dealerships keen on adapting their marketing strategies to the industry’s current turbulence need a clear understanding of the modern car-buying customer. The average path to purchase from initial search to leaving a dealership with keys in hand takes close to 90 days and consists of at least a half-dozen digital touch-points. Locating and expanding on the most successful touchpoints should be the central focus of all digital efforts.

To engineer more efficient marketing (and therefore introduce more quality car shoppers in 2022) each marketing platform’s performance should be analyzed beyond simple impressions and clicks. Dealers can easily take advantage of data informing how many eyes scanned their online inventory, what specific messages got them there, and how long they stayed on site.

Successful Trade In, Trade Up Strategies Are Crucial

Like most industries caught in the wake of COVID-19’s fallout, many traditional tools of the in-person auto salesperson have been replaced by user-friendly, online-only vehicle discovery and buying experiences. For dealerships to keep up in 2022, they must position themselves to both purchase and sell used cars to support the limited availability of new vehicles on lots, as well as attract high-potential leads with incentives for trading-in and trading up.

Cash compensation is a powerful motivator for shoppers currently in the market for a vehicle. The trade-in crowd presents dealerships with both an effective method of acquiring inventory outside of the traditional auction, and a reliable pool of qualified sales leads. That makes trade-in incentives and instant cash estimates for used vehicles one of the best functions auto dealers can incorporate into their brand websites and marketing messages.

Whether it’s a messaging blitz across marketing channels, a new section of a dealer website or establishing an online KBB buying center, optimizing current methods of buying used has kept dealerships afloat while inflated demand and issues along the supply chain limit new inventory.

Low Inventory and High Costs Are Creating a New Industry Standard

An in-house study conducted in September 2020 found 56% of individuals in the market for a new car say they haven’t given up their search for a vehicle, but instead shifted their focus from new to used. Limited availability of new cars has driven used car prices to all-time highs, as the desire among consumers to own their own vehicles has risen in light of COVID’s effects on public transport and ride-sharing options.

Other more indirect effects from the pandemic are manifested in low-inventory rental fleets and increasing numbers of remote workers nation-wide. There are more people in the market for cars than there are vehicles available, and the trend shows no signs of slowing down.

The result? Due to the widespread lack of inventory, dealerships are more equipped than ever to convert shoppers previously looking to buy a new vehicle into used car sales.

Amplify Your Digital Reach With an Omnichannel Approach

The defining trait of auto’s shifting landscape since early 2020 is the need to provide quality digital experiences. Millennials in particular have shown growing interest in discovering and experiencing the digital showroom via personal devices. That makes every aspect of a dealership’s online presence a critical element of the new car sales process, including these basics to a strong digital storefront:

• Visibility That Sets Dealers Apart From the Crowd: If customers can’t easily locate a dealer’s website or current inventory, they can’t move forward with a purchase.

• User-Friendly Web Design (UX): If a website is difficult to navigate, customers can’t find the information to complete the buying process with confidence.

• Robust Virtual Options: The virtual experience aims to recapture the feeling of spotting a dream vehicle on a showroom floor.

• Offer Online Buying: For a marketing strategy to be effective, content must be shoppable — and that means even major purchases like vehicles need to offer digital buying options.

Performance-Driven Social Efforts: Nothing gives insight into ad successes, customer buying tendencies, changing audiences or overlooked markets like social media marketing. Placing ads where customers are most likely to experience them keeps potential buyers informed and the sales funnel moving.