Welcome to the Age of Dealer Control

Welcome to the Age of Dealer Control

The days of third-party leads and Google are over. Dealerships around the country have poured their advertising budgets into these abysses for too long. For the first 90 years of the car business, things pretty much stayed the same. All you had to do was put up a big sign and place ads in the newspaper and customers showed up, ready to buy cars.

The days of third-party leads and Google are over. Dealerships around the country have poured their advertising budgets into these abysses for too long. For the first 90 years of the car business, things pretty much stayed the same. All you had to do was put up a big sign and place ads in the newspaper and customers showed up, ready to buy cars. A few new options arose through the years. Radio, television and direct mail came around and spread the same type of messaging in new ways. Then came the paradigm-changing all-mighty Internet.

Some dealers were early adopters while others dragged their feet. Dealers were buying and building Websites that had one major thing in common: None were customer friendly or easy to use. This left the door wide open for third-party lead providers to produce better shopping sites and drive the traffic through themselves rather than direct to dealers. Customers who used to drive a couple miles to the dealership to look at vehicles were now shopping on third-party lead provider sites and submitting their inquiries there.

This shift produced incredible profits for the lead providers at the expense of the dealers. Dealers found themselves buying back their own customers from companies on the coasts that had no relationship with these people. What choice did dealers have? Either pay the ransom to keep their customers or watch another dealer win the opportunity to serve them. With astronomical profits, these lead providers began consolidating and creating a stranglehold on dealers with both leads and software.

Search engines such as Google began to become more impactful than traditional advertising for Websites. Budgets moved from promoting a URL to promoting paid search. With this, an opportunity presented itself for dealers to take back their customer bases. Unfortunately, the third-party lead providers proved to be much more adept at search and strengthened their already tight grip on dealers. Again, dealers were held hostage and forced to overpay for leads rather than risk customer defection. This remained the status quo for years.

Then came social media.

Social media was touted as the second coming of marketing for dealers. Many new and novel ideas promised to revolutionize dealership marketing and lower the cost of customer acquisition. Sadly, this was not the case and dealers wasted tons of money on “feel-good” social media, attempting to get “likes” and more followers; too bad likes can’t pay the bills. Many dealers got a bad taste in their mouth for social and many are still tasting it today. The saying, “once bitten, twice shy” applies to many things and is often advice you should follow. It could not be further from the truth as far as social media marketing goes today.

Facebook users spend more of their time consuming Facebook then all other media combined. If you want to catch fish, you must cast your line where they are swimming. Your customers are on Facebook, so you should be too. But, what bait should you be using to maximize your catch? The answer is simple: Facebook lead generation ads. Lead gen ads show up in a Facebook user’s newsfeed. As they browse photos and posts from their friends and family, an offer for “Special Financing” or “More for Your Trade” appears. Since Facebook already knows each users’ information, a lead is submitted with as little as two clicks and no key strokes.

These leads are delivered to the dealership directly without the usury fees of a third-party lead provider and without being diluted with too much pricing and discount information or shared with other area dealers. Finally, dealers have the ability to take the power back and many dealers across the country are doing just that. Dealers are enjoying the power to control their customers’ shopping and buying experience without interference.

What does this mean to dealers? Simple — the cost of leads and sales is going down and the gross profits are going up. In our industry today, the conversation seems to dwell on compressed margins and shrinking sales. You can make a choice to leave this conversation and control your own destiny. Break free from the third-party lead providers and drive the sales process directly with your customers again. You never needed their help; you just didn’t have a choice. Now you do, so make it and start selling more vehicles on Facebook. Put your third-party lead providers out to pasture and welcome in the age of dealer control.

Jason Girdner

You May Also Like

Google Analytics for Dummies

GA4 can help you understand which marketing sources drove traffic to your website, allowing you to compare one to another.

Google Analytics for Dummies A Simple GA4 Guide for Non-Analytics People

A Simple GA4 Guide for Non-Analytics People

G4? GA4? Google Analytics? Are they all the same, and how do they relate to the metrics my website vendor sends me? 

First off, I don't sell any products related to analytics or analytics consulting. Our company does help our dealer partners with this area, but this article is purely intended to inform, and I don't have a dog in this fight. My product is in the digital marketing realm, so we interface a ton with analytics. Moreover, I get dozens of analytics questions every day, and there’s understandably a lot of confusion about this topic.

Unlocking the Value of Your Data. Don’t Let it Go to Waste.

Explore expert Bobby Gaudreau’s insights on overcoming data challenges in auto dealerships, focusing on CRM and DMS optimization for marketing success.

Unlocking the Value of Your Data. Don't Let it Go to Waste.
You Want Me to Pay for WHAT?!

Arming yourself with this firsthand knowledge will let you make informed decisions and allocate your budget toward increased profitability in ways you simply cannot hope to when you’re playing telephone with your manager charged with executing on marketing.

Wikimotive, trade shows, marketing,
Crafting a Cohesive Brand Identity

Upholding a cohesive brand image is vital. Learn how photography plays a pivotal role in reinforcing a dealership’s professionalism.

Crafting a Cohesive Brand Identity The Impact of Professional Photos in Maintaining Consistency Across Marketing Materials
Is Marketing Both the Problem and Solution for the EV Market?

Marketing can answer consumers’ questions and demystify the EV buying journey.

Is Marketing Both the Problem and Solution for the EV Market? myAutoIQ article

Other Posts

Riding the Wave of Innovation: How Advanced Data Tools Are Transforming Automotive Appraisals

The ability to customize appraisal tools according to specific dealership needs and market dynamics ensures that appraisals are closely aligned with strategic goals, giving dealerships a competitive edge.

Riding the Wave of Innovation: How Advanced Data Tools Are Transforming Automotive Appraisals
Selecting the Ideal Car Lift for EV Servicing

When choosing the right car lift for servicing electric vehicles there are several key factors to consider.

Key Factors in Selecting the Ideal Car Lift for Electric Vehicle Servicing- Coats
Exploring Educational Opportunities with NADA and ATD

The comprehensive NADA and ATD programs, complemented by an extensive array of resources, foster excellence and innovation within the automotive retail landscape.

Exploring Educational Opportunities with NADA and ATD
F&I 2024 Dealer Outlook: How Online Options Will Help Dealers Better Serve Customers

Dealers must find ways to maximize F&I sales opportunities, because in this highly competitive landscape, dealerships rely on the sale of these products to enhance their bottom line and remain competitive.

F&I Outlook from Protective Asset Protection