As we reach the midpoint of 2019, we’re faced with a downturn in auto sales signaling the need for an automotive industry update. Dealers are feeling the pinch as sales dropped 3.2 percent in the first quarter of 2019, which analysts say is likely to be the first year since 2014 that falls short of 17 million vehicles.
Couple that with recent fear of a recession dominating Wall Street and new competition from the likes of Tesla, Carvana, and Amazon, and you’re looking at an uncertain future for car dealerships.
Action Steps That Automotive Dealers Should Take
The economic valleys seen so far in 2019 have left many dealers with bulging inventories taking a hit on rising floorplanning and financing costs. While still getting pressure from manufacturers to accept more inventory, dealers are left feeling overwhelmed.
So, what can be done? As we round out the last half of 2019, ArcMinute Marketing has a few key recommendations in our auto industry update to help dealers stay ahead of a sluggish market.
- Be ready for model year turnover. In the past few years, we’ve seen sales surge toward the end of the year as new models hit the market and dealers begin offering bigger incentives. Although we don’t have a crystal ball, data shows that year-end events help increase overall sales. Be ready to make up some ground by planning and marketing for this opportunity.
- Deliver a killer customer experience. We’re no strangers to how much research car shoppers do prior to making their purchase. Is your dealership capitalizing on these critical automotive micro-moments in the customer’s purchase journey? Using strategically targeted ads and a well-optimized website, you can position yourself as the answer to your customer’s questions by giving them the content they need, when they need it.
- Make sure everyone is on board. Including your digital marketing agency. As the auto industry changes, so do consumers habits. Is your digital marketing strategy changing along with them? Those who can adjust and adapt will thrive, those who refuse will encounter significant challenges.
ArcMinute Marketing: Your Automotive Digital Marketing Partner
As an automotive digital marketing agency, we’re happy to report that this auto industry update isn’t all doom and gloom. Although the future seems uncertain, dealers can take comfort in the fact that U.S. sales are still relatively strong and consumer confidence remains high.
There are, however, signs that the auto industry, after rising in eight of the last nine years, has passed its peak for this cycle. John Murphy, senior auto analyst at Bank of America Merrill Lynch sums it up best when he says, “You have to get your core business in great shape and that much better off than it has in the past so you can intake that success and fund the uncertain future.”
Arcminute Marketing has worked with multiple automotive dealerships to increase website traffic and sales opportunities. If you’re seeking the right automotive digital marketing partner to position your dealership for success, we’d love to talk to you! Learn more about our process and results by viewing our Automotive Paid Search Case Study and then request a consultation. We look forward to discussing your needs and goals and craft a winning strategy for your automotive dealership.
