If you haven’t heard by now, there is a microchip shortage that is not only affecting production of new cars, but it is also affecting car dealerships' new inventory nationwide.
It is hard to create marketing campaigns around inventory that does not exist! Car dealers have had to adapt swiftly to change their digital marketing strategies as the microchip shortage continues. The OEM’s are awaiting a ramp up production for the chips, but it can’t come soon enough.
Car dealers have always relied on “turning on a dime” for strategy and this time is no different. Since new car inventory is low and the outlook of deliveries is dim, dealers have shifted to a “We Buy And Sell Used Cars” strategy and service campaigns to keep the lights on!
It’s clear the automotive industry needs to quickly pivot. Car dealers have always relied on “turning on a dime” for strategy, and this time is no different. With the emergence of Carvana and Roadster, dealers have adapted and begun to lean into their digital marketing strategy. But, now the sales funnel is evolving, policies are changing, people’s habits are adapting and you need to be prepared.
Why are some dealerships hurting more than others? The answer is simple…it all comes down to timely, relevant, good marketing and meeting people where they are at in their car shopping journey. And if your OEM puts big dollars behind their branding campaign efforts (more TV and radio), it’s time for you to put your marketing dollars behind your digital marketing branding campaign and connect with the local shopper online.
How PCG Continues to Adapt Strategies
PCG has adapted our clients strategies based on need and inventory levels by client while keeping macro events in mind. SEO continues to focus on the new models coming out while, Paid Social and SEM advertising focus on lowering budgets towards new models and moving those funds to used inventory and service.
Most clients have moved around 15% to 20% (if not more) out of new model/new auto inventory campaigns to service and used cars.
Our teams are executing more strategies tailored towards “We Buy Used Cars” messaging campaigns’ to help obtain hard to find used car inventory and do not see this trend slowing down. Dealers should rely on their agency partners to execute custom search and display campaigns with SEM that link back to their website to specific, optimized landing pages, amongst other connected strategies to ensure market advantage.
PCG has also been implementing an increase in video pre-roll to gain awareness for specific clients about “We Buy Used Cars” campaigns.
The Paid social advertising department’s role is being leveraged in new ways for these campaign type as we build ad creative including moving images and ad text to increase engagements.
And for clients with service campaigns, our teams are increasing the overall importance of ad spend and campaign inclusion as well, because as the old adage goes “service keeps the lights on”!
What Macro Factors Should Your Marketing Teams Keep in Consideration?
The fact of the matter is, technology is evolving the automotive industry, from the engineering side all the way to new website tech.
And if you hadn’t heard already, Ford recently released the 2022 F-150 Lightning, a fully electric truck. Judging by the number of high-profile electric pickups in the pipeline and combining America’s love affair for trucks with a zero-emissions powertrain….seems like a good bet to put Americans into an EV. Ford dealers, are you ready? EV is the future and dealerships don’t want to miss the opportunity to capitalize on this momentum with their marketing.
So while the chips may be down, PCG digital has the innovative marketing strategies you need to keep up in the fast lane! Contact us for more information and keep up with our blog to stay up to date on the state of the microchip crisis! We are eager to help!
- TIP: If you are a Ford dealer, be sure your marketing partners are not pushing out ads that bait and switch availability in these scenarios. If you are part of a different OEM, try placing ads that target the F-150 EV shoppers with “other F-150 Shoppers Considered” type of angles!
So while the chips may be down, PCG digital has the innovative marketing strategies you need to keep up in the fast lane! Contact us for more information and keep up with our blog to stay up to date on the state of the microchip crisis! We are eager to help!
Lisa Grande
