Auto dealers try to make the connection between web site and showroom sales
Few categories could benefit more from an integrated multi-channel marketing approach than the automotive category, because even when car shoppers get their initial information online, most will eventually want to come into a dealership and kick the tires before they buy. Though 22% of all new cars will be Internet-generated this year, most dealerships still don’t view the Internet as an integral part of their business, according to a report from JupiterResearch, “Automotive Dealerships: Effectively using the Internet to drive sales in the channel.”
That’s partly because while automotive sites operated by carmakers can help consumers decide on a vehicle make and model, they do little to influence a consumers` choice of a particular dealership. A higher number of consumers visit third-party and manufacturer sites than will visit dealer web sites, Jupiter reports. That means local dealers have less opportunity to use banner ads and search terms to try to drive shoppers through their doors.
Where dealers do use the web as an effective part of a multi-channel effort and can capture their share of Internet-generated sales, it’s largely because of a proactive approach, Jupiter reports. 60% of the dealers surveyed by Jupiter that were the most successful at converting Internet leads into sales operate their own web sites; two-thirds view their site as a research tool for consumers as opposed to simply a place to list inventory or contact information. These integrated channel dealers also use metrics such as advertising effectiveness and conversion rates off their site to gauge performance and manage online ad spending better, Jupiter notes.
For now, the limited number of dealerships that understand how to integrate channels will capture most of Internet-generated vehicle sales. But that is expected to change as more dealers begin to understand and invest in the web. Between 2003 and 2004, 29% of dealers expected their online advertising budgets to grow, according to Jupiter. “Growth will be driven by increasing interest from dealerships as they experience success online and by dealerships’ increasing sophistication in terms of how they utilize the Internet,” concludes Jupiter.
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