More auto dealers embrace natural and paid search, study says

Auto dealers are slowly increasing their use of search engine marketing to drive traffic to both their web site and the showroom, says a new study from J.D. Power and Associates. Paid and natural search marketing is another way for dealers to generate quality leads and enhance the visibility of their web site.

Currently 75% of auto dealers use search engine optimization, J.D. Power and Associates says. While only 33% of dealers currently use paid search engine marketing, more than 80% of those dealers say they believe that it improves web site visitation, as it takes vehicle shoppers directly to the dealer web site as opposed to shopping through an online buying service. Visitation to dealer web sites has the added benefit of increasing visibility of the service and parts department to potential buyers, according to J.D. Power.

“Dealers are starting to recognize just how important and valuable their web site is, especially considering that the best leads dealers receive often originate from their site,” says Min Cho, senior analyst of digital marketing solutions at J.D. Power and Associates. “In the 2006 Used Autoshopper.com Study, we found that the percentage of buyers who located their vehicle online has doubled in the past five years. Having a presence on the Internet by subscribing to online buying services and using search engine marketing methods is increasingly important in connecting with vehicle shoppers as more traditional advertising methods decline in popularity.”

The J.D. Power study is based on 1,010 dealer evaluations.