EP 11:14 When Vendor Advice Goes Wrong: Why Your Marketing Team Needs Car Sales Experience

In this episode of the Millionaire Car Salesman Podcast, Sean V. Bradley sits down with longtime industry strategist Troy Spring to discuss the evolving state of automotive advertising. With nearly four decades in the business, Troy brings a perspective shaped by experience, data, and a deep understanding of what truly moves the needle for dealerships!

"I've never seen anything work better than direct mail ever." - Troy Spring

From traditional marketing channels to modern digital ecosystems, the conversation explores how dealers think about their market, their budget, and the strategies that shape their advertising decisions. Sean and Troy examine the realities dealerships face today, from vendor relationships to the role of in-house marketing leadership, and why understanding your market is more important now than ever!

"It's a chess match. It's not just advertising. It's about looking at everything holistically." - Troy Spring

This episode challenges assumptions, reframes how dealers view their advertising spend, and offers a candid look at the mindset needed to succeed in a competitive landscape. If you’re a Dealer, General Manager, marketing manager, or anyone responsible for driving traffic and generating opportunities… this is a conversation you’ll want to hear firsthand!

Tune in to learn how top operators are rethinking their advertising journey, and why the next evolution of automotive marketing starts with clarity, strategy, and control!

 

Key Takeaways:

✅ Direct mail remains one of the most effective traditional advertising methods for car dealerships, often outperforming digital strategies.

✅ To optimize marketing spend, dealers need to focus on their immediate market area before expanding efforts to broader markets.

✅ Understanding and calculating the true cost-per-sale involves more than just the simple division of ad spend by cars sold.

✅ Dealerships should ensure their marketing managers have both automotive sales experience and technical knowledge in digital marketing certifications.

✅ Successful dealer strategies often include a mix of both traditional and digital marketing methods, customized to their specific market needs.

 

About Troy Spring
Troy Spring, Co-founder of Dealer World, is an automotive industry veteran with nearly 40 years of experience! He sold his first car at the age of 18 and rose quickly within the ranks to manage dealerships, including leading a four-store group as a platform manager. In 2009, Troy founded Dealer World, a boutique advertising agency specializing in driving traffic and sales strategy for car dealerships. He later co-founded Dealer Funnel, focusing on nurturing leads for better conversion rates. Known for his innovative approach and in-depth understanding of both traditional and digital automotive marketing, Troy is highly respected in the industry!

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Disrupting Auto Dealership Strategies: Insights from Industry Experts

Key Takeaways

• Dealers must focus on securing their local market before venturing into new territories to maximize profitability.

• A holistically-managed marketing plan, customizable per dealership's needs, outperforms cookie-cutter OEM vendor solutions.

• Successful dealership marketing relies on understanding both traditional and digital advertising fundamentals.

The Importance of Protecting Your Primary Market Area (PMA)

In the fast-paced world of automotive dealerships, focusing on expansion without reinforcing the existing customer base can be a recipe for inefficiency. Sean V. Bradley, president of Dealer Synergy, suggests a foundational strategy: focus on protecting your primary market area first. Bradley asserts that many dealers overlook the rich opportunities available locally. "It's interesting," Bradley remarks, "we'll sit with a dealer, and they'll say, 'I got to go after XYZ down the street,' when they should be protecting their backyard first."

This discussion highlights that the inclination to conquest rather than consolidate can lead to a dilute marketing focus. The result? Dealers potentially miss out on higher return-on-investment (ROI) opportunities domestically. Bradley's recommendation to analyze the pump-in, pump-out report is a strategic reminder to first solidify one's standing locally. This approach not only optimizes ROI but also reduces advertising costs associated with pursuing less familiar, distant markets.

Taking Bradley’s advice to heart, a dealership can enjoy the double benefit of deepening customer loyalty while also enhancing word-of-mouth marketing locally. Through focusing efforts on holding on to current clientele before aggressively targeting competitors', dealerships can achieve a more sustainable, profitable growth model.

Crafting a Custom Marketing Strategy: Beyond OEM and Vendor Scripts

Both Bradley and Troy Spring, founder of Dealer World, make compelling cases against the dependency on prescribed OEM and vendor-driven tactics. Amid the rising challenges facing automotive dealerships, they argue for a bespoke marketing strategy that’s adaptable to each dealership's unique environment. Spring states, "You have to be with someone who can think holistically because if you're on with linear OEM vendors, you're just gonna get told why you should continue to do more and more of what it is that they sell."

Such insights underscore the limitations of formulaic marketing solutions. While OEMs often push for uniformity—to simplify their nationwide branding and operations—dealerships must vigilantly evaluate these suggestions. Bradley underscores a critical point, proposing that dealers risk spending thousands unnecessarily on ineffective lead generation strategies because they blindly follow OEM guidance.

The conversation dives into the economics of advertising. Bradley shared, "I've got a dealer group spending $70,000 on a splash page generating just a few hundred leads each month." This statistic serves as a caution against the pitfalls of not closely scrutinizing advertising expenditures versus results. It’s essential for dealerships to cultivate an advertising strategy where each segment, from pay-per-click (PPC) to SEO and database marketing, functions as an integrated system rather than disparate efforts. This avoids the trap of bloated expenses disguised within bundled packages, which can negate perceived savings with reduced effectiveness.

Bridging Traditional and Digital Advertising for Maximum Impact

The discussion also delves into appreciating the coexistence of traditional and digital advertising within dealership marketing, which offers a nuanced approach to driving traffic. One standout revelation from Troy Spring? The effectiveness of direct mail. Although often regarded as an antiquated medium, Spring asserts, "Nothing has ever worked better than direct mail." It's a thought-provoking declaration in an era rich with digital solutions.

Contrary to perceived obsolescence, traditional methods such as direct mail remain relevant, especially when optimized with the latest data analytics techniques. Properly targeted, a traditional medium can reach high potential customers directly and personally. Given the inundation of digital ads, a physical piece of mail stands out, often carrying more weight.

Spring further suggests that while digital tools, like social media and search engine marketing (SEM), play critical roles in modern strategies, their effectiveness hinges heavily on their synergy with traditional advertising channels. These multifaceted campaigns leverage the strengths of both domains—ability to track and personalize digital ads with the tangible and trust-building potential of offline methods.

Emphasizing on integrative approaches that couple interactive digital platforms with traditional media allows dealerships to engage in comprehensive advertising strategies personalized to consumer behavior trends. Through harmonizing these forces, a dealership’s presence is effectively cemented in the market, leveraging the best aspects of each medium.

A Synthesis of Strategy and Practice

The insights shared by Sean V. Bradley and Troy Spring showcase a wealth of expertise in crafting dealership marketing strategies that balance innovative thinking with foundational business tenets. As dealerships navigate the complexities of an ever-evolving industry landscape, these professionals emphasize the necessity for both strategic foresight and a command over advertising mechanics.

Essentially, the most adept dealerships will be those that recognize the imperative to protect their primary markets while scaling responsibly. They explore bespoke advertising solutions beyond OEM packages, integrating digital dexterity with traditional marketing. Each dollar spent should be scrutinized for its ROI, as the measure of an effective advertisement goes beyond impressions or clicks to the tangible growth it champions for the dealership.

In an industry as competitive as automotive sales, this layered, integrated approach becomes the solutions beacon through transformative, modern advertising challenges.

 

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Resources + Our Proud Sponsors:

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