TAMPA – Auto dealers’ regional joint advertising should get a better return on investment now that local dealer groups control much of it, adman Rob Mudd says.
Spearheaded by General Motors Corp., several auto makers have turned over control of such ad spending to local dealer associations and ad groups that “know their markets,” says Mudd, president of Mudd Advertising’s agency division in Chicago.
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Dealers praise the move. The down side is regional dealer groups can get bogged down struggling to develop a unified message, says Mudd and others at Ward’s Automotive Spring Training Conference presented by Autobytel here.
Still, there’s general agreement that regional advertising is best left to local dealers. Auto maker ads tend to tout the brand, while dealer ads urge consumers to buy.
“Dealer associations will put out a message, not so much ‘Chevrolet is great,’ but ‘buy one now!’” Mudd says. “You’ll see an increase in GM market share for that reason alone.”
Auto maker-controlled regional advertising can be virtually identical yet run in different markets, he says. With dealers having a greater advertising, “you will see spots appropriate to their markets.”
Referring to market differences, David Armitage, Autobytel Inc.’s vice president-advertising, says, “There are things that make sense in the Pacific Northwest that don’t make sense in Phoenix.”
Dealers celebrated when GM relinquished control of ad spending to local dealer groups, says Ralph Perkins, vice president-sales and marketing for the Potamkin Automotive Group based in Miami Lakes, FL.
“We all cheered,” he says at a panel discussion on marketing strategies. “It seems like a test. So dealer associations are trying to get up to speed.”
There should be an integration of advertising by auto makers, regional dealer ad groups and individual dealers, says Michael Baker, CEO of the Bob Baker Auto Group based in San Diego. “The three should be singing the same song.”
It is hard to find a common marketing message if dealer ad group members differ on intent.
“Some dealers want the regional message to focus on moving slow-selling vehicles in their inventories,” Baker says. “To me, that’s not the purpose of a regional ad.”
He wants more accountability on the effectiveness of regional advertising. “If we are dedicating 50% of a regional ad budget to the Toyota Corolla, I want to see Corolla sales go up.”
Strong differences of opinion can delay the final product, Mudd says of dealers collaborating on ads. “The way to make it work is to get the message out – now. That’s a problem with some dealer associations. They take too long.”
An inherent hindrance is that the collaborators consist of same-brand dealers competing against each other. “We don’t want to share some stuff,” Perkins says.
Thomas Vann, owner of Team Hillsdale (MI) Chrysler, adds: “You get the desire for a team effort and rah-rah spirit. But, as a Chrysler dealer, I’m fighting other Chrysler dealers more than Ford and Chevrolet dealers.”
Baker says: “It’s more of a dogfight among dealers today.”
Ward’s Automotive Spring Training