Should car dealerships invest in OTT advertising or stick with traditional linear TV? In this article, we’ll break down which option delivers better ROI, as well as additional strategies you should consider to make the most of your car dealership marketing.
OTT vs. Linear Advertising
OTT, or Over-the-Top, refers to video advertising that’s streamed over the internet on platforms like Hulu and YouTube TV. Viewers are served these ads on their smart TVs, phones, laptops, and anywhere else they stream content. Linear TV, on the other hand, refers to scheduled programming on cable or satellite television. This includes classic network shows, evening news, sporting events and more. Both options have their strengths, but when it comes to automotive marketing strategies, you’re going to want to choose the one that drives more leads and results in better sales. Here, we break down how to pick between them.
Best Car Dealership Marketing Strategies for Audience Targeting
Audience targeting is a digital marketing strategy where you show your ads to specific groups of people who are more likely to be interested in what you’re selling. Instead of casting a wide net like with a billboard or TV commercials, audience targeting helps you focus your message based on things like age, gender, household income and personal interests.
OTT is better for audience targeting because it allows you to serve ads to specific people based on data collected by the platform. For example, you can show an SUV ad to families in your area who are looking for a new vehicle, and a separate truck promotion to local contractors or outdoor enthusiasts. This kind of precision will make your marketing more efficient and your ROI stronger, since you’re reaching people who are genuinely interested in what you’re selling.
With linear TV, your ad will hit a large, generalized audience. You can still choose specific channels and time slots, but you’ll be broadcasting to a crowd rather than a niche. This broad approach can still work, especially during high profile events like the Super Bowl or local sports games, but you’ll also be paying to reach people who may never buy a car from you, which can lower your overall ROI.
Best Automotive Marketing Strategies for ROI
ROI stands for return on investment, and it’s a way to measure how effective your marketing efforts are. For car dealerships, this might mean tracking how many test drives, leads or sales come directly from an ad campaign. A high ROI means your marketing is working well, where a low ROI means it might be time to rethink your strategy.
OTT for car dealerships tends to have a better ROI because you get both audience targeting and measurable results. Both of these are offered by streaming services in a dashboard for advertisers. Instead of paying to reach a broad audience like traditional TV, OTT lets you zero in on car shoppers. You can target based on their location, search behavior, income level and more. Additionally, OTT gives you access to detailed performance data. You can see exactly what’s working and adjust your campaigns for even better results
When compared to OTT, linear TV does not tend to deliver as high an ROI. It’s more expensive to run linear TV ads, especially during peak viewing hours, and it’s more difficult to track whether viewers took action. This means you won’t be able to improve your campaigns as you go.
Best Car Dealership Marketing Strategies for Engagement
One of the perks of OTT is that most ads are non-skippable. Additionally, since you target the ads, when someone’s watching their favorite show on a streaming platform, they’re more likely to sit through your 15 or 30 second ad. They want to get back to their original content, especially if you tailor the ad directly to them. Finally, OTT platforms often limit the number of ads they run per hour. This means your dealership isn’t just one of 10 messages in a long commercial break..
When looking at the engagement for linear TV ads, people often mute commercials or get up during the breaks. Since everyone gets served the same ads, there’s less chance they feel relevant, and therefore less chance you’ll hook people’s attention. That’s not to say linear TV ads never work. A well-produced, emotionally compelling ad during a major broadcast can make an impression, but generally, engagement for linear TV ads tends to be lower.
OTT vs. Linear Advertising Based on Demographics
Younger generations like Millennials and Gen Z are spending more time streaming content, and many don’t even have cable. If you’re trying to reach first-time car buyers or a younger audience, OTT is the place to be.
Linear TV, on the other hand, is still popular with people aged 50 and up. If your dealership offers vehicles that cater to retirees or legacy brands with longtime loyalty, you may see better results from traditional ads.
Best Car Dealership Marketing Strategies for Creative Flexibility
There are many benefits to creative flexibility in ad creation. Especially when you’re trying to stand out in a market like automotive sales. With OTT advertising you’ll have access to flexible ad formats for different needs. This means you can easily change your messaging to suit different audiences. You can also update your ads quickly if a sale changes. This can help your dealership stay relevant, which ultimately leads to better ROI.
With linear TV ads, you’ll usually produce one or two commercial spots and run them over and over. Updates are costly and take time to distribute, and there’s less opportunity to test and iterate.
Which Car Dealership Marketing Option Is Right for You?
If you focus on car dealership marketing that’s trackable and cost efficient, OTT advertising is the clear winner. If your community still has strong cable viewership, especially among loyal brand customers, then you might have more success with linear TV.
Still not sure which one is right for you? Consider consulting a professional automotive marketing service to look at your data and help you make the best decision.
Learn More About Dealer Stream Automotive Marketing Services
Here at Dealer Stream, we offer streaming-first ad campaigns made specifically for car dealers. We combine curated CTV/OTT ads, audio and video creatives, anti-fraud systems, and performance tracking, all optimized to drive sales. If you’re interested in learning more about our car dealership marketing services, don’t hesitate to contact us today.