Even the best automotive advertising can fail if it’s not paired with a strong follow up strategy. If you’re not currently using retargeting, or if you’re using it in the wrong way, it could be costing you leads and sales. In this article, we’ll discuss the psychology behind retargeting, where most automotive advertising campaigns go wrong, and how you can fix your strategy today.
What Is Retargeting?
Retargeting is a marketing strategy that reconnects with people who’ve already interacted with your dealership online. They may have clicked on your car ad or browsed the inventory on your website, but they haven’t yet made a purchase. Retargeting allows you to show them ads that nudge them back toward action, whether that be coming in for a test drive or closing a deal.
The Problem with Poor Retargeting
A lot of automotive advertising budgets are eaten up by initial marketing efforts, which may include things like commercial car campaigns and sponsored content. However, if your automotive marketing strategies don’t include a great retargeting system, you’re essentially throwing away the money you’re spending.
The car buying journey takes an average of 89 days, and people rarely click a single car ad and then go straight on to make a purchase. Instead, they need time to do research and test different cars, and if you’re spending money on ads that get people to your website but then never following up, you’re losing them high in the sales funnel. Poor retargeting, or none at all, leads to wasted ad spend, lower conversion rates, lost leads to competitors and a poor ROI on your campaigns.
The Psychology Behind Retargeting
For most people, buying a car is not an impulsive decision. People take the time to do research and deliberate, which means your potential buyers are going to need multiple touchpoints before they commit to a sale.
It’s for this reason that retargeting works so well. It keeps your brand in their minds as they go through the buyer’s journey. Additionally, retargeting positions you as the most familiar and therefore safest option when a person is finally ready to make a decision. Psychologists call this the “mere exposure effect.” The more often someone sees your brand, the more they trust it, and the more likely they are to choose your dealership over someone else.
Where Most Auto Dealerships Get Retarketing Wrong
Here are a few common retargeting mistakes that could be costing you sales.
Only One Message
Someone who looked at a luxury SUV doesn’t need to be retargeted with ads about your economy sedans. You should be personalizing your retargeting car ads to capture the most attention.
Too Much Time Between Touchpoints
The longer you wait to reengage someone who visited your website or clicked on an ad, the colder that lead will get. A shopper who was ready for a test drive last week might not be interested this week, either because they chose one of your competitors or they moved on from their search.
Repetitive Ads
Bombarding people with the same ad over and over again across every platform can make them tune out. Instead, it’s best to switch up your ads regularly while keeping your branding consistent.
Ignoring Mobile
These days, people are constantly switching between their laptops, tablets and phones. If your retargeting doesn’t flow smoothly across devices, you’re likely losing leads.
Tips to Improve Your Automotive Marketing Strategies
Want to make your automotive advertising work better? Here, we cover a few tips on how to improve your automotive marketing strategies, focusing on retargeting.
Segment Your Audience
Use data provided by your ad platforms to divide your leads into groups like budget buyers or people who might want EVs. You can tailor your retargeting ads to show each group what they care about for more effective engagement.
Use Dynamic Retargeting
Dynamic ads automatically display the exact cars someone viewed on your site. It’s an effective strategy and tends to lead to better click through rates than if you were to show them cars they hadn’t yet seen.
Layer Your Messaging
Retargeting can be set up like a drip campaign. First, you should remind people of the car they were interested in. Then, you can offer a promo related to that vehicle and highlight testimonials. Finally, you can push for things like test drives or for the person to learn more about financing options. The idea is to layer your messaging to build the case over time.
Use Video
Video ads grab attention and are ideal for advertising commercial cars with new features or a behind-the-scenes look at your dealership. Use short retargeting videos to reengage your audience on platforms like YouTube and Facebook.
Track
Make sure you’re tracking which retargeting ads are converting to sales. Many advertising platforms, especially streaming platforms, offer insights into buyer behavior that allow you to see what’s working and adjust accordingly.
How to Gain a Competitive Edge with Retargeting
The automotive industry is more competitive than ever. Both traditional dealerships and online platforms are fighting for people’s attention, and if your marketing stops at the first impression, you’re handing your competitors the opportunity to close the deal.
With retargeting, you’ll be able to convert more interested shoppers into leads, and eventually turn those leads into sales. However, having a retargeting campaign alone isn’t enough. Poor retargeting efforts can actually turn away your most interested customers, which is why it’s so important to make sure your campaigns are set up for success.
Not sure where to start? Dealer Stream offers automotive marketing services with retargeting for dealerships like yours. Our experts can help you reach your ideal audience, engage them with compelling content, and drive results.
Learn More About Automotive Marketing Strategies with Dealer Stream
Ready to learn more about the most effective automotive marketing strategies? Here at Dealer Stream, we offer streaming-first ad campaigns built specifically for car dealers. We combine curated CTV/OTT ads, car dealership videos and performance tracking, all optimized to drive sales. If you’re interested in learning more about our car dealership marketing services, contact us today.