How much does an Automotive dealership spend to attract visitors to their location?
Automotive dealerships spend a significant amount on advertising to attract visitors to their locations. The average advertising expenses per car dealership in the United States amounted to nearly $529,000 in 2023
. This spending is distributed across various channels, with digital marketing being the primary focus.
Breakdown of Advertising Spend
Digital Marketing: Dealers spend 65% of their total marketing budget on digital advertising
This includes:
Search engine marketing and website optimization: $103,140
Third-party listing sites: $109,487
Social media advertising: $64,000
Traditional Media:
Television: $52,892 (10% of budget)
Radio: $50,248 (9.5% of budget)
Direct mail: $26,446 (5% of budget)
Newspapers: $11,636 (2% of budget)
Cost Per Vehicle Sold
Dealerships aim for a cost per unit sold of around $250 on any marketing channel.
For example, if a dealership sells 50 vehicles per month, they should plan to spend approximately $12,500 per month on marketing.The average dealer spent $708 on advertising for each new vehicle sold in 2023, which is slightly down from $718 in the previous year.
Industry Trends
The U.S. digital ad spend for the automotive industry is projected to grow 11.1% to $21.22 billion in 2024, accounting for 7.2% of total digital ad spend. This increase reflects the growing importance of digital marketing in attracting customers to dealerships.It's important to note that advertising expenses can vary based on factors such as dealership size, location, and specific sales objectives. Some dealerships may spend more aggressively, especially when starting out or aiming to make a big impression in their market.
Dealerships spend tremendous amount of money to encourage visitors to their website. The First Impressions of the visitor is key to increase website engagement and create leads for the dealership. Dealerships with the highest quality vehicle imaging and interactive media maximize their advertising investment!
Money graphic representing advertising spend for auto dealerships
