Auto Dealer Marketing Strategies 9 min read

Top Auto Dealer Marketing Strategies to Succeed in a Volatile Market

The automotive industry is in the midst of a period marked by uncertainty, where rising vehicle prices, shifting consumer behaviors, and supply chain disruptions are affecting dealerships across the U.S. These factors have created a complex and unpredictable market, making it challenging for dealerships to stay ahead.

In March 2025, new-vehicle sales surged by 22% year-over-year as consumers rushed to purchase vehicles ahead of a 25% tariff on imported cars. However, despite this surge, over half of American consumers still perceive it as a bad time to buy a vehicle, indicating a complex and unpredictable market.

In an industry characterized by volatility, dealerships must adapt their marketing strategies to thrive. Success in this environment requires a blend of agility, understanding of shifting consumer preferences, and the effective use of technology to engage potential customers.

In this blog, we’ll discuss the best auto dealer marketing strategies that can help dealerships overcome these challenges, attract new customers, and foster lasting relationships with consumers.

What’s Driving the Volatility in the Auto Industry?

The automotive industry has always been subject to fluctuations, whether due to changes in consumer preferences, technological innovations, or economic shifts.

Supply Chain Disruptions: The COVID-19 pandemic disrupted global supply chains, resulting in a lasting shortage of microchips and delays in vehicle production.
Inventory Challenges: In 2024, inventory levels remained tight. According to Cox Automotive, new vehicles were turning over much faster than before the pandemic, reflecting limited stock.
Global Dependencies: The auto industry’s reliance on overseas parts has made it vulnerable. Trade tensions—especially between the U.S. and China—have worsened supply issues.
Rising Costs and Inflation: Inflation and increased manufacturing costs have driven up the prices of vehicles. In 2024, the average price of a new car exceeded $47,000, pricing many buyers out of the market.
Consumer Demand Shift: With mounting affordability concerns, more consumers are delaying purchases, which is impacting dealership sales and long-term planning.

Top 10 Marketing Strategies for Auto Dealers in a Volatile Market

As the automotive industry continues to face its current volatility, it becomes increasingly essential for dealerships to adopt marketing strategies that are responsive and resilient.

1. Focus on High-ROI Segments

Auto dealers need to prioritize marketing efforts on segments that provide the highest return on investment (ROI). This means targeting customers who are most likely to make a purchase, rather than casting a wide net across all potential buyers.

By narrowing the focus to high-value segments, such as customers with a higher likelihood of conversion or those in the market for specific vehicle types, dealerships can better allocate their resources.

Dealers should analyze customer data and trends to identify these high-ROI segments, which could include first-time buyers, loyal repeat customers, or individuals searching for high-demand models.

Using CRM systems and other data analytics software can help identify patterns and behaviors that indicate purchasing intent. Once these segments are identified, tailored marketing campaigns, personalized offers, and targeted promotions can be developed to maximize impact.

Focusing on high-ROI segments also means adjusting messaging and creative assets to align with the unique needs of these groups, increasing the likelihood of resonating with their preferences. By focusing on these major segments, auto dealers can improve the effectiveness of their marketing and achieve better results, even in a challenging and unpredictable market.

2. Build Trust with Customer Reviews

One of the most effective ways to establish credibility and demonstrate the quality of a dealership’s service and products is through customer reviews. Positive reviews will boost your reputation and provide social proof, which can significantly influence purchasing decisions.

Dealers should actively encourage satisfied customers to leave reviews on platforms like Google, Yelp, and DealerRater. These reviews act as testimonials, showcasing real customer experiences that can reassure prospects they are making the right choice.

A high rating on trusted review sites can differentiate your dealership from competitors, especially in a market where consumers may feel uncertain about where to spend their money.

Moreover, responding to reviews, both positive and negative, helps create an engaging relationship with customers, demonstrating that the dealership values feedback and is committed to continuous improvement. This openness can enhance your dealership’s reputation and make customers feel more confident in their decision to choose your business.

By building trust through customer reviews, dealerships can foster long-term loyalty and attract more leads, even in an uncertain market. This will help convert visitors into customers.

3. Use Data-Driven Targeting

Conventional marketing tactics may not be as effective as they once were. To stay ahead of competitors and maximize marketing efforts, dealerships need to adopt a data-driven approach. This strategy involves using insights from customer data to guide advertising and outreach efforts, ensuring that the right message reaches the right audience at the right time.

Common strategies of data-driven targeting for auto dealers include:

Customer Segmentation: Analyze past purchases, demographics, and online behavior to identify and group customers with similar needs, increasing the chances of conversion.
Personalized Marketing: Use data to personalize ads and promotions, ensuring they are relevant to each customer’s buying journey and preferences.
Optimized Ad Spend: Focus marketing dollars on high-conversion segments to maximize ROI by targeting the most likely buyers.
Improved Campaign Performance: Track customer interactions and behaviors to refine campaigns, ensuring that marketing strategies are continually optimized for better results.
Timely Engagement: Use insights from customer data to reach out at key moments, such as when a customer is due for a trade-in or when interest in a specific vehicle type is increasing.

This helps dealerships significantly improve the precision of their marketing efforts, enhance customer engagement, and drive more sales.

4. Bid on Competitor Keywords

Targeting competitor keywords is a powerful strategy for dealerships looking to gain visibility and capture high-intent traffic. When a potential customer searches for a nearby competitor, appearing alongside or above them in search results can redirect attention and potentially sales to your dealership.

Here’s how bidding on competitor keywords helps:

Capture High-Intent Shoppers: People searching for your competitors are already in the market. This tactic puts your brand in front of ready-to-buy customers.
Brand Visibility Boost: Even if they don’t click your ad, repeated exposure to your name builds awareness and recall.
Differentiate Your Offer: Use ad copy to highlight what makes your dealership better, such as pricing, customer service, or unique perks.
Reclaim Lost Traffic: If a shopper considered your dealership but landed on a competitor’s site, bidding on their keywords gives you another shot.

This approach works best when paired with strong ad creative and landing pages that demonstrate your competitive advantages.

5. Promote Aged Inventory Marketing

Aged inventory can quietly erode your dealership’s profitability if left unmanaged. These are vehicles that have sat on your lot past the optimal selling window, often tying up capital and reducing your ability to refresh inventory.

To avoid costly markdowns, dealerships should proactively promote these units through strategic marketing. Highlight value pricing, run time-sensitive offers, and leverage digital platforms, like email, paid search, and social media, to move aged inventory faster. Prioritizing these vehicles helps maintain healthy inventory turnover, improve cash flow, and make room for higher-margin units.

6. Align Marketing Spend with Shifting Buyer Behavior

Car-buying behavior is constantly shaped by economic forces, supply chain dynamics, and changing consumer preferences. Rising interest rates, gas price volatility, and even new vehicle inventory levels can dramatically influence whether customers lean toward new, used, or electric vehicles. Dealers who continue to spend rigidly on a fixed marketing plan risk wasting budget or missing opportunities.

Instead, successful dealerships monitor these shifts and reallocate ad spend in real time. For instance:

When interest rates spike, more buyers may turn to affordable used cars. Dealers should then increase promotions in that segment.
If OEMs roll out aggressive EV incentives, put more effort behind digital campaigns that spotlight your electric lineup.
Seasonal trends, such as tax refund season or back-to-school, may favor specific models or price points.

The aim is to match marketing investment with real-time demand. Use Google Trends, sales data, and shopper engagement analytics to identify what your local market is currently looking for and allocate your dollars accordingly. This kind of agile budgeting maximizes return on investment while also keeping your brand relevant when customer priorities shift.

7. Drive Foot Traffic with Irresistible, Store-Exclusive Offers

Getting digital attention is only half the battle. The real goal is getting shoppers through your doors. One of the most effective ways to make that happen is by creating compelling, in-store-only offers that give buyers a reason to visit you instead of clicking “Buy Now” elsewhere.

These offers should go beyond generic discounts. Think in terms of added value and exclusivity:

Complimentary maintenance packages for in-store purchases
Limited-time trade-in bonuses that expire within days
Free accessories or upgrades are available only to showroom visitors
Test-drive incentives like gift cards or service vouchers

Unique promotions like these boost foot traffic and also create a sense of urgency, differentiating your dealership from online-only retailers or less proactive competitors. When shoppers feel like they’re getting something special, especially something they can’t get online, they’re far more likely to walk into your store ready to buy.

8. Maximize Every Opportunity to Generate Phone Leads

Phone calls remain one of the most valuable sources of leads for car dealerships. They’re direct, immediate, and often signal strong purchase intent. To capitalize on this, dealers should take full advantage of the phone-focused tools available in Google Ads.

Here’s how to make your campaigns ring:

Call-only Campaigns: These campaigns are curated to generate phone calls instead of website visits. Your ads display a clickable phone number, and you’re charged when someone taps to make a call. Because the goal is different from standard search ads, you’ll need a tailored approach in terms of keywords, ad copy, and scheduling.
Call Extensions: Add a call button to your existing search ads without removing the option to visit your website. You can even set these to appear only during business hours, ensuring your team is available to answer when a lead calls.
Mobile Bid Adjustments: Since most phone calls happen on mobile devices, increase your bids for mobile traffic. This helps prioritize visibility for searchers who are most likely to call immediately.
Call Tracking: If you’re not tracking your calls, you’re missing critical insights. Use call tracking programs to identify which campaigns, ads, and keywords are generating the most valuable phone leads so that you can reinvest with confidence.

9. Remarket

Not every shopper converts on their first visit, especially in the automotive industry. Buyers often spend weeks researching, comparing models, and weighing financing options. Remarketing allows your dealership to reconnect with those potential customers and guide them back into the buying process.

With well-executed remarketing campaigns, you can show compelling display ads to people who’ve already visited your site. These ads act as reminders, keeping your dealership visible while they continue their decision-making journey. Instead of letting those leads go cold, you can reignite interest by promoting a limited-time offer, showcasing a popular model, or highlighting a flexible financing deal.

Remarketing can be configured through platforms like Google Ads, Facebook, and Instagram, allowing your message to follow prospects across the web and social media. Done right, it brings potential buyers back with a stronger intent to act, often leading to more in-store visits and ultimately, more sales.

10. Invest in Ongoing Team Training

Your marketing efforts can drive traffic, but it’s your team that converts leads into buyers. A well-trained sales and BDC staff can be the difference between a missed opportunity and a closed deal, especially when buyers are more cautious or selective in a shifting market.

Regular training keeps your team sharp, aligned with current buyer expectations, and equipped to handle objections, manage digital leads, and follow up effectively. Whether it’s refining phone skills, improving appointment setting, or learning how to sell value over price, consistent coaching can lead to noticeable improvements in performance. Beyond just sales techniques, training also boosts morale and confidence, helping your staff adapt to market changes with greater agility. In times of uncertainty, dealerships that invest in their people tend to come out ahead.

ATN supports dealerships with virtual training and in-store workshops to improve sales, BDC, and Internet team performance. With personalized coaching from seasoned experts, your staff gains actionable skills to boost results in today’s market.

Drive Performance with Industry-Leading Training Solutions from ATN

A well-trained team is essential for thriving in the ever-changing automotive market. Automotive Training Network’s expert training, consulting, and management services equip dealerships with the tools they need to succeed, regardless of external challenges.

With over 40 years of experience serving dealerships worldwide, ATN offers:

In-Store & Virtual Training for Sales, BDC, and Internet teams
4-Day Bootcamps in Scottsdale with hands-on coaching
Custom Consulting Services tailored to your store’s needs
Managed Store Services with guaranteed profitability

Get your dealership ready for success today.