If you’re a car dealership, using co-op advertising programs is one of the smartest ways to improve your marketing and drive sales. These programs are offered by car manufacturers, who give dealerships financial support to promote their brands. And yet, as the digital landscape evolves, so do the number of ways you can invest in co-op advertising.
In this article, we’ll look at different ways you can use to invest in automotive co-op programs, both through digital strategies and in person.
What Is Auto Co-op Advertising?
Before diving into new strategies, let’s cover what auto co-op advertising is. Essentially, automotive manufacturers give money to dealers for advertising purposes. These funds are typically tied to the dealership’s vehicle sales volume, and the goal is to align the manufacturer’s marketing with local dealership promotions.
Dealerships can use these funds for a range of marketing efforts, such as digital advertising, radio spots, SMS campaigns, social media marketing, and more. The catch is that there are often guidelines around branding, messaging, and ad placement to make sure the dealerships stay on message.
Should You Risk Investing in New Car Dealer Co-op Advertising?
Though it’s easy to stick with what’s worked in the past, exploring new marketing methods can make a big difference for car dealerships who want to stay ahead. By stepping out of your comfort zone and embracing innovative strategies like SMS marketing, AI-driven campaigns, or digital advertising, you open the door to reaching new audiences. Also, fresh approaches can help you stand out from competitors, adapt to changing consumer behaviors, and discover cost-effective ways to boost ROI.
New Ways to Invest in Co-Op
With the rise of digital advertising along with traditional methods you may not have tried, there are many new ways to invest in car dealer advertising. Here, we cover the best ways to spend your automotive dollars.
Invest in Programmatic AdvertisingProgrammatic advertising uses automated technology to buy ad space online, targeting audiences based on data such as demographics, online behavior, and geographic location. For car dealers, this approach can greatly improve how you spend your automotive co-op budgets since it makes sure your ads are reaching people who are actively in the market for a new car.
Use Social Media for Co-op CampaignsSocial media platforms like Facebook, Instagram, and TikTok are great tools for co-op opportunities since they allow you to create content that showcases your vehicles. For example, you may create a short video walkthrough of a new model or a carousel post highlighting its benefits. These types of posts can create a lot of interest.
Explore OTT and CTV AdvertisingSocial media platforms like Facebook, Instagram, and TikTok are great tools for co-op opportunities since they allow you to create content that showcases your vehicles. For example, you may create a short video walkthrough of a new model or a carousel post highlighting its benefits. These types of posts can create a lot of interest.
Run an SMS Marketing CampaignSMS marketing is marketing through text messages. Unlike other advertising avenues like email and social media, SMS marketing has an impressive open rate of over 90 percent, meaning your messages will actually reach the people they’re intended for. Using SMS marketing, you can send vehicle promotions, updates, and other notifications directly to the people on your list. Better yet, with the right CRM software, these processes can be entirely automated.
Invest in Data-Driven Marketing ToolsData is king when it comes to marketing. By investing in tools like customer relationship management platforms that analyze customer behavior and campaign performance, you can make more informed decisions about how to allocate your car dealer co-op funds.
Invest in Data-Driven Marketing ToolsData is king when it comes to marketing. By investing in tools like customer relationship management platforms that analyze customer behavior and campaign performance, you can make more informed decisions about how to allocate your car dealer co-op funds.
Use Google Ads Google Ads remains one of the most powerful digital marketing strategies for car dealerships. Search engine marketing campaigns drive immediate traffic to your website and can help you connect with people who are searching for vehicles. Maximize your auto co-op advertising budget on Google Ads by using local campaigns that prioritize in-store visits.
Host Virtual EventsIn a post-pandemic world, virtual events have become a creative way to engage new customers. For example, you can run online vehicle launches or host live Q&A sessions to promote specific makes and models.
Run an Email Marketing CampaignEmail marketing is a cost-effective way to connect with your audience and promote co-op-funded vehicles. Create segmented email lists to target specific customer groups with personalized messages, and remember to include the manufacturer’s branding to make sure you’re meeting the co-op advertising guidelines.
Build a Strong Website While co-op advertising often focuses on external campaigns, don’t overlook the importance of your dealership’s website. You can use co-op dollars to improve your site’s functionality and content. Consider investing in great CRM software, SEO optimization for inventory pages, high-quality vehicle images and videos, and professional descriptions and blog posts. Additionally, you can use co-op funds to promote the manufacturer’s vehicles through banner ads or homepage highlights.
Install a ChatbotIn addition to improving your website, you can add online chat features. People want to have their questions answered quickly and easily, and chatbots can help. Here at TECOBI, we’ve designed the TECOBI Auto Bot to help car dealerships automate things like online chats and follow-ups in the car sale process. Our bot not only re-engages conversations with smart follow-ups, but it can also reach out to older leads with personalized interactions.
Learn More About New Ways to Invest in Co-Op
Auto co-op advertising is a great tool for car dealerships, but it’s just as important to stay ahead of the curve. By trying new marketing strategies like programmatic ads, social media, OTT/CTV, and chatbots, you can maximize your co-op budget while reaching new buyers. Additionally, focusing on data-driven tools and investing in the right software will make sure that every dollar you spend gives you real results.