ATLANTA—Credit unions with close relationships with their indirect partners should advise them to keep advertising spend the same or increase it.
A new study suggests that auto dealers that reduce their advertising due to supply shortages are losing money and potential customers.
According to the report from automotive marketing firm PureCars, for those dealers that have reduced their ad spending the result has been “feeling more pain” as a result of a decline in sales vs. those dealers that have instead modified advertising messages and strategies and/or increased budgets.
More specifically, between March and August of 2021, dealers that decreased their advertising spending between 50%-89% saw their sales volume drop by 28%, according to the report. However, those dealers that actually increased their advertising spend by just 9% during the same time period saw a much lighter drop in sales at just 9%, PureCars reported.