Too often, dealers and consultants zero in on advertising metrics like Cost Per Lead (CPL) or Click-Through Rates (CTR). While those are important, focusing only on these numbers misses a much bigger point: the full marketing funnel. Simply put, the marketing funnel is the path your potential customers take from the moment they first hear about your dealership (awareness), to when they start evaluating you (consideration), and finally to when they make a purchase (conversion). After that, there's even more to it, like keeping customers loyal and turning them into advocates who refer others to you.

In a roaring economy, like what we saw during COVID, leads seemed to come effortlessly. People had stimulus checks, plenty of disposable income, and were ready to spend. Consumers entered the funnel already in the consideration or conversion phase because they had the money and the motivation to buy, regardless of whether or not they were aware of your dealership beforehand. This led to high conversion rates and easy sales with little effort.

But here's the critical part: relying on this limited approach, focusing only on leads and conversions, won't work in a tougher economy. When times get harder, like during a recession, money isn't as free-flowing, and people don't automatically enter the funnel at the consideration or conversion stage. This is where dealerships get choked out. Without the foundational awareness efforts, they're left with fewer buyers, higher conversion costs, and shrinking profits.

Dealers who succeed in more challenging times understand the entire funnel and invest in every stage, especially awareness.

Awareness is the Foundation

At the top of the funnel is awareness, the phase where people first discover you. Imagine you're at a party, and someone mentions a car dealership you’ve never heard of. That’s awareness, it’s the moment a consumer first learns that your dealership exists. In digital marketing, awareness often comes from platforms like Meta Ads, YouTube, OTT (Over-the-Top Television), and TikTok, to name a few.

Unfortunately, many dealers dismiss these platforms too quickly because they don’t produce immediate leads. But here’s the catch: these platforms aren’t necessarily built to generate a direct lead. They’re designed to create awareness. They ensure potential customers know you exist, which is the first critical step in moving someone down the funnel. Without awareness, no one can consider or convert.

For example, people who entered the funnel were already prepared to buy during COVID-19, so many dealers didn’t need to prioritize awareness. The leads seemed to roll in on their own. But now, with the economy shifting, consumers need that awareness phase more than ever. They aren’t rushing into decisions, they need to know who you are before considering buying.

Awareness marketing pays off over time. When it's combined with the lower funnel phases like consideration and conversion, your overall cost-per-lead goes down. Why? Because consumers are already familiar with you and are more likely to choose you over a competitor when they're ready to buy.

Consideration: When Customers Start Evaluating

After consumers become aware of your dealership, they enter the consideration phase. This is when they start actively looking at their options and comparing dealerships. They know they want a car; they’re just deciding who to buy it from. Digital marketing vehicles like Pay-Per-Click (PPC) advertising, Geo-Fencing, Video Reels, and Carousel Ads in Meta become critical tools during this phase.

Consider this: a potential buyer might have seen your YouTube ad a few weeks ago (awareness), but now they’re ready to buy a car. They go to Google and search for the “best car dealership near me.” If you’ve set up a strong PPC campaign, your dealership will show up at the top of their search results, and they will click through to your website. This is where consideration really kicks in, they're looking at your inventory, comparing prices, and maybe even reading reviews. At this point, your goal is to keep their attention and make sure they keep coming back to you.

If you’ve also set up retargeting or remarketing ads, you can follow them around the internet. Retargeting allows you to serve ads to those who have visited your website but haven’t purchased yet. It’s a gentle reminder that they were looking at cars and haven’t decided. The more touchpoints you have during this phase, the better.

Conversion: Closing the Deal

The final step is conversion. This is where all your efforts pay off, the customer makes the decision to buy from you. Think of this as when they come into your dealership, sign the paperwork, and drive off the lot in their new car. If your marketing funnel works effectively, this part of the process becomes much smoother.

At this stage, tools like Google VLA ads, AIA (Automated Inventory Ads) on Facebook, and TikTok, along with retargeting ads, can make a huge difference. These ads remind potential buyers of the exact vehicles they viewed on your website or engaged with in the consideration phase. The goal is to keep nudging them until they convert and purchase.

A well-rounded funnel doesn’t just help with awareness and consideration; it actively reduces your conversion costs. By the time a customer gets to the point of purchase, they already know who you are (thanks to awareness ads), and they’ve actively compared you with competitors (thanks to consideration tools like PPC). Now, it’s just about making it as easy as possible for them to choose you.

Loyalty and Advocacy: Turning Buyers Into Advocates

The final two stages are the points that too many dealerships overlook: the funnel doesn’t stop at the sale. Loyalty and advocacy are the marketing funnel's final and often most neglected phases. Once someone buys from you, you want to turn them into a loyal customer who refers others to your dealership. This is where your CRM (Customer Relationship Management) system becomes a powerful tool. You're keeping your dealership top of mind by sending follow-up emails, offering referral bonuses, and running targeted ads to your existing customer base.

Why is this so important? Because the most valuable customer is one who comes back to you and brings their friends. A customer with a great experience will likely recommend your dealership to others, but they’ll be even more likely to do so if you give them a little nudge. Consider running advocacy ads that remind your customers about the benefits of referring a friend, whether that’s a gift card, referral fee, or simply a personal, hand-written thank you note.

The Danger of One-Size-Fits-All Thinking in Marketing

One of the biggest mistakes dealers can make is assuming there’s an exact A/B comparison between their dealership’s marketing performance and another dealer’s. Comparing results can be helpful for learning and growth, but it can also be misleading. Just because one dealer is crushing it with a particular digital marketing product in their market doesn’t mean you’re doing something wrong if it’s not working the same way. Let us explain why.

Every dealership is different. For starters, inventory varies. One dealer might be able to move a specific type of vehicle quickly. In contrast, another dealer in a different market with different consumer demands might struggle to sell the same inventory. Sales processes also differ widely, some dealerships are quicker to respond to leads, which can drastically affect their conversion rates. A dealership that responds to a lead in 5 minutes will see better results than one that waits hours or even a whole day. 

There’s also the matter of lending requirements. Some dealers have more flexible financing options, while others face more onerous restrictions, which can slow down the sales process. And let’s not forget the role of market conditions. Dealers in more affluent areas might not experience the same economic struggles as those in more challenging markets. For example, a dealership in a wealthy suburb might not feel the same pinch as one in a more economically challenged area during a recession.

Take metro cities versus rural markets. In a metro area, you may need more leads to sift through the volume of people, and your conversion rate will naturally be lower due to the sheer amount of competition. On the other hand, in a smaller rural market, each lead is far more valuable because the competition is less fierce. Your conversions may come easier simply because the customer has fewer choices or it is just a better economically performing municipality.

Dealers attending conventions and 20 groups often hear success stories and want to replicate them exactly. While these gatherings are great for education and networking, the idea that marketing tactics can be carbon-copied across dealerships is highly misleading. What works for one dealer might not work for you, not because you're doing it wrong, but because your market dynamics are entirely different. Copying someone else’s strategy without considering your unique circumstances can be dangerous and lead to wasted marketing spend or the revolving door of constantly changing marketing strategies.  Just like we tell our salespeople, the grass isn't always greener at another dealership.  Maybe it's time we heed our advice.  

The key is to understand your market and your dealership’s strengths and weaknesses and build a custom strategy that fits your specific situation. At Big Time Advertising & Marketing, we consider these factors when developing campaigns for our dealers. We know that no two markets are exactly alike, and we tailor strategies that align with each dealer’s inventory, processes, and local economic conditions.

The Power of a Full-Funnel Strategy

So, after all this, what’s the takeaway? Successful dealerships don't focus solely on Cost Per Lead or CTR. They recognize the power of an entire marketing funnel, from awareness to loyalty, and they understand that every step maximizes overall returns.  Plus, they also trust the plan and work on it without abandoning it because of a bad week or month.  They trust the funnel.  We cannot control the economy, but we can control how we respond to it. 

At Big Time Advertising, we work with dealers daily, ensuring their advertising spend is optimized across the entire funnel. Whether it’s building awareness through Meta Ads or YouTube, driving consideration with PPC and Geo-Fencing, or nurturing loyalty through CRM marketing, we help you make the most of every advertising dollar.

It’s time to stop thinking in silos and start thinking about how each piece of your advertising strategy works together. By investing in a full-funnel approach, you’re not just generating leads; you’re building a long-term plan that lowers conversion costs, improves customer loyalty, drives profits, and consistently grabs a more significant portion of market share.  After all, these are the KPIs that really matter.

-by Terry MacCauley, Founder & CEO