by Terry MacCauley - Posted 1 week ago
The automotive industry has long embraced technology, from digital retailing to AI-driven chatbots. However, amid discussions about artificial intelligence, one of the most potent and impactful AI systems in marketing is often overlooked: the algorithms that run social media platforms.
For dealerships, particularly independent and Buy Here Pay Here (BHPH) stores, these algorithms determine how visible a dealership is to potential buyers. Whether on Facebook, Instagram, YouTube Shorts, or TikTok, these systems dictate which content gets engagement, which posts reach a dealership’s audience, and, ultimately, which marketing efforts drive sales. Despite this, many dealerships approach social media as an afterthought rather than the central pillar of their digital strategy.
Consumer attention has shifted dramatically over the last decade. The traditional marketing mix, once dominated by television, radio, and direct mail, has been disrupted by social media. Consider the following trends:
Despite these insights, many dealers continue to underinvest in social media or approach it with outdated strategies, such as simply posting inventory without optimizing for engagement.
One of the most effective yet underutilized strategies in dealership marketing is testing content organically before amplifying it with paid advertising. The logic behind this approach is straightforward: instead of investing heavily in advertising campaigns without knowing how they will perform, dealerships can measure organic engagement and allocate ad spending to the best-performing content.
A recent case study highlights the effectiveness of this approach. One dealership tested five organic social media content variations before selecting the highest-performing post for paid promotion. The results were striking:
This method reduces advertising waste and ensures that marketing budgets are spent on content that has already demonstrated its effectiveness.
While still a component of many marketing strategies, traditional advertising is losing effectiveness as consumer behavior shifts. The cost of a 30-second Super Bowl advertisement in 2025 is projected to exceed $7 million. Yet, studies show that many viewers either leave the room or focus on their mobile devices during commercials. Similarly, streaming platforms offer ad-free subscriptions, with over 40 percent of users opting to skip ads altogether.
By contrast, social media platforms—particularly short-form video formats—have become dominant sources of attention. YouTube Shorts, for example, has seen rapid adoption among older demographics, challenging the assumption that platforms like TikTok and YouTube are only for younger users.
This shift presents an opportunity for dealerships: investing in high-quality, platform-specific social media content can generate significant visibility at a fraction of the cost of traditional advertising.
Dealerships that embrace the realities of digital marketing will find themselves well-positioned for success in 2024 and beyond. The following strategies are essential for maximizing social media effectiveness:
Too many dealerships continue to see social media as a secondary or optional part of their marketing strategy. However, research shows that potential car buyers actively engage with dealerships online well before stepping onto a lot. Social media should not simply serve as a distribution channel for inventory listings; it must be an interactive, engaging platform where dealerships provide value beyond pricing and vehicle availability.
Each social media platform operates under different engagement rules. Content that performs well on YouTube may not necessarily be effective on TikTok, and vice versa. Understanding these differences allows dealers to tailor their messaging:
By organizing different creative variations and tracking engagement, dealerships can identify the content that resonates most with potential buyers. This data-driven approach allows for better allocation of advertising budgets, ensuring that paid campaigns focus on content that has already been proven effective.
The first three seconds of a video or post determine whether a potential customer will engage with the content or scroll past it. High-performing content often includes:
Many dealerships still rely on traditional digital marketing metrics such as impressions, clicks, and cost per lead. While these metrics remain relevant, they fail to capture the complete picture. Instead, dealerships should focus on:
Studies show that dealerships actively responding to comments and engaging with their audience see significantly higher retention and conversion rates.
The automotive industry is at a crossroads in how it approaches digital marketing. The data is clear: buyers no longer wait for dealerships to reach them through traditional advertising channels. They are actively engaging with brands online, consuming video content, and making decisions based on what they see on social media.
Dealerships that continue to rely on outdated strategies will face increasing customer acquisition costs and declining marketing effectiveness. However, for those that adapt and prioritize digital-first strategies, the opportunities for increased visibility, engagement, and, ultimately, sales are greater than ever.
The most successful dealerships in the next five years will be those that understand and embrace how consumer attention has shifted. The evidence is overwhelming: social media is today's most powerful and cost-effective marketing tool.
The question is not whether dealers should invest in social media marketing; it is whether they will leverage it effectively or continue relying on outdated tactics.
For those ready to make the shift, the path forward is clear: test content, engage authentically, invest in high-quality creative, and optimize for platform-specific performance.
As digital marketing continues to evolve, those who take action now will be the ones leading the automotive industry in the years ahead.
-by Terry MacCauley, Founder & CEO
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