Digital Advertising Blog




The Most Overlooked AI in Automotive Marketing and Why Ignoring It Is Costing Dealers Sales

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.

 

Understanding Social Media’s Role in Automotive Sales

 

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:

  • YouTube Shorts receives over 70 billion daily views, making it one of the most engaging digital platforms available today.

  • A reported 87 percent of television viewers engage in “second-screening,” meaning they are on their mobile devices while watching TV, significantly diminishing the effectiveness of traditional television ads.

  • YouTube and Facebook remain dominant platforms for the 40-70-year-old demographic, a key buyer group for dealerships.

Despite these insights, many dealers continue to underinvest in social media or approach it with outdated strategies, such as simply posting inventory without optimizing for engagement.

 

The Value of Testing Organic Content Before Running Paid Advertising

 

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:

  • The cost per lead was reduced by 63 percent compared to traditional paid campaigns that had not been pre-tested.

  • Engagement rates increased by 72 percent when content was validated organically before being promoted through paid ads.

This method reduces advertising waste and ensures that marketing budgets are spent on content that has already demonstrated its effectiveness.

 

The Decline of Traditional Advertising and the Rise of Digital Attention

 

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.

 

Key Strategies for Automotive Dealers to Succeed on Social Media

 

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:

 

1. Treat Social Media as a Primary Marketing Channel

 

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.

 

2. Develop Platform-Specific Content

 

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:

  • Facebook and YouTube favor informative, long-form content, making them ideal for vehicle walkarounds and buyer education.

  • TikTok and Instagram Reels prioritize short, visually engaging videos that capture attention within the first three seconds.

  • Facebook Marketplace & Local Community Groups: Many dealerships see strong engagement by posting inventory and promotions in local buy/sell/trade groups. Customers in these groups are often actively searching for vehicles, making it a great organic way to drive leads without additional ad spend.

3. Leverage Organic Engagement Before Scaling with Paid Ads

 

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.

 

4. Prioritize High-Quality Creative

 

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:

  • Eye-catching visuals, including bold thumbnails and contrasting colors

  • Strong opening statements that immediately capture quick attention

  • Emotion-driven storytelling that connects with the audience on a personal level

5. Measure the Right Metrics

 

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:

  • Engagement rates: How many users are actively interacting with the content?

  • Watch time: Are viewers watching videos all the way through or dropping off early?

  • Shareability: Is the content being shared or discussed beyond the dealership’s audience?

Studies show that dealerships actively responding to comments and engaging with their audience see significantly higher retention and conversion rates.

 

The Future of Automotive Marketing: Adapting to Digital Consumer Behavior

 

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.

 

Embracing the Next Era of Automotive Marketing

 

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.

  • Short-form video content is outperforming traditional ads in engagement and conversion rates.

  • Organic content testing before paid amplification significantly reduces the cost per lead.

  • Social media algorithms dictate visibility, meaning understanding these systems is crucial for success.

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



4th Annual BHPH United Summit

Bigger, Better, and Unmissable

 

This year’s BHPH United Summit is shaping up to be the best one yet, with registrations already up over 35% compared to last year. If you are in the Buy Here Pay Here space, missing this event would be a costly mistake. The agenda is packed with industry-leading education, top-tier speakers, and actionable strategies designed to help dealers maximize their operations and profitability in 2025 and beyond.

 

One of the most anticipated features this year is the Interactive Garage, where dealers can get hands-on experience with the latest tools, technologies, and strategies transforming the industry. This is not just another conference or trade show. it is a real-world, experience-driven opportunity to see what’s working and how to implement it in your dealership.  

 

If you have not booked your stay at Caesars Palace yet, now is the time. Discounted rates end on April 1st; no, this is not an April Fools' joke. Secure your spot now and be part of the most valuable BHPH event of the year.



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This Week's Educational Video:

Tactical Social Media Tips 


Tune in to GaryVee’s "Full Social Media Marketing Strategy In 8 Minutes" to learn tactical tips you can start using today. From tailoring content for each platform to capturing consumers’ attention, GaryVee shares strategies for creating standout content, leveraging AI, and building a winning social media plan.
 
Plus, today's blog was inspired by this video, so be sure to watch it and level up your social presence!