TVB FORWARD CONFERENCE

Stations Must Aggressively Sell Car Dealers

With an expected fourth-quarter upsurge in spending by Japanese automakers, stations are urged to demonstrate to dealers the reach of television, as well as options such as time-targeted ads and multi-platform plans.

With only 19% of ad dollars spent by local car dealers going to TV stations, it’s incumbent upon local broadcasters to show them the value of television, one expert says.

“Dealers buy what they trust to move the needle,” says Adam Armbruster, senior partner with Eckstein, Summers, Armbruster & Co., the broadcasting consulting company.

Armbruster’s comments were part of his presentation on “Driving Automotive Dollars” at the TVB Forward Conference today in New York.

In order to lure more automotive dollars, stations first need to better engage with local dealers by knowing the differences between kinds of dealerships — regional superstores vs. high-end luxury outlets — and how they can use TV advertising to their advantage, he says.

Demonstrating the reach of television, as well as options such as time-targeted ads and multi-platform plans, is key, he says. Too often, dealers spend valuable ad dollars on efforts like direct marketing, radio and limited cable ads that pale in comparison to TV ads’ reach, he says.

“Show the dealers how to cost shift,” Armbruster says. “They want your help. And they will give you the money.”

BRAND CONNECTIONS

Scott Fink, president-CEO of Hyundai of New Port Richey in Florida, the fourth largest car dealership in the country, says TV advertising has played a significant role in his success. He says that TV stations that play their cards right could capitalize on the expected uptick in spending by Japanese car manufacturers and dealers who want to meet pent-up demand in the fourth quarter of this year.

“We are going to have a turf battle,” Fink says. “It’s an opportunity for you.”


Comments (4)

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kendra campbell says:

September 14, 2011 at 2:35 pm

The pitch for more local car dealer commercials in local newscasts is a joke – right? In my top 25 SE market – over half the commercials in a typical newscast are car dealers. With an average of 24 (yes twenty-four) spots in a half hour newscast – that’s a minimum of 12 shlock, screaming, low budget car dealers.. It already drives (pun intended) viewers away!

ed meyers says:

September 14, 2011 at 6:18 pm

Why would any dealer buy broad reach broadcast TV when dealer trading zones are small? Broadcast is Tier II to some degree. Tier III is best reached with cable. The author mentioned “cost shifting, and understanding the differences between stores”. Sounds like TVB does not think much of their broadcast members who have not evolved in 30 years.

Brian Bussey says:

September 15, 2011 at 9:23 am

Use cable ? for what ? to miss 50% of the households in the trade area? who can buld a busininess with 15 frequency against a 5% reach. ? All broadcast spots are good spots, not just news. News might score higher but I my open minded dealers have had real success in every DP and TP. You cannot debate simple math. Comcast in this market only has about a 48 reach. We are fast becommng the biggest U-verse market in the country. Broadcast airs on every television regardless of signal distributer. Thats hy the cable companies spend so much money advertising…… on broadcast.

Shaye Laska says:

September 16, 2011 at 4:10 pm

C-DMA. Truth…or Fiction for a car dealer?
We say fiction.