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Data Shows Dealer Sales
        ADESA LONG ISLAND
        425 Patchogue Yaphank Rd.
        Yaphank, NY 11980                      Activity Healthier When They
        631.205.5000
        adesa.com/longIsland
        ADESA SYRACUSE                                Keep Ad Budgets Intact
        5930 State Rte. 31, Cicero, NY 13039
        315.699.2792                             By Lauren Donalson, Senior Director of National Accounts at PureCars
        adesa.com/syracuse
                                             Although the pandemic was still a major  Reduced ad budgets equal larger sales
        BUFFALO AUTO AUCTION                 force in the world, the automotive industry  drop-off
        5300 Lockport Road                   entered 2021 having rebounded from  Unfortunately for those dealers who
        Lockport, NY 14094
        716.549.4800                         the earliest days of the shutdowns. If  pulled back on  ad  spending,  they  ended
        deeregunner@hotmail.com              anything, automotive brands and dealers  up feeling more pain in overall sales
                                             found themselves having to address a lack  drop-off  compared  with  dealers  who
        MANHEIM ALBANY                       of inventory, not a lack of demand from  modified advertising messages and
        459 Route 146, Clifton Park, NY 12065-0440   shoppers.                    strategies and increased budgets. For
        518.371.7500                                                              example, between the months of March
        jay.waterman@manheim.com             Automotive marketers all over the U.S.  and August earlier this year, dealers who
        manheim.com                          have continuously reevaluated strategies for  decreased their advertising spending
        MANHEIM NEW YORK AA                  2021 ad budgets. Some retailers followed  between 50% and 89% saw their sales
        2000 Dealer Drive, Newburgh, NY 12550   the belief that they should pull back on  volume drop by 28%. However, those
        845.567.8400 / Fax: 845.567.8410     advertising since they weren’t worried  dealers who actually increased their
        Every Thursday 9:00 AM               about promoting vehicles when there is a  advertising spend by just 9% during the
        Ford Factory Closed Sale             lack of inventory.                   same time period saw a much lighter drop
         Bi-Weekly 10:00 AM                                                       in sales at just 9%, according to PureCars
        Heavy Truck & Equipment Sale         However, this has proven to cause deeper  dealership advertising spending data from
           First Thursday of the Month 11:00 AM   problems toward long-term customer  September.
        manheim.com                          relationships and loyalty.

        MANHEIM ROCHESTER                                                         The main difference in philosophy is what
        20 Cairn Street, Rochester, NY 14611  If anything, those dealers who      limited the drop off in sales performance.
        585.328.2277                         wisely shifted their advertising     Dealers who pulled back in advertising
        sara.fico@coxautoinc.com                                                  looked  at  their  showroom  traffic  in
        manheim.com                             message have fared better         relation  to  lower  inventory  levels  and
                                               than those who pulled their        thought there was no need to promote
        ROCHESTER- SYRACUSE AUTO                                                  deals on new cars and trucks.
        AUCTION                                   advertising altogether.
        1826 State Route 414, P.O. Box 129                                        However, savvy dealers looked at this
        Waterloo, NY 13165                   What we’ve learned through the
        315.539.5006                         pandemic                             past summer as an opportunity to make
        sprankie@rsautoauction.com           It is true, hindsight is certainly 20/20. With   varying levels of budget increases in their
        rsautoauction.com                    months  of  inventory shortage  history   spending. What’s more, they realized
                                             now in the rearview mirror, there is a lot   promoting vehicles that may or may not
        STATE LINE AUTO AUCTION                                                   be on the lot was not the right thing for
        830 Talmadge Hill Rd. S.             that can be gleaned from understanding   their customers. Instead, they modified
        Waverly, NY 14892                    dealer ad spend patterns, especially when   their advertising messages and instead
        607.565.8151 / Fax: 607.565.8659     industry observers look at the trends of   focused on promoting vehicle buy-back
        GM Financial Open Sale –EVERY Friday,   dealers who cut off ad spending compared   opportunities to increase inventory, and
         9:20 AM                             with those that did not.             they also promoted service and repair
        GM Financial Closed Sales as Scheduled                                    options to boost revenue further.
         Dealer Consignment Sale –EVERY      Simply put, the data suggests dealers
         Friday, 9:20 AM                     who continued to spend on ad strategies
        statelineauto.com                    grew their market share, and those who   When customers come in for service and
                                             cut their ad spending lost sales. This   repair it gives dealers and their staff  an
        WEST VIRGINIA                        data insight also includes ad spending   excellent chance to discuss buy-back
        MOUNTAIN STATE AUTO AUCTION                                               options with customers who give strong
        Route 2, Box 835, Shinnston, WV 26431   strategies this past summer that may have   consideration to increased trade value
        304.592.5300 / Fax: 304.592.3510     been altered as a result of the ongoing   and a discussion on other inventory on
        Monday 10:30 AM                      microchip shortage that saw fewer new cars   the lot. n
        Office: 9:00-5:00                    and trucks hitting dealer lots.
        mtstateaa.com

                                                 MIDATLANTIC DEALER NEWS  |  MIDATLANTICAUTODEALERSUNITED.ORG  •  MARCH 2022  |  19
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