Now is the Best Time to Sell Car Dealers @ Burke’s Billing Builders.

If you sell media, then you’re probably selling to car dealers. In broadcast stations, local dealers account for more advertising money than any other category – usually by a lot. I’ve seen TV stations where the automotive category (manufacturer, regional, and local advertising) accounts for over 30% of the station’s total ad revenue.

Yet, the vast majority of account executives in electronic media don’t know much, if anything, about the car business. Worse yet, many are intimidated to even walk into a dealership. And this is your biggest category! So, let me take this moment to update you on a movement with local dealers that is gaining momentum. It can mean big increases for you.

If you pay attention to the news, then you know that many car companies are hurting. In fact, just recently, General Motors cut their profit projection for 2005 by 80%! Wow. The year is not off to a good start for the domestic manufacturers and with interest rates going up as well as gas prices at record levels, the rest of the year doesn’t look stellar. But, they’re going to sell cars and trucks. Historically, we good consumers buy around 16 million new cars a year. And used car purchases are almost triple new sales.

Car dealers have to advertise. They know that. And traditionally, newspapers have received half or more of their ad budget. But this is changing. Newspapers aren’t working for dealers like they did in years past. It’s getting disproportionably expensive compared to its results and does little for tomorrow’s buyer.

We are seeing many, many dealers greatly reduce their newspaper expenditure compared to years past, and putting that money into electronic media. This change has happened gradually over the past few years but it’s picked up considerable steam. Why? There are lots of reasons, both cultural and economic. But I believe the biggest difference is that now, almost every dealer knows of another dealer who has cut or eliminated his newspaper advertising and has seen his sales and profit increase. In fact, it’s rare that this is not the case.

It’s hard for them to do this. The newspaper has gotten them to where they are today. But more and more are realizing that what got them here is not enough to keep them here. Becoming more dominant in electronic media at the expense of the newspaper keeps their ad costs in line and increases their awareness with not only today’s buyer, but also tomorrow’s buyer. Creating a longer-term strategy is probably the biggest benefit of this change.

One point of caution: Dealers who make this change need to pay attention as to how it affects their sales staff inside the building. An education process needs to occur with the sales team and sales managers to let them know that just because they’re not in the paper in a big way anymore doesn’t mean they’re invisible. In fact, they will make more money as dominant electronic advertising brings them more awareness and more customers. But the inside sales job can’t be ignored.

Bottom Line: Ask your local dealer whether he’s heard of other dealers who’ve greatly reduced their newspaper expense. Odds are he has. The story is getting louder and louder across the country. Show them how they can dominate your station so you can help them move some iron during this trying time for your biggest category.

Dave Burke is President of Burke Media Marketing, Inc, an advertising sales training consultancy. Dave works with radio, TV, and cable sales teams and their clients to help them dominate their markets. He can be reached at (603) 746-5588 or http://www.BurkeMediaMarketing.com