Hyperlocal Marketing to Increase Automotive Sales

Using location-based advertising for Automotive dealerships has changed the way they are able to reach people. Location plays a critical role in a car buyer’s decision-making process. Most people prefer to purchase vehicles from nearby dealerships for convenience and post-purchase services like maintenance and repairs.

 Here’s how Diamond Media Solutions has had success with location-based advertising:

1. Geo-Fencing:
   Geo-fencing involves creating a virtual perimeter around a specific location—such as a dealership or a competitor’s showroom. When a potential customer enters this area with their mobile device, they can receive targeted ads, promotions, or reminders about the dealership’s services. For example, a customer researching vehicles at a nearby dealership could be encouraged to visit your dealership with a compelling trade-in offer or price match guarantee.
2. Proximity Targeting:
   Proximity targeting allows advertisers to reach consumers who are close to a dealership, such as within a 5-mile radius. Using location data, you can deliver ads that highlight the specific vehicles, promotions, or services available at the local dealership. This type of hyperlocal targeting ensures that your ads are highly relevant to users who are more likely to make an immediate purchasing decision based on convenience.
3. Behavioral Data Integration:
   Personalization begins with understanding the behavior of your audience. By integrating behavioral data with location information, advertisers can create highly customized campaigns that address the specific needs and interests of potential buyers. For example, a customer who has been researching SUVs online and enters a geo-fenced area near your dealership could receive a personalized ad highlighting the latest SUV models in stock, along with financing options or lease offers.

One of the biggest advantages of this type of marketing is the ability to track campaign performance in real time. We can monitor key metrics such as foot traffic, engagement rates, and showroom conversions. 

A Case Study in Success

Over a 30-day period, a Chevrolet Dealership running a geofencing campaign targeting 14 competitive dealerships delivered a total of 129,319 impressions, resulting in 165 clicks and a click-through rate (CTR) of 0.124%. The campaign successfully generated 22 conversions to the dealership! 

Location advertising allows you to deliver highly targeted campaigns that reach consumers at the perfect moment in their vehicle-buying journey. By capturing and analyzing geographic information from users’ devices, advertisers can create highly targeted campaigns that only reach those in specific areas.