Car Dealership Billboard Advertising

When it comes to selling a vehicle several things can make your dealership stand out against the rest—an abundant inventory, competitive pricing and payment options, or a friendly and knowledgeable staff who knows how to guide customers through the buying process.

Ultimately, however, what every car dealership needs is a bit of flash—which can be achieved through car billboard advertising.

Car billboard ads are a cost-effective way to drive people to your dealership so your salespeople can close the deal. To that end, this guide will run through auto billboards and how traditional OOH can work for your dealership.

Billboard Advertising in the Automotive Industry

Before you run out and start purchasing billboards, you probably have a few questions you want to answer. The first is probably: is billboard advertising effective?

The answer is yes. And there are figures that back it up. 

First, it’s worth looking at billboard advertising in general. Do people notice billboards? According to online surveys conducted by Nielsen between February 24th and March 4th, 2020, they do:¹

• 62% – The percentage of people surveyed who responded that they saw digital billboards in the past month. 50% claimed that they noticed them “all” or “most” of the time.
• 52% – Percentage of respondents who saw digital billboards that gave directions to a business. 57% then claimed to visit a business after seeing the advertisement and a whopping 93% claimed to make a purchase after visiting.
• 65% – The number of respondents who took some form of action after seeing a billboard. This could be visiting the business itself or visiting the business’s website or social media sites.

It’s important to remember there are some caveats while looking at this study:

• This was a survey related to all businesses, such as a restaurant and healthcare billboards, not specifically to car dealerships. People are more likely to buy a McDonald’s Happy Meal on a whim from a restaurant billboard than they are a new car.
• This was a survey of only 453 people and took place in the top 30 media markets. This type of engagement may change based on your location.
• This was specific to digital billboards. If extended to all forms of OOH or even just all forms of billboards, the number of people to view OOH billboards would likely be even higher.

Regardless of the caveats, this shows that billboard advertising is an effective way to reach potential customers. You should also take into account that people’s commutes don’t often vary day-to-day, so they’re likely to see your roadside billboard multiple times, giving it a chance to make an impact.

Automotive Industry Specifics

The Nielsen study shows that billboard advertising is effective, but are billboards being used within the automotive industry? If we consider what others in the industry are doing, the answer again seems to be yes:²

• The automotive industry consistently ranks in the top 10 industries that are spending the most on OOH advertising. In 2021, auto dealers and service providers ranked #9 in OOH expenditure.
• From July to September 2021, just over $60,000 was spent on OOH advertising in the automotive industry, accounting for 3.4% of total revenue. 

Now, just because other dealers are spending money on billboards doesn’t mean you have to as well (a childhood adage about jumping off bridges comes to mind), but these numbers do show that the industry believes in the effectiveness of OOH advertising. 

It’s a tool that others are using, and if you’re not, you risk being left behind. 

California Case Study

While the effectiveness of any OOH ad campaign will vary based on factors like the creativity of the ads themselves, location in relation to the dealership, and the market where the ad campaign is set, it can still be instructive to look at specific campaigns to get a sense of how OOH advertising can be effective within the automotive industry.

Let’s look at a campaign that was used in four different California markets by one major dealer. After implementing the campaign, the dealer saw a rise in visits in all four locations:³

• San Francisco Billboards: Up 158%

• San Diego Billboards: Up 142%

• Los Angeles Billboards: Up 122%

• Sacramento Billboards: Up 97%

In addition, this dealer found that 45% of the people who saw their OOH and then visited their dealership saw the advertisement more than 15 miles from the location they visited. All of this is, of course, anecdotal, but it shows that OOH can be effective and may have more range than you might assume.

How to Make Your Billboard Stand Out

Automotive OOH advertising ranks 9th in OOH spend. That means there’s a lot of competition.

So, how do you develop an OOH advertising campaign that is effective and stands out from the crowd? There are five strategies to keep in mind.

#1 Short and Sweet

The initial temptation when it comes to advertising is to try to list all your selling points in the ad:

• Fuel efficient
• Great horsepower
• LED headlights
• Parking assist
  

Resist this urge. Remember, you aren’t going to sell a car on a roadside billboard (that’s what your salespeople are for). Instead, focus on short, eye-catching ads that will bring people to your dealership. 

Rather than focusing on the specific elements of your cars, share the value propositions of your dealership as a whole, such as:

• One-on-one customer service
• First-time-buyer sales or discounts
• Affordability or financing options
• Trusted staff

The purpose is to draw potential customers to your dealership, then you and your staff can wow them with the specifics in person. 

#2 Technology

OOH advertising isn’t simply static billboards. With the advent of digital technology, there are even more opportunities for creativity when it comes to designing your campaign. You can also more effectively analyze how your campaign is doing and make adjustments using advanced OOH analytics. 

While the upfront cost will likely be higher for digital space, the use of technology can be worth it in the end. From better targeting to more striking visual capabilities, embracing technology is one way to elevate your OOH above the rest.⁴

#3 Location

When going over the California case study from earlier, it was shown that 45% of people traveled over 15 miles to the dealership they visited after seeing the billboard. That’s great. It also means 55% of people didn’t travel that far.

Different locations come with different costs. Sometimes, casting your net a bit further afield can be an effective strategy. However, positioning your billboard close to your dealership may also entice more people to stop by. After all, 83% of consumers reported that convenience is a priority when shopping.⁵

Additionally, billboard size can vary, which you can customize depending on their location. For example, you may want a larger billboard in high-traffic areas and a more modest billboard in rural areas. 

#4 More than Just Billboards

OOH is a broad category of advertising, and while people tend to think of billboards first, they aren’t your only OOH option:⁶

• Street furniture – This category contains options like newsstands, kiosks, and bus shelters. It’s a great option for advertising in urban areas and for targeting people who are already close to your dealership’s location.
• Transit – Airports, railways, and taxi advertisements all fall under this category. By focusing ads in transit hubs, you can target people who may be moving to a new area or who are currently without a car. Placing ads on busses or taxis can also make your message mobile to potentially reach more people.
• Place-based – Shopping malls, arenas, and movie theaters all fall into this category. Placing advertisements in a location where people are already inclined to buy can be beneficial to your business.

#5 Follow the Law

Lastly, there are federal regulations when it comes to automotive advertising. You can’t start promising things that you won’t be able to deliver or you’ll be in violation of federal law. And while following the law may not make your billboard any more effective, it will help to secure the success of your business. 

To that end, automotive advertising regulations fall under four major categories:⁷

• Claims/representations – This is where you have to make sure you’re dealing with the facts. From fuel economy to competitor pricing, if you claim something, you need to be sure you can back it up.
• Purchasing/lease offers – While some fees may be excluded, you need to be upfront with your advertising claims. Hidden fees can get you in trouble.
• Promotional offers – Terms and conditions of any promotions have to be clear. You also can’t offer goods and services for free on the condition that someone purchases a car.
• State and local laws – These vary depending on where your dealership is located. Always double-check with local laws that your campaign is compliant before moving forward.

Car Billboards with True Impact Media

The final tip when it comes to starting your OOH campaign is to talk to the experts at True Impact Media. Our outdoor advertising platform has everything you’ll need to craft an effective OOH campaign, from our database of available billboard locations to our detailed analytical tools that help you assess the success of your campaign.

Maximize the effectiveness of your advertising strategy and establish your dealership as a trusted go-to with True Impact Media.

Sources: 

1. Out of Home Advertising Agency of America. Digital Billboards Engage Consumers and Drive Action. https://oaaa.org/Portals/0/Digital%20Billboards%20Nielsen%20FINAL.pdf 
2. Out of Home Advertising Agency of America. OUT OF HOME ADVERTISING UP 38% IN Q3 2021. https://oaaa.org/AboutOOH/Factsamp;Figures/AnnualQuarterlyRevenue.aspx 
3. OOH Today. Car Dealers Turn To Out-Of-Home Advertising To Drive Sales. https://oohtoday.com/car-dealers-turn-to-out-of-home-advertising-to-drive-sales/ 
4. Movia. Automakers Take OOH Ads To The Next Level. https://movia.media/moving-billboard-blog/automakers-take-ooh-ads-to-the-next-level/ 
5. Nasdaq. Convenience Is Priority For Consumers: Survey. https://www.nasdaq.com/articles/convenience-is-priority-for-consumers%3A-survey-2020-01-15 
6. Out of Home Advertising Agency of America. OOH MEDIA FORMATS. https://oaaa.org/AboutOOH/OOHBasics/OOHMediaFormats/OOHMediaFormats.aspx 
7. National Automobile Dealers Association. A Dealer Guide to Federal Advertising Requirements. https://www.nada.org/advertisingguide/