According to some of the most profitable automobile dealers in the country, consistency in both expenditures and Œcreative¹ is a major factor in successful advertising. At a recent ³20 Group² meeting of highly profitable dealerships, nine of the top profit dealers shared ideas on their advertising strategies during a Œmarketing breakout¹ roundtable. All of the dealers in this Œ20 Group¹ achieve at least $140,000,000 in total retail sales annually in medium to large markets. All have been in business at least twelve years. All of the dealers are Œhands on¹ operators. Among the issues most ranked as ŒImportant¹ or ŒVery Important¹: Consistency. Every single dealer in this group achieving profit margins of six percent or greater rates consistency as the single most important factor in their advertising programs. Most of these dealers agree that spending a fixed percentage of either total sales or selling gross is very important. A majority of these dealerships say they formulate advertising budgets once a year, predicated on past performance, current market conditions and strategies for the future. Dealers in this group say they have increased annual advertising budgets by six to 11 percent in the past four years. Eight of the dealers in this group felt it was important to have an advertising presence in the marketplace every single week of the year. Believability. Seven of these Œtop nine¹ profit dealers say Œcredible, believable¹ advertising has given them the edge in their respective marketplace. All nine of the dealers say they have strictly enforced internal policies regarding deceptive or misleading advertising. Broadcast vs. Print. Six of these highly profitable dealers spend greater than sixty percent of their overall advertising budget in broadcast (radio and television), the balance in print, outdoor, Internet and Œother¹. Two of the dealers spend approximately the same on both broadcast and print. Two of the dealers spend over ninety percent in broadcast. Planning. Eight dealers in this group say advertising strategies and campaigns are prepared at least one month in advance. Of these eight, six say their advertising is planned at least three months in advance. Two of the dealers indicated their basic advertising themes are planned a full year in advance. All nine of the dealers say advertising plans are provided to salespeople in advance of actual run dates. Organization. Seven of the Œtop nine¹ profit dealers have outside advertising agencies. Two have exclusive Œin-house¹ advertising departments. Four of the dealers said they have both an Œin-house¹ advertising department, as well as the services of outside ad agencies. Price vs. Image. Five of the Œtop nine¹ profit dealers in this group indicate they do not advertise prices on new vehicles. Three say price is Œimportant¹ in their advertising strategy. Only one rates price as Œvery important¹ in advertising. New Vehicle vs. Used Vehicle. Of the nine dealers, six say they spend the same percentage of selling gross on used vehicle advertising as on new. Two of the dealers spend considerably more on new vehicle advertising. Only one dealer in the Œhigh profit group¹ spends more on used vehicle advertising than on new. While most of the dealers in this group say they have traditionally spent more Œused ad dollars¹ in print, five of the dealers say they plan to increase broadcast and internet percentages of used vehicle ad budgets by as much as twenty percent in the next two years. Advertising and promotion are necessary marketing components of almost every successful retail business. Advertising can help increase your selling gross and bottom line profits by building added value, increased recognition and positive perception of your dealership. Advertising is an investment, not an expense. Are you spending enough on advertising? Are you spending it wisely and consistently? Are you planning your advertising well enough in advance? Does everyone in your organization know what your advertising is? Are you willing to embrace new ideas? The most profitable dealers are saying Yes. Yes. Yes. Yes. Yes. (If you have room...please use this lift in large type somewhere in layout) Most (of these dealers) agree that spending a fixed percentage of either total sales or selling gross is very important.