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Expert Insight: Auto Dealer Ad Spending Trends Entering Memorial Day Weekend


New data from PureCars CEO, Jeremy Anspach, that shows the increase in ad spending from auto dealers in May (to date) compared with all of April spending.

Background: Auto sales slowed significantly in March when the COVID-19 pandemic forced many people across the country to stay home. However, sales have begun to bounce back and auto dealers are beginning to spend more on advertising to promote everything from new and used deals, parts and service for cars and trucks.

A recent article in Forbes discusses the varying trends the industry is currently experiencing.

The article says after a low point late in March when sales were 59% below J.D. Power's pre-virus forecast, U.S. auto sales experienced a six-week-long resurgence.

Furthermore, a report penned by Tyson Jominy, J.D. Power vice president, PIN Consulting, noted that sales showed a consistent rate of recovery of 4-8 percentage points per week over that span.

According to PureCars, auto dealers are turning up the volume on many areas of ad spending in order to increase engagement levels with shoppers.

Here is a chart that shows the percentage of increase on certain areas of ad spending from dealers comparing month-to-date so far in May versus all of April ad spending levels.

Dealer Ad Spending May versus April:

  • Spending on Branded messages in May: Increased 35%
  • Spending on New vehicle deals in May: Increased 19%
  • Spending on Parts deals in May: Increased 38%
  • Spending on Regional vehicle offers in May: Increased 17%
  • Spending on Service in May: Increased 35%