Unique Challenges and Opportunities for Luxury Dealers

Luxury dealerships have different vehicles and markets than mass-market brands. The needs of luxury brands provide unique challenges and opportunities for dealers to drive more sales, which should be reflected in their digital marketing strategies.

Challenge: Fewer Luxury Car Shoppers

Opportunity: Invest in Your Dealership Branding

Luxury vehicle shoppers are not your average car shoppers, looking for the most affordable car. Fewer people are in the market for luxury vehicles, and it takes more effort to generate qualified leads compared to mass-market vehicles. While Adpearance always works toward driving the most leads at the lowest cost no matter the manufacturer type, we expect a higher cost-per-lead because luxury searchers tend to be more mid-to-high funnel and there are fewer shoppers within the segment overall.

When working with luxury brand clients, we recommend focusing on branding more than we would for mass-market brands. Building brand awareness empowers in-market users who can make a luxury purchase to know what their best option is when they are ready to purchase — your dealership!

Challenge: Competing Against Other Luxury Brands

Opportunity: Wider Geo-targeting and Conquest Advertising

Luxury dealers compete for customers with other luxury brands within their area of responsibility (AORs), not other rooftops of their OEM or local mass-market dealers. Expanding geo-targeting to the full AOR and bidding on all low-funnel OEM terms for the dealer’s OEM is foundational to advertising for luxury dealers.

From there, Adpearance increases targeting to conquest against other manufacturer OEMs by running ads on their branded keywords in an effort to drive additional demand. Some users researching for the competitor OEM may not know about your OEM or the vehicles you carry. The purpose of conquest advertising is to get folks who are interested in the competition OEM to consider your OEM instead. It’s pricey, but it can be effective in driving net-net traffic to your brand.

Challenge: Highlighting Deals Goes Against Luxury Branding

Opportunity: Target Shoppers Who View Luxury Vehicles as a Lifestyle Investment

Mass-market brands focus the majority of their advertising efforts on how their dealership provides cars at the most affordable price. Sales and incentives are heavily featured in ad assets and copy. 

Luxury brands focus their energy on promoting the best car and are less concerned with the price. Luxury shoppers are interested in owning vehicles of the highest quality, with all of the features and benefits that create an unparalleled driving experience. Target luxury buyers with ads that highlight all the vehicle’s features and benefits with high-quality vehicle images and specific features throughout your creative assets.  

Luxury vehicle owners are invested in maintaining their cars in peak condition from a provider they trust so you can promote other revenue centers like your parts and service department as well.

Looking for a partner that can help your luxury dealership drive more sales at a lower cost? Request a free digital analysis to learn how Adpearance can assist with the unique needs of your dealership.