Why Are Local Car Dealer Commercials in the USA So Obnoxious?

Ever cringed at those obnoxious car dealership ads in your newspaper or on TV and wondered who creates them? That was me! Early in my career, I worked at a car dealership advertising agency and was behind those crazy car dealership ads. I’ve seen firsthand why car dealership ads seem stuck in the 70's and haven't evolved.

Here are some of my favorite ads that I created. Each summer, lacking fresh ideas and enthusiasm, our team churned out yet another “Sizzling Summer Sale” for local Ford, Dodge, or Subaru dealerships. Or "No-No-No, No Money Down, No Interest, November!"...

Holidays was easier to come up with ideas, but still, it was repetitive Presidents Day Sale, 4th of July Sales, End of the Year Liquidation etc. The Halloween sales were always a hit, and because of my Eastern European accent, dealers often had me play Dracula and other crazy characters in those ads.

And my personal favorite, though, is the slogan “TRUCKTOBER!”

By the way, I’m a web developer, not an actor. I only took on roles like Dracula, a happy customer, or a lucky owner as a favor to the dealers, who saved money by not hiring professional actors.

So, Why Are Car Dealership Ads So Bad?

The main reason car ads are often so poor is that each dealership receives an advertising credit from the corporate office, which they must use for hiring agencies, production, and media buying. There’s a limit to how much marketing spend the corporate office will cover, so dealers try to stretch their budgets to get as much advertising as possible. Additionally, dealerships are restricted to advertising only within their own territories and must compete with others under the same rules. Each corporate office sets these guidelines, and dealers are expected to adhere to them strictly.

If, for example, Ford has three dealerships in a specific urban area, each dealership receives the same advertising credit from Ford's corporate office. If dealer A chooses to invest in high-quality ads, they will have less budget left for ad placement, resulting in fewer ads and less media exposure. At the same time, Dealerships B and C, with their lower-budget badly made ads, will end up reaching more people. At the end, people who are buying Ford (or any other car brand) often don't care which dealership they go to ad long as they get a deal.

Additionally, higher-performing dealerships often receive better perks from the corporate office, such as popular colors or new models arriving earlier. Therefore, it doesn’t make sense for a dealership to overinvest in production, they need to reach more people with "0% Down Sizzling Summer Sale" and other bad slogans and low quality ads.

What About Investing Their Own Money for Better Ads?

Most dealers try to stay within the corporate advertising budget and don't want to invest extrabecause it will come from their own pockets. Occasionally, however, an ambitious dealer will invest additional funds to make himself name and create high-quality ads. For instance, before the 2008 financial crisis, many dealers hired well-known ad agencies to produce good quality advertisements. But when the crisis hit, many of them let go of these agencies and reverted to their previous, low quality advertising strategies.

Conclusion

The world of car dealership advertising is a testament to how financial constraints and corporate guidelines can shape the quality of marketing campaigns for this industry. While the budget limitations and territorial restrictions often lead to repetitive and lackluster ads, the story of “TRUCKTOBER” and other memorable campaigns highlights a unique aspect of this industry. Despite the predictable and sometimes cringe-worthy nature of these ads, they reflect a deeper struggle within the dealerships to balance cost and effectiveness. While some may view these ads as relics of a bygone era, they continue to persist due to the pressure to maximize ad space and media exposure. As long as dealerships prioritize budget over quality, it’s likely we’ll keep seeing those classic, and often comical, ads.

If you’ve enjoyed this glimpse into the world of car dealership advertising, stay tuned to my blog at RetainTrust for more behind-the-scenes marketing stories and insights.