71% of Auto Dealers Anticipate a Better or Much Better Year!
Auto dealer optimism is one of the leading indicators of the local advertising market. The new NADA Dealer Survey released this week should have local media sales reps cheering. Auto dealers are expecting a much better year in 2015 which means media sales to this group will rise.
At their annual convention earlier this month, auto dealers signaled their enthusiasm about the expanding U.S. economy. A smaller number of dealers, 71%, anticipate equal or better sales when compared to this point last year, 74%. However, one key performance indicator, anticipated profitability, is up. 78% of dealers said their new vehicle departments were profitable in 2014. This is nearly 10% higher than a year ago. And, 72% of dealers expect 2015 to be profitable.
Dealers see the most opportunity for revenue growth in the following sectors:
Dealers will respond to the increased sales by hiring more personnel. In addition, 18% believe their advertising/marketing cost center will increase the most in 2015.
Media sales reps are channeling the positive energy from auto dealers. In the forthcoming 2015 State of Media Sales Survey from Sales Development Services, nearly 50% of media sellers said they anticipate increasing their sales to auto dealers this year. The numbers vary a bit according to media format. Radio reps are the most optimistic with 77% predicting higher sales to their auto clients. Broadcast TV reps are also looking for a good year with 60% expecting to sell more advertising to auto dealers. The display/banner ad space is another format that has reps feeling bullish. About 73% of these reps expect to sell more automotive ads in 2015.
Auto dealer optimism is one of the leading indicators of the local advertising market. The new NADA Dealer Survey released this week should have local media sales reps cheering. Auto dealers are expecting a much better year in 2015 which means media sales to this group will rise.
At their annual convention earlier this month, auto dealers signaled their enthusiasm about the expanding U.S. economy. A smaller number of dealers, 71%, anticipate equal or better sales when compared to this point last year, 74%. However, one key performance indicator, anticipated profitability, is up. 78% of dealers said their new vehicle departments were profitable in 2014. This is nearly 10% higher than a year ago. And, 72% of dealers expect 2015 to be profitable.
Dealers see the most opportunity for revenue growth in the following sectors:
- Used-vehicle sales 52%
- Service 21%
- New-vehicle sales 17%
Dealers will respond to the increased sales by hiring more personnel. In addition, 18% believe their advertising/marketing cost center will increase the most in 2015.
Media sales reps are channeling the positive energy from auto dealers. In the forthcoming 2015 State of Media Sales Survey from Sales Development Services, nearly 50% of media sellers said they anticipate increasing their sales to auto dealers this year. The numbers vary a bit according to media format. Radio reps are the most optimistic with 77% predicting higher sales to their auto clients. Broadcast TV reps are also looking for a good year with 60% expecting to sell more advertising to auto dealers. The display/banner ad space is another format that has reps feeling bullish. About 73% of these reps expect to sell more automotive ads in 2015.
