National and regional advertising campaigns create brand awareness, but it is at the dealership level where that awareness must be converted into sales. On today’s episode of Marketing Matters, Digital Marketing Director for Nielsen Automotive Group and host Colin Carrasquillo breaks down how dealers can align with broader OEM efforts while using local strategies to capture consumer intent and drive results.
Tier one advertising includes national commercials produced by automakers such as Ford, Toyota, or Jeep, often costing millions and aimed at building brand awareness. Tier two initiatives are regional, targeting specific markets or dealer groups with particular vehicles or promotions. These campaigns are designed to create intent, not necessarily generate direct sales for every participating dealership.
Tier three marketing, the dealer-level efforts, should focus on capturing the intent created by these broader campaigns. Carrasquillo cautions against automatically participating in OEM-driven heavy-up campaigns, which often promote a single vehicle model via over-the-top advertising (OTT) or connected TV.
"Don't be afraid to say no when OEMs come asking to do heavy up campaigns or one-to-one campaigns or two-to-one campaigns, when their initiative is to focus on a specific make or model of vehicle."
In one example, an OEM offered a national campaign for a specific model, providing minimal control over offers or vendors and limited potential sales impact for the dealership. Such initiatives can increase costs per lead without guaranteeing additional sales, particularly if a dealership lacks sufficient inventory of the promoted model.
Instead, Carrasquillo recommends redirecting funds to tier three efforts that deliver measurable results. This includes investing in local search campaigns, pay-per-click advertising, and optimizing landing pages for SEO. By capturing local intent, dealerships can engage consumers actively searching for the vehicles highlighted in national and regional ads. For example, when a customer sees a RAM truck commercial, they may search for “RAM truck deals near me,” creating an opportunity for dealers to show up in search results and capture that intent.
Another critical strategy involves leveraging first-party data to retarget consumers who interact with dealership websites or ads but do not immediately convert. Retargeting through platforms like Google and Facebook enables dealerships to re-engage interested buyers efficiently. Additionally, producing authoritative, SEO-driven content provides long-term value, ensuring dealerships capture attention well beyond the duration of any tier one or tier two campaign.
The key to maximizing marketing spend is focusing on actions that capture consumer intent. First, dealers should prioritize owning the local search landscape rather than automatically contributing to OEM-driven campaigns. Second, capturing intent through paid and organic channels is more cost-effective than creating additional awareness. Third, investing in SEO and first-party data ensures sustained engagement and strengthens dealership authority.
Understanding the hierarchy from tier one to tier three and aligning marketing spend with business goals enables dealerships to maximize return on investment while supporting long-term growth.
