We must all get smarter about how we spend our budgets during these uncertain times in the car business. Advertising remains the lifeblood of a dealerships survival and it is the only proven method to bring customers to the store. As sales soften and we see fewer buyers in our showrooms, however, we must move to guarantee that each dollar we spend is in the proper media. Here is a step-by-step checklist to help you plan your marketing budget:

1.       Plan your budget based on projected sales. Sales are down, but you still need to factor in enough dollars per car sale. The national NADA average is around $630 per car. Aggressive dealers who lead in their respective markets spend closer to $750 per car. Be realistic with your projection and prepare your budget accordingly.

2.       Pick your media. With a reduced budget, now more than ever, you need to be in the right media, with the proper media outlets. If you buy television, you need to make sure you buy the best stations in your market. The top stations are making deals right now equivilent to what the lower rated stations were making a few months ago. Be careful not to spread your budget over too many stations, however. Make sure you have enough frequency on the ones you use. Saturate the airwaves during the best days of the week, but there is no need to buy during soft days.

3.       Look at all your rates. Are you getting the same deals you did a few months ago? You should be paying less now. Across the nation, media is down and they have more inventory than they have ever had. Call all the stations or newspapers and renegotiate. They understand and are prepared for this. They do not want to lose your business and will do everything they can to keep you happy right now.

4.       Consider your message carefully. Advertise the vehicles that customers are buying. Unfortunately you, like many dealers, may be stuck with a less than perfect vehicle inventory: too many trucks, SUVs, or other gas-guzzlers in inventory. While your bulging inventory of these vehicles and the flooring costs continue to haunt you, advertising these vehicles is falling on deaf ears. Get them in on the cars they think they want. When they come in, show them the benefits of your excess inventory—perhaps the reduced sale prices vs. the cost of gas may be greater and make sense to them once they get in to your store.

5.       Be innovative. The same message you ran last year will not work in today’s economic environment. Do not stray too far from the mainstream media. Consider infomercials. Look at 15-second bookends, put together 2-minute spots, and consider different ways to attract consumers’ attention.

6.       Get professional help. You are a car dealer not an advertising expert. Get the right people on your team who know what it takes to be successful and create effective advertising. You cannot compete in your market with inferior advertising.

Changing times call for a new advertising strategy. Follow this advertising checklist and you will weather this storm.

Tom Letizia is the president of Letizia Ad Team-Automotive marketing division, a full-service advertising agency specializing in automotive. He can be reached at 702-870-2362 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .