The Hidden Cost of Holiday Marketing: What Car Dealers Need to Know Before December

Mike Snellenberger , OCT 2, 2025

The holiday season is approaching fast, and if you're like most car dealers, you're already thinking about your Q4 marketing strategy. But here's what 15+ years in automotive marketing has taught me: the biggest costs aren't always the obvious ones.

While you're focused on ad spend and promotional budgets, there are hidden expenses quietly eating away at your profits.

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The Hidden Cost of Holiday Marketing

The Hidden Cost of Holiday Marketing: What Car Dealers Need to Know Before December

October 01, 20255 min read

The holiday season is approaching fast, and if you're like most car dealers, you're already thinking about your Q4 marketing strategy. But here's what 15+ years in automotive marketing has taught me: the biggest costs aren't always the obvious ones.

While you're focused on ad spend and promotional budgets, there are hidden expenses quietly eating away at your profits. Let me share what I've learned from managing marketing for dealerships generating 4,000+ leads per month, and how you can avoid these costly pitfalls.

The December Dilemma Most Dealers Face

Every November, I get the same calls from dealer principals: "Sales always drop in December. Should we cut marketing spend or double down?"

It's the wrong question.

The real question is: "How do we maintain profitability when customer behavior changes dramatically?"

Here's what typically happens between Thanksgiving and New Year's:

  • Foot traffic drops 30-50% at most dealerships

  • Online browsing increases, but conversion rates plummet

  • Customers delay major purchases until after the holidays

  • Your cost per lead skyrockets as competition for attention intensifies

Most dealers respond by either slashing their marketing budget (losing market share) or increasing spend with the same failed strategy (burning cash).

Hidden Cost #1: The Vendor Multiplication Effect

During the holidays, marketing vendors go into overdrive. Your Google Ads manager suggests increasing budgets. Your Facebook agency recommends holiday-specific campaigns. Your direct mail company pushes year-end promotions.

Each vendor optimizes for their own metrics, not your bottom line.

I recently worked with a two-location franchise dealer spending $25,000 per month across 12 different marketing channels. Their cost per vehicle sold had climbed to $950 – nearly 60% above industry average.

The hidden cost? Zero coordination between vendors meant they were competing against themselves, driving up their own advertising costs while confusing potential customers with mixed messaging.

Hidden Cost #2: The Data Disconnect

Here's a scenario I see constantly: A dealer's website shows 500 leads in November, but only 50 turned into sales appointments, and just 15 became actual sales.

The marketing agency celebrates the lead volume. The dealer pays the bill. But nobody connects the dots between marketing spend and actual revenue.

During the holidays, this disconnect becomes expensive. Customer decision timelines extend, follow-up becomes critical, and lead quality matters more than quantity. If you're not tracking the complete customer journey from first click to final sale, you're flying blind with your most expensive marketing months.

Hidden Cost #3: The Holiday Messaging Mismatch

Most car dealers make a critical mistake in December: they market like it's any other month.

But December buyers are different. They're either:

  1. Urgent buyers with immediate needs (accidents, breakdowns, job changes)

  2. Planned purchasers taking advantage of year-end incentives

  3. Gift buyers (less common but high-value when they convert)

Each group needs different messaging, different follow-up, and different sales approaches. Using generic "year-end sale" messaging for all three groups wastes money and misses opportunities.

The Smart Dealer's Holiday Strategy

After growing up in my family's dealership business – from washing cars to managing marketing budgets – I've learned that successful holiday marketing isn't about spending more money. It's about spending smarter money.

Here's what works:

1. Audit Before You Advertise

Before increasing any marketing spend, analyze your last 90 days of data. Which channels delivered the lowest cost per vehicle sold? Which messaging resonated best? Double down on what's working, not what's loudest.

2. Unify Your Vendor Management

Instead of letting each vendor run their own strategy, create one unified approach. Your Google Ads, Facebook campaigns, email marketing, and inventory promotions should tell the same story and drive toward the same goals.

Focus on Cost Per Vehicle Sold

Leads are vanity metrics. Revenue is reality. Track every marketing dollar back to actual vehicle sales. At my family's dealership group, we got our cost per vehicle sold down to $125 by obsessing over this metric.

3. Adjust for Holiday Behavior

Extend your follow-up sequences. Create urgency around year-end incentives. Develop specific campaigns for each buyer type. Most importantly, prepare your sales team for longer decision cycles.

The 90-Day Window That Changes Everything

Here's what most dealers don't realize: you have exactly 90 days left in the year to make or break your annual numbers. The decisions you make in October about November and December marketing will determine whether you finish strong or struggle into 2024.

I've seen dealers reduce their marketing spend from $25,000 to $17,000 per month while increasing sales by 30% – simply by eliminating waste and focusing on what actually drives revenue.

The key is having someone who understands both the automotive industry and marketing strategy. Someone who's been in your shoes, managing sales teams and marketing budgets, dealing with manufacturer requirements and customer complaints.

Your Next Steps

As you plan your Q4 marketing strategy, ask yourself:

  • Do you know your true cost per vehicle sold across all marketing channels?

  • Are your vendors working together or against each other?

  • Is someone tracking marketing performance all the way to actual sales?

  • Do you have time to manage all of this while running your dealership?

The automotive industry changes fast, but smart dealers don't try to keep up with every trend. They focus on what they do best – selling cars and serving customers – and work with specialists who can handle the marketing complexity.

Because at the end of the day, your job isn't to be a marketing expert. Your job is to be a successful dealer who makes smart decisions about where to invest your time and money.

The next 90 days will determine how your year ends and how 2026 begins. Make them count.

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Mike Snellenberger

Mike Snellenberger (aka Marketing Mike) welcomes you to The Fractional CMO Team, where dynamic marketing strategies fuel unparalleled business growth. With 25+ years of combined expertise in some of the most competitive industries, we craft unique solutions for each client. Our fusion of strategists, creatives, and digital experts shares a mission: propelling your success through impactful marketing. With The Fractional CMO Team, innovation meets expertise to create tailored solutions to your business goals. Our team's diverse skill set ensures a strategic approach to every challenge. We're dedicated to driving your business forward through visionary marketing strategies. Join us on a journey where innovation, creativity, and expertise converge to shape your business success. Our commitment is to craft strategies that resonate and elevate your brand in the ever-evolving marketing landscape.

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