How much do auto repair shops budget for their annual marketing? What marketing strategies have they found most effective?
Discover the answers to these questions in AutoLeap’s 2022 State of the Auto Repair Industry Report!
» Want to grow your auto repair business? Click here to schedule a demo.
AutoLeap conducted an independent survey of nearly 300 shop owners and managers across North America. This inaugural benchmark report features survey data on the top industry topics, including all things marketing.
Let’s consider how shop owners approached their marketing budgets and strategies in 2021.
What shop owners spend on marketing
Survey respondent data indicates that 60% of shops spent $2,000 or more on their marketing last year.
This data signals that, for the most part, shops are committed to targeted marketing campaigns.
But extremes still exist, with 17% of shops spending less than $100 on their annual budget. On the high end, 17% of shops spent $25,000 or more on their promotional efforts.
Where shop owners market their business
You understand the numbers. Now it’s time to consider shops’ preferred strategies for marketing.
Survey data reveals one marketing channel as the favorite, with 59% of respondents using social media channels to promote their business. Search engine marketing came in at a close second, with 45% of shops mentioning SEM.
The data also makes it clear that more traditional marketing options are falling out of favor. Less than one out of every three respondents rely on word-of-mouth advertising, TV commercials and trade shows to market their business.
Which marketing channel was the most effective?
You won’t find these numbers too surprising, but they are still great to see. Over 50% of survey respondents identified digital marketing tools – including social media and SEM – as their shop’s two most effective marketing channels.
It’s clear that as technology evolves, auto repair shops will continue adapting their marketing strategies.
Some auto repair shops continue to use old-school marketing methods, however, with 8% of respondents still promoting their shops in print newspapers.
What the experts say
Let’s hear how three industry experts reacted to these data insights.
- On how shops should determine their marketing budget: “Repair shops should be spending a minimum of 6% of their income on marketing.” – Cecil Bullard, CEO at The Institute for Business Excellence
- On revenue expectations vs. budget requirements: “A shop that wants to do $1 million in sales needs to spend $30,000 – $50,000 per year on their marketing budget.” – Chris Cotton, Owner of AutoFix Auto Shop Coaching
- On the sneaky impact of old-school marketing: “Believe it or not, in some markets, these more traditional marketing tools still work.” – Murray Voth, President at RPM Training
» Want to grow your auto repair business? Click here to schedule a demo.
Discover more survey insights
Interested in reviewing other key takeaways from the industry’s most comprehensive benchmark report? Download the full report here.
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