Retargeting vs. Prospecting: How to Balance Your Paid Social Strategy for Car Dealerships

In today's competitive automotive market, car dealerships can't afford to waste ad dollars on ineffective campaigns. To maximize leads and conversions, balancing retargeting and prospecting in your paid social strategy is crucial. But how do you allocate budget and resources between these two approaches? Let's break it down.

Understanding Prospecting: Expanding Your Reach

Prospecting campaigns focus on attracting new potential customers who haven't interacted with your dealership before. These campaigns introduce your brand, highlight your inventory, and create initial interest.

Best Practices for Prospecting Ads:

✔ Use Lookalike Audiences - Target users similar to your past customers.
✔ Leverage Interest & Behavioral Targeting - Focus on users browsing auto-related content.
✔ Test Multiple Creatives - Show different car models, promotions, and financing options.
✔ Optimize for Engagement & Traffic - Build awareness before pushing direct conversions.

The Power of Retargeting: Converting Warm Leads

Retargeting is about re-engaging potential buyers who have already visited your website, engaged with your ads, or interacted with your dealership in some way. These audiences are further down the funnel and more likely to convert.

Best Practices for Retargeting Ads:

✔ Segment Your Audiences - Separate high-intent visitors (VDP views, lead form starters) from general website visitors.
✔ Personalize the Message - Show dynamic ads featuring vehicles users viewed or similar models.
✔ Incentivize the Purchase - Offer limited-time deals, test-drive incentives, or financing specials.
✔ Use Multiple Touchpoints - Run retargeting across Facebook, Instagram, and even Google Display.

Finding the Right Balance

For car dealerships, a healthy paid social strategy typically includes 60-70% prospecting and 30-40% retargeting. Prospecting drives fresh traffic to your website, while retargeting nurtures those leads into customers.

Key Considerations When Allocating Budget:

🔹 Dealership Size & Location - Larger metro dealers may allocate more to retargeting due to higher website traffic.
🔹 Inventory & Promotions - If you're launching a big sale, retargeting should increase temporarily.
🔹 Seasonality - Tax refund season? Year-end clearance? Adjust accordingly to capture demand.

Final Thoughts

Car buyers don't make instant decisions—they browse, compare, and take their time. A balanced prospecting + retargeting approach ensures your dealership remains top-of-mind throughout the buying journey. Focus on attracting, engaging, and converting at every stage, and your paid social strategy will drive more qualified leads and sales.

Need help optimizing your dealership's paid social campaigns? Reach out to our team of experts at SilverBack Advertising!