CDK Global is encouraging dealers to ensure their impact with digital tools and a more “effective” marketing spend.

The suggestion follows research that revealed dealers are investing 64% of their marketing budget on digital tools, up from 45% just three years ago – with some retailers spending 85%.

CDK’s managing director for UK and Ireland, Stuart Miles (pictured), said: “Our research shows that retailers spend anywhere between 0.2% and 1.3% of their turnover on digital marketing, so it’s important to get it right.

“We are working with retailers to understand the factors that impact the success of their digital marketing.

"By working together across our industry we will develop solutions that allow retailers to focus on digital marketing in this fast-paced sector and deliver a more connected car ownership experience for consumers.”

CDK also found that 90% of UK Dealer Principals believes the number of automotive retail sites will have declined by 25% in 2022, making effective digital marketing increasingly important to long-term profitability.

Retailers reported their biggest “pain points” in digital marketing as online advertising, using social media tools, website flexibility and integrating digital tools with legacy systems.