by Terry MacCauley - Posted 6 days ago
What worked in marketing last year does not work today. Algorithms have evolved, audiences have changed, and artificial intelligence is rewriting marketing rules faster than most businesses can adapt.
But here is the truth: we are not there yet. The promise of AI doing it all for you sounds appealing, but it is proving costly for many dealers. Automated advertising platforms like Google’s Performance Max and Meta’s AI-driven campaign tools have created a false sense of simplicity. The idea that you can “hang it and forget it” while AI handles your entire digital presence is not a reality. Dealers nationwide are seeing higher costs per lead, lower conversion rates, and increasing frustration.
It is not a matter of spending more to get more. It is about spending smarter and controlling your message, brand, and results.
The marketing playbook that worked for years no longer delivers the same results. Traditionally, you could rely on paid media to make up for weaknesses in your marketing, like a mediocre website, generic content, or slow updates. You could still buy visibility.
But today, tools like ChatGPT, Gemini, and Grok are transforming how people search. Even Google itself is moving toward an AI-driven experience, known internally as AI Max for Search, designed to give users summarized answers pulled directly from across the web. It is faster, cleaner, and more conversational.
The problem is that you are invisible to AI if your website is not fast, optimized, or trustworthy. These new systems are not recommended for just any site. They prioritize content that loads quickly, demonstrates expertise, and is structured for AI to understand. Most users never scroll past the new AI Overview to reach traditional search results.
The challenge is that this shift feels unfair. You are doing what worked for years, but the results are declining. That frustration leads to panic spending, chasing quick fixes, or switching agencies too soon. The truth is that the new marketing landscape requires strategic endurance. You are not just competing against other dealers anymore. You are competing against machines that answer instantly. Winning means rebuilding trust and visibility piece by piece, which takes time.
AI can be a helpful tool, but it is not a strategy. It can write headlines, test creative, and predict trends, but it cannot understand your customer base, your dealership’s voice, or your market conditions. When left unattended, AI advertising systems often optimize for the wrong outcomes.
We are seeing campaigns where AI directs ads to the wrong audiences entirely. For example, a Buy Here Pay Here dealer can be presented as a retail store simply because their website language and data do not clearly tell AI otherwise. That misclassification means wasted impressions, wasted dollars, and fewer real leads.
Dealers who hand over control to automation without oversight essentially allow Google or Meta to make branding and budget decisions on their behalf. That is not efficiency. That is giving away the steering wheel.
The shift is happening not only in how ads are run but also in how people search for answers. Consumers are starting to treat AI as the new Google. Instead of typing traditional searches, they ask ChatGPT, Gemini, Grok, or other platforms for recommendations.
If your dealership’s website, reviews, or online presence are not optimized for AI recognition, you are not simply invisible to searchers. You are invisible to the very systems that now decide who gets visibility.
AI tools are scanning every element of your digital footprint to determine credibility. Your website speed, content quality, reputation, and consistency all matter. A slow website or an inconsistent profile can now directly affect your ability to be “recommended” by AI.
On top of that, AI-generated summaries in Google’s search results are pulling attention away from paid and organic listings. This means that even when your ads look great and your targeting is on point, you compete for fewer clicks. That reality explains why costs per lead are rising across the industry even when performance seems stable.
The results dealers are seeing today are not entirely their fault. The environment has changed, and the economics of digital visibility have shifted dramatically.
Even with strong creative and solid targeting, your cost per lead has likely increased. That is not simply inflation; it is reduced visibility. As AI-generated summaries take over top-of-page real estate, organic reach shrinks. Paid ads compete for fewer clicks, driving costs up while conversions remain flat.
Market factors like interest rates, consumer confidence, and inventory levels still play a role. However, AI-driven competition has amplified those challenges. Dealers are paying more, not because they are marketing poorly, but because the digital landscape is more filtered and competitive than ever.
Adding to that complexity, the platforms themselves are now powered by AI. With minimal input, Google’s Performance Max and AI-generated Search campaigns can automatically create headlines, descriptions, and ad variations. It looks efficient, which is why so many marketers rely on it.
However, lazy marketers love AI search advertising because it hides their lack of knowledge and strategy. When automation controls everything, you give Google full authority over how your brand is represented, who it speaks to, and how it performs. If your website messaging is weak or your offers are not clear, AI will only amplify those weaknesses.
When used correctly, though, AI-driven campaigns can become a multiplier. Savvy marketers use these tools to enhance strategy not replace it. They guide the AI with strong creative, sharp messaging, and optimized landing pages that make every click count.
This is where disciplined strategy matters most. The marketers who stay the course, refine over time, and measure actual performance will adapt faster than those chasing the next quick fix. Consistency compounds, even when short-term ROI looks worse than last year.
Another factor that catches up with marketers is the authenticity test. Consumers may not know the mechanics of AI-generated content, but they know what feels real. They can subconsciously recognize tone, structure, and phrasing that sound mechanical.
The result is that “AI-perfect” content often underperforms because it lacks emotional connection. Consumers want honesty, relatability, and individuality. They want to hear your story, not a recycled version of what every other dealership says.
If your digital content sounds like it could belong to any dealership, it probably came from an AI generator. And if it sounds like everyone else, you have already lost the customer’s attention before they ever fill out a form.
Dealers should also be cautious of vendors claiming to have an exclusive “AI system” or a secret formula that guarantees results. Usually, these tools are white-labeled versions of existing AI platforms or recycled ChatGPT prompts dressed up as proprietary technology.
The danger is not in using AI but in believing that someone has already perfected it. No one has. The technology is evolving daily, and without human guidance, testing, and real strategic input, even the most advanced AI platforms can make serious mistakes.
Many of these “AI solutions” sound impressive in a demo but operate on the same public models everyone else uses. How the system is trained, customized, and applied truly matters. That comes from experience, not from marketing claims.
Smart dealers will keep asking hard questions before signing with any vendor:
What exactly does your AI do that I could not do myself using open tools?
How is your system trained for automotive (plus my automotive model BHPH, etc.), and who manages it?
What human oversight exists to review and correct AI errors?
If a vendor cannot answer those questions clearly, their “AI” is not a solution but a sales pitch.
Before turning your marketing over to automation, take a hard look at the foundation your digital presence is built on.
Is your website fast, structured correctly, and optimized for AI-driven search results?
Are your Google Reviews consistent, recent, and written by real customers?
Is your Google Business Profile complete, verified, and full of relevant information?
Is your SEO built around the actual type of dealership you operate?
Does your content sound human, specific, and local, or does it read like a copied template?
If your foundation is weak, AI will not fix it. It will simply amplify the problem.
While much of the digital landscape has been disrupted, marketing fundamentals (as we have preached repeatedly) have not disappeared. In fact, they matter now more than ever.
Strategy and messaging remain your strongest assets. An essential requirement is a well-built website that AI can easily read with fast load speeds, relevant schema, and unique content. Your Google Business profile, social activity, and community engagement build trust signals that AI recognizes. The more human and active your brand appears, the more likely it is to be recommended.
Many dealers still have untapped opportunities in this area. The right website is not just attractive; it is structured for search, optimized for conversion, and built to tell your story in a way AI can easily interpret. It is not a cloned, cookie-cutter WordPress site that looks acceptable on the surface. It should be a well-engineered foundation designed to support growth, not a digital house sitting on a concrete slab.
The reality is that SEO, authority, and reputation do not grow overnight. Many dealerships abandon their efforts too soon because they do not see immediate results. However, if your organic traffic and brand visibility are rising month after month, that is progress worth keeping.
Marketing is no longer a sprint. It is a marathon where consistency and patience create compound returns.
The most successful dealerships in the age of AI are not those that surrender control, but those that integrate technology without losing strategy. AI can help you analyze data faster and find insights quicker, but it cannot feel authenticity or anticipate the nuance of human behavior.
That is where experienced marketers and creative teams still make the difference. AI might understand language patterns, but it does not understand emotion, motivation, or timing. A strong human strategy can guide AI to perform better, while a weak strategy only exposes inefficiencies faster.
Authenticity now sits at the center of marketing success. AI may summarize data, but consumers are still the ones who decide who they trust. They do not engage with the dealership that shouts the loudest. They engage with the one that feels most genuine, helpful, and relevant to their needs.
Your online content, reviews, and community engagement all feed into that perception. A well-written blog or an authentic customer response can boost your reputation more than an automated ad campaign.
AI has raised the bar for marketing. Dealers can no longer rely on the old “throw money at it” approach. Success now depends on balance. Every digital piece, from ads to SEO to social, must align under a clear strategy that blends technology with human oversight.
AI will amplify whatever it is given. A strong foundation will make your marketing stronger, and a weak one will make it worse.
The goal is not to fear AI or ignore it. The goal is to use it responsibly. Test it, guide it, and hold it accountable to your goals. The dealers who do that will win the long game.
AI has not replaced marketers. It has revealed who has been cutting corners. Consumers are more discerning, AI is more selective, and authenticity has become the most valuable marketing currency.
Dealers who remain strategic, consistent, and human in their messaging will be the ones that AI learns to favor and that consumers trust first.
In this new landscape, visibility is not bought. It is earned.
-by Terry MacCauley, Founder & CEO
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