With more data and insights available than ever, it’s easy for dealerships to get caught up in the excitement of high store visits, a spike in website traffic, or even increased sales. But before you start celebrating that “record-breaking” month, ask yourself: did your competitors experience the same boost? A high volume of car sales might simply be a market-wide trend rather than a unique win for your dealership.
The pitfalls of relying solely on isolated numbers.
Your dealership might have enjoyed an influx of store visits last month. However, if every other dealership in your market saw similar numbers, did you really gain ground, or were you just benefitting from a market-wide upswing? The same goes for any other figure. A dip in sales might seem concerning at first glance, but if your competitors experienced an even steeper drop, you could actually be in a stronger position than you think.
While an increase in sales and website visits can signal market share growth, raw metrics like sales, walk-ins, or traffic can be deceiving. They provide a snapshot of activity, but they don’t tell you where you stand relative to the competition. It’s all too easy to mistake a market-wide trend for your own success—or failure.
Why market share matters more.
Market share—your dealership’s portion of total vehicle sales in your market—is the most accurate measure of performance. Yes, sales numbers feed into market share, but raw counts alone can be misleading. When the size of the car-buying pool changes month to month, a spike or dip in isolated sales doesn’t tell you much about how you’re doing relative to the competition. Market share shows you whether you’re gaining or ceding ground compared to everyone else. Here’s why that matters:
- Relative Performance: Market share shows how you perform in comparison to other dealerships. It’s not enough to see improvement in isolation; you need to know if you’re outperforming your competitors.
- Growth and Outperformance: Every dealership wants to grow, but growth is only meaningful if it comes at the expense of your competition. If the entire market is having a high-sales month, your real win is only achieved if you capture a larger slice of that larger pie. Conversely, even a low-sales month can be a “success” if your market experienced an even deeper downturn, boosting your share of total sales.
- Stability Across Fluctuations: Economic and societal factors—like recessions or pandemics—can swing the raw numbers dramatically. Yet, market share remains a steady indicator of your competitive standing, unaffected by temporary market swings.
In a landscape where every dealership faces the same market forces, market share is the clearest way to gauge whether you’re leading, keeping up, or falling behind.
Your OEM’s market share sets the bar.
And to truly evaluate your dealership’s market share, you need to compare it to how your OEM is performing in the greater region. If the brand is surging in the DMA but your store isn’t keeping pace, you’re losing ground within your brand. Your goal isn’t just sales growth, or even local market share growth; it’s outperforming your OEM.
That comparison gives vital context. A 10% lift in local share might sound strong, but if your OEM jumped 15% in the same period, you actually lost share within the brand. Conversely, if the brand declined but your store held steady, you outperformed.
Looking at market share through the lens of brand performance helps separate dealership-level wins from broader brand momentum. It clarifies whether your store is driving growth or just riding it and reveals if your marketing is truly moving the needle.
When less can mean more.
Raw metrics alone paint an incomplete picture. If sales rise but competitors’ sales rise more, you’re losing ground—even if it doesn’t feel that way. And while fewer sales but a larger share of the market might feel like a loss, it’s actually a competitive gain. Yes, less revenue can be discouraging, but if you’re capturing more of a shrinking market, you’re outperforming others in the same environment. That’s a sign of strength.
Market-wide demand shifts are beyond your control. What is in your control is how well you compete within that demand.
Before you celebrate or worry, take a step back. Look at how you’re performing relative to your local market and your brand. Real growth comes from outpacing competitors, not just following the broader trend.
Maven: Built for market share growth.
Effective automotive advertising starts and ends with market share. That’s why Maven, EMG’s streaming analytics platform, is purpose-built to measure, contextualize, and improve it. Unlike inflated or fraudulent metrics, market share can’t lie or deceive, reflecting your true competitive standing.
Analyze your share and your competitors’ with Maven. Then use that insight to grow it through high-performing streaming advertising.