Auto Dealers Risk $2.94M Yearly from Visibility Gap, SearchLab Finds

SearchLab Digital Study Reveals $2.94 Million Visibility Gap Threatening Auto Dealers in 2025

SearchLab Digital, a leading boutique SEO and digital marketing agency, has released its highly anticipated 2025 Google Business Profile Report: Auto Edition, the most extensive research project ever conducted on how car dealerships appear in local Google search. The landmark study analyzed 2,260 dealership profiles across 20 major U.S. cities, offering fresh insights into how search rankings impact visibility, revenue, and customer acquisition.

The findings are sobering: auto dealers ranking in the #10 position on Google would need to spend nearly $3 million annually in pay-per-click (PPC) advertising to generate the same visibility as competitors ranked in the coveted #1 spot. For many dealerships, this visibility gap represents a critical threat to revenue and customer loyalty in an increasingly digital-first car-buying landscape.

For the first time ever, the automotive industry has hard data that proves the effectiveness of SEO,” said Greg Gifford, COO of SearchLab Digital and one of the world’s foremost experts in Local SEO. “Quick wins can be tempting, but our data proves that the fundamentals of SEO still matter. The difference between ranking #1 and #10 is execution, and we now have the definitive roadmap to help dealers bridge that $2.94 million gap. This research doesn’t just identify problems – it provides the blueprint for automotive success in the digital age.”

The Growing Importance of Local Search in Auto Retail

The car-buying journey has changed dramatically in the last decade. Almost every customer begins their search for a new or used vehicle online, with Google serving as the starting point. Local SEO, and particularly optimization of Google Business Profiles (GBPs), has become one of the most powerful tools for capturing consumer attention.

For dealerships, ranking at the top of Google results can mean the difference between bustling showrooms and empty lots. Visibility directly impacts phone calls, website traffic, service appointments, and showroom visits. The SearchLab study underscores just how wide the visibility gap is between top-ranking dealerships and those further down the search results.

Key Findings from the 2025 Study

SearchLab’s research reveals critical insights that reshape how dealerships should approach SEO and digital marketing:

  1. Top Ranking Dominance
    • Dealers in the #1 Google search position appear in more than twice as many searches as those ranked at #10.
    • This organic visibility translates into more customer calls, directions requests, and clicks—without the heavy costs of advertising.
  2. The $2.94 Million Gap
    • Dealers ranked at #10 would need to spend roughly $245,000 per month in PPC ads—totaling $2.94 million annually—to generate the same visibility as a dealer ranked #1.
    • This reinforces SEO as a more cost-effective, long-term growth strategy compared to paid search.
  3. Review Volume and Ratings
    • On average, dealerships maintain 2,195 customer reviews with a solid 4.3-star rating.
    • However, dealers in the #1 spot consistently earn more new reviews each month, further strengthening their visibility and credibility.
  4. Service & Parts Profile Neglect
    • 47% of dealerships do not maintain separate Google Business Profiles for Service & Parts, despite the fact that these profiles drive local ranking signals and attract service customers.
  5. Underutilization of GBP Categories
    • Only 17% of dealerships use all 10 available GBP categories, a simple yet critical factor for local ranking.
    • This leaves untapped opportunities for capturing search traffic related to financing, leasing, service, or parts.

These findings provide actionable takeaways for auto dealers, showing exactly where the industry is falling short and where improvements can yield significant ROI.

A Methodology Grounded in Precision

The credibility of SearchLab’s research comes from its multi-layered methodology. The study used Places Scout for live search data collection, combined with Ahrefs for backlink and visibility analysis, and cross-referenced with Whitespark’s Local Search Ranking Factors.

This approach ensured the study wasn’t just about raw search results but about the underlying factors influencing rankings. By blending live local search data, authority metrics, and ranking factor insights, SearchLab produced the most comprehensive dataset ever compiled on automotive local search performance.

We put this study together because we have so much data at our fingertips, and we know our clients benefit when we can turn that into clear insights,” said Mark Bealin, CEO of SearchLab Digital. “The goal is not just to gather numbers—it is to help dealers make better decisions that drive real results. This research gives our clients an edge.”

Why SEO Still Outperforms Paid Advertising

For years, auto dealers have poured billions into PPC advertising, focusing on short-term traffic gains. Yet SearchLab’s data confirms what SEO experts have long argued: organic rankings deliver superior long-term value at a fraction of the cost.

While PPC campaigns can supplement visibility, relying on ads to replace weak SEO execution is prohibitively expensive. Dealers ranked at the bottom of page one effectively “pay a penalty” in the form of missed opportunities or sky-high ad costs.

“In an era where every car buyer starts online, these missed optimizations directly translate into lost leads, fewer phone calls, and empty showroom floors,” added Gifford. “Dealers who prioritize Google Business Profile optimization are building lasting visibility and trust; those who don’t are effectively paying a penalty in lost traffic and sales opportunities.”

Strategic Implications for Auto Dealers

The implications of SearchLab’s findings go far beyond simple rankings. They signal a shift in how auto dealers must approach digital marketing in 2025 and beyond.

  • Customer Trust Through Reviews: Reviews remain a core ranking factor and a powerful driver of consumer trust. Dealers must actively manage review acquisition, response, and reputation.
  • Maximizing GBP Features: Fully optimizing GBPs with all categories, attributes, photos, posts, and service areas is no longer optional—it is a competitive necessity.
  • Service & Parts Visibility: By neglecting separate profiles for service and parts, nearly half of dealerships are losing out on high-margin service revenue.
  • Sustainable ROI Through SEO: Unlike PPC, which resets with every budget cycle, SEO investments compound over time. Dealers at the top benefit from cumulative gains in visibility and reputation.

For dealers, the roadmap is clear: prioritize long-term SEO fundamentals, invest in ongoing GBP optimization, and treat reviews and local signals as strategic assets.

SearchLab’s Role in the Future of Automotive SEO

SearchLab Digital has positioned itself as a trusted partner for auto dealerships seeking to navigate the complex world of local SEO. The agency’s low client-to-consultant ratios and boutique, transparent approach differentiate it from large-scale marketing firms that often rely on cookie-cutter strategies.

By integrating SEO, PPC, and Google Business Profile optimization into a holistic framework, SearchLab helps clients dominate local search, reduce marketing inefficiencies, and increase ROI. Its partnerships with leading dealerships demonstrate the power of data-driven strategies to accelerate digital transformation in auto retail.

The 2025 Google Business Profile Report: Auto Edition arrives at a pivotal time for the automotive industry. With new-vehicle inventories stabilizing post-pandemic and digital competition intensifying, the dealers who leverage SEO fundamentals stand to win big.

As Bealin summarized: “This study is not just about what the data says—it’s about how dealers use it to outpace their competitors. The gap between #1 and #10 is not just numbers on a chart; it’s millions of dollars in revenue, customer relationships, and long-term viability.”

For dealerships nationwide, the message is clear: visibility is profitability. Those who embrace SEO as a core business strategy will thrive in 2025 and beyond.

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