Automotive Down But Still Radio's Number One

8-15-14

Automotive News reported today that both Ford and Chevy were planning to offer new 0 percent financing deals to combat lagging auto sales. That sentiment seemed to carry over to the advertising world where, despite being the number one category for radio, four of the top five spenders were down compared to 2013. Overall, the category dropped 2 percent compared to April, May, and June of last year. Leading automotive spender, the Toyota Dealers Association, was down 1 percent, followed by Honda dealers dropping -6 percent, Ford dealers declined -24 percent, while the Chevrolet Dealer Association jumped +27 percent and the Nissan Dealer Association declined 4 percent.

Add a Comment Send This Story To A Friend

View the original article here

(VIDEO) Harsh Words From a Former Automotive Radio Advertiser

10/24/13

Barry Merrill (pictured, center, at the DASH conference) is the President and General Manager of Grand Ledge Ford Lincoln in Grand Ledge, MI. Unfortunately he is a lost radio advertiser and he blames the radio industry for his decision to turn all of his dollars over to TV. Merrill said there was too much turnover in sales reps, and they were just trying to hit their budgets -- there was no relationship-building. He went from spending all of his advertising dollars on radio to spending nothing. We asked Merrill to give the industry some advice on how to improve.

"When you call on us, use an all-around approach," he said. "Focus on new cars, used cars, promote our website and our Facebook page. Talk about what you can do to promote the dealership as a whole." Merrill says Ford is moving a lot of advertising to digital, including Pandora, and he says it's working."I like to advertise directly," he said. "I get more feedback."

Ford is now at 60% to 70% digital, up from 20T-30%. Merrill also asks, as radio sees technology evolving so fast, how radio is going to be engaged in that: "If it's a regular antenna connecting to the car and everyone else is digital, you are going to be left out of the game."

Here is our extended video interview from DASH with Barry Merrill.

(MANAGER'S PERSPECTIVE) While this may be true, there are always two sides to a story. It's doubtful that all the Detroit radio groups simply dropped the ball forcing this guy to abandon radio. There are too many good radio groups in that market. Would have loved to hear what they had to say about it.  
.... Major Market General Manager

What's your perspective? Leave your comments below.

(10/26/2013 9:35:57 AM)
Yet he is in the business of selling radios. One comes with every car.
(10/26/2013 9:07:26 AM)
Eric and Ed,

After considering all the comments (most of them, anyway), it appears to me that the car dealer you chose to offer his thoughts on media use was a poor choice. If the radio guys in the market who know him have him pegged as just a rate objector who relished the opportunity to get on stage and rip radio a new one, then he served no purpose in your intended forum.
RadioInk has made some questionable choices in their recent panel picks. Many of the tech "experts" are people looking for work and get some by opining that radio is nearly dead and only their services will save it. Others are agency reps who change their stance weekly as their ilk always has.
RadioInk is to be saluted for trying to get a conversation going that can be beneficial, but not if all the speakers have the same theme that the sky is falling, because the money people who are building and buying radio stations know that is not true.

(10/26/2013 12:13:13 AM)
"Live and local" is a phrase served with the Kool-Aid. And, like that famous (Jonestown) beverage, very few understand the implications of sucking it up.

Live and local can be programmed in the morning by anybody so inclined. And there isn't a reader here who doesn't know what a shambles and a sham that would be.

Anyway, "Ronnie's" next article deals with that very issue. It may be an opportunity to do something different - like: learn something new.

(10/25/2013 7:38:26 PM)
In Eric Rhoads impassioned separate message today detailing the far-reaching wisdom of his recent conference the ad director for Hyundai and Kia says unless radio maintains LIVE AND LOCAL they will be less of a factor.
Wanna eat your comments of late on LIVE AND LOCAL, Ronnie? We can start with this example of your nonsense.
(10/25/2013 6:45:17 PM)
Got it: It's the advertisers' fault and when it's not, it's the sales departments' fault. Anything to delay taking action on our own parts is acceptable.

So, here is the strategy: a.) Knock a series of homers out of the park for a half dozen different clients. b.) inform the desired advertisers of those results while asking them to drop by at their convenience.

Can't pull that off? Load up on personal supplies; get with station ownership and management; lock the doors; speak candidly and truthfully; participate in making decisions for drastic and dramatic improvements, and after that, determine if there is a personal future in this racket.

Add a Comment | View All Comments Send This Story To A Friend

View the original article here

What Radio Can Teach The Automotive Industry

10-21-13
From zero to 60, the "connected car" has become a mainstream issue in radio in little more than a year. You can't attend a radio conference or convention without at least one panel devoted to the relationship between radio and the "center stack." And this week in Detroit -- the Motor City -- we're devoting the better part of two days to discussing the intersection of the radio and automotive industries and how we can learn from one another.

As you've no doubt heard by now, the list of participating brands is impressive, with speakers and presenters you never see at radio conferences. Toyota, GM, Ford, Panasonic, Pioneer, and other auto brands will be presenting, with many others in attendance. On the content side of the spectrum, we've got iHeart Radio, Pandora, TuneIn, and Aha by Harman set and ready to go. And we have sessions designed to show off what's next in connected car technology, as well as the innovations that are happening in radio.

But one panel that may surprise people is "Behind the Mic/Behind the Wheel," featuring some of Detroit radio's best shows and hosts. That's because radio's personality factor is what sets the medium apart, and it will be on display at DASH.

General Motors was kind enough to lend us a couple of well-equipped 2014 vehicles, a Buick Regal GS and a very cool electric Chevy Spark EV. So last week, we invited a group of Detroit celebrity DJs to sit behind the wheel and tackle the challenges of the "connected car" (something we urge all of you to do). And, of course, we captured it all on tape.

We're talking WRIF's top-rated morning show, "Dave & Chuck the Freak" (along with Lisa Way, who is pictured below), sports radio superstars Valenti & Foster from The Ticket (pictured above), and morning icon and TV personality Jay Towers from WNIC. Greater Media's Buzz Knight -- no stranger to managing big-name personalities -- will be moderating.
DASH attendees from the worlds of ad agencies, car dealerships, Tier 1s, and the OEMs will have a chance to see and hear from these local legends as they talk about -- and very likely laugh about -- their experience behind the wheel in connected cars.

Sure, it will be entertaining, but it will also serve as a reminder of what makes AM/FM radio different. And to the broadcasters in attendance at DASH, it will underscore the importance of great local talent and a sense of place amid all the technology.

Executives from the automotive world will see firsthand just how incredible local radio can be. While their center stacks may be filled with infinite streams from around the globe, custom "radio stations? from multiple services, and of course the hundreds of channels offered by SiriusXM, there is only one industry that brings consumers face-to-face with their hometown markets in a meaningful, tuned-in way: local radio.

So while our many radio-industry attendees will be on hand to learn and collaborate with these automotive gurus, there will be something else happening at DASH at the same time.

Detroit radio is going to put on a show of its own, demonstrating the power, magic, and allure of local radio and why it is different from everything else in the dashboard.

It's your guess as to who will be more impressed. But I know who I'm betting on.

There's still time to learn, collaborate, and partner at radio's most innovative conference, DASH at the Westin at the Detroit Metropolitan Airport, October 23 and 24. To learn more, www.dashconference.com.

DASH
October 23-24, 2013
Westin Detroit Metropolitan Airport
Detroit, MI
www.dashconference.com

View the original article here

Automotive Crashes Q1 Radio Revenue

It's always been radio's slowest revenue quarter, and 2013 was no different. Keeping in line with what many of the major radio companies reported in their quarterly earnings, radio took in $3.5 billion in January through March, with March providing something of a revenue spark after a slower start.

Spot revenue declined 2% for the quarter, while digital increased 9% year-over-year. Radio's bread-and-butter category, automotive, offered more dealer incentives and pulled back on advertising in Q1, according to the RAB -- and a 20% decline in automotive advertising is a big number to make up.

Here's how some of the other categories performed in the first quarter of 2013:

Communications and Cellular was up 36%. Financial Services was up 13%. Casinos and lotteries were down 15%. The Beverage category was down 4%. Concerts/Theaters/Movies declined 4%.

Read the full RAB report HERE.

(5/17/2013 2:45:04 PM)
Automotive advertising did NOT pull back in Q1. Automotive DID pull back advertising on radio though, in Q1. The dealers especially in the major markets are getting smart-- they see NO ROI with radio! Reason: they know their commercials ARE NOT HEARD when they are buried in a long commercial cluster break. ...Radio had better go back to very short breaks, or this is only the beginning of the loss of ROI focused advertisers.

Add a Comment | View All Comments Send This Story To A Friend

View the original article here

Automotive Sales Roundup For April

5-2-2012

Chrysler led the five largest automakers for April as sales jumped 20 percent to 141,165 light vehicles. Toyota's deliveries rose 12 percent to 178,044. Ford deliveries fell 5.1 percent to 179,658 cars and light trucks, and GM sales dropped 8.2 percent to 213,387. Honda sales also declined. Total light-vehicle sales in April gained 2.3 percent to 1.18 million, according to Woodcliff Lake, New Jersey-based researcher Autodata Corp. The industry's seasonally adjusted annual rate, or SAAR, was 14.4 million.

Add a Comment Send This Story To A Friend

View the original article here