Radio Still Matters to Auto Dealers

10-17-15
On a panel that combined auto dealers with radio managers the theme was, "with great technology comes great responsibility." While connected cars have great tech capabilities, they also require a lot of knowledge to operate. An advantage for radio if it keeps its content strong is that, as the auto dealers on the panel explained, consumers simply do not want to wait around to learn how to properly use the technology, most car buyers absolutely want their phones paired.

Shuman Chrysler Dodge Jeep Ram President Bob Shuman (pictured) said, ?It takes 30 minutes to explain the full user experience for the connected car and most consumers don?t want to take that time.? The panel concluded that this relationship was vital and radio & advertisers get hurt if AM/FM is diminished during car buying process ? "local broadcasters bring people to dealerships."

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Radio Still Matters to Auto Dealers

10-17-15
On a panel that combined auto dealers with radio managers the theme was, "with great technology comes great responsibility." While connected cars have great tech capabilities, they also require a lot of knowledge to operate. An advantage for radio if it keeps its content strong is that, as the auto dealers on the panel explained, consumers simply do not want to wait around to learn how to properly use the technology, most car buyers absolutely want their phones paired.

Shuman Chrysler Dodge Jeep Ram President Bob Shuman (pictured) said, ?It takes 30 minutes to explain the full user experience for the connected car and most consumers don?t want to take that time.? The panel concluded that this relationship was vital and radio & advertisers get hurt if AM/FM is diminished during car buying process ? "local broadcasters bring people to dealerships."

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Auto Dealers To Spend More On Ads In 2015

 9-25-14

Advertising Age has good news for radio as several major auto brands say they will increase their marketing budgets in 2015 to support busy model-launch schedules. Audi, Chevrolet, and Lincoln executives made that announcement at the Automotive News Marketing Seminar in New York this week.

Auto has been radio's biggest advertiser for a very long time. The article focuses more on TV and digital spending but radio always seems to benefit in some way when more automotive dollars are on the table. One other quote of interest came from Chevrolet's CMO Tim Mahoney when he was asked about vehicle connectivity. Chevrolet plans to launch 4G LTE connectivity in 30 models. Mahoney said, "When you have a statement that you can make about the brand ? 4G LTE and the things that it will enable down the road is really the bigger play."

Read the full story in Ad Age HERE

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Dealers' Advice For Radio On The Connected Car

9-24-14
Radio has long been intimately involved with cars and car dealers, and it's been a great relationship. But now it's time to take a look at car buying, and the whole ownership life cycle, from the perspective of today's connected consumer. How will these savvy consumers research, buy, and get service for  their vehicles going forward? And how can radio keep its place as a key part of the process? What new services can radio offer to consumers and to those all-important auto-dealer clients?

At the DASH conference, you can be part of a lively discussion on radio and its relationship with dealers in these always-connected times. After a special presentation by voice artist Lee Alan Reicheld on the importance of radio creative, you'll hear from both the radio and the dealership sides on this topic that's so important to radio's future.

DASH, hosted by Radio Ink, Jacobs Media, and Shuman Consulting Group, is coming up soon: October 15-16 in Detroit. Every car will be a connected car before you know it -- don't be caught unprepared. Register today!

Moderator:

Paul Jacobs is VP/GM of Jacobs Media and runs its successful mobile apps division, JacAPPS, which has produced apps for such brands as C-SPAN, Dan Patrick, and stations including WEEI/Boston and WRIF/Detroit. Jacobs began his radio career in sales, working for and running stations in Dallas and Detroit, and in 1991 joined his brothers Fred and Bill at Jacobs Media. Paul Jacobs is known as a leading radio consultant, specializing in generational marketing, sales development, and research.

Panelists:

Bruce Goldsen is president and co-owner of Jackson Radio Works in Jackson, MI. He began his broadcast career on the air and has served as program director for WINE-AM/Danbury, CT; WTFM-FM/Kingsport-Johnson City-Bristol, TN; and WIVY-FM (now WXXJ)/Jacksonville, FL. Goldsen is an NABPAC trustee, and served a six-year term as the elected Michigan representative to the NAB's radio board. He and his wife, Sue -- co-owner of Jackson Radio Works -- are both past chairs of the Michigan Association of Broadcasters and have both been inducted into its Hall of Fame. Bruce is also past chairman of the Michigan Association of Broadcasters Foundation.

Bob Shuman is president of Shuman Chrysler Dodge Jeep Ram of Walled Lake. A third-generation dealer/owner, Shuman began his career practicing law with the firm of Beier Howlett in Bloomfield Hills, MI, rising to partner. After 10 years, he left the firm to take over the family dealership in 1997, upon the retirement of his father, Richard T. Shuman. As chairman of the North American International Auto Show 2014, Shuman oversaw of one of the world's top auto shows. He and his executive team met with automaker representatives around the world to ensure that the NAIAS continued to present one of the finest auto shows in the world. Shuman's dealership won the 2013 Dealer of the Year award from DealerRater.com, the consumer-driven online website for anyone seeking third-party information on more than 20,000 auto dealers in North America.

Special Presentation:

Lee Alan Reicheld is a nationally known producer of television, film, radio, creative concepts, music, and commercials. He is a recognized expert in the field of agency sales and marketing, as well as a sales trainer, musician, composer, and published author. Before entering the advertising business, his career in broadcasting was legendary, and he served at one time as program manager/director for ABC Radio's WXYZ/Detroit. Reicheld has produced radio and television programs for CBS, ABC, NBC, cable, and syndication. As a motivational speaker he has visited 22 states and three foreign countries speaking to National Auto Dealer groups, the NADA National Convention, and dozens of state retail associations.

DASH 2014
October 15-16
Westin Detroit Metropolitan Airport Hotel
Detroit, MI
www.dashconference.com

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Are You Still Pitching Banners to Car Dealers?

7-31-13

By all accounts Automotive dealers have used radio as one of its many advertising outlets during its resurgence over the last 18 months. Most radio companies say auto is strong and has helped them inch their own revenue up, year over year. Historically automotive has been radio's biggest category, often dominating radio station inventory on Thursday's, Friday's and Saturday mornings. If you believe a new Borrell report, that's changing and changing quickly. The question is are you still throwing up a banner ad for your automotive clients or do you really know how to pitch them digital? 

Borrell's 2013 Automotive Outlook Report concludes auto advertising will be a $32.8 billion category this year, up 2%. "Car sales are up 8%, rebounding to an estimated 15.6 million vehicles and approaching that of pre-recession years when 17 million cars were sold." However, the report says automotive advertising is no longer "an old reliable seesaw for local media." Borrell says radio will see a 15.9% decline in advertising this year. While not as big a decline as Newspaper in the report (down 29.3%) or TV  (down 16.7%), nearly 16% is still huge and goes directly against what we've been hearing so far this year from radio operators. Borrell predicts online and mobile advertising to be up 18.7%. Borrell says within five years, annual spending by dealers and manufacturers on digital video advertising will go from $2 billion to more than $9 billion ? most certainly at the expense of local radio and TV.

The latest Borrell study says automotive advertising on the radio will go from $1.7 Billion in 2009 to $919 million this year while online advertising goes from $5.8 Billion to $14.3 billion. The report says most of these changes will take place through alteration of co-op programs ? emphasizing digital spending above other media choices and it is likely to persist for several years. "It represents a true sea change in the way auto marketers use media to sell their vehicles, based on solid information gained from research as well as their own websites."

Borrell also breaks down the total projected share of ad spending for new vehicles in 2013. Online is projected to have a 41.5% share. Broadcast TV is at 17.8%. Newspaper is projected to have a 13.5% share. Radio comes in at 3.3%. On the dealer side, it's even lower. Borrell says dealers choose radio only 2.7% of the time compared to online at 48% and newspaper at 21%.

Borrell also makes several recommendations on how you can improve your chances of getting more revenue as auto shift more toward digital.

Educate Auto Dealers.
Whether you?re on the buy side (agency) or sell side (media), this can be competitive advantage. We?ve found that agency and media people understand trends better than the advertisers themselves. Car dealers are too busy selling cars and managing the business and aren?t likely to know much of the information
contained in this report. Empowering reps with that knowledge will help them gain the ear ? and confidence ? of local dealers. (NOTE: Don?t try to educate them in the same room; dealers are highly competitive with each other.)

Get Past Run-of-Site Banners.
In the digital media race, untargeted banners are a losing horse. This report forecasts a rapid decline, which is actually a continuation of a trend that started several years ago. Dealers are migrating quickly to other, more effective forms of digital media. (NOTE: Those who continue to sell ROS banners
run the risk of being viewed as ?old? media.)

Build a Bullseye.
Targeted advertising in any form ? especially online ? will generate a better return on investment. Selling cars is all about getting high-quality leads. Dealers are looking for audiences who possess the highest potential to purchase.

Get Creative.
Social media is playing a significant role for manufacturers, and that?s likely to trickle down to dealerships. Become experts on how this works, and bring creative ideas to dealerships for contests and other promotions that wrap traditional and digital media together in a way that drives qualified leads. (NOTE: The more qualified the lead, the more valuable the promotion to the dealer.)

Study the Vulnerabilities of Existing Digital Media Companies.
Autotrader.com, Autos.Yahoo.com, Cars.com, Dealer.com, Craigslist and others may well be considered ?old media? within the emerging new media channel. All were built on the original model of the Internet that involved listings, traffic and exposure. While all are still relatively strong, they may also be encumbered by those models and find it difficult to adapt to the new social and mobile environment.

Challenge Internal Thinking.
New media is more complex than ever before. Don?t believe that all of the knowledge can come from within even if you have internal ?experts.? There are plenty of bright minds at other agencies or media companies, local dealerships, or at consultancies whom can help you build expertise quickly.

For more information about this report visit www.borrellassociates.com

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(AUDIO) Auto Dealers Are Developing Vehicles Without AM/FM

3-5-13

That's what representatives from the automotive industry said during a panel at Convergence yesterday. They wouldn't say who and they couldn't predict when. However, everyone was confident that it will happen in our lifetimes. The point they were making was that everything is moving to IP, and radio had better get with the program. General Motors Managing Director/ Advanced Technology Office, Silicon Valley Dr. Frankie James (pictured) said consumers want what they get from their smartphone. And her research shows the next generation is not listening to the radio. Here's our interview from Convergence with James.

(3/6/2013 7:12:41 AM)
Many times in my life, I've had the unpleasant task of paying my respects to the family of the dearly departed (or I've been a part of that family). Each time I stood gazing down on the guest of honor, the thought passed through my head that someday, it will be my turn to make this transition. This seems a perfect analogy for radio as it gazes down on the remains of what was once an enviable, market-dominant daily newspaper business. So many apostles of radio gloat over the demise of local papers (despite the fact that all of our best efforts for most of the past 30 years to eat into its share had no measurable impact) while denying the need to go to work re-fortifying our offensive lines (programming and sales). Unlike in life, death is not a certainty for any media. But real, meaningful evolution is essential to ward off the continued erosion of revenue share. Cash is king. Marketers own the check books. All they want is a way to effectively keep up with the consumers who are the lifeblood of their existence. Hmmm...
(3/6/2013 6:46:34 AM)
Do away with speedometers. They are nothing but bad news and nobody likes them, especially teenagers. Youth are America's future and they can't be ignored.
(3/5/2013 10:40:48 PM)
Bob Struble to the rescue!

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Why Auto Dealers Love Radio

10-21-2012

Jack Jackson works for Zimmerman advertising in Fort Lauderdale. Zimmerman has been in business for over 25 years and it has made a lot of money representing automotive clients. The good news is they understand the power of radio and the success it can bring for automotive clients. Zimmerman's Jack Jackson is part of our November 5th special report in Radio Ink.

In that issue we interview automotive dealers and advertising agencies that specialize in automotive. We focus on the automotive rebound and how that affects the advertising they place on your radio stations. Jackson says, "Radio has been our bread and butter." In our interviews, you'll find that Jackson and others now focus on sponsorships they can own at your station. Here's more from Jackson.

"For us, it is the call to action. It is the constant to get the people into the dealership within that given month. It's switching up the messages and getting it going. Whereas TV, it's more of a three month deal. You want to get that brand going on TV and probably by about the third month of someone seeing these commercials, they maybe act on it. That's always been our philosophy. Many of the researchers have noted that. As far as radio, the message is always more aggressive. It can engage that listener to act within that weekend. By that Saturday, you'd better come into that dealership, type of thing. Gone are the days with hokey remotes. They don't work. We've definitely gone away from that. I've never done one in Boston, to be honest with  you. We do a lot more now with branding messaging. The traffic studios. The 5 o'clock hour. With radio you get those opportunities. Think of something and you can get it to happen. You can own that. If you come up with something, radio will be able to pull it off. Whereas with TV it's always "Oh, I have to get approval." It just isn't doable. There are a lot more rules and regulations on that end. Radio, as a whole has always been able to work with us more than that of another medium."

Jackson also discusses what radio can do to increase its share of the advertising revenue pie overall. And how paid search has become one of radio's biggest competitors.

To order Radio Ink in time to receive this important issue that focuses on automotive - and the success Six Flags has had using radio, call 561-655-8778 today or order the digiatl version of Radio Ink HERE for only $49.00 per year.

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Borrell: Auto Dealers Move Tons of Money Online

June 24, 2011

Some of these numbers may give you reason to make sure you have all your digital ducks in order. And, perhaps some savvy salespeople who new how to speak the digital language. Radio's biggest advertiser is moving advertising dollars to all things digital. The new Borrell report concludes that 32 percent of automotive ad budgets are spent online. That's more than they spend on any other medium. "The heyday of automotive advertising may not exactly be gone for good, but it sure feels like it. Borell reports that auto dealers will spend $22.6 billion online this year. "The pre-Internet era of TV and radio scooping up all the branding dollars and newspapers and magazines collecting the ?Big Sale!? dollars have faded." 

The Borrell study says the dollars are going principally to banner advertisements and paid search, with additional non-advertising expenditures paying for website design, inventory database management, lead-generation fees and search engine optimization. "The efficiency of the Internet to meet the car-buying public isn?t the main reason advertising channels have changed. The economy has shaken the basic underpinnings of the entire dealership system. In the past four years, an average of 86 new- and used-car dealerships have closed every week. That?s 17,000 fewer advertisers, with a few thousand more expected this year. What?s worse is that the biggest advertisers in the bunch ? the mega-dealerships created during the consolidations in the 1980s and 1990s ? have been hit hardest. And a new phenomenon ? where slightly-used cars are in higher demand than many new cars ? is rippling through the marketplace."

What?s in store for new- and used-car automotive advertising? Borrell is forecasting an overall increase of 7.2 percent, from $21.1 billion in 2010 to $22.6 billion this year. "Every medium except yellow pages is seeing an increase in auto advertising this year. but the largest dollar increase is expected for online media, up 11 percent this year, from $6.6 billion to $7.3 billion.

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