As TV Audiences Disappear, AM/FM Radio Works For Auto Dealers
As the U.S. continues its emergence from the pandemic, the Federal Reserve finds auto sales are recovering. In January of this year, the seasonally adjusted annual rate (SAAR) was 15 million vehicles, up from a dip in Q3 and Q4 2021. Cox Automotive forecasts a total of 16 million vehicles sold for 2022. Americans are spending and the time for auto dealers to advertise is now.
The looming disappearance of TV audiences: Midterm elections and advertising-free streaming
Spending for each election cycle keeps setting records. The upcoming midterm spending forecasts are massive.
A Nielsen analysis finds one of every three ads on local TV are political in the run-up to an election. This means dealers will be shut out of local video platforms like local cable, broadcast TV, YouTube, and connected TV.
On top of the political cycles, Nielsen reports significant erosion in the supply of GRPs as audiences abandon linear TV for advertising-free video streaming.
Nielsen: Since 2018, TV reach has dropped to 72% and ratings are down -34%
Nielsen’s Total Audience Report reveals:
- Over one-fourth of persons 25-54 are not reached by linear TV in a typical week.
- One-third of persons 18-49 do not watch linear TV.
- GRPs and impressions among persons 25-54 are down -34% since 2018.
Streaming is now “TV”: Half of Americans say streaming has replaced traditional TV
MRI Simmons finds a major shift has occurred in the American mindset about streaming. Once thought of as an “add on” to regular TV, streaming is increasingly seen as America’s primary television platform.
From 2018 to 2021, the number of video streamers who say “streaming has replaced traditional TV” has surged from 37% to 49%. The number of Americans who stream who perceive “streaming as an addition to TV rather than a replacement” dropped from 63% in 2018 to 51% in 2021.
When it comes to ad-supported audio in the car, AM/FM radio is the “queen of the road” with shares in the mid to upper 80s across every buying demographic
The best place to get consumers thinking about their vehicle or an auto purchase is while they are in their car! AM/FM radio is the “queen of the road,” dominating the dashboard with massive in-car shares of ad-supported audio, according to the just-released Q4 2021 “Share of Ear” study from Edison Research.
Nielsen Media Impact: A Hyundai buy could grow its reach +40% with the addition of AM/FM radio
Recently, Nielsen added AM/FM radio into its media optimization platform called Nielsen Media Local Impact. The software allows dealers to create scenarios to enhance their buys.
A September 2021 Hyundai TV buy reached 62% of persons 25-54. Shifting 20% of the TV budget over to AM/FM radio causes reach to soar from 62% to 87%, a +40% increase in monthly reach with the same budget!
Key takeaways:
- Nielsen: Since 2018, TV reach has dropped to 72% and ratings are down -34%
- Streaming is now “TV”: Half of Americans say streaming has replaced traditional TV
- When it comes to ad-supported audio in the car, AM/FM radio is the “queen of the road” with shares in the mid to upper 80s across every buying demographic
- Nielsen Media Impact: A Hyundai buy could grow its reach +40% with the addition of AM/FM radio