AM/FM Radio Works For Auto Dealers As TV Audiences Disappear
As the U.S. continues its emergence from the pandemic, the Federal Reserve finds auto sales are recovering. Cox Automotive forecasts a total of 15.3 million new vehicles sold for 2022. Americans are spending and the time for auto dealers to advertise is now, especially as auto manufacturers introduce a slew of new models and brand refreshes.
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.
Cord cutting is a major driver of TV’s audience collapse
The MRI Simmons How Americans Watch TV report reveals 46% of U.S. households have cut the cord. Another 11% are “cord tepid,” meaning they have cut back on their cable TV package or are contemplating “cord shaving.” Only 42% of Americans are “cord content.”
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 a massive 88% in-car share of ad-supported audio, according to the 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.
In September 2021, Hyundai used local TV and cable in a market to reach 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!
Proving impact: AM/FM radio campaigns generate significant auto dealer website traffic
What hard evidence exists to prove AM/FM radio advertising can deliver traffic to auto dealer websites? Enter LeadsRx, a leading multi-touch attribution measurement firm that works for hundreds of advertisers and agencies to quantify advertising impact on search and site advertising.
On behalf of iHeartMedia, LeadsRx conducted the world’s largest study of media impact on auto website traffic. Website traffic was measured from 310 auto dealers covering 19 vehicle brands in 100 markets for a 17-month period. A total of 1.8 million AM/FM radio commercials were studied to develop auto dealer best practices for AM/FM radio advertising.
LeadsRx found that on average, AM/FM radio is responsible for a +17% lift in automotive dealer web traffic. Most of this traffic comes from new consumers.
59% of web visits attributable to AM/FM radio advertising originate from new shoppers. The red bars below represent auto dealer web sessions attributed to AM/FM radio.
LeadsRx attribution data finds that media weight is important. As the number of daily AM/FM radio ads increases in the overall market, auto dealer website traffic surges.
- 1 to 9 ads a day aired in the market generated a +5% lift in auto dealer website traffic.
- 20 to 29 daily ads resulted in a +23% increase in auto dealer website traffic.
- 40+ daily AM/FM radio ads in the market caused a massive +55% increase in auto dealer website traffic.
Expanding a buy from three days to seven days a week causes auto dealer web traffic to nearly double.
The myth that auto dealer ads should be run mostly towards the end of the week was shattered. LeadsRx found very strong web lift throughout the week, especially Monday through Wednesday.
Key takeaways:
- Cord cutting is a major driver of TV’s audience collapse
- 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
- LeadsRx: AM/FM radio campaigns generate significant auto dealer website traffic