radio’s value to today’s to dealer · majority of listeners felt the dealer ads contained new...

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RADIO’S VALUE TO TODAY’S AUTO DEALER

David ChipmanSenior VP, Sales Director

Nielsen Audio

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FACTNOUN

“A thing that is known or proved to be true, is consistent with objective reality and can be proven to be true with evidence.

Used in discussing the significance of something that is the case.”

• Source: Merriam-Webster dictionary

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THREE FACTS TO CONSIDER

Source: American Automotive Policy Council June 2018, Hedges and Company January 2019, statistics based on Owner of Vehicle, Federal Reserve January 2019. Nielsen/SCBA Campaign effects study October 2018

THE AUTO INDUSTRY IS KEY TO US ECONOMYIt is responsible for 3% of the Nation’s GDP and is leading job creator in the manufacturing sector.1

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PROJECTED AUTO SPEND BY PLATFORM

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THREE FACTS TO CONSIDER

Source: American Automotive Policy Council June 2018, Hedges and Company January 2019, statistics based on Owner of Vehicle, Federal Reserve January 2019. Nielsen/SCBA Campaign effects study October 2018

2 75% OF NEW CARS ARE SOLD TO ADULTS 40+The average age of a new car or truck buyer is 53, new car buyers 55+ have grown by 15% since 2000

3 BROADCAST RADIO DRIVES NEW CAR SALESAuto Intenders are 3 times more likely to purchase once hearing the dealer ad on the radio.

6

The Value Of Southern California Radio To The Auto Industry

Copyright © 2019 The Nielsen Company. Confidential and proprietary.

October 2018

7

BackgroundNielsen, in partnership with SCBA, measured the effectiveness of

local auto dealer campaigns in Los Angeles & San Diego

The campaigns featured 60 second radio spots promoting

Summer deals

The radio campaigns ran continuously through the data

collection period June 29 –August 9, 2018

Nielsen surveyed 900Radio Listeners in

Los Angeles & San Diego

Nielsen Campaign Effect Study – SCBA/Automotive Radio Campaign Copyright © 2019 The Nielsen Company. Confidential and proprietary.

8

Each Respondent Was Exposed To And Evaluated A

Broadcast Radio Ad From The Campaign That Ran In

His/Her Local MarketListened to 60 second spot with the following copy points:

• Summer deals• Large inventory

• Dealer programs• Attractive financing

• Knowledgeable staff• Vehicle attributes


9 Nielsen Campaign Effect Study – SCBA/Automotive Radio Campaign

Important Groups

Exposed GroupRadio listeners who listened to

stations airing the local Auto Dealer campaigns in the past week

Not Exposed Group (Control)Radio listeners who did not listen

to campaign stations in the past week

Auto IntendersRadio listeners who plan to

buy an auto in the next 12 months


10

Key Findings From This Exclusive Southern California Automotive Study

Broadcast radio drives online research to both

search engines and dealer websites

Broadcast radio significantly improves consumer

perception of dealer brand health

Broadcast radio increases dealer visits

and purchase

Broadcast radio’s creative messaging (words and

phrases) increases relevance


11

Broadcast Radio Drives Auto Dealer Brand

Health & Sales

Nielsen Campaign Effect Study – SCBA/Automotive Radio Campaign

Purchase

Shopping

Consideration

Favorability

Perception

Automotive Purchase Funnel


12

Broadcast Radio Helps Auto Dealers Stand Out From The Competition



13Among: Aware of DealerQ16. Please indicate how strongly you agree or disagree with the following statements about (insert name of dealer) (Top 2 Box)

Broadcast Radio Increases Brand PerceptionsRadio campaigns deliver significant increase in SoCal Dealer perceptions among Auto Intenders

34%

37%

38%

49%

55%

67%

70%

72%

72%

78%

Offers attractive financing terms^

Is a dealer you trust^

Offers a competitive price^

Has convenient locations^

Has a great selection of vehicles^

Radio Exposed Auto Intenders Un-exposed

^ = Significant difference at 90% confidence


Brand Perception among Radio Exposed Auto Intenders

70%*higher than unexposed

radio listeners

14

Over half of all listeners and 3-in-4 Auto Intenders felt the Radio ads made them think the dealer is different from the rest

Radio Helps Auto Dealers Stand-Out

It made me think the dealer was really different.

“Among: Listened to the adQ20. Thinking about the ad you've just heard for (dealer), please indicate how strongly you agree or disagree with each of the following statements. (Top 2 Box on a 5-point agreement scale)

57%Total Radio Listeners

13

71%Radio Exposed Auto

Intenders


15

9-in-10 Auto Intenders found the auto dealer ads to be relevant

Radio Dealer Ads Are Relevant

The points made in the ad were relevant to me.

“Among: Listened to the adQ20. Thinking about the ad you've just heard for (dealer), please indicate how strongly you agree or disagree with each of the following statements. (Top 2 Box on a 5-point agreement scale)14

72%87%Total Radio ListenersRadio Exposed Auto

Intenders


16

Majority of listeners felt the dealer ads contained new information

Radio Dealer Ads Were Well Branded

It contained new information about the dealer.

“Among: Listened to the adQ20. Thinking about the ad you've just heard for (dealer), please indicate how strongly you agree or disagree with each of the following statements. (Top 2 Box on a 5-point agreement scale)15

78%83%Total Radio ListenersRadio Exposed Auto

Intenders


17

Broadcast Radio Drives Auto Dealer Brand Health

Nielsen Campaign Effect Study – SCBA/Automotive Radio CampaignCopyright © 2019 The Nielsen Company. Confidential and proprietary.

18

Radio Exposed Auto Intenders have

+47% higher favorability of the

dealers than unexposed radio listeners

Broadcast Radio Increases Auto Dealer Favorability

Among: Aware of DealerQ10. Even if you have not shopped there before, how do you view the following dealerships?

Favorability

3-in-4 Exposed Auto Intenders have favorable opinion of the dealer

75% 51%Radio Exposed

Auto Intenders ^Not

Exposed



19

Radio Exposed Auto Intenders more likely to recommend the dealer

Broadcast Radio DrivesWord-Of-Mouth For Dealers

Among: Aware of DealerQ12. If asked by someone, how likely are you to recommend each of the following automotive dealerships? (Top 2 Box)

Auto Intenders Exposed to dealer ads on Radio

+64% higher likelihood to

recommend the dealer than unexposed Radio listeners

Radio ExposedAuto Intenders ^

Not Exposed


Auto Intenders ^Not

Exposed

Recommendation



20

4-in-5 Radio Exposed Auto Intenders are likely to consider the dealer for their next vehicle

Broadcast Radio Boosts Consideration for Auto Dealers

Among: Aware of DealerQ12. How likely are you to consider each of the following automotive dealerships the next time you are in the market for a vehicle? (Top 2 Box)

Auto Intenders Exposed to dealer ads on AM/FM Radio

+82% higher consideration for the

dealers than unexposed radio listeners


Not Exposed


Auto Intenders ^Not

Exposed

Consideration



21

Local Radio Drives Online Activity For Auto Dealers


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1-in-2 Auto Intenders went online to search for more information after hearing the ad

Broadcast Radio Drives Digital Action

Among: Recalled radio advertising for dealer Q15. Which of the following actions, if any, did you take after recently hearing the radio advertising for (dealer)?

Used A Search Engine OR dealer website


Auto Intenders ^Not

Exposed

Auto Intenders who recall hearing the dealer ads on

Radio

2x more likely to use search

engine or dealer website vs. unexposed listeners



23

1-in-3 Auto Intenders went online to search more information after hearing the ad



Radio

2.5x more likely to search online for more info vs. unexposed

listeners


Used A Search Engine To Get Info


Auto Intenders ^Not

Exposed



24

1-in-3 Auto Intenders visited the dealer’s website after hearing the ad



Went To The Dealer’s Website Auto Intenders who recall hearing the

dealer ads on Radio

2.5x more likely to visit the dealer’s website vs. unexposed listeners33% 14%


Not Exposed



25

Broadcast Radio Delivers Buyers For Auto Dealers

Nielsen Campaign Effect Study – SCBA/Automotive Radio CampaignCopyright © 2019 The Nielsen Company. Confidential and proprietary.

26Among: Recalled radio advertising for dealer Q15. Which of the following actions, if any, did you take after recently hearing the radio advertising for (dealer)?

1-in-4 Auto Intenders visited the dealer after hearing the ad

Radio Delivers Listeners To The Dealership

23% 3%Radio Exposed

Auto Intenders ^Not

Exposed

Went To The Dealer’s Location


Radio

7x more likely to visit the dealer’s location vs. unexposed listeners



27Among: Recalled radio advertising for dealer Q15. Which of the following actions, if any, did you take after recently hearing the radio advertising for (dealer)?

Better than 1-in-10 Auto Intenders purchased a vehicle from the dealer after hearing the ad

Broadcast Radio Drives Purchase

Purchased A Vehicle From The Dealer


Radio

3x more likely to have

purchased a vehicle from the dealer vs. unexposed

listeners

13% 4%Radio Exposed

Auto Intenders ^Not

Exposed



28

Radio Drives Auto Dealer Brand

Health & Sales among Auto Intenders


Purchase 3x

Shopping 7x

Consideration +82%

Favorability +47%

Perception 70%


29

Takeaways

#1 #2 #3 #4


Auto Intenders* aremost responsive to

Dealer ads(*those in the market

for a vehicle)

Radio drives significant branding

results for auto dealers

Radio also improved dealer

perceptions

Most important, radio caused listeners to

take action after hearing the ads:

• Searching for more information online• Driving traffic to the dealer website • Visiting the dealership • Purchasing a vehicle


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DEMOGRAPHIC REALITY

Source: Deloitte Insights “Future of Wealth in U.S. Nov 2015

Silents

Years Born Pre 1946

Current Age Range 73+

28%

50%

15%

6% 8%

45%31%

16%

Percent of Wealth

2019 2030

Percent of Population

Boomers

1946-1964

55-72

Gen X

1965-1979

40-54

Millennials

1980-1996

23-39

Silents

Boomers

Gen X

Millennials

10%

23%

16%

24%

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SPENDING BY DEMOGRAPHIC

Source: US department of Labor Nov 2016

Silents

Years Born Pre 1946

Current Age Range 73+

19%

28%

31%

22%

Percent of Retail spend

2019

Percent of Population

Boomers

1946-1964

55-72

Gen X

1965-1979

40-54

Millennials

1980-1996

23-39

Silents

Boomers

Gen X

Millennials

10%

23%

16%

24%

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NEW CAR BUYERS BY DEMO

• Baby Boomers purchase 62% of New Cars in US.

• 59% of all new SUV buyers are 55+

• 48% of all new Sedan buyers are 55+

• 49% of new Truck buyers are 55+

A40+ are 75% of New Vehicle BuyersSource: Hedges and Company January 2019, statistics based on Owner of Vehicle, Federal Reserve January 2019

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MARKETING BY DEMO

A18-34 just 13% of new sales with 35-49 only 25%

62% of all new car buyers are 50+, in 2001 it was 39%.

Adults 18-49 Adults 50+

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MARKETING BY DEMO

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SOME ADVERTISERS GET IT…..

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DEMOGRAPHY MATTERS

• Understand the impact of aging population.

• 50% of all wealth in U.S. is with A55-73.

• A25-54 is 21% of wealth, A18-34 is 6%.

• A55+ represent 78% of the country’s wealth in 2019.

• Just 5% of Marketing activity is aimed at Persons 50+

Adults 40+ represent 94% in 2019

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FINAL THOUGHTS• The fact is…Radio has always delivered for the Industry

• This study backs that up.

• Auto intenders 3 times more likely to purchase when exposed to ad on Radio

• Radio improves the perception of Dealerships.

• Radio drives Auto intenders to Search and to Dealer sites.

• Don’t forget, demographics matter.

radio’s value to today’s to dealer · majority of listeners felt the dealer ads contained new...

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