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Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Rev Up Your Auto Revenue in 2014!
Re-Capture Auto Dealer Dollars
Brandeis C. Hall VP, Professional Development Radio Advertising Bureau [email protected]
What We’ll Cover…
Industry update
Understanding the buyers
The ‘Connected Car’
Thinking like a dealership
Local dealers and your station
The Role of HD radio
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Negotiation:
ne·go·ti·a·tion noun /nəˌgōSHēˈāSHən/
1. To confer with another in order to reach an agreement
2. A mutual discussion and arrangement of the terms of a transaction
3. To agree on something by discussing it formally
What we’ll cover…
Industry Update
Source: NADA October 2013
Happy Days Are Here Again…
State of the Industry
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Source: Automotive News/ Reuters, 10/2013
Happy Days Are Here Again…
• Auto sales increased nearly 8% year over year from 2012.
• US sales hit 15.6 million in 2013.
• Production is up and dealers are heady over new launches.
• The consensus estimate for 2014 sales is 16.4 million units.
State of the Industry
Happy Days Are Here Again…
• New light vehicle sales are up.
• Medium and heavy-duty truck sales are up.
• New dealerships are opening.
• Dealerships added an average of 2 new employees.
• Pent-up demand/incentives cited as major reasons in new vehicle sales.
State of the Industry
Source: NADA 2013
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
January Was A Freeze-Out For Vehicle Sales
New Vehicle - Days’ Supply
State of the Industry
Source: NADA 2013
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Negotiation:
ne·go·ti·a·tion noun /nəˌgōSHēˈāSHən/
1. To confer with another in order to reach an agreement
2. A mutual discussion and arrangement of the terms of a transaction
3. To agree on something by discussing it formally
What we’ll cover…
Understanding the Buyer
State of the Industry
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
State of the Industry
State of the Industry
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
1 in 3 Respondents Looking
to Purchase in Next Year
0%
5%
10%
15%
20%
25%
30%
35%
Year + In the NextYear
Not Sure N/A Next 90Days
Next 60Days
Next 30Days
Are you looking to purchase or lease a vehicle…?
32% looking to purchase in the next year That’s roughly ONE in every THREE Respondents
State of the Industry
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Top 10 Brand Preferences
0%
10%
20%
30%
40%
Chevy Ford Toyota Honda Nissan
What brands will you consider when buying/leasing new vehicle? Less than 1% point difference between Chevy. Ford. Toyota.
Negotiation:
ne·go·ti·a·tion noun /nəˌgōSHēˈāSHən/
1. To confer with another in order to reach an agreement
2. A mutual discussion and arrangement of the terms of a transaction
3. To agree on something by discussing it formally
What we’ll cover…
The Connected
Car
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
The Connected Car
"The car radio is rapidly moving beyond a traditional two-knob experience . The faster we understand the nature of that change the sooner we will be able to capitalize on it.
- Roger C. Lanctot, associate director in the global automotive practice at Strategy Analytics
Common Strategies
Must-Have Dashboard Options
0% 20% 40% 60% 80% 100%
Something Else
Doesn't Matter
Internet Radio
Ent/Info System
HD Radio
Satellite Radio
DVD Player
Bluetooth
GPS
Smartphone Con
CD Player
AM/FM Radio
Male
Female
All
Which in-car dashboard options are a must-have in any new vehicle you may buy/lease?
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Common Strategies Must-Have Dashboard Options: Top Six Choices
0% 20% 40% 60% 80% 100%
DVD Player
Bluetooth
GPS
Smartphone Con
CD Player
AM/FM Radio
Male
Female
All
Which in-car dashboard options are a must-have in any new vehicle you may buy/lease? AM/FM Radio Dominates.
Smartphone Connections weren’t part of the conversation 5 years ago. Now third.
Top Activity When Driving: Gender
0%10%20%30%40%50%60%70%80%90%
100%
All
Women
Men
When driving, are you most likely to be…? Little difference Women & Men
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
The Connected Car
Location-based offerings…
Where does radio fit?
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
The Connected Car
The ability to access a radio brand from anywhere has the potential to broaden the audience beyond
the signal parameters and provide more engagement opportunities
for each brand’s biggest fans.
But consider this: It’s not simply about shelf space in the cars of today and tomorrow. It’s about being on a shelf that solves whatever problem or need the consumer has right now.
- Mark Ramsey, ”What’s the future of radio in the connected car?”
…and value propositions that have less to do with radio per se and more to do with solving the needs and problems of
the consumer here and now.
What will be more important than ever is unique and compelling engagement mechanisms that make the brand “sticky,”…
The Connected Car
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Negotiation:
ne·go·ti·a·tion noun /nəˌgōSHēˈāSHən/
1. To confer with another in order to reach an agreement
2. A mutual discussion and arrangement of the terms of a transaction
3. To agree on something by discussing it formally
What we’ll cover…
Thinking Like a Local Dealer
Working the Numbers Average Unit Price
Source: NADA 2013
Thinking Like A Local Dealer
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
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New 56.2%
Used 31.8%
Service/Parts 12%
Working the Numbers
Average Dealership Sales By Department
Source: NADA 2013
Thinking Like A Local Dealer
Net Profit By Department
Source: NADA 2013
Thinking Like A Local Dealer
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
In Billions… Per Unit Sold
Source: NADA 2013
Thinking Like A Local Dealer
Thinking Like A Local Dealer
Source: NADA 2013
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Current Online Advertising by
Type Future Online
Advertising by Type
Current Local Ad Spend by 12 Media
Future Local Ad Spend by
12 Media
Spend and Growth Trend
Local Online Ad Spend by
Year
Available for Any Local Market in the US
94 Other Business Categories Also
Available
Source: NADA 2013
Average Dealership Advertising Expenses
Monthly
Annual Average
Total $405,907 $33,825
1-149 $ 98,163 $8,1280
150-399 $188,326 $15,693
400-749 $364,161 $30,346
750+ $706,484 $58,873
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Source: Capgemini 2013
of new vehicle buyers research on the web before buying
Edmunds.com
Cars.com
eBayMotors.com
traderonline.com
autobytel.com
carsdirect.com
kbb.com
Jdpower.com/auto
Thinking Like A Local Dealer
94%
Dealers are buying leads…
Thinking Like A Local Dealer
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Thinking Like A Local Dealer
Thinking Like A Local Dealer
Expanding their own digital initiatives
• Website with inventory • Live webcams • Mobile apps
Hiring digital sales staffs
• Can they keep up with the business?
• What message should they deliver?
Dealers are …
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Negotiation:
ne·go·ti·a·tion noun /nəˌgōSHēˈāSHən/
1. To confer with another in order to reach an agreement
2. A mutual discussion and arrangement of the terms of a transaction
3. To agree on something by discussing it formally
What we’ll cover…
Your Local Dealer and
Your Station
Your Local Dealer & Your Station
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Your Local Dealer & Your Station
Common Strategies
Radio Reaches Auto Prospects
Every week, radio reaches adults 18+ who are in the market to buy/lease a new vehicle in the next 12 months:
Source: Scarborough USA+ 2012 Release 2 (August 2011-September 2012)
94%
92%
90% 92% new luxury vehicle
91%
94% new compact car
new midsize car
new full-size car
new pickup truck
new van, mini-van or SUV
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Source: The Media Audit Media Day Analysis Jan 2012-May 2013
Adults 18+ Planning to purchase a new vehicle in the next 12 months spend significantly more time with radio than any other medium.
Radio Dominates For New Vehicle Sales
Your Local Dealer & Your Station
Top Advertising Influencers to Visit Dealerships: By Age
0%
10%
20%
30%
40%
50%
Radio None Websites TV/Cable NewspaperDirect Mail Outdoor
All
18-24
35-44
55-64
Which of the following types of advertising influence your decision to visit a specific dealership? Radio, Website and TV particularly important 18-24.
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Thinking Like A Local Dealer Top Advertising Influencers: Timing
0% 10% 20% 30% 40% 50%
Direct Mail
Newspaper
None
Outdoor
TV/Cable
Websites
Radio
30 Days
60 Day
90 Days
Year
All
Which of the following types of advertising influence your decision to visit a specific dealership?
Note how Radio, Website and TV Influence grows the closer one gets to purchasing.
Thinking Like A Local Dealer
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
The Road Forward…
Leverage all your station platforms to bring the vehicle to life and engage the core “vehicle” target audience. • On-air
• Online
• Mobile
• Social
• Experiential (in-market/on-site)
Create marketing solutions to ensure a successful launch of the new vehicle(s).
Deliver turn-key programs that integrate into your station’s content in a relevant way.
Negotiation:
ne·go·ti·a·tion noun /nəˌgōSHēˈāSHən/
1. To confer with another in order to reach an agreement
2. A mutual discussion and arrangement of the terms of a transaction
3. To agree on something by discussing it formally
What we’ll cover…
The Role of HD Radio and
Selling Your Local Dealership
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
The Connected Car is MISSION CRITICAL Radio must maintain dash our “real estate!”
• FM Radio
• AM Radio
• HD Radio
• Traffic
• Apps for radio content
• Music services
• More…
HD Radio and Your Local Dealership
The Battle For The Dash- HD Radio is there!
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
BrandsVehicle LinesStandard Equipment
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1
2 0
28
154
77
0 2 7
5 30 1
10
53
24 16
86
36
21
109
61
33
190
96
1 0 3
34
195
99
HD Digital Technology Available From ALL MAJOR Automakers
HD Radio and Your Local Dealership
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
HD Radio is in your client dealerships!
HD Radio Technology Standard Feature On All Vehicles
HD Radio Technology Standard Feature On Some Vehicles
HD Radio Technology Available As Part Of Option Package
HD Radio and Your Local Dealership
What’s next for maximizing HD Radio
VIDEO: How HD Radio works for CONSUMERS – and best yet, you can help your dealership explain to their customers! http://www.youtube.com/watch?v=7pae6AO-Yv0&app=desktop
VIDEO: HDRadio.com is a tool for BROADCASTERS in your “speak” – tour of the broadcaster section of the site: http://www.youtube.com/watch?v=hklQ6grcRvU&app=desktop
Make sure your dealership clients understand
Invent sponsorship of HD2’s and HD’3
Share HD Radio market guides to find channels
HD Radio and Your Local Dealership
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
HD Radio and Your Local Dealership
The auto industry is back and stronger than ever.
The connected car will be a game-changer for both
the auto and the advertising industries.
Create integrated campaigns and sell ALL your
station assets for best results for your local
dealership and for yourself.
Re-Capture Auto Dealer Dollars RAB Webinar – February 2014
Radio Advertising Bureau www.rab.com Copyright 2014
Rev Up Your Auto Revenue in 2014!
Re-Capture Auto Dealer Dollars
Brandeis C. Hall VP, Professional Development Radio Advertising Bureau [email protected]