Today’s cautionary headline is in direct opposition to some of the stories you may have read last week in many radio trade publications. Not surprisingly, the epicenter of the conversation is about radio and automotive. The broadcast radio industry’s dependence on in-car listening has grown in recent years, due in large part to the disappearance of AM/FM radio at home and in workplaces. And then there’s the sales piece because automotive continues to be radio’s leading revenue category, whether your station is in Oklahoma City or New York City.
So it’s critical that everyone in radio, from its industry leaders to mom and pop owner/operators in small towns have a strong grasp of the changing automotive space, and what it means to radio. That’s why it struck me as strange last week when I read some misleading and misguided information from two well-respected research organizations – Nielsen and Mark Ramsey – who may be letting the data or their opinions color what’s truly happening out there in the dashboard landscape.
It started with the release of Nielsen’s 2016 AutoTECHCAST Report Lite – a series of highlights from their AutoTECHCAST study that delves into consumer interest in auto technologies here in the States. In reading coverage of the study, most headlines centered around the idea that safety is ahead of connectivity as a consumer priority in their cars. And the other trade takeaway is that consumers are still baffled by connected cars; the implication being this technology is still very early and hasn’t really caught on.
To that point, Nielsen tested 44 different technologies, and the average base awareness level is just 25%. But part of the reason for that is that most people don’t spend time lurking around new car showrooms like they do in Costco, Target, and Best Buy. In fact, the average age of a vehicle on the road in the U.S. is 11 ½ years. That means there are a lot of 2002 Saturns and 1998 Celicas on American’s highways. But as these vehicles die and need to be replaced, consumers will make their way into dealerships.
And what will they confront there? Connected cars. That’s because virtually every vehicle rolling off the assembly line in the U.S., Germany, Japan, and Korea is now connected in some way. So does awareness truly matter at this point if this technology becomes as common as power windows?
Nielsen’s conclusion? “Given the relatively low awareness, interest in connected cars isn’t significant – but it is up from a year ago.” Really?
The problem is that many broadcasters reading trade coverage of this study might conclude that because most consumers know doodly-squat about connected cars, it’s OK to keep focused on translators and programmatic buying because connected cars are not a big deal to most Americans. That would be a huge mistake.
Nielsen also concludes that it’s a “Safety First,” situation, noting that while connectivity gets a lot of buzz, safety is a top priority. But when you look at their own chart, connectivity ties safety at 41% for each. (Yes, you round up 40.6% for connectivity and round down 41.3% for safety.) It’s interesting how they (incorrectly) point out that “safety ranks more than a full point above connectivity.” Even without rounding, that’s not true.
Then there’s the finding – true, but misleading – that built-in tech trumps brought-in content, like through a phone. In fact, Nielsen notes that two-thirds (67%) are interested in integrated technology, while only a third (33%) prefer brought-in content.
But nowhere in the report is it apparent that Nielsen considered Apple CarPlay and Android Auto, the two biggest developments in dashboard technology since the creation of GM’s OnStar and Ford SYNC. We know from our own Techsurveys that awareness of these integrated dashboard systems from Apple and Google aren’t on too many new car buyers’ wish lists. But they’re coming. And they’re coming fast. More than 100 models will feature these “brought-in” systems starting this fall, and that number is sure to rise. The carmakers are already beginning to market these dashboard platforms.
At the 2015 DASH Conference, J.D. Powers’ Dave Sargent made the point that consumers – especially younger ones – are more loyal to their brand of smartphone than they are to the make and model of their cars. Given the opportunity to simply plug in their iPhone or Galaxy Note and access the content they carry around all day and sleep with at night, they will embrace it.
And that’s a key factor that somehow escaped the Nielsen report, and yet promises to play a role in the automotive/media conversation for years to come.
And then Mark Ramsey chimed in with a blog post provocatively titled “Why Connected Cars Don’t Matter.” His point is that consumers are thinking inward – they care about themselves and their own online content. He notes that it IS about smartphones, which completely overshadow the content drivers may get from dashboards.
But while it is overwhelmingly true the content on a consumer’s mobile phone is personal and the center of her universe, it’s also true that listening to “embedded content” in cars – that is, AM/FM radio – remains by far the top source of music and entertainment, even in connected cars. The concern – and it is very real – is that dashboard technology is already altering the hierarchy because of the deluge of options being offered by automakers.
At least Mark mentions the Apple and Google systems – because they rely on a consumer’s smartphone – but he then dismisses all the technology with advice that it’s truly about creating content worth listening to. In his message to focus on content and mobile, Mark is on the money. Of course, content matters and is of paramount importance to any discussion about media, devices, and platforms.
But to ignore dashboard technology or to hope that consumers will simply love your content so much they’ll work harder to find it when they’re using Apple CarPlay or Android Auto is naïve. If you take the time to drive a vehicle with one of these systems (and I strongly recommend you do), you’ll quickly learn that radio simply becomes harder to access when you simply can’t see it on the touchscreen. Even the best content will remain in the background if it’s buried behind a dashboard ecosystem that mirrors the apps on a consumer’s smartphone.
That’s why our mobile app development company, jācapps, has worked so hard over the last year to create radio apps that are visible on both these tech systems. Do you still have to produce great content to be relevant on both Apple and Android in-car platforms? Of course. But you also have to understand and adapt to this technology, as NPR, iHeartRadio, and now jācapps have done in order to stay front and center in both Apple CarPlay and Android Auto.
But don’t take it from me…or Nielsen or Mark. Go right to the experts who both understand automotive technology and also have a sense for what it means to those of us in the media and entertainment business. That’s why we’ve co-partnered on three DASH conferences in 2012-14 – to help educate radio broadcasters about the automotive challenges and opportunities ahead. Industry expert and consultant John Ellis offered a great explanation of what’s really happening in our DASH Podcast, produced by our Seth Resler. You can listen to it here.
Here’s John’s bottom line response to Mark’s assertion (beginning at the 21:40 mark):
“Should radio broadcasters be concerned? Absolutely.”
There’s no question that Nielsen data and their well-designed reports about consumer habits have been additive to radio’s marketing efforts. They often reveal new information that support the industry’s efforts to maintain a position of relevance in the advertising world. And Mark Ramsey is a brilliant, incisive analyst whose role as an agent provocateur is well known and highly respected.
But the last thing the radio industry needs to do is go back to sleep when it comes to connected cars. If anything, now’s the time to be even more engaged in your content and mobile strategy, and to also commit yourselves to learning as much as you can about the technology and what it means to radio. And then it’s about supporting industry initiatives that foster greater communications with automakers and their suppliers.
For decades, the radio industry has taken the car for granted. But no more. Anyone who analyzes both industries closely will conclude there’s much to be concerned about.
In other words, keep worrying.
I’ll be appearing on a panel at the NAB Radio Show in Nashville next month – “The Digital Dash – Improving The Consumer Experience” – with Ford’s Scott Burnell, moderated by the NAB’s Sam Matheny.
Understanding the Connected Car Webinar
Fred Jacobs recently hosted a webinar called “Understanding the Connected Car: An Introduction for Radio Broadcasters.”
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Connection is Essential.
Choice, more so.
Receivers Evolve as Content Continues.
Driverless Cars are a Greater Concern.
Thanks, Clark.
Fred!
Wow! You have blown my mind.
Here’s my question. Radio’s bread and butter is in-car listening, Why the NAB isn’t fighting tooth and nail to keep it in the forefront baffles me. Is it because, and I mean no disrespect, it’s members are older and can’t see the writing on the wall? Or they just think, “we’ll get to it in the next 3-5 years?” Technology DOES NOT wait.
Remember when J. Walter Thompson moved their offices to
Detroit to be close to Ford (yeah–they lost the acct–but that’s not what matters here).. So here’s a thought.
The NAB opens up a satellite office in Detroit with someone
that can get to know these people…do lunches…take meetings..anything to keep radio in the forefront. A radio lobbyist if you will. I wish they had the money to hire YOU.
As a ‘connected woman’ that now thinks 3 seconds is too long to find the content I’m looking for,if I have to search and search for my radio station while driving the kids to school or heading to the office, I’ll just plug in AppleMusic. That’s where my playlists are–I know I’ll like the music, no commercials– no hassle.
Geez I fear for our industry. Thanks for pointing out vital info.
I wish I had the answer.
Geri, thanks so much the spot-on comments about what radio should be doing as an industry. We have learned over these last eight years of meeting with automakers, their suppliers, and their dealers that you have to understand the mindset and have presence in their world. The NAB is headed in this direction, and hopefully, will get their soon. It is a huge issue, and as you accurately point out, consumers embrace the technology that’s in front of them. It’s radio’s job to adjust to these content and delivery systems. This long period of in-car entitlement is over. Many thanks and drive safely.
To me, Most of the industry is looking at the short-term. How much can I make right now? Cutting costs, diluting content, and ignoring much of the technology out there. Being a past radio guy for 30+ years, my drive recently from Dallas to Arkansas consisted of Spotify and slacker.com plugged into my dash.. Very little radio, with the exception of a couple stations in Dallas and one in Little Rock that I like a lot. Every classic rock station between here and there sounded pretty much the same. Listening to the jocks you really can’t tell what city you’re in. No time, weather, what’s happening right now in that city, etc. And the six minute stop sets tend to get a little old. Wake up! Bring back the night Jock who will be our next morning guy. Invest in the product! Throw out the cookie-cutter playlist and let’s get creative.
No question, Bill, that having more options in the car puts great pressure and scrutiny on radio. We continue to emphasize this in our Techsurveys. Broadcasters need to understand why consumers still listen to radio – or better put, the “jobs” they are “hiring” radio to do especially in the car. In a more crowded dashboard environment, these are key variables that need to be addressed. Thanks for reading our blog.
Interesting to follow this conversation as things continue to progress towards Digital. I was surprised to find that Tesla didn’t include the AM chip in one of their latest models!!
The connected car is inevitable. I think what is important to discuss is how that car should be connected. I don’t think a dashboard of app icons and another marketplace to manage is the answer.
It’s important for technologist to focus on building systems vs destinations. Less screens & more integration. Imagine your mobile device knowing your favorite programming based on time and integrating with your car system automatically to begin playing the correct content upon entering your car. No apps, no dashes, just content.
Ah, but I dream! 🙂
The battle for in-car technology – especially media and entertainment is moving to Mach 3. Apple and Google have kicked the battle into a higher gear, forcing all parties to rethink the givens that we’ve all become accustomed to in the dashboard. The next five years, as they say, will be telling. Thanks for taking the time, Baird.
I was WAITING for the Jacobs responses to those articles. 🙂 Well written as expected. As you so accurately state, those headlines give the “all is well, please be calm” (remember that scene from animal house?:) and it’s well, it’s just not.
Regardless of all, the days of owning the dash just because radio was the only option are going, going, gone!
Dave, absolutely true. As a DASH veteran, you’ve gotten your share of higher education on the topic. The larger radio industry needs to come along for the ride. And by the way, consider yourself on “Double Secret Probation!”
As usual, a spot-on observation. The parallels between media and the CPG (Consumer Packaged Goods) and QSR (Quick Service Restaurant) worlds come closer and closer every day. If you want a bottle of ketchup, you often pick the one you see first. If you’re in the mood for a burger, “they’re all about the same”, so you go to the closest one or the one with the easiest way to get in. Radio is losing its first preference in cars as all the other audio offerings achieve parity status on the screen in your dashboard.
As the percentage of connected cars increases and Apple and Google start the bare knuckles fight to see which one can dominate the dashboard, the loser in this battle could very well be local radio. Partly because there are equal or better offerings available through the car’s cellular connection. Partly because placement of services (paying for better shelf space) will at least unconsciously affect what button people push first, and partly because broadcasters and the NAB have not paid attention to the tsunami that’s approaching where local radio loses first preference status with listeners of all ages.
Is it too late to stop the advance of the Digital Dashboard? Nope. Where were you in 2002? Oh yeah, talking about HD Radio. How about in 2010? Working on getting FM into cell phones. Now it’s 2016 and radio, more than ever, is a parity product. Is it too late for radio to regain first preference status? I’m not sure, but the few great minds left in the industry need to have a secret meeting at some remote AM transmitter building with a Fallout Shelter and come up with a plan to influence consumers (forget the automakers, you can’t afford them) to remember how great local radio is. That’s going to take time, unified messaging, MONEY, and making local radio the best content available.
It’s a big order, and radio is again in the position of having to play catch-up. But if something isn’t done now, the reality of parity on the dashboard, and every other distribution device, will be as ugly as the faceless monster in Stranger Things.
Mark, you’ve framed it up well. It starts with realizing the predicament and the scope of the challenge, and creating a workable strategy from there. As my friend James Cridland would add, it also starts with the industry speaking with one voice – a tall order, to be sure, but essential to success. As we discussed in the post, it’s not sufficient to create great content for the car (although that’s a step in the right direction), but accessibility and proximity are key. Local radio skated through some easy decades when the dial was front and center in every car manufactured. That’s rapidly disappearing, and you lay out the challenges well. Thanks for the contributions.
Nice article!! Very nice. Comments are dead-on as well, but we’re missing the point of marketing the medium. Maybe not radio technology (AM/FM can become increasingly irrelevant with the connected dashboard) – but then the fight for CONTENT ensues. Where can you get Howard? One place. Where can you get Steely Dan? THOUSANDS of places. Will “radio” be able to bridge both? Does the consumer want 30 minutes of Howard, 30 minutes of Steely -or a combination well curated and well-executed? The whole radio model was developed in the 60s and really hasn’t evolved much save for the aforementioned 6 minute stopset. But the rules of marketing remain. Find out what they want and give it to ’em. It’s been evident for decades that the delivery method is secondary to the content and desire for it. I didn’t get FM radio until it was mandated. I didn’t get UHF TV until it was mandated. Fred’s right. We should be acting today to make sure we survive tomorrow.
Dave, thanks for the comment and the reminder that research and development goes to the core of developing an industry strategy for the dash. Appreciate you chiming in.
I don’t think what Nielsen and Ramsey did are serving an industry that probably needs a wake up call more than a pat on the back.
Not too long ago your blog showed a graph regarding how much of it’s R+D budget Apple was putting into cars – and it was almost all of it. Apple’s stock has grown roughly tenfold since the introduction of the iPhone while Nielsen’s has grown roughly 1/5 as much. Maybe that’s because Apple has done an admirable job of figuring out what people will want in the future while Nielsen does a so-so job of documenting what what people have done in the past.
It seems to me that the real tipping point may come when the majority of people have connected cars with screens that equalize all media. There is still some time til that happens – enough time for radio to ensure that its position on the dash is as prominent as any other media and that its programming is as compelling. The first part can be done with some top level enterprise business development pros. The second part will be tougher and cost some money, but it will be cheaper to keep em than to get em back once you start losing em.
Radio can’t keep cutting and get away with it forever can it? The connected car is probably radio’s next big test.
Bob, thanks for the comment and your observations. As you note, it is essential that radio doesn’t wait until most cars are connected to purse an agenda. An earlier commenter mentioned the importance of lobbying. Yes, there are content challenges, but a dialogue with the auto industry would be a great starting point.
Maybe I’m weird, but I use the tech in my Tesla to stream my favorite stations from my phone to the car audio system when I am out of signal range. The car has Slacker so I can hear any song just by hitting a button and saying “play title and artist.” Very cool, but it gets boring. As does listening to my iPhone library. As seamless and safe as the tech is in my car, I just like listening to radio in the car. Been doing it all my life. Maybe radio app streaming in the car is something stations should promote.
Weird? Not at all. Lots of people are streaming radio – at home, at work, and of course, in the car. Radio needs to be well-positioned with mobile apps, as well as in the car dash. That’s the reality. Thanks for chiming in, Steve.
Local contests, engagement, and just straight up entertaining radio will win. I’m fortunate to work for one. but you keep on with the 74th future shock radio article.
Just 74? It seems like more than that. 🙂 Thanks for the comment.
Fred, your comments are spot on with regard to integration. I can tell you from everyday experience that car buyers don’t necessarily want more technology, they want THEIR technology to work with the car. I spent some time with the BMW NA product guys at work, learning about what’s coming, and Apple Car-Play will now be available in just about every 2017 BMW model. What this means, is that for many of our clients, they’ll forgo the stuff built into the car, and simply mirror their device’s capability onto the iDrive screen. Boom. Simplifies their life, and limits the need to learn a whole new way of consuming content. I’m asked about it everyday when talking about the connected dash with customers.
Phil, there’s no question that Apple and Android are well-positioned – and that has implications for radio. As we discussed in today’s post, station apps needs to be adapted to these platforms or radio as we know it might disappear from the touchscreen. Thanks for commenting.
Fred, thanks for continuing to facilitate these conversations.
It’s fun to say “let’s skate to where the puck will be vs. where it is”. But for too many people, they confuse where the puck already is with the future.
Instead of playing catch up on the connected car, let’s focus on the driverless car, which will be here in mass circulation before the next summer Olympucs.
In fact the driverless Uber is already a reality in Pittsburgh.
Assuming radio already had an industry wide driverless car strategy, which we don’t, it seems likely that we would need every minute of the next four years to implement it with automakers, Google/Apple and most importantly consumers.
So as radio works to redefine itself and transcend the transmitter, opportunity abounds.
However with the Rio games already behind us, we need to define the in-car audio of the driverless future otherwise it will become a family room on 4 wheels.
Right on the money, Andrew. The autonomous future is closer than most people think with serious implications for the “old guard” in the dash. Thanks for the kind words, for reading our blog, and for taking the time to comment.
As a non-radio professional, a few points leap out at me. If the average age of a car on the road is 11 years, then in-phone entertainment in the car is going to be really important because that hard/software will be getting changed a lot more often — what do you think mobile apps will be like in 11 years? where is radio in that?
The other is driverless cars. Here in the UK/EU, there is an assumption that a lot of these cars will replace the current taxi/Uber fleets. So far I’ve not read anything about in-car personalisation – but if you’re just picking up cars when you need them, IMO personalising it for the time you’re in it becomes quite important. The means already exists to carry your personal settings in the Cloud – it’s simple to arrange that when you step in the car it automatically adjusts the seating, temperature and in-car entertainment to suit *you*. Again, where does radio fit into that scenario? There is certainly a role for it.
John, thanks for that UK perspective. Your instincts are correct. It IS about mobile apps. As we pointed out in this post, a strong mobile strategy and adapting radio apps to both Apple and Google’s dashboard ecosystems are important steps. We also blogged about autonomous cars earlier this month – No Steering Wheel, No Pedals, No Radio? – and raised the same question you mention here. Bottom line: the dependable dashboard where radio was virtually ubiquitous for decades is undergoing rapid change. The broadcast radio industry – here and there – must adapt.
I will also add that UK Radioplayer is a great platform, and their director – Michael Hill – is ahead of the curve. Their app has been available on both the Apple and Android platform for quite some time.
Thanks for the comment.