A funny thing happens after you’ve put together three DASH Conferences. You learn a lot about what’s really happening in the automotive space…and its implications on the radio industry.
For the past several years, we’ve had our eyes opened about the new challenges and opportunities presented by the automotive sector. And as we book these DASH events and speak with leaders in automotive, from the OEMs to the Tier 1s, we gather more insights about just where radio stands, and how the landscape is changing.
Our mobile apps company, jācapps, opened up the door to our foray into the automotive space. After we developed 100 or so radio apps, it was a small leap to researching and understanding the changing dashboard – and how its embedded apps – were becoming a part of an expanding media ecosystem.
Along the way, we began to discover that while the C-suites in Dearborn, Auburn Hills, and downtown Detroit are where the core decisions are being made about the hardware and software in the dashboard, it’s the hometown car dealership that is truly the epicenter of automotive/consumer encounters.
To that end, while we may have been first in the radio business to connect the dots at the dealership level, we were not alone. It turns out that Pandora has reached the same conclusion. But the difference is that they’re moving quicker and more strategically to cover the dealership opportunity.
When it comes to the “connected car” in general, Pandora was one of the pioneers in that space. You see that ubiquitous “P” log in a lot of commercials. That’s because Pandora’s integrated app is featured in more than 170 different models. That represents a major investment and a lot of work because there’s virtually no standardization when it comes to dashboard technology.
And today, Pandora is forging ahead of broadcast radio when it comes to dealership marketing. So when the phone rang a few weeks ago and Pandora was on the other end of the line, talking about what they’re up to when it comes to impacting these local car stores in your markets, we took the call.
Pandora has had representation at the first two DASH Conferences, and this year will be no different. Geoff Snyder, their VP Automotive Business Development, will be talking about their dealership activity and why it is essential to Pandora’s growth in the car. Geoff tells us that while many consumers spend lots of time online, conducting research before they purchase or lease a new vehicle, the dealer/salesperson is still the go-to information source. And the data backs that up:
Even in 2015, it’s the human interaction at the dealership – the test drive, the showroom visit, the chat with a car salesperson – trumps online research, advertising, web reviews, and social media. Radio can and should stop thinking about dealerships as sales opportunities and start thinking about them as marketing opportunities.
Geoff notes Pandora is thinking both short and long-term, because as he says, “there are opportunities on both the sales and service sides of the house. The sales person is the most influential before and close to the time of purchase. The service department is also important because the customer will typically have many more interactions with them over the course of total vehicle ownership and the service department is considered the technical expert for both the customer and the sales staff.”
And part of Pandora’s marketing effort is simply having strong, visible presence at dealerships. As we have learned at Jacobs Media, media that are out of sight start becoming out of mind. If trainers and salespeople who teach buyers how to use their in-dash systems aren’t thinking radio, it may not be mentioned during the all-important handing off of the keys and the dashboard training session.
Pandora realizes the importance of presence and impact, things that Geoff will be talking about at his DASH presentation next month. He notes that Pandora “wants people to have the best listening experience in the car and marketing / education efforts can also help us move the needle in other areas like Pandora|One, Pandora for Business, and our local advertising solutions.”
Pandora’s dealer focus validates the theory that local is, in fact, the “secret sauce” when it comes to connecting consumers with their “connected cars.”
And the way for radio to stay ahead of the game is to learn from Pandora – and uncover ways to do it better. But no one in broadcast radio is even thinking about this kind of strategic dealership plan. And that’s why the DASH Conference (November 4-5 in Detroit) has sessions dedicated to this all-important challenge. With smart local marketing and planning, radio can make a difference at the dealership level, preserving both dollars and listenership.
Here’s an example, compliments of KSWD (Entercom/Los Angeles) programmer Dave Beasing. Last week at The Radio Show, I participated on a “Dashboard Disruption” panel (along with consultant Alan Burns).
Dave and his team at The Sound put together a clever, fun, and personality-rich dealership video that begins to paint the picture of how radio could make a difference in this space in any and every market in the country. It features their “Chick On The Street” – Katie Thompson (daughter of morning guy, Mark Thompson). Think of it as that important step in radio taking action at the local dealership level.
Email recipients can click here to see the video
https://www.youtube.com/watch?v=WplFCIyRcqA&feature=youtu.be
In addition to a panel featuring prominent auto dealers moderated by RAB President & CEO Erica Farber, DASH will focus on where the automakers are allocating co-op dollars, how radio can deploy its personalities to market cars on the local level, and tactics that will ensure strong radio presence in the showroom and around the service department.
The car dealership that you drive by every day on the way to work lies at the intersection of the radio and automotive spheres. And at DASH next month, we’ll help radio understand the challenge, and provide actionable ideas to maximize the opportunity. Whether you’re in Los Angeles or Little Rock, this is information radio needs to remain viable in the dashboard.
Pandora has already gotten the memo. In fact, they’re writing it.
At DASH, you’ll see sessions you won’t see at other radio conferences. Info on DASH here.
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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This article both fascinates and terrifies me. Pandora seems to be doing a great job in automotive and recognizes, like satellite radio before them, the significance of that space.
Radio has the advantage of existing relationships at car dealerships and I am sure for the larger broadcast owners those relationships go all the way up to the OEMs. Where radio could be at a disadvantage is with their platform. And one of my questions is if the end goal is to get listeners to use the radio in the traditional sense, to use an app or both? In the short term using radio in the traditional sense seems like the simplest solution but in the long term, and even in the short term for some, the smartphone is becoming an extension of the car’s entertainment experience so pushing an integrated app would be more beneficial.
Pandora has the advantage of an existing app that is available on all smartphones and in dash systems whereas the NextRadio app is still missing on a lot of phones. Does NextRadio need a version that uses data so it is more ubiquitous? Do stations need individual apps or apps for a cluster and then to work with their local dealerships to push the branded app?
I’m still working on finding a way to get to Detroit next month to get some of those answers.
Thanks for the info and inspiration!
Sean, good to see the juices are flowing. Radio has a natural advantage at the dealership level BUT it needs more awareness of what owners and managers at these stores are thinking and what they need. As we discussed in the post, it is less about “What can we sell you?” and more about “How can we help you solve your problems?”
Most local radio stations have advantages over Sirius/XM and Pandora because they know the turf, and in many cases, know the players. But it requires a very different mindset and approach. And that’s how we’re approaching DASH this year.
Thanks for reading the blog, and hope you can make it to Detroit next month. It’s going to be a great a conference.
A few years ago at Doug Harris (https://www.creativeanimal.com/dh_advent_prt1.html) promotion director training school which he called “Adventures in Broadcasting,” one of the very best sessions was an auto dealership General Manager explaining in detail to us all what happens at the dealership during a typical radio station remote broadcast. It was eye-opening! For example, his advice to the DJ doing the broadcast was to “meet the finance manager” and then check with that person several times during the broadcast to understand how things are really going and what levers the jock can use to make sure it gets the results the dealer is paying for. He said, “the owner or GM of the dealership will never tell you that he was happy with the results. Dig deeper.” Go to DASH if you possibly can. If not, get a local dealer you trust to train your air staff for remote broadcasts and any other promotions they do with you. That meeting in Houston with Harris was long before Pandora or Sirius or auto apps ever emerged. It’s more urgent than ever now.
Jaye, spot-on analysis of the space and why it’s so important to the radio business. Thanks so much for sharing the story.
Smart idea to brainstorm with the dealer and make plans for some of the remote content. A-B testing too.