Don’t let today’s blog title fool you – this post is about hope, optimism, and potential. As always, however, it comes down to whether radio will get the memo. The advertising strategy of automakers and car dealers is changing, rapidly moving away from rated media and cascading toward accountable, digital channels.
That was the powerful message that emerged from a number of DASH sessions last week. It was delivered by both Dave DiMeo from Ford Direct, the group that deploys co-op dollars to their dealer network, as well as several car dealers execs that are singing out of the same ROI hymnal.
We also heard from Pandora, and their dealership visibility strategy that includes videos, brochures, and other visual materials that provide presence for the pure-play at the point of purchase.
If you made the investment in time and money to attend DASH, my bet is that you’re thinking that radio – on the macro level and right down to Main Street in small markets – needs to develop plans to rethink how it approaches the automotive space. Year after year, the RAB reports that automotive is radio’s top revenue category. The two-day agenda at DASH suggests that streak is in serious jeopardy.
And that’s why we’re taking the stance that radio needs a new type of sales and marketing executive inside radio companies across America:
The Director of Automotive – or DOA.
Most clusters have a DOS, GSM or LSM. In larger markets, there’s a National Sales Manager, too. And in recent years, it’s been the Director of Digital Sales.
So why not a Director of Automotive?
A DOA assigned specifically to work with local car dealerships and to make connections at the OEM and Tier 1 levels just makes sense in the current environment, not to mention the future of the radio and automotive industries.
And if you’re wondering what this person would do all day, here’s a starter list of job duties and responsibilities:
1. Nurture relationships with local car dealers and dealer groups. For the most part, radio’s main interaction with dealers is all about making the sale. An ongoing program to get to know local dealers, their goals, and concerns is Square One for radio. And this relationship building might help create that workaround that provides direct access to dealerships owners and CEOs, rather than having to interface with an ad agency that might not be as open to new innovations and marketing ideas.
2. Develop tools to meet local car dealer needs. We had two strong presentations at DASH from the head of Liquidus, Chris Carlton, and Select Marketing Group’s Mike HIllstrom. Each takes a different approach to capturing marketing dollars via radio, whether it’s websites and digital tools or personality endorsements. Your DOA would explore the latest and greatest tools and techniques designed to maximize local automotive revenue, and deploy them strategically.
3. Create content marketing strategies for lead generation and web visits. This is where the action is, and the DOA would be responsible for building out radio accountability tools. Our Seth Resler is a great resource for understanding and implementing content marketing concepts that answer the ROI needs of the automotive community. As we heard again and again, ratings, rankers, and rate cards aren’t going to get it done.
4. Develop onsite materials and resources for local car dealers. Pandora’s ramp-up in showrooms and in service departments speaks volumes about the value of having visibility at the point of sale, delivery, and even the service department. We’ve learned in research that most consumers don’t change their presets often, if at all. As dashboards become more complicated, it’s essential that radio have more dealership presence. When trainers take AM/FM radio for granted, electing to promote satellite radio or smartphone pairing, it’s a problem.
5. Represent radio at auto industry events. Whether it’s the auto show that rolls through town or being part of a radio broadcasting committee that attends a mega-event like CES, it’s essential for the industry to show up and be heard. A lesson from our DASH Conferences is that in order to truly benefit from the automotive industry, you have to take the time to learn and understand it. That starts with the marketers, engineers, designers, and execs who work for the car companies, suppliers, and dealers. Most radio salespeople have better relationships with concert promoters and bar owners than they do with members of the automotive community.
Car makers are as serious as a heart attack when it comes to the media and entertainment capabilities of their vehicles, today and down the road. We learned at DASH that content partners from Slacker to Rivet Radio to NPR are also investing heavily in the future of the dashboard.
For the broader radio industry, the “connected car” and its implications needs to be elevated to a position of prime importance. The car’s obvious impact on both the programming and sales departments necessitates a radio industry commitment, as well as attention on the cluster and local levels.
For radio, a DOA is a driving need.
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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Re: “A DOA assigned specifically to work with local car dealerships and to make connections at the OEM and Tier 1 levels…”
I know the answer is that you prefer to look forward and not dwell on the past, but is there nobody who believes that the time for implementing such a position as DOA is behind us?
Ten years ago the radio industry was being urged to get involved in design of the new vehicle infotainment stack. The standard reply was “radio has 93% reach,” or “we have HD Radio.”
Fifteen years ago radio execs were urged to attend CES and other non-radio conventions to educate themselves on what was ahead, and get an inexpensive jump-start into the future. We all know how that went.
For many years we’ve heard pie-in-the-sky presentations at radio conventions, which never fully disclosed the difficulties in integrating a mobile strategy or reflected things youth were attracted to. Even today we still hear a constant refrain of “radio’s unparalleled reach.”
In 2012, President & CEO of Horizon Media, Bill Koenigsberg was quoted in a Radio Ink article with “Radio needs to do a better job of proving attribution, if I spend a dollar in radio, my return is “X” vs. a dollar somewhere else.” (https://www.radioink.com/Article.asp?id=2383402)
Among the many responses defending radio’s methodology of sales I found this the most consistent with radio’s stock answer to date: “It’s the advertisers who need to reinvent themselves….”
Thanks for urging movement to educate over the years but even you must admit that – while there’s much talk – there’s little acceptance that change must come from the radio industry. As much as it’s needed, I don’t suspect there will be any change in that thinking moving forward.
Ken, as the saying goes, the best time to plant a tree was 20 years ago. The second best time is NOW. I am well aware the autos are investing tons in research, engineering, and people. Radio has a lot of catching up to do. I’m feeling some movement, but of course, we’ll see. Thanks for chiming in.
Ken is so right and so is Fred! I think the answer is going to sneak up and bite everyone on the butt while they sleep. Radio can’t compete with Pandora and Apple’s cash influence. And now Pandora is really playing up their local angle. That will always be able to out promote themselves because radio is out of money right now. With no hope of finding more. Pandora and Apple can buy themselves into showrooms and Dashes and really, I believe that is the end of that story. *Broadcast* Radio cannot compete with listener’s picking their own songs on demand and the algos that give them fresh music all the time. But radio can develop into something more and I think it has to. What that is exactly, I’m not sure of though.
Ken is right about a better ratings system. No one can really trust a ratings company owned by the largest radio company-are you serious??! really? That boat set sail along with the goofy, exaggerated signal maps. Oh and Fred, there are reasons why the sales guys are friends with the saloon owners =D
Robin, thanks as always for the comment and for reading our blog. The competitive web has expanded to be sure, and radio has to find a way to remain competitive.