And here they are – in order:
- 2009
- 2010
- 2011
- 2012
- 2013
The chart below tells you all you need to know about the financial relationship between radio and automotive:
There’s are many reasons why the “connected car” impacts every department at broadcast radio stations. You’re looking at five big ones. Even though other categories are experiencing bigger increases from quarter to quarter or year to year, in the past five years, automotive has remained the leading category for radio revenue according to the RAB.
Last year at DASH, our car dealer panel was one of the most-talked about because it took on serious issues impacting their businesses – and the radio industry. Car dealer needs are changing, and a key takeaway from last year’s conference was the need to reboot and redefine radio’s relationship to the dealer community, seeking out partnerships and synergies – and not just asking for the buy.
This year, we will take an even deeper dive into this space because of the larger implications of the “connected car,” and revenue that is near and dear to radio.
In their deeper analysis of the automotive space for 2013, the RAB notes that automotive was actually down 1% in Q4, and 3% for all of 2013. So perhaps our auto dealers – and ones that we have interviewed over the past few months – are sending radio a message. These are critical dollars for radio and they are up for grabs.
Please feel free to comment in the space below as this is a major challenge facing the radio industry in 2014 – and beyond. Maybe your five reasons are a little different than mine.
And if you’re interested in learning more about DASH, click here. We also welcome any input about sessions, panels, or speakers you’d like to see this October.
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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Hi FRED, Not only the radio DOS should be attending DASH, but the BRAND CONTENT DIRECTOR, MARKETING DIRECTOR, IT/DIGITAL, and the GM.
It’s not just about preserving and maybe growing revenue share from the automotive category in the “radio advertising pie”. It’s a bigger conversation the car manufacturer is now controlling for an array of content that includes broadcasters, pure-plays, wi-fi, satellite, on-demand, cell etc and what they bring, in order to be on that “dash”. If “radio” isn’t a big deal on the dash, it probably won’t be a big priority in advertising spend either, as time and circumstance march on. With the car dashboard the last great bastion of radio usage, the conversation has changed all round.
Today’s motorist/consumer/listener now expects, and gets, a lot more from their dash. Way more than when radio ruled with a monopoly of pre-sets. If radio loses its major presence there, the conversation is not going to be pretty in terms of revenue or audience.
To jump to a bigger digital canvas momentarily. The spate of blogs and posts urging radio to “not forget their websites!”, “understand social engagement”, “give the listener what they want, when they want”, “build a digital strategy” etc. should be givens for the industry at this stage.
The “internet of things” being bandied about, and the even more important mobile capability that goes with it, is all here and now. Understanding what that means is already a reality for the plethora of multi and managed channel YOUTUBE network businesses, the social networks, the cell-phone industry, the pure-plays, satellite etc etc that have and are creating new models. The car manufacturers are setting their own agenda too, and leading from the front.
Just a DOS at DASH?… it’s probably demands a bit more attention than that, if radio really wants to get inside the conversation, preserve some prime real estate… and revenue.
As gratuitous as it was, Lee, we did have a pretty strong showing of managers at DASH, but as you point out, automotive, the “connected car,” and the content maga-center that it has become is something that everyone in radio should be attuned to. But I felt these revenue stats were so strikingly huge that it merited a separate blog post that was sales driven (one thought per break, right?). We are on the same page here. When automotive represents the #1 listening location and the #1 revenue category, DASH should become the must-go-to conference of the year. As a co-partner for this event, I know how that sounds but we wouldn’t be putting this event together if we didn’t believe in it. Thanks for the comment and for reading our blog.
Let’s add that radio’s future is pretty much tied to the connected car as a reason to attend DASH. And its radio’s head honchos that really need to be there. In a couple of days they can get a window into one of their largest category’s soul along with a pretty detailed view of the future. Not a bad two days IMO.
The attendee’s should refrain from trying to “tell radio’s story better” and just listen because the best salespeople always do that a lot more than they talk. Then they should go home, imagine that dash of the near future and radio’s competitive postition there when access to everything is equal. They maybe should do some research and find out what their listeners would do differently if that connected car was available now.
These two days and how the right people react to them could tell alot about radio’s future. Much has been opined about radio’s death, rebirth and overall health. DASH takeaways could shed real light on the correctness of those opinions…in my opinion of course 🙂
Couldn’t agree more. We’ve learned a lot from the first DASH. We had a great agenda last year, and this year’s will even be more on-point. Thanks for the kind words – and hope to see you there.
I’m doing commercial real estate now, so unless someone there wants to buy, sell or lease a building/some land, I probably won’t be able to make it. Hopefully some of the radio folks that can benefit from being there will make the trip.
We’ll cut you a deal! 🙂