Last week, Business Insider launched a survey to help determine the technology consumers want in their cars. Suffice it to say, as someone more than a little interested in the “connected car” space and a researcher, they had my attention.
So as I worked my way through this brief survey, I discovered something very important was missing: RADIO. Now we know that radio is facing challenges in cars on both the sales and programming sides. But radio and cars, they’re like peanut butter and jelly. Or at least that an analogy we’ve become fond of saying. Based on this survey, however, broadcast radio’s top-of-mind awareness may be in some jeopardy.
There was a question about the sources you use to learn about new cars. Notice what’s missing?
Yup, even though automotive is the #1 category of radio advertising, Business Insider neglected to list “Radio ads” as a choice. While I typed it into the “Other” box, we all know how “write-in candidates” tend to fare.
But the question that rankled me had to do with identifying the most desirable in-car tech items. Here’s the list:
There’s no listing for “radio” of any kind – AM/FM, satellite, or even streaming radio. Now you can argue that radio (of any kind) is a “connected-car feature.” But this is list that includes a music and video library, mobile phone, web browsing, games and other entertainment outlets. And research we’ve conducted and studied over the years typically includes media and entertainment features.
More importantly, including radio provides context to all these other features. Respondents will most definitely rate these connected features in this Business Insider study, but will they use them when they get behind the wheel? The recent J.D. Power “Driver Interactive Vehicle Experience Report” presented by Dave Sargent at DASH last November underscores this point.
So there is the technology, media, entertainment, and information services that are available with new cars. And then there are these same features that consumers actually use. All the more reason why research in the automotive space needs to take a more expansive view of this rapidly growing space.
And this brought to mind the results of our Techsurvey12 that we’re in the process of finalizing. We ask those who have recently purchased/leased a new car and those in the market for one about the features that are most important to have in their next vehicle.
And here are the results:
We see this every time we ask this question in our surveys – broadcast radio is absolutely essential, even up against connected technologies, CD players, navigation, and yes, Apple CarPlay and Android Auto.
The AM/FM radio is technology, it is always the leader, and so it’s essential to provide that response in questionnaires. Yes, other “connected” features, like Bluetooth and WiFi, are growing in importance to consumers, but at the end of the day, they want they radios.
And not just in our surveys. Across the pond, Radioplayer UK just completed a survey of its own. And the results are quite similar, as more than eight in ten of their 1,500 respondents in the UK, France, and Germany report that radio is a must.
Radioplayer UK’s slogan – “Great cars need great radios” – sums it up well. You can see the entire infographic, as well as access consumers videos, and other materials here.
It starts with understanding the space. And it starts with asking the right questions.
This Business Insider study is more proof the radio broadcasting industry needs to work together to make its case. The auto industry is moving at Mach 3 with its center stack technology, and radio is not their focus. When the results of this survey lands in thousands of email boxes, key players in the auto industry aren’t going to see radio show up, because it never had presence in the questionnaire to begin with.
That’s why it’s imperative the key players in broadcast radio go on the offensive in 2016 to keep radio forefront in the hearts and minds of automakers everywhere.
Otherwise, we’ll all be asking “Where’s radio?”
I will be moderating “The Changing Face of the Car Dashboard” at Canadian Music Week’s Radio Interactive Summit (May 5-6) in Toronto. The panel features Westwood One’s Pierre Bouvard, J.D. Power’s J.D. Ney, and automotive consultant and two-time DASH veteran, John Ellis. This is a great conference and you get more information here.
Thanks to Randy Kabrich for making me aware of the Business Insider research survey.
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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Great Radio Needs Great Cars! And, a great radio refresh doesn’t even cost as much as a great car! http://www.broadcastideas.com
Thanks, Clark.
Add Canada to the list of countries where car buyers see radio as a ‘must-have’ in-dash feature, Fred. In Audience Insights Inc.’s most recent Radio on the Move study conducted this past Fall, 60% of 2,028 Canadian drivers/passengers say that lack of an AM/FM radio would be a deal breaker in their next new car purchase. Another 27% say they would miss it, but would make do. Even those with connected cars see AM/FM as central to their in-car experience, with 57% seeing AM/FM radio as a deal-breaker. Look forward to seeing you at CMW next month!
Jeff, thanks for bringing that study to my attention. No matter where you ask the question around the globe, radio rules. Thanks for the comment and the link. See you in Toronto!
Radio has allowed itself to be positioned by those outside of the industry as no longer valid, which is far from the truth. However, sticking to the same old “93% of the population listens every week” argument, or other talking points that haven’t changed since the 1990’s, gets us to things like this survey. While those of us in the industry know the truth, as your upcoming TechSurvey12 will show, the current industry talking points can easily be pushed aside by those on the outside of radio as the industry just tooting it’s own horn. Sure, those who have a closed mind will be hard to change, but it is time for the industry to start standing up for itself and do the positioning instead of being positioned. Until this happens, the cycle of disrespect will continue.
Today’s post – “Radio – #0 Down, $0 Month” – continues that theme, Doug. Radio should be taking nothing for granted at this point. The culture and business models are changing. Radio still has a great story, but needs to be told. Thanks for chiming in.
Fred, I’ve been working as a BMW Product Specialist for one of the largest BMW retailers in the nation here in Denver in the year+since leaving Westwood One and 30+ years of programming and management. (I’m also from Detroit! Worked early in my career for Greater Media there).
That said, one of my tasks in this gig is explaining the features and technology in the car to new buyers. The biggest part of that involves the ‘Center Stack’. As a radio guy, I’m very interested in their awareness of radio in general, and what their expectations are regarding how it fits into that stack. Now, BMW may be an anomaly, I don’t know….but I can tell you that after talking with hundreds of customers over the past year, radio is almost always secondary or tertiary to phone connectivity, and the ability to utilize streaming apps through to the vehicle. (Satellite Radio is up there too). I generally ask about helping with presets for radio stations, and pretty consistently, the response from clients under about 40, there’s rarely interest in ‘radio’. Over 40, it varies, but the greatest interest in setting a favorite station is with women over 50, I’d say. Consistently, with the older set, they have a favorite station and general awareness of radio. When my clients refer to the ‘radio’, they’re really talking about the box in the car that brings entertainment to them…whether it be SiriusXM, music from their phone, streaming or terrestrial radio. I do believe that they ‘assume’ there’s a radio in there someplace, they just have much less interest in how to get to it. (In BMW’s, at least there’s still an AM/FM button on the dash that will take you there). You don’t want to know about HD radio awareness 😉
On the advertising front, at my dealer, at least (Schomp BMW), they spend in excess of 6 figures per month in marketing, and a pretty small slice of that is now radio. No print, or TV either. What radio we do is targeted to the sports audience. Most of the $$’s go to digital media…the internet and emerging location-based apps that allow them to capture customers behavior when they’re actively shopping, and provide metrics back. Traditional media is more “Spray and Pray”..acknowledging the reach radio provides. But, I digress. I’m just doing this for fun, 4 days per week because my love for BMW’s is almost as great as my love for radio. I’m my own JD Power here, not statistically accurate across the board, but I do see this behavior very consistently with our customer base.
Cool Barry! Good first hand info. Thanks.
I meant Phil :/
Phil, thanks for the story and the “real life” experience. Our DASH Conferences have done deep dives on the dealership experience from both a consumer and marketing standpoint.
And you’re right. No one walks into a BMW and asks to drive the new 5-series with the AM/FM radio. They assume it’s there – like the globe box and the trunk. The bells and whistles – phone pairing, satellite radio, etc. – are what is moving the needle. Our experience, however, is that even among younger people where new features rule, radio listening still plays an active role in their media and entertainment mix. It’s just more crowded.
This is one of the reasons why it so essential for radio to have dealership presence. Pandora is actively pursuing a showroom visibility strategy that is smart. Radio broadcasters should not assume consumers will simply keep thinking about its stations. It’s a whole new day.
On the advertising front, DASH has covered this from both an OEM and a local dealer perspective, and it’s a profound challenge. When it comes to direct purchases, the Internet, apps, SEO are becoming powerful tools. But that 3-day Memorial Day Sale matters, too, and that more focused sell is still something that radio does well.
Thanks for sharing your experience, because it’s something that most people in radio don’t see or don’t take the time to see.
I wrote to Mr. Greenough, seeing that he is a senior research analyst at BI, and asked him about it.
Fred, I wrote you for your email address so I could just forward to you my email correspondence from the Business insider rep who answered my questions about why radio was not in this survey. Do you want it? Should I post it? Should I forget about it?
Robin, please post!!!