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Re-Capture Auto Dealer Dollars RAB Webinar – February 2014

Radio Advertising Bureau www.rab.com Copyright 2014

Rev Up Your Auto Revenue in 2014!

Re-Capture Auto Dealer Dollars

Brandeis C. Hall VP, Professional Development Radio Advertising Bureau [email protected]

What We’ll Cover…

Industry update

Understanding the buyers

The ‘Connected Car’

Thinking like a dealership

Local dealers and your station

The Role of HD radio



Negotiation:

ne·go·ti·a·tion noun /nəˌgōSHēˈāSHən/

1. To confer with another in order to reach an agreement

2. A mutual discussion and arrangement of the terms of a transaction

3. To agree on something by discussing it formally

What we’ll cover…

Industry Update

Source: NADA October 2013

Happy Days Are Here Again…

State of the Industry



Source: Automotive News/ Reuters, 10/2013


• Auto sales increased nearly 8% year over year from 2012.

• US sales hit 15.6 million in 2013.

• Production is up and dealers are heady over new launches.

• The consensus estimate for 2014 sales is 16.4 million units.



• New light vehicle sales are up.

• Medium and heavy-duty truck sales are up.

• New dealerships are opening.

• Dealerships added an average of 2 new employees.

• Pent-up demand/incentives cited as major reasons in new vehicle sales.


Source: NADA 2013



January Was A Freeze-Out For Vehicle Sales

New Vehicle - Days’ Supply


Source: NADA 2013



Negotiation:






Understanding the Buyer




1 in 3 Respondents Looking

to Purchase in Next Year

0%

5%

10%

15%

20%

25%

30%

35%

Year + In the NextYear

Not Sure N/A Next 90Days

Next 60Days

Next 30Days

Are you looking to purchase or lease a vehicle…?

32% looking to purchase in the next year That’s roughly ONE in every THREE Respondents




Top 10 Brand Preferences

0%

10%

20%

30%

40%

Chevy Ford Toyota Honda Nissan

What brands will you consider when buying/leasing new vehicle? Less than 1% point difference between Chevy. Ford. Toyota.

Negotiation:






The Connected

Car



The Connected Car

"The car radio is rapidly moving beyond a traditional two-knob experience . The faster we understand the nature of that change the sooner we will be able to capitalize on it.

- Roger C. Lanctot, associate director in the global automotive practice at Strategy Analytics

Common Strategies

Must-Have Dashboard Options

0% 20% 40% 60% 80% 100%

Something Else

Doesn't Matter

Internet Radio

Ent/Info System

HD Radio

Satellite Radio

DVD Player

Bluetooth

GPS

Smartphone Con

CD Player

AM/FM Radio

Male

Female

All

Which in-car dashboard options are a must-have in any new vehicle you may buy/lease?



Common Strategies Must-Have Dashboard Options: Top Six Choices

0% 20% 40% 60% 80% 100%

DVD Player

Bluetooth

GPS

Smartphone Con

CD Player

AM/FM Radio

Male

Female

All

Which in-car dashboard options are a must-have in any new vehicle you may buy/lease? AM/FM Radio Dominates.

Smartphone Connections weren’t part of the conversation 5 years ago. Now third.

Top Activity When Driving: Gender

0%10%20%30%40%50%60%70%80%90%

100%

All

Women

Men

When driving, are you most likely to be…? Little difference Women & Men



The Connected Car

Location-based offerings…

Where does radio fit?



The Connected Car

The ability to access a radio brand from anywhere has the potential to broaden the audience beyond

the signal parameters and provide more engagement opportunities

for each brand’s biggest fans.

But consider this: It’s not simply about shelf space in the cars of today and tomorrow. It’s about being on a shelf that solves whatever problem or need the consumer has right now.

- Mark Ramsey, ”What’s the future of radio in the connected car?”

…and value propositions that have less to do with radio per se and more to do with solving the needs and problems of

the consumer here and now.

What will be more important than ever is unique and compelling engagement mechanisms that make the brand “sticky,”…

The Connected Car



Negotiation:






Thinking Like a Local Dealer

Working the Numbers Average Unit Price

Source: NADA 2013

Thinking Like A Local Dealer



New 56.2%

Used 31.8%

Service/Parts 12%

Working the Numbers

Average Dealership Sales By Department

Source: NADA 2013


Net Profit By Department

Source: NADA 2013




In Billions… Per Unit Sold

Source: NADA 2013



Source: NADA 2013



Current Online Advertising by

Type Future Online

Advertising by Type

Current Local Ad Spend by 12 Media

Future Local Ad Spend by

12 Media

Spend and Growth Trend

Local Online Ad Spend by

Year

Available for Any Local Market in the US

94 Other Business Categories Also

Available

Source: NADA 2013

Average Dealership Advertising Expenses

Monthly

Annual Average

Total $405,907 $33,825

1-149 $ 98,163 $8,1280

150-399 $188,326 $15,693

400-749 $364,161 $30,346

750+ $706,484 $58,873



Source: Capgemini 2013

of new vehicle buyers research on the web before buying

Edmunds.com

Cars.com

eBayMotors.com

traderonline.com

autobytel.com

carsdirect.com

kbb.com

Jdpower.com/auto


94%

Dealers are buying leads…






Expanding their own digital initiatives

• Website with inventory • Live webcams • Mobile apps

Hiring digital sales staffs

• Can they keep up with the business?

• What message should they deliver?

Dealers are …



Negotiation:






Your Local Dealer and

Your Station

Your Local Dealer & Your Station




Common Strategies

Radio Reaches Auto Prospects

Every week, radio reaches adults 18+ who are in the market to buy/lease a new vehicle in the next 12 months:

Source: Scarborough USA+ 2012 Release 2 (August 2011-September 2012)

94%

92%

90% 92% new luxury vehicle

91%

94% new compact car

new midsize car

new full-size car

new pickup truck

new van, mini-van or SUV



Source: The Media Audit Media Day Analysis Jan 2012-May 2013

Adults 18+ Planning to purchase a new vehicle in the next 12 months spend significantly more time with radio than any other medium.

Radio Dominates For New Vehicle Sales


Top Advertising Influencers to Visit Dealerships: By Age

0%

10%

20%

30%

40%

50%

Radio None Websites TV/Cable NewspaperDirect Mail Outdoor

All

18-24

35-44

55-64

Which of the following types of advertising influence your decision to visit a specific dealership? Radio, Website and TV particularly important 18-24.



Thinking Like A Local Dealer Top Advertising Influencers: Timing

0% 10% 20% 30% 40% 50%

Direct Mail

Newspaper

None

Outdoor

TV/Cable

Websites

Radio

30 Days

60 Day

90 Days

Year

All

Which of the following types of advertising influence your decision to visit a specific dealership?

Note how Radio, Website and TV Influence grows the closer one gets to purchasing.




The Road Forward…

Leverage all your station platforms to bring the vehicle to life and engage the core “vehicle” target audience. • On-air

• Online

• Mobile

• Social

• Experiential (in-market/on-site)

Create marketing solutions to ensure a successful launch of the new vehicle(s).

Deliver turn-key programs that integrate into your station’s content in a relevant way.

Negotiation:






The Role of HD Radio and

Selling Your Local Dealership



The Connected Car is MISSION CRITICAL Radio must maintain dash our “real estate!”

• FM Radio

• AM Radio

• HD Radio

• Traffic

• Apps for radio content

• Music services

• More…

HD Radio and Your Local Dealership

The Battle For The Dash- HD Radio is there!

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

BrandsVehicle LinesStandard Equipment

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1

2 0

28

154

77

0 2 7

5 30 1

10

53

24 16

86

36

21

109

61

33

190

96

1 0 3

34

195

99

HD Digital Technology Available From ALL MAJOR Automakers




HD Radio is in your client dealerships!

HD Radio Technology Standard Feature On All Vehicles

HD Radio Technology Standard Feature On Some Vehicles

HD Radio Technology Available As Part Of Option Package


What’s next for maximizing HD Radio

VIDEO: How HD Radio works for CONSUMERS – and best yet, you can help your dealership explain to their customers! http://www.youtube.com/watch?v=7pae6AO-Yv0&app=desktop

VIDEO: HDRadio.com is a tool for BROADCASTERS in your “speak” – tour of the broadcaster section of the site: http://www.youtube.com/watch?v=hklQ6grcRvU&app=desktop

Make sure your dealership clients understand

Invent sponsorship of HD2’s and HD’3

Share HD Radio market guides to find channels


http://www.youtube.com/watch?v=7pae6AO-Yv0&app=desktop









http://www.youtube.com/watch?v=hklQ6grcRvU&app=desktop










The auto industry is back and stronger than ever.

The connected car will be a game-changer for both

the auto and the advertising industries.

Create integrated campaigns and sell ALL your

station assets for best results for your local

dealership and for yourself.



Rev Up Your Auto Revenue in 2014!

Re-Capture Auto Dealer Dollars

Brandeis C. Hall VP, Professional Development Radio Advertising Bureau [email protected]

re-capture auto dealer dollars - rab.com auto dealer... · re-capture auto dealer dollars rab...

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