More and more, dealers are rediscovering the power of radio in their advertising mix-and not just in larger, congested markets where radio often outperforms television in reaching adults over 18 due to the substantial amount of time spent in freeway traffic. Radio is starting to encroach on both print and television budgets in even the smallest of markets, and proving to be an effective and efficient means of reaching an audience with the greatest potential to purchase automobiles.
Here's why radio is so powerful. Radio is the most "mature" growing medium available to the retail advertiser today. Twenty years ago radio went through the kind of structural change television is going through right now. From the 1930s to the mid 1950s, radio got fat and lazy as virtually the only electronic media. Even as television gained popularity in the late 50's, radio was still a powerhouse due to the limited number of outlets in each market. Then the FM radio bombshell hit. Within a matter of just a few years the choice of radio stations in most markets grew from three to as many as thirty AM and FM signals. FM radio quickly siphoned off music programming due to the crystal clear nature of its signal. Giant AM outlets struggled to stay alive with various talk, news, sports, and information programming.
Over the past thirty years, radio has discovered niche and format specialization, while cutting operating expenses. Because television is in the "mind" of the big advertiser, radio has been forced to value price its inventory to attract smaller and medium-sized advertisers, the bulk of its client base. The recent FCC deregulation of ownership has enabled large operators to further increase efficiency and economy of scale profitability through acquisition of multiple outlets in the same market.
Television, on the other hand, has yet to get a handle on the continuous, major structural changes that are causing network affiliates to lose market share to independents, cable programming, and a variety of satellite offerings. While television remains an effective medium, its efficiency continues to decline as rates increase.
The dealers enjoying the greatest success with radio are those who have finally figured out how to best use the medium. Traditionally, advertisers have occasionally added radio to the marketing mix for urgent "call to action" messages, screaming and shouting about a sale "this weekend." Radio's greatest power lies in its ability to build perception and "share of mind." Radio advertisers who develop consistent, long-term campaigns that focus listeners on a dealership's unique "brand" message enjoy the greatest potential benefit of the medium's power.
Here are some other thoughts to consider when
evaluating radio as part of your advertising mix:
· Radio reaches a large number of people throughout the day, not just during evening prime time. Lots of people even listen to radio at work these days.
· Radio reaches the largest number of potential customers during the critical envelope of time just prior to purchase...when customers are actually in their vehicles.
· You can alter your message and station choices to appeal to different socio-economic groups.
· You can put more of your advertising dollars into the actual media buy instead of high production costs with low shelf-life.
If you decide to try radio out for size, don't jump in without doing careful research on your market and the individual radio stations. Unfortunately, the primary radio research measurement used by most radio stations is Arbitron, which, in my opinion, is weak at very best. Arbitron's measurement is done by survey booklets mailed out randomly in the marketplace. They include a dollar or two and ask the recipients to keep a diary for a period of time on their radio experience. I somehow have a hard time believing you can get anyone with anything going for them at all, to fill out a diary, let alone a single sheet of paper, for a few dollars! Well, supposedly Arbitron finds these folks but my guess is the people filling out these books are not representative of the people putting the most miles on cars. In today's busy world time is at a premium. I'm much more comfortable with research data obtained by personal interviews, or research programs that sufficiently compensate respondents for the time it takes to complete a survey thoughtfully.
There are many ways to collect research on your own, and of course the message you deliver should be unique, supporting your brand identity. Consider two types of messages: one to build identity and perception of your brand with a consistent spot schedule throughout the week, and another message with greater urgency for an event or special sale to build your "share of market."
If don't feel you're getting enough "bang for your buck" from your present advertising scheme, consider putting the power of radio to work for you. If you do it right, you'll be amazed at the immediate and long-term results.
Jim Boldebook is President of Creative Broadcast Concepts (CBC), an advertising/marketing agency working with some of America's most successful dealerships. If you have specific questions or require more information about this subject, please check the appropriate box on the reader response form on page 3.