||Auto Radio Ads Have Greatest Influence Closest to Purchase
Radio Advertising Bureau Launches New Study Initiative for Members
Radio plays a dominant role, whether people are considering a vehicle purchase, or spending time in a vehicle.
And the closer listeners get to purchasing or leasing a vehicle, the more important a part radio advertising plays. Radio is also a top "must-have" for automotive buyers of every age.
These are just some of the key findings stemming from the Radio Advertising Bureau's new service to help radio stations sell locally and highlight the buying power of radio listeners coast to coast. Developed in partnership with Presslaff Interactive Revenue, and offered as a benefit of membership, Finding Consumer Trends (F.C.T) Reports are turn-key online surveys of a station's audience that provide salable insights and qualified leads on purchase interests in top advertising categories.
"We are excited to launch this initiative for our members," stated Erica Farber, RAB President and CEO. "The number of responses demonstrates the engagement radio has with its listeners. The information gleaned from this survey on Automotive proves radio's role within brand consideration and purchase."
The first F.C.T Report survey was conducted from March 12 to April 2, 2013, and attracted over 28,000 respondents aged 18+. Respondents were asked about vehicle and brand preferences along with advertising and dealership influencers. Of those respondents surveyed, 44% currently own a vehicle that is over 8 years old and nearly one in three (32%) of the total respondents will be in the market to purchase/lease a vehicle within the next year.
Vehicle cost and gas mileage are the top two items respondents chose as important in their vehicle selection. Interestingly enough, given the price of gas, SUVs top the list of type of vehicles for consideration, followed by sedans and trucks.
Chevy, Ford and Toyota topped the charts as the three brands most considered for purchase or lease. They were followed by Honda, Nissan, Dodge, Hyundai, GMC, Kia and Jeep.
When it comes to in-dash options and entertainment while driving, radio ranks #1 by a good margin. Among all age groups, AM/FM radio was the top "must-have" in any new vehicle they may buy/lease. Radio listening also dominated all other entertainment options for respondents while driving.
So what medium has the greatest influence when it comes to which dealership they'll visit? Radio advertising was the top medium to influence their selection. Website ads and TV/cable ads were noted as second and third influences, followed by newspaper, direct mail and outdoor. Radio was seen as being particularly effective within 30 days of purchase/lease.
Survey respondents were also asked what are the most important features they look for when choosing a car dealership. A "reputation for honesty" ranked number one, followed by "price/rebates," "friendliness," "location," "recommendation from family/friends," and "service center."
Other noteworthy findings of the survey included the revelation that more than 50% of the participants would drive 25 or more miles to buy or lease their vehicle, an important consideration for dealerships who are thinking of utilizing radio advertising and the medium's historically strong reach.
The study also determined that local repair shops and the dealership where the vehicle was purchased are the top two choices for car repairs. Also, when choosing auto insurance, the respondents overwhelmingly indicated price as the deciding factor, followed by coverage, service and reputation of the insurer.
"RAB member stations now have a wealth of information they can use to engage dealerships and services shops. With responses from over 28,000 radio listeners from coast to coast, we have uncovered everything from automotive brand preferences to buying intentions to their listening habits while driving," stated Ruth Presslaff, President, Presslaff Interactive Revenue. "This is compelling information that will be beneficial for all radio sales, within and well beyond the automotive category."
A free, members-only webinar featuring the national results will be presented by the RAB and Ruth Presslaff on May 21 at 10 AM CST and 3 PM CST. To register for the "Data to Drive Your Automotive Sales" presentation, click here.