Author: Annette Malave, SVP/Insights, RAB
The auto industry has had its fair share of challenges and opportunities in the past few years. Events such as parts and labor shortages, strikes and the most recent security hack are just a few. While these events undoubtedly impact their business, they have an even greater effect on the consumer.
Inflation is on the top of consumer’s minds. It is impacting their decisions across a multitude of categories – from restaurants to retailers. According to Provoke Insights data, 60% of consumers agree that inflation is impacting them personally. The figure jumps to 64% among radio listeners.
Despite these concerns, auto dealers have a better sales opportunity using broadcast radio to target auto buying intenders. Based on a survey of 1,500 adults ages 21-65, Provoke Insights (a full-service market research firm), radio listeners are buying vehicles at twice the rate of nonradio listeners (17% versus 9%).
While women are often the influencers when it comes to vehicle purchases, based on this survey sample of radio listeners, of that 17%, the buyers were predominantly male.
Considered a high-ticket item, the decision to purchase a vehicle is not based on a whim but instead it is planned. Of those adults who purchased a vehicle in the past month, 80% planned and did their research. (Note: This is an important factor that auto dealers should address in their messaging and present themselves as an aid in that important decision-making process.) The opportunity to drive auto sales is greater among radio listeners versus nonlisteners. Of those who planned their vehicle purchase, 40% of radio listeners took only days while 31% of nonlisteners took weeks. Using radio to reach auto buying intenders may sway them to one auto dealer or automotive brand versus another.
When it comes to brand loyalty, those who planned their auto purchase do not stray. Seventy-five percent of auto buying planners purchased the brand or nameplate they have purchased in the past.
Consumers do not take high-ticket items lightly, and a vehicle is often a reflection of the consumer’s lifestyle and personality. As a trusted medium that reaches millions of adult listeners on a weekly basis, radio can not only drive demand for auto dealers but also impact sales.
If I ever refer to a potential car customer by the disgustingly dehumanizing title of “auto buying intender” just shoot me.