• Hugh McPherson


This article below, re-posted from Radio Ink today, is one of many reasons The Media Store teaches its radio clients to work with all active, on-air clients with an "ad-on" approach. Radio has long focused on the "big kill" in new business and the results speak for themselves.

Radio must change its approach and learn the art of the "ad-on" sell. Selling more radio stations or promotions might increase reach, but does it increase results? More importantly, does it give the client real evidence of results?

You have 100+ on-air clients all interest in two things, better results and digital advertising! You can get an appointment with them and they will listen. Closing rates for our clients run at 39.6% with on-air clients and renewals run between 50 & 75%.

The key is to focus on creating NEW opportunities that generate NEW incremental dollars! Radio operators must think like McDonald's, Walmart & Amazon creating an environment where current clients are more anxious to buy smaller items that make an impact thus making radio's core product provide better results!

2018 Bullitt Mustang - Ford Motor Company

Borrell: Auto Advertising In The Tank

In a new report, Advertising Takes A Sharp Turn, Borrell and Associates writes that, due to a

Borrell Associates - 2018

decline in both new and used vehicles, dealers are spending less on advertising and more on marketing. And pretty much every form of media is taking a big hit as a result.

Broadcast TV will get slammed, according to Borrell, down nearly 30%. Radio will be off 10%. Only cable TV and cinema will escape the color red, according to the new report.

Borrell Associates - October 2018

Total automotive ad spending in 2018 is down 7.3%, to $34.4 billion. For 2019, Borrell is forecasting a 3.4% bounce-back. Over five years Borrell is projecting growth averaging 1.7% per year. And nearly all of that increase will go to digital. Sixty-seven of all automotive advertising now goes to highly targeted digital media, stealing from traditional print and broadcast that Borrell says are considered less efficient.

Dealers are now spending 41% less to advertise a new car than they were five years ago. It’s gone from $888 in 2012 to $518 this year. It’s now easier to hit a specific target, which means dealers can be more efficient with their ad buys. “Mass” media still plays a role in branding messages, but even that’s now being challenged as video advertising migrates to the digital environment.

In short, automotive advertising forecasts for 2023 point to striking changes in future spending. Borrell’s new model predicts that, five years from now:

  • Print advertising will be significantly lower than 2018 levels

  • Broadcast TV advertising will be significantly lower

  • Radio advertising will be lower

  • Cable advertising will be higher

  • Digital advertising will be significantly higher.

The advertising piece of overall marketing expenditures is likely to remain in the $35-37 billion range, but marketing services are likely to get far more attention as manufacturers and dealers spend more time and money on their “owned media” channels.

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