Statistics show that during the time an average American spends consuming media each week, about 70% of it is still currently ad-supported. This is great news for those who remain committed to advertising on traditional radio and television.
But it should also make a dealer ask the following question: Where are these people going when they’re not listening to AM/FM radio or watching local or cable TV … and how can I reach them with my dealership’s message?
Some are watching subscription services like Netflix or Amazon Prime; and unfortunately, they cannot be reached because there are no advertising opportunities available there. But the good news is that there are plenty of ad-supported media outlets that do allow you to reach these individuals. Pandora, Spotify, Sirius XM, iHeart Media and SoundCloud are among these options.
The current catchphrase being used to describe how media consumers are reached is “Addressable Audience” and it is exactly what the term implies. It’s the subset of the number of users that advertisers – in this case, automobile dealers – are able to reach with their message. Recent research suggests that about 92% of the total audience is addressable in one form or another at various points in their days.
“Knowing your audience – who they are, what they like and how they spend their time – helps auto dealers make smarter advertising decisions,” says Josh Mustachi, Director of Sales at Pandora. “It is worth the extra effort to do research before committing your ad budget to make sure you’re getting your message to the right people at the right time.”
Important Factors to Consider
When your dealership is being “pitched” by an ad agency, be sure to ask if the statistics they’re showing you are based on Total Audience or Addressable Audience. There’s a marked difference between the two, as Total Audience includes the consumers who cannot be exposed to brand messages. So if they can’t answer that question with “Addressable Audience”, ask for a breakout of Addressable Audience only. If they can’t provide it, they aren’t capable of giving you the real numbers you need to make an informed decision.
Another important factor in choosing the right advertising is determining what’s known as “Share of Ear”. It’s not only about how many consumers there are; it’s also about the amount of time spent with each media source!
Help is Available
What options are right for your dealership? You won’t know without the data and research your advertising agency can give you. Lean on them heavily; they’re a great resource to help you determine not only what segment(s) of the Addressable Audience you should target – but also the most efficient way to reach them.
JKR Automotive Advertising: The car dealer ad agency.