It's Day Two Of The DASH Conference
November 5, 2015 at 11:14 AM (PT)
The DASH CONFERENCE is into day two at the Westin DETROIT Metropolitan Airport Hotel. The two-day conference offers attendees the opportunity to sit down with broadcasters, car companies, automotive suppliers, streaming radio providers, advertising agencies, aftermarket suppliers and car dealers to think about how today’s rapidly evolving automotive platforms impact business.
Dash Conference Day Two: 'Roll Up Your Sleeves'
JACOBS MEDIA Pres. FRED JACOBS and RADIO INK Chairman/CEO ERIC RHOADS held a quick welcome and recap of DASH day one and a preview of day two. Then it was off to the races for some eye opening information.
How Ford Is Shifting Dealer Co-op Dollars To Digital
Moderator PAUL JACOBS, JACOBS MEDIA/JACAPPS Pres. chats with FORD DIRECT Dir./Connected Car Innovations DAVID DIMEO about how radio can take advantage of this disruptive trend. JACOBS spoke about a SUBARU dealer who invested $20,000 into digital and reversed a large downward sales trend, and was shocked, which is what was one of the inspirations for this session.
DIMEO said that the desire to connect their phones to their cars in a safe manner was something FORD pioneered with FORD SYNCH, noting, "with FORD DIRECT we can correlate one to one personalized marketing and invest our marketing money more strategically. If we have limited resources how do we spend it effectively for the best ROI, and digital is working. We are seeing an evolution in media and even TV is getting more connected with APPLE TV and CHROMECAST and now ANDROID is now built into several models. So content creators want to have a way into these platforms and consumers want in on these channels for content. Radio's challenge is to get into this technology change."
JACOBS said, "You don't want to pay for ears you want to pay for action," and DIMEO agreed. "We search on key words like 'focus' and buy those key words show direct results. We are looking at streaming media sources. My wife is a typical listener may only be interested in just music and not commercials. So if we get to where Apple Car Play is intuitive as radio is then the is a challenge and opportunity. Radio needs to be aware that we need to spend money on digital. There must be some way to spend digital money in a way that generate call to action and can see metrics to see that engagement. How many heard my add and then took action."
A comment from the audience noted that GOOGLE gets credit over radio as the marketing drives brand awareness and what to type in to search for, so radio which drives traffic is not getting the credit it deserves.
DIMEO spoke that this shift is happening now. "APPLE Car Player does exactly what it is supposed to do. Seamlessly works with your iPHONE to bring your content to the car. We can bring songs and videos up into the car without long commercial interruptions and this is the ecosystem that they are growing into."
JACOBS advised everyone to go to a car dealer and see APPLE Car Play in action to know about this all first hand.
DIMEO reminded all that content must feel tailored to the individual based on the behavior and tastes of each person. "Breaking this all down is the future of marketing. And getting 5% or 10% of those folks reached to take action is the goal."
JACOBS asked "what should radio do to grab your money," and DIMEO replied, "have an app that helps you follow up with the listener to tag commercials just like music and generate sales."
Generating Digital Advertising From Car Dealers
Following the theme of digital spend for radio was LIQUIDUS Pres./Co-Founder CHRIS CARLTON, discussing "Cracking the Car Dealership Digital Code: Generating Digital Advertising From Car Dealers"
CARLTON spoke about his company's services that provide methods to help car dealers and radio stations identify digital co-op, then work with their radio clients to unlock these valuable and growing dollars. "We have developed ways to bring in inventory-based data and create demand through our own ad technology called banner link. The inventory is updated in real time and the advertising is very measurable. This allows dealers to extend their campaigns running on TV to radio and their sites and apps. We also have a mobile ad unit. And we use HTML 5 ad tags to track it all."
"We also provide programmatic buying that helps fill in the gaps for sites that can't provide the full order for all impressions required for a campaign," CARLTON continued. "We use geotargeting and search retargeting to target folks who have searched in specific search terms or behavioral targets with geofencing and instream content. Radio needs to figure a way to get their share of the $1.75 billion pool of car dealer advertising."
The View From The Top
"The View From The Top" featured iHEARTMEDIA CFO/COO RICH BRESSLER filling in for Chairman/CEO BOB PITTMAN, along with ERIC RHOADS and FRED JACOBS for a followup following his presentation.
"We are in the midst of the greatest upheaval ever in media," said BRESSLER. "Radio is the reach medium at 93%. One in four millenials do not watch TV. Radio is best suited to take advantage of consumer trends. Radio is both local and digital. Radio is the most mobile of all mobile. Radio is the original social media platform. We used to have a dialogue with radio listeners and now we have an omnidialogue back and forth across many platforms. AMERICA evolves from the connected home to the connected individual. And AMERICA spends 70% of their time outside of the home. That lines up perfectly with radio."
He also spoke about music. "Radio is different from music collections. Radio is when you want to join the world and connect and find out what's going and radio is filled with suggestions of where to go and what to do, which music services cannot do. Radio research shows that 82% of radio listeners tune in because of personalities. Radio dominates with 84% usage in the car followed by CDs. Only 2% of consumers don't want AM/FM in their new cars. And 91% of costumes like AM/FM just as it is. They love apps -- but not instead of radio. So radio remains the best way for car brands to reach consumers."
FRED JACOBS then began a dialogue with BRESSLER who recapped the earnings call for today which was up 2% in revenues. "And with so many political dollars going to radio it's a good time ahead for us. It's about giving consumers choice and when we look at the center stack in the car it's about when they get into the car they want to be able to turn on the radio."
JACOBS said, "Spoken word and podcasts are big topics. Is this where the arrows are pointed?"
"Radio should be so proud of the localism and the personalities that are the fabric of those markets," answered BRESSLER. "Podcasts are growing and at an all time high and people are walking with earbuds and consuming all of this content. The trick to it be able to amplify these small audiences."
JACOBS noted, "Disruption is I the air. What's important to address?"
BRESSLER replied, "stay focused and continue to invest in content. Stay relevant and stay aware that this is our time based on the facts we have at our fingertips."
JACOBS then presented BRESSLER with a "DETROIT vs Everybody" t-shirt to take back to PITTMAN.
The Latest & Greatest In The Car
No two in-car entertainment systems are the same, but all connected cars provide a wide array of options. The panel of automotive leaders shared where these systems are headed in the future, what will be the key features, and where the radio fits into them. Moderated by VISTEON Leader of Emerging Technologies CHRIS ANDREWS, the panel included CISCO Dir./Smart Connected Vehicles ANDREAS MAI, TOYOTA TECHNICAL CENTER VP/Electronics Systems Div. WAYNE POWELL and NEXTRADIO & BROADCASTERS TRAFFIC CONSORTIUM Pres. PAUL BRENNER.
MAI presented the views of five drivers and control points of future mobility. He spoke of the autonomous car and how in the future their may be car sharing/ownership taking 40 million cars off the road based on value creation and market access. "We all want more cars interconnected to have access to more data. By 2019 the amount of data from cars will equal that of 6 trillions videos. So infrastructure is important so that all of this data doesn't cripple our networks. We spend three years off our lives driving and 6 months of that time in traffic. With future drivers sharing vehicles we can see the need for on-demand content and radio needs to make sure that the experience is personal. Tesla is using a watch to infuse your identity and content preferences into the car along with focused contextual advertising at the point of decision in the car."
BRENNER spoke about NEXTRADIO and the progress of getting the app into cars and on mobile phones. "I began NEXTRADIO in 2009 and its not streaming -- it's real time radio. We use icons and iPAD visuals to show what's going on at the stations which is controlled by the stations themselves. We started with SPRINT and now have AT&T -- and 25+ million consumers have access to the NEXTRADIO app across 47 phones and tablets. Average listening is 58 minutes and skews younger. These listens can all be converted to digital attribution for advertising. So it's a case of built-in versus brought-in. And the options may well vary by each automaker depending on what's built in. We want to make sure that radio has something to offer in the brought-in part of the equation."
POWELL talked about what TOYOTA is doing to address what the consumer wants from radio from the technical side. "We spend a lot of time and money to get the hardware right and the signal strong. It has to be simple to use. Radio devices in the car are not good enough yet as we need to improve usability. And connectivity is imperative so that it happens seamlessly and simply. We need to focus on road coverage which is not 100% yet. Consumers don't want to share where they go and what they do and how fast that they drive and we are very conservative in how invasive were in this. And driver distraction is a big issue for us too. Future cars are eventually all going to be connected and radio will play a big role in this area. As traffic control systems come into play In autonomous cars exposure to broadcast media is still there as well as the ability to make consumer choices during the drive."
The State Of American In-Car Audio
CUMULUS MEDIA/WESTWOOD ONE CMO PIERRE BOUVARD mined the just-released Q3 2015 “Share of Ear” study from EDISON RESEARCH to understand American in-car audio preferences. He revealed what are the in-car listening trends for audio content. The reach and time spent for all major types of in car audio consumed, and in-car demographic trends.
Bouvard said, "we are looking at how many and how long are people listening to radio. EDISON does this 'Share Of Ear' survey and it's the standard for keeping track of this data. 29% of all audio listening occurs in the car. Americans consume 4 hours and 16 minutes of listening on an average day. In-car it's 72% of listening to AM/FM followed by 14% SIRIUSXM and then 11% personal music. Two thirds of AM/FM is out of home and most streaming occurs at home. And it's mostly used in a background manner. Geolocation will connect media exposure with store visitation. Podcasts while only 1% of listening is growing fast."
"In The Car/On Demand" looked at on-demand content which is flourishing, and providing consumers with new ways of controlling and accessing new forms of audio. Panelists included AUDIBLE SVP/Original Content Development ERIC NUZUM, MIDROLL MEDIA VP/Business Development ERIK DIEHN and WNYC VP/Sponsorship Radio SARAH VAN MOSEL.
Moderator STEVE GOLDSTEIN, President of AMPLIFI MEDIA, guided a panel about the state of podcasting, and how it is changing the driving experience. "People who listen to podcasts juice their listening time each week significantly and listen to about six programs a week," he said.
DIEHN spoke about the content side and the sales side which was fueled by the acquisition by SCRIPPS, citing the 3% of share of podcasting as growth and huge opportunity for continued growth.
VAN MOSEL talked about WNYC studios as a content creation powerhouse to bring compelling podcast content. "Users of podcasts have more than doubled the amount of downloads," she said.
NUZUM reflected on his years at NPR and now at Audible focusing on short form programming owned by Amazos, noting, "We want to know what people love and make their hearts beat faster with content."
GOLDSTEIN asked the panel about time-shifted versus digital-first and the panel noted that the digital-first side was growing as was the time-shifted segment, which contributed to the overall growth in the sector. He then cited the 300,000 podcasts and wondered how they get discovered. "It's a challenge to not have to wade through so much to find what you want," NUZUM said. "What caused podcasting to explode was being able to have them on you iPHONE. And now with the GOOGLE announcement this is a good thing for the medium.
VAN MOSEL noted, "If it becomes as easy to place advertising programmatically on podcast, we look forward to what it will do for us."
From the audience, FRED JACOBS asked how a small broadcaster gets into podcasting. DIEHN replied, "Financial barrier to entry is low. So that's not an excuse," with NUZUM adding, "Create great content and then join a network and you will find and audience."
Aupeo: “Connecting Consumers, Content, And Cars”
AUPEO is a division of PANASONIC, one of the leading companies developing connected-car systems for auto companies. CEO DAVID TAYLOR showcased how local content creators and radio stations can work in partnership with carmakers to create new products and revenue sources by leveraging AUPEO’s OneConnect(SM) platform to monetize existing content in station’s own consumer applications and AUPEO’s in-vehicle integrations.
"AUPEO's OneConnect is a one stop solution for delivering user content and messaging from the manufacturer as it wants it to be presented," TAYLOR said. "This system allows carmakers to communicate directly with the owners versus a warning light.
"We are working with 20 manufactures already and it doesn't matter. Whether it comes through APPLE or GOOGLE. We can work with it all. We can bring you the news, weather, traffic and onboard music in a sponsor able environment. We are working to bring personalities to this platform to keep it local. And we can integrate streaming along with personalized content and this environment allows car companies to work directly with their customers. We partner with folks like CBS RADIO for news and with the WEATHER CHANNEL. We also have a 'me station' that custom tailors content to the length of the trip.
"We take RSS and FTP feeds from our content partners ands serve it to the car through the phone or directly," he continued. "And we offer reports by geography and length of time listened with rev shares back to the content providers in 60 countries. We are connecting car makers and content."
"Connected Cars 101: Training Consumers to Use Their Connected Cars"
Trainers and salespeople from car dealers shared stories about what consumers want in their in-car entertainment systems, the training process, and what radio stations need to know to become a part of this conversation.
RAB Pres./CEO ERICA FARBER moderated a panel that included corporate trainer MICHAEL BYRD, Automotive Team's RANDY WISE, EXTREME DODGE Owner WES LUTZ, EXTREME DODGE Marketing Dir. BRIAN ROBINSON and MATICK CHEVROLET Owner KARL ZIMMERMANN.
"This panel is focused on updating the consumer experience so that there is only one person to deal with from start to finish to streamline the buying process with training their sales people and training the consumer," FARBER said.
"Gen Y consumers do not have the same attention span and retention of knowledge so we've had to break things up into shorter chunks into about 12 minute chunks," BYRD said.
Adding to the problem is that sales departments have 40% turnover yearly, which leads to training concerns. WISE noted the difficulties in trying to train people on how to use all of this equipment at the point and time of sale; this tends to be an exciting and emotional time for them. "We are experimenting with additional or follow-up training when they come in for an oil change."
FARBER replayed a KSWD video that showed a short training on how to tune in the station. The panel really enjoyed it as it showed a very personalized experience that would appeal to users of that station.
When FARBER asked how can radio do a better job, BYRD said, "We are becoming desensitized to traditional advertising and wrapping the message around video will be a plus."
Most of the panel admitted to no longer advertising on radio or in print and spent most of their dollars on TV and digital.
"10 Things I’ve Learned About Cars And Radio"
MIKE HILLSTROM has a unique perspective on both the car dealer business and radio. He began his career selling for CBS RADIO in CHICAGO, before leaving the business to run the CHICAGOLAND CHEVROLET DEALERS. Today, as President of the SELECT MARKETING GROUP, he is responsible for purchasing advertising for the dealers and is the creator of their innovative “Influencers” program that hires athletes and radio personalities on behalf of the dealers.
HILLSTROM shared what he has learned from decades of working on both sides of the street. Joining him was RAY SCARPELLI, a local CHICAGO auto dealer who shared how his advertising needs are changing.
MIKE told the audience, "We don't buy radio; we buy the top influencers, who just happen to be radio. We have great dealers and great marketing partners. It starts and ends with the media people. It's all about great ideas and being open to change."
The Top 10 most important things in convincing car dealers to advertise on radio:
1. Work for the clients comes first
2. Ban packages
3. Clients and agencies are the real decision makers.
4. Learn digital.
5. Creative matters... Now more than ever, it's the secret sauce.
6. It's still all about frequency for radio, digital, etc., with consistent message
7. Media mix is best... Don't go it alone
8. Include a digital solution in every pitch
9. The art of listening ... Learn from smart clients
10. Commit to your profession... Dare to be great
MIKE brought on RAY, who talked about what makes his dealership a success: "Radio works for us every time and radio has been part of our marketing the entire time."
"Our leading form of website traffic comes from radio. Radio allowed us to tell the story of what makes us different from the other 59 CHEVY dealers in the CHICAGO area.
"Traffic to our site helps us set appointments and those appointments lead to sales. My best piece of advice is that radio is a unique medium in driving traffic to your site, which in turn, provides leads and then, transactions."
Cutting Through The Dashboard Clutter
As in-car entertainment systems become more complex with more offerings, how do great brands cut through the clutter? Leaders from some of AMERICA’s leading content providers talked about how they’ve done it, the barriers they’ve faced, and what the results have been.
NIELSEN AUDIO VP Measurement Innovation DR. ED COHEN's panel included SLACKER RADIO Director Of Business Development MICHAEL KASPARIAN, RIVET RADIO CEO JOHN MacLEOD and NPR Sr. Director Digital Products JOEL SUCHERMAN.
COHEN commented: "Most folks think that they own connected cars, but they don't, and many who are shopping for a new car want one. And there is always the question of 'built-in' vs. 'brought-in,' which means paying for connectivity or trading for personal information. But most are not willing to give up that data."
RIVET RADIO's MacLEOD responded: "We need to make sure we have a good plan to interface with consumers."
NPR's SUCHERMAN added: "There has been a 40-year romance with NPR and the car and the goal is to continue to develop great content. We knew we had to work with the car companies to make sure that we have a place in these systems."
Noted SLACKER RADIO’s KASPARIAN: "Bulit-in vs brought-in is a classic debate, with pros and cons for each approach. Every carmaker has their own strategy."
MacLEOD was very positive about the upcoming APPLE and GOOGLE systems. "Car makers need to maintain control over navigation and music even with these two very different systems."
COHEN asked, "What can we do or has to happen for consumers to gather their content more easily?"
KASPARIAN stated "The ease of use in-vehicle with an always-on experience, like FM enjoys today, would drive wider usage of content in cars."
SUCHERMAN explained, "With content in the cloud, it will be less of a problem to let the car makers deal with the hardware."
MacLEOD added: "When these center stack systems are as simple as radio, you will see a tidal shift, with content producers making programming that is both trackable and targetable."
DR. COHEN then addressed the rest of the panel: "How does all of this affect your business model?"
Said SUCHERMAN: "It hasn't changed for us since we are in business to work with our local stations to raise operating capitol, but that may well change in the future."
KASPARIAN agreed: "Our business model doesn't change for automotive. We just want to make sure we are available. We believe in our own growth and that marketshares will change."
Added MacLEOD: "We are at start-up with 100% in the cloud and 100% mobile. We provide news on hold vs. music on hold, saving lots of royalty money. We are scrappy and hope to avoid some of the problems of those with more heritage in the space."
- 7:30-8:30a: Breakfast
- 8:30-8:45a: Welcome, Day One Review, Day Two Preview
- 8:45-9:30a: Bob Pittman, Chairman/CEO, iHEARTMEDIA
- 9:30-9:55a: How FORD Is Shifting Dealer Co-op Dollars To Digital
- 9:55-10:30a: Cracking the Car Dealership Digital Code: Generating Digital Advertising From Car Dealers
- 10:45-11:20a: The Latest & Greatest in the Car
- 11:20-11:35a: The State of American In-Car Audio
- 11:35-12:15p: In the Car/On Demand
- 12:15-1:30p: Lunch
- 1:30-1:40p: Aupeo: “Connecting Consumers, Content, And Cars”
- 1:40-2:10p: “I wanted it, but now I’m not so sure” – Consumer Value In Automotive Technology
- 2:10-2:45p: Connected Cars 101: Training Consumers to Use Their Connected Cars
- 2:45-3:15p: 10 Things I’ve Learned About Cars And Radio
- 3:30-4:10p: Cutting Through The Dashboard Clutter
- 4:10-4:20p: Closing and Final Remarks