The Southeast Michigan Ford Dealers Association piloted a campaign on the smart speaker, a new AM/FM radio platform. When consumers asked their smart speakers to play one of the Cumulus Detroit radio stations, a 15-second pre-roll ad ran before the online audio stream of the AM/FM radio station launched.

Why was the smart speaker campaign such a good fit?

Smart speaker ownership soars and brings AM/FM radio back into the home

Per Edison’s “Share of Ear” study, smart speakers have surged 5X in ownership, increasing from 7% in 2017 to 35% as of Q3 2020. One out of three Americans have a smart speaker. Ownership is greater among persons 18-34 (39%) and persons 35-54 (37%).

The amount of AM/FM radio listening occurring via the online stream is growing, now 13% of total AM/FM radio listening among persons 25-54

In 2015, AM/FM radio streaming only represented 5% of total AM/FM radio listening. According to Edison’s Q4 2020 “Share of Ear” study, the online stream now accounts for 11% of total AM/FM radio listening among persons 18+. Among persons 25-54, the online stream generates 13% of all AM/FM radio listening and 14% of listening among persons 18-34.

Smart speakers represent 24% of all online listening to all Cumulus stations nationwide

With 91% of all time spent with smart speakers occurring at home, smart speakers are bringing AM/FM radio back into the home. According to Triton Digital, as of December 2020, 22% of all online audio listening to American AM/FM radio stations occurs via smart speaker.

Over the past four years, the smart speaker has grown to represent nearly a quarter (24%) of all online listening to all Cumulus stations nationwide.

Smart speaker ownership profile: Upscale, employed, and educated

According to Nielsen Scarborough, the U.S. profile of the smart speaker owner skews employed, professional, and over-indexes on college education and having a $100K+ household income.

AM/FM radio is number one in ad-supported smart speaker listening share

AM/FM radio stations have used their massive reach to educate listeners on how to use their smart speakers to listen to their favorite stations. These promotional efforts have paid off as AM/FM radio is number one in ad-supported audio share on American smart speakers, according to Edison’s “Share of Ear.”

Smart speaker audience: Ideal to reach in-market auto buyers

Per Nielsen Scarborough, U.S. smart speaker owners are an unbelievable media platform to reach American new car buyers. Smart speaker owners are 26% more likely to be in the market for a new vehicle in the next 12 months.

Homes with a smart speaker are 56% more likely to be in market for a luxury vehicle, 52% more likely to be in the market for a hybrid/electric vehicle, and 35% more likely to be in the market for a pickup truck or SUV.

Consumers exposed to the Cumulus smart speaker pre-roll ads were more likely to be aware of the Southeast Michigan Ford Dealers Association

To measure the impact of the Southeast Michigan Ford Dealers Association smart speaker campaign, CUMULUS MEDIA | Westwood One retained MARU/Matchbox to conduct a campaign effect study. 385 Cumulus Detroit listeners were surveyed in November 2020.

Some listened to the AM/FM radio stations via smart speaker and had the opportunity to be exposed to the campaign. The remaining segment listened to the stations but did not have a smart speaker and were not exposed to the campaign. The difference in brand equity between the exposed and unexposed groups represents the lift from the smart speaker campaign.

Consumers were asked for their familiarity with the Southeast Michigan Ford Dealers Association. Smart speaker listeners to Cumulus stations were +24% more likely to say they were “extremely familiar or very familiar” with the Southeast Michigan Ford Dealers Association, 42% exposed versus 34% unexposed.

Likelihood of visiting a Ford dealer in the next 3 months was +63% greater among those exposed to the smart speaker pre-roll ads

31% of those exposed to the Cumulus smart speaker pre-roll ads for the Southeast Michigan Ford Dealers Association said they were very likely to visit a Ford dealer in the next 3 months. 19% of those not exposed said they would visit a Ford dealer. The smart speaker campaign generated a +63% greater likelihood to visit a Ford dealer.

AM/FM radio works for auto: Former Ford VP Mark LaNeve is an AM/FM radio fan

Mark LaNeve, former Ford Vice President, U.S. marketing, sales, and service, was lauded by MediaPost as “a consummate marketer” and “the dealer guy par excellence.” According to MediaPost, LaNeve “recharged Cadillac, helped change the conversation about insurance at Allstate with a humorous spin on mayhem, and …ran Global Team Detroit for Ford.” LaNeve told the 2015 Jacobs Media DASH Conference why he likes AM/FM radio:

• “Radio is a great storytelling medium.” LaNeve was responsible for increasing AM/FM radio spend when he led marketing at Allstate and noted that AM/FM radio plays an important role in driving traffic. LaNeve said AM/FM radio’s storytelling capability can highlight key areas of product difference, such as safety and technology, and promote urgency to launch sales events.
• “You get scale immediately. It’s one of the few places you can get scale.” AM/FM radio provides “scale and high ROI at a reasonable cost.” LaNeve said AM/FM radio is an outstanding way to get the word out about a one-month sale.
• “You reach buyers when they are in their car.” AM/FM radio allows customization for geography, demographics, and lifestyle preferences.

Key takeaways:

• Smart speaker ownership soars and brings AM/FM radio back into the home
• The amount of AM/FM radio listening occurring via the online stream is growing, now 13% of total AM/FM radio listening among persons 25-54
• Smart speakers represent 24% of all online listening to all Cumulus stations nationwide
  
• Smart speaker ownership profile: Upscale, employed, and educated
• AM/FM radio is number one in ad-supported smart speaker listening share
• Smart speaker audience: Ideal to reach in-market auto buyers
• Consumers exposed to the Cumulus smart speaker pre-roll ads were more likely to be aware of the Southeast Michigan Ford Dealers Association
• Likelihood of visiting a Ford dealer in the next 3 months was +63% greater among those exposed to the smart speaker pre-roll ads
• AM/FM radio works for auto: Former Ford VP Mark LaNeve is an AM/FM radio fan

Pierre Bouvard is Chief Insights Officer at CUMULUS MEDIA | Westwood One.

Contact the Insights team at CorpMarketing@westwoodone.com.