Advertiser Perceptions: Advertisers Would Pay 16% Extra For In-Car Visual Displays That Sync To AM/FM Radio Ads

June 17, 2024 By Pierre Bouvard

Click here to view a 14-minute video of the key takeaways.

Click here to view or download the slides.

According to a May 2024 study of 305 national media agencies and advertisers conducted by Advertiser Perceptions, 80% of agencies and advertisers say they are interested in the ability to display visuals on in-car radio displays that sync to AM/FM radio ads.

Among media agencies and marketers, in-car advertiser visuals are growing in awareness

Agencies and advertisers love the idea of visual ad messaging on the in-car display synced to AM/FM radio ads. Awareness of this capability is growing.

When shown an advertiser visual on an in-car radio display (such as the example below from Lowe’s), 33% of media agencies and marketers say they are “very familiar” with the technology, up from 15% in 2021. 33% of agencies and advertisers say they are “somewhat familiar,” up from 24% in 2021.

Compared to 2021, interest in in-dash visuals and geographically targeted visual ads are both up among agencies and advertisers

80% are interested in visual ads, up from 64% in 2021. 83% of agencies and advertisers show interest in geographically targeted visual ads, up from 71% in 2021.

Advertisers are willing to spend 16% more on AM/FM radio buys that include in-car visual displays

The addition of in-dash visuals to AM/FM radio ads is worth an average 16% increase in media spend on top of the AM/FM radio buy according to the Advertiser Perceptions study. This is up from the 12% increase agencies and advertisers were willing to pay in 2021. As awareness and interest in in-car visual displays that sync to radio ads have grown, so has the value advertisers and agencies place on this concept.

Associating a visual with AM/FM radio ads takes advantage of AM/FM radio’s massive share of in-car listening

According to Edison Research’s just-released Q1 2024 “Share of Ear” study, AM/FM radio has a dominant 86% share of in-car ad-supported audio. AM/FM radio’s enormous in-car audience share has hovered in the high 80s for the last six years.

Younger drivers pay the most attention to the in-dash radio display screen

Hard-to-reach younger consumers who skip online video ads, use ad blockers, and rarely watch linear TV confound advertisers. It turns out younger consumers pay the most attention to the visuals on in-car radio displays.

The Cumulus Media | Westwood One Audio Active Group© commissioned MARU/Matchbox to conduct a national study of 1,065 adults 18+ in June 2021. According to the study, 66% of adults 18-34 say they pay attention to the radio screen while they listen in-car. 57% of adults 35-49 say they pay attention to the in-dash visuals on radio displays.

The more you listen, the more you notice the in-car AM/FM radio display; The more you drive, the more you notice the in-car display

Attentiveness to in-dash visual displays increases by the amount of AM/FM radio time spent and miles traveled. 70% of heavy AM/FM radio listeners say they regularly/occasionally pay attention to the in-car AM/FM radio display screen when they listen. 64% of “mega milers,” those who clock 150 or more miles in the car weekly, say they regularly/occasionally pay attention to the in-car AM/FM radio display screen when they listen.

Six out of ten AM/FM radio listeners indicate their in-car radio display shows visuals with song name and artist

Spanish, Sports, Alternative Rock, R&B/Hip Hop, and NPR are the radio programming formats who are more likely to have an AM/FM radio display with the visual display of the album cover or artist visual of the song playing on the in-car radio.

Consumers are prompted to look at the in-dash radio display screen for song title and artist information, the time, and station identity

According to Quu, the firm whose technology enables the creation of advertiser visuals for the in-dash radio, and Xperi, the maker of in-car audio entertainment devices and DTS AutoStage, 80% of the cars on the road can depict song and artist information, the name and frequency of the radio station, and short advertising messages.

66% of consumers look to the in-dash display for song information (title, artist, album art). 46% look for the time. 42% look to confirm the station they are listening to.

According to Quu’s recently released 2024 In-Vehicle Visuals Report, 100% of new vehicles can display text for radio and 60% can display images for radio. Advertisers can take advantage of this attentiveness and capability of in-car visuals to brand their firms and impart key messages.

Heavy AM/FM radio listeners and younger consumers are interested in geographically targeted in-dash visuals

Quu, in partnership with GeoBroadcast Solutions, offers radio stations the ability to target in-dash visuals to different parts of a market. A car dealer in the north side of town could have in-dash visual messages directed just to consumers in that part of the market. Listeners indicate visual messages keyed to their part of town make them feel more connected to their market.

Two-thirds of heavy AM/FM radio listeners say they are interested in geographically targeted in-dash visuals synced to AM/FM radio ads. The younger the listeners, the greater the interest. Over half of adults 18-49 say they are interested in geo-targeted visuals.

Various AM/FM radio programming format listeners and heavy AM/FM radio listeners are interested in having sales/deals displayed on their in-car radio dash

61% of heavy AM/FM radio listeners are very or somewhat interested in having sales and deals displayed on their in-car radios. 88% of Spanish listeners, 74% of Sports listeners, 71% of Alternative and R&B/Hip Hop listeners, and 65% of Adult Contemporary listeners are interested in seeing sales and deals on their in-dash display from local advertisers.

In-car radio dash visual ads lift purchase intent among AM/FM radio programming format listeners

Two-thirds of heavy AM/FM radio listeners say they are likely to take advantage of sales and deals displayed on the radio dashboard. Format listeners exhibiting the greatest degree of interest in the visual sales/deals are Spanish (88%), R&B/Hip Hop (78%), Sports (76%), Alternative (75%), and Adult Contemporary and Top 40 (each at 71%).

Case study: Detroit’s Classic Rock station had a rating increase by using Visual Quus with its Classic Rock Concert Blitz Watch & Win promotion

In-car visuals can boost impact of AM/FM radio promotional campaigns. In Fall 2023, Quu conducted a case study with 94.7 WCSX by using in-dash visuals to engage listeners and promote a contest to win Classic Rock concert tickets in Detroit.

The inclusion of visuals generated a rating increase, boosted listener engagement, and generated excitement for the promotion.

Case study: AM/FM radio ads paired with in-car visuals generate significant brand effect and store visits for major retailer

A major retailer executed a national radio advertising campaign that utilized a visual synced to their radio ads. The Cumulus Media | Westwood One Audio Active Group® commissioned a study with MARU/Matchbox to measure the campaign effect.

The combination of the in-dash visuals and the AM/FM radio ads was powerful. Consumers who regularly viewed their in-car display were more likely to recall the advertiser’s AM/FM radio ads.

Those who recalled the retailer’s in-car visuals were more likely to visit the stores. Recall for the products advertised in the AM/FM radio ad was stronger among heavy AM/FM radio listeners and those who spent a lot of time in vehicles with the visual displays.

Key takeaways:

  • In-car advertiser visuals have high appeal and growing awareness among advertisers
  • 80% of advertisers are interested in in-dash visual ads, up from 2021; 83% are interested in geographically targeted visual ads, also up from 2021
  • Advertisers are willing to spend 16% more on AM/FM radio buys that include in-car visual displays
  • Associating a visual with AM/FM radio ads takes advantage of AM/FM radio’s massive 86% share of in-car listening
  • A majority of AM/FM radio listeners indicate their in-car radio display shows visuals with song name and artist
  • Younger drivers and passengers pay the most attention to the in-dash radio display screen
  • AM/FM radio listeners and younger consumers are interested in geographically targeted in-dash visuals and having sales/deals displayed on their in-car radio dash
  • In-car radio dash visual ads lift purchase intent

Click here to view a 14-minute video of the key takeaways.

Pierre Bouvard is Chief Insights Officer of the Cumulus Media | Westwood One Audio Active Group®.