Kia Motors America wants to cut its hefty dependence on third-party shopping sites for online sales leads and we applaud this strategy 100%. Kia’s goal is to bring more quality leads to their dealers by directing prospects to kia.com and not buy and sell “leads” to their dealers from third party sites such as autotrader.com, cars.com, and autobytel.com, to name just a few.
The problem, which is industry wide, is that these third party sites do not offer the quality leads that dealers need to convert to a sale. The current internet definition of an auto internet lead is anyone breathing who has filled in their contact information. The second issue is one of price expectations. These third party sites boast about lower dealer prices if one registers with them.
So, what is the Kia dealer getting when it buys third party leads from these and other auto aggregating sites?
Unqualified leads and prospects who have an expectation of a lower price since, after all, this is the internet and these sites promote lower dealer prices. Not only are the leads that Kia dealers are buying unqualified, the prospect is expecting low, low prices and begins the discussion with “What deal are you offering me?” Continue reading
It seems that digital advertising has consumed the thought process and the budgets of so many advertisers and their agencies these days. Spending on digital advertising, which includes social media, search engines, websites, and mobile devices, is expected to rise 17% to $50 billion in the U.S. in 2014. That’s 28% of all U.S. Ad spending this year. In fact, one major client we know is being forced by its manufacturer to spend 25% of their annual budget in digital advertising. The stampede to participate in digital advertising and throw serious money at anything labeled “digital” has somehow ignored a critical basic question; who is this audience they are trying to reach and does it really exist?
The rush to be attached someway or somehow to the Internet because the “experts” have told our clients to has somehow suspended our collective responsibility to understanding the truth about web traffic and the disturbing and downright dishonest use of who and what is on the web and why.
And why should Radio Care about this? Well for openers, your client’s total budget, which includes Radio, has been on average, reduced in 2014 by at least 25%.
Do I have your attention now? Continue reading
What do traditional cameras, cashiers, parking lot attendants, travel agencies, telephone receptionists, pharmacists, Tax Prep Services, Paper Maps, Bank Tellers, Taxi Drivers, The U.S. Postal System, Lawyers/Paralegals, Wristwatches, Pharmacists, and Television all have in common?
They are, or are about to become, innocent victims of technology bullies. Each of the above professions and/or industries were doing fine a decade ago until the Technology Bullies wanted in on these solid business models and descended on these jobs and companies like a swarm of electrified locust.
The results are devastating and irreversible if the technology bullies darken your door. Here are just a few examples that are noteworthy: Continue reading
The flame of Radio is more brilliant than ever as it attracts the best and the brightest minds into its connected orbit. We see the irresistible pull every day in so many ways as the allure and unharnessed potential of Radio in all its forms continues to draw in very talented and motivated people.
We only need look in our own backyard to understand the vibrancy and kinetic energy surrounding our member radio stations and their staffs right here in Southern California. Our region is arguably the nation’s epicenter of great Radio and audio content being created everyday by our 175 member stations, as well as cutting edge mobile apps, complete digital solutions, nationally known talent, sold-out station events, award-winning creative commercials, real and sustained community and charity involvement, brilliant NTR events, and 15.5 million listeners a week covering 52,000 square miles. And of course, the nation’s biggest traffic jams with huge in car listening!
In Southern California, the flame of Radio burns brilliantly.
Southern California Radio’s “flame” has more weekly reach than Google, Facebook, Twitter, the Internet, and any other media sources have in a month.
Southern California’s “population” of registered vehicles, 16.8 million and counting, exceeds the entire populations of Chicago, Phoenix, Philadelphia, Houston, and New York City combined. Continue reading
I would shape my thoughts and actions as someone running multiple dealerships in ways that would be consistent with my product lines, my staff, my locations, and develop a true understanding of today’s car customers and how best to get them to visit my showrooms over my competition.
I would be focused on the enormous investment I have made in my car and truck inventory and understand that we must “move” these products as quickly as possible as I am carrying a hefty note every month in the form of a line of credit from my bank or banks. After all, once all the cars and trucks are sold to me by the manufacturer, I own them. There are no returns in my business.
I would also understand that while I think and plan for the long run, my investment and the time I need to become profitable is short. My business is right now as every day a car remains on my lot is a finance cost I absorb. So you see, time is never on my side and decisions I make directly impact my future and that of my teams at each dealership. Nowadays, I only talk to business people who appreciate that aspect of my profession. I have little use for anyone who does not. Sorry, nothing personal, but this is my business.
I would only deal with people who understood that basic fact of the auto business as they are the ones who will work towards the “right now” of my business. And yes, I can be short, right to the point, and sometimes less than gentle. That’s not who I am, but rather who I have to be to succeed, and indeed, survive in this highly competitive and fast-changing business. Continue reading
As of now, the “great threat to Radio” is at the beginning of a very slow and painful decline to its ultimate place as another niche audio internet playlist, much like Sirius/XM has become. Of course we are talking about Pandora, whose stock just suffered another bone crushing loss of value (-10%) as investors now know its business model is genetically flawed. We are talking about Pandora, whose ominous audience erosion has been continuous for the past 5 months; both in time spent listening and log in occasions. “Active users” fell again from 76.2 million to 73.4 million as their “earnings guidance” to investors plunged for the second time in three months. Stock Scouter, a service of MSN, gives the stock a rating of only 3 out of 10.
A humbling 3 out of 10 rating for the “next great threat to Radio.” All that hype, all that attention, and all it comes down to is an embarrassing rating for its stock and its business model.
Pandora’s ultimate descent will not be pretty for investors or the “media experts,” but descending it surely is.
An inconvenient truth for yet another start-up trying to be Radio… Continue reading
You need not have an advanced degree in investing or have Wall Street insider information to see a trend that is so obvious, if we would only spend 10 minutes to really look at it.
2013 was a great year for Radio stocks with most publicly traded Radio companies doubling and/or tripling their 12 month performance. These stunning Radio stock increases can only be attributed to 3 key factors; a greatly improving ad revenue environment, a higher dividend to shareholders, and the realization from trading houses and investors that the ad supported, local Radio model works very well after all.
Why did it take these “experts” so many years to come to the same conclusion all of us in Radio knew all the time? Perhaps we need to understand that it takes most businesses a very long time to become established, profitable, and worthy of the public’s trust, like Radio has.
If the past is prologue, as suggested by William Shakespeare, then perhaps we need to be more cautious on what the financial/media experts are calling the “next big thing”. It is very difficult for any new medium to compete against Radio in the long term which makes investing in companies looking to compete with Radio a very risky proposition.
Here are just three glaring examples of why betting against Radio is a very bad investment decision. Continue reading