Currently, there are no new auto dealers in the two counties we serve, so that leaves the major metropolitan areas to the West of us (~35 mi. away). I would like some advice on how to approach the dealers or their agencies, since our market would be an ideal place for them to advertise and much more cost effective than the rates they usually pay. We are a locally-owned radio station, in a small market, so don't have access to the Arbitron ratings book, or other "tools". Thoughts?
There are people in your listening audience making buying decisions about cars every day. The dealers probably think they have your market covered with what they're doing in the metro, but they are not reaching your listeners.
Is that western metro the only option for car buyers in your market? Where else do people shop for cars? Other dealerships maybe a little farther away, used car dealerships, etc. Establish a fear of loss that only you can help solve. Show them the ROI.
That has been an age old adage that I don't really believe to be true. Otherwise how could they use TV which overlaps a lot of markets. I have had some success in sometimes getting a couple of similar dealers to go in together to run a campaign that they encourage people in their towns to come to their dealership. I have also had some more aggressive
dealers advertise with me because they are in the business of selling cars. Find something unique for them, a good demo, or an idea that will allow them invest in your listeners.
Thank you all for your replies. I was hoping for some tips on how to access the decision makers (other than playing in golf tournaments!) and if there is a regional listing of ad agencies that work with auto dealers (i.e. finding out what agency to approach for certain dealers). If anyone has that information that would really be helpful.
I am currently dealing with a some what similar situation. I am near a large metro and trying to get some bigger auto dealer advertising. We do have a Ford/Chrysler dealership and a Chevy dealership in town so I went after a Toyota dealership. The closest was either in the metro to the north or a small town dealer south. I went for the small town dealer. Had a great meeting and he was willing to share all his information including his agency and who to contact. It seems you want to skip the dealership and go right to the top. From my experience get in tight with the local person you can sit across from.
I would agree with Brent about getting in front of the specific dealer first who will then provide the agency info.
Some of what we have run into is that the dealers in near larger/metro markets discount the smaller market. They're thinking is that your market is included via buying metro market tv-radio-newspaper that bleeds into your market. The one thing they may be already buying is inserts or the full-page laundry-list ads in your local paper or shopper. We have taken 3-4 weeks of these local newspaper ads in-hand with an approximated cost and responded 'Really? Because you're already targeting my market with these - and radio is much more effective in my market than newspaper (we provide the local subscription #s on newspaper). For this same money you could do this on my radio station - more targeted and larger audience.' We find the discussion switches to what they do in our market instead of discounting our market as already-covered.
Also available to you at cost is a report very similar to what the dealers are looking at, namely, Cross-Sell or something similar. This market report includes vehicle purchasing numbers called In and Out - In refers to numbers of vehicles sold in a market that came in from another or outlying market, Out refers to vehicle sales to people in-market who went to dealers outside the market such as a dealer in your smaller satellite market. The dealers you are talking to know exactly how many new and used are sold into your zip code, how many each of their competitors sold, et al.
These same kind of internal industry numbers play into what determines whether an Olive Garden, Meijer or Home Depot opens in your market as well.
Good replies, all. One thing I might add to the advice Jack, Brent, and Diane have given you is to invest in a subscription to Automotive News, published by Crain Communications (publisher of Advertising Age). It's around $155 a year, not cheap, but this weekly trade magazine will immerse you in the world of the car dealer: the industry and competitive challenges they're facing, various kinds of promotions, advertising and marketing that's working for them, the latest factory-to-customer and factory-to-dealer incentives that are being offered by the manufacturers, etc. (Armed with just the information on current incentives gives you an advantage in preparing spec spots or timely campaigns for auto dealers.)
I noticed that Automotive News was offering a Facebook special recently - $109 a year. (Just went there to find it. Here's the link. (If for some reason this doesn't work for you, just search for them on Facebook and "like" their page. The offer then will probably start showing up on your feed.)
Good luck, Lisa. Keep at it!
