Of all industries thrown into flux by the pandemic, the US automotive industry had some of the most sizable seismic shocks. Amid these changes, the power of radio advertising has become more pronounced, providing a big impact for automotive aftermarket brands.
As shared by Katz Radio Group, recent data from the US Bureau of Economic Analysis reveals that despite ongoing challenges in reaching pre-pandemic vehicle sales levels, the automotive aftermarket has seen robust growth. Consumer spending in this category, which includes vehicle parts, accessories, and maintenance services, exceeded $357 billion in 2023. This surge is attributed to the increasing average age of vehicles, which stood at 12.5 years in 2023, up from 11.6 years in 2017, indicating that consumers are maintaining and keeping their vehicles longer than before.
Advertising trends within the automotive aftermarket sector are evolving to meet these changes. In 2023, the sector spent over $746 million on advertising, with radio and outdoor ads each capturing 9% of this expenditure.
However, radio’s reach and effectiveness suggest there is significant untapped potential for advertisers. According to Nielsen, AM/FM radio reaches 91% of US adults each month -more than any other form of media. This broad reach is critical in a time when daily commutes are extending; the mean distance to an employer’s location rose dramatically from 10 miles in 2019 to 27 miles by 2023.
The relevance of radio in the automotive advertising space is further evidenced by its dominance in in-car media consumption. Radio remains the primary form of in-car entertainment, with 70% of Americans tuning into AM/FM radio while driving. This prevalence increases to 86% when considering ad-supported audio options, emphasizing radio’s capacity to engage consumers effectively during their commutes.
This complements data from a January MARU/Matchbox study that found the most effective radio formats for reaching heavy auto parts purchasers are Rock, Classic Rock, and Top 40. Comedy and news genres also have a high appeal among frequent podcast listeners needing auto parts.
The recent Automotive Aftermarket Study conducted by Katz Radio Group for Q3 2024 underscores radio’s influence on consumer behavior. The study, which surveyed 800 adults, demonstrated significant increases in purchase intent as a direct result of radio advertising campaigns. Brand A, an engine product, saw an 8% increase in purchase intent, while Brand B, a car parts retailer, experienced a 32% increase. These outcomes highlight radio’s ability to enhance brand awareness and drive consumer action effectively.
As commuting patterns continue to evolve and consumers spend more time in their vehicles, radio stands out as a key medium for connecting with potential buyers, making it an essential tool for marketers in the automotive aftermarket sector.
