There’s a strong consensus – backed by research – that the auto is the last listening location where radio dominates. With mounting competition from other platforms, new data now shows the beginnings of erosion, fueled by automakers themselves.
I recently had the privilege of participating in a webinar hosted by Quu, a company that’s bringing new life to the in-car radio experience by adding sight to sound. Through their technology, stations can display visual programming, information, and sales messages directly on vehicle dashboards — a new frontier for radio engagement.
The session was led by Quu CEO Steve Newberry and produced by Suzy Schultz, CEO and Founder of Creative Prism. It also featured insights from Jacobs Media’s Fred and Paul Jacobs, Xperi’s Joe D’Angelo, and research from Doug Hyde.
The study presented six key findings:
- Most new models default to the last audio source played.
- AM/FM radio is ubiquitous but harder to find and use in some vehicles.
- The digital dashboard is packed with more audio choices.
- Detroit is doubling down on built-in streaming apps.
- Two out of three new models are HD-equipped.
- All new vehicles can display text. More than half can show images.
Newberry shared stats that should be eye-opening to those who are interested in playing the long game and existing beyond quarterly reports. Obviously, content has to be attractive, or the delivery and reception paths mean little if there’s no demand. The environment and listening location are critical in a world where competition comes from so many different sources.
Information shared shows that the digital dashboard is reshaping how drivers and passengers experience audio. Today, 74% of models surveyed are audio-forward. These vehicles generally default to the last source played. If listeners select AM/FM radio, the system returns to it until they choose something else. In an audio-forward vehicle, AM/FM radio must earn its place on the screen. Stations should aim to be the last touch.
Dedicated radio buttons are going away. Only 26% of the models surveyed are radio-forward, down 36% YOY. Same as last year, 100% of the models have FM radio, and 98% have AM. But modern infotainment systems bury AM/FM radio in menus, making it harder to find and select quickly. Radio in vehicles used to be effortless. Now, listeners have to work to find it. You know this if you’ve rented a car recently. It’s hard to find the radio.
Streaming in vehicles is gaining ground. Overall, adoption of built-in streaming apps like Spotify, Amazon Music, or TuneIn nearly doubled since last year in the models surveyed. Domestic manufacturers are driving this growth, which signals that US automakers are prioritizing streaming over traditional radio. AM/FM radio is competing to stand out.
We should be promoting news, emergency alerts, audience connection, and real-time updates to highlight what sets radio apart from streaming. Personalities matter.
Most vehicles have HD Radio, which enhances the listening experience as it displays images. The audio quality is better. Artwork enriches the entertainment and information experience. The assets included in HD Radio can generate additional revenue. Those radio stations that I consult who use Quu are benefiting from increased ad rates to include visuals with commercial messages. The same goes for increasing interest in promotions, delivering survival information, and reinforcing the connection to a community.
Dashboards are more visual. All new models surveyed display text, and over half can show images. A station’s in-dash appearance is an essential brand extension. Logos, station content, and ads on screen enhance the listener experience and make radio more memorable. Radio has a real opportunity to deliver a modern, engaging visual experience to compete with digital and mobile devices. Advertisers who point to the benefit of digital are prime prospects for upgraded in-auto messaging.
Most interesting to me was the first point made during this presentation. Most new models default to the last audio source played. Whatever was listened to last is what’s heard and seen first when the vehicle is restarted … whenever that takes place. That’s not dissimilar to the “old days” when cars had buttons that were pushed to hear stations. You turn the car on, and the last station you listened to is the one that you hear first. Radio stations that carried baseball at night often saw bigger ratings in the morning.
We got away from that. Mainly because of a focus on Monday-Friday 6:00am-7:00pm to satisfy advertisers and agencies’ need for “prime time.” It’s a mistake, especially given the need to earn the last listen, to ignore nights, weekends, and afternoon drive. Nielsen research shows similar results that these dayparts previously thought to be fringe are important. Earning the last listen gives your station an advantage over not only your radio competitors but all audio sources that are available to the audience.
One can drive across America and hear no-personality sweeps of music interrupted by imaging, jingles, and far too many commercials. That’s a poor way to compete with DSPs. Especially when there are many network and syndicated options that are format-appropriate. Also available are voice tracking and AI options. Radio has done many disservices to itself in recent years. It’s not all radio’s fault. Evolution is natural. Technology has increased the level of competition for radio. It’s also provided opportunities.
AM/FM radio must unify and act now to stand out in a crowded, competitive dashboard. Stations must use visuals and listener engagement to stay on the center stack screen. We need to leverage radio’s strengths with strong local programming and visuals that resonate. We should optimize streaming and voice search so drivers can easily find our stations. Audio-forward vehicles bury radio in menus unless it’s the last listen. Earning the last listen should be an objective of programmers and content creators.
Remember: radio is a choice… not a default.
