Terrestrial radio ad spots have long been a foundation of many car dealerships marketing efforts. In the past couple of years digital radio, on platforms such as Pandora and Spotify, has increased in popularity and taken listeners away from terrestrial radio. With that shift comes a shift in ad dollars as dealerships look to reach their target audience on the new frontier of digital radio. Before dealers sign up for a digital radio campaign they need to be aware of the returns that they’ll most likely get from the campaign.
In the past, a couple of dealerships have reached out to us to investigate a rise in bounce rate on their site. In more than a few occasions I’ve poked into their analytics account to find that the culprit of the rise in bounce rate was a digital radio campaign that the dealership was running. In one case, I saw a site’s bounce rate nearly double on the days that their digital radio campaign ran.
In the analytics accounts that I’ve seen, the engagement metrics for digital radio advertising leaves a lot to be desired. You may expect to see these kinds of results:
• Bounce rate in the low 90’s
• Time on site less than 40 seconds
• Pages/Session less than 1.5
Also, you’ll see very little goal conversions, if any. With these dismal engagement metrics you’ve got to really question the quality of traffic that these campaigns are bringing to your site.
The majority of digital radio users are on mobile devices. With mobile banner ads comes the peril of the accidental clicks from fat finger syndrome. The accidental click rate on mobile banner ads is typically 65%. For digital radio campaigns I expect the accidental click rate to be much higher when you consider that oftentimes the banner ad placement is typically above the radio navigation buttons. A person who accidentally clicked on your ad when they intended to ‘Skip’ that One Direction song on their Taylor Swift Pandora station is not a likely car shopper and will most likely bounce from your site faster than Taylor Swift goes through boyfriends.
Digital radio campaigns aren’t without its benefits. The campaigns will yield lots of impressions at a pretty decent CPM (cost per thousand impressions), which has its benefits when it comes to branding. As a dealership you’ll have to weigh on whether this benefits outweighs the bounce rate hit that your site will take.
