21/02/2025
By Ed Steenman. Modified from my original article published February 20, 2025 in Dealer Marketing Magazine.
As consumers increasingly shift from traditional radio to streaming audio, local advertisers now have a new tool to reach potential customers. Platforms like iHeartRadio, Spotify, and Pandora offer precise targeting based on geography, interests, and behavioral intent—capabilities that traditional radio cannot match. To maximize the benefits of streaming audio, advertisers must understand platform functionalities and tailor their messaging accordingly.
How Streaming Audio Works for Local Advertisers
Key Advantages
Targeting the Right Buyers: Instead of purchasing ad space on radio stations or podcasts, advertisers select lifestyle audience groupings. These groupings utilize listener data to identify relevant consumer profiles, such as “Auto Intenders” or “Travelers,” so that ads can reach individuals actively considering a purchase.
Measurable Results: Streaming platforms provide real-time reporting dashboards, detailing the number of impressions an ad receives, completion rates, and engagement metrics. This transparency allows for data-driven decision-making.
Reaching Listeners Across Devices: Whether in the car, on a smart speaker, or via mobile apps, streaming audio keeps your dealership top-of-mind as buyers move through their daily routines.
Does Streaming Audio Make Sense for Your Business?
Before investing in streaming audio, compare it to traditional terrestrial radio to determine if it’s the right fit. Here are a few key factors to consider:
Market Area Comparison: Start by analyzing the geographic reach of local radio stations. Does the station’s audience listening area closely match your business area’s footprint? If so, then you can easily compare the CPM (cost per thousand impressions) of radio ads with the cost of running streaming audio ads and podcasts. If, on the other hand, your market areas don’t align (which happens in dense markets like LA or NY), then use a’ radius from location’ type formula to compare costs.
More Precise Targeting: While traditional radio uses broad demographic data (e.g., age and gender), streaming platforms offer an additional layer of targeting by reaching listeners who have shown interest in purchasing a vehicle. If a radio station’s audience extends well beyond your market, streaming can eliminate waste by ensuring your ads only reach relevant buyers.
Measuring Website ‘Lift’: Unlike traditional radio, where results can be difficult to track, streaming audio ads provide real-time insights. By monitoring website activity and comparing traffic spikes to ad playtimes, dealerships can get a clearer picture of how the campaign is driving interest. This can take the form of website lift, or look back periods- both of which work to correlate listener engagement with website activity. While not an exact science, these real-time tools can help fine-tune messaging and make mid-campaign adjustments for better results.
Crafting the Right Audio Ad
To be effective, streaming audio ads must align with the listening environment:
For Podcasts: Ads read by the podcast host feel more natural and trusted. A simple script, rather than a high-production commercial, tends to perform better.
For Music Streaming: Since ads play between songs, they should be short (15-30 seconds), engaging, and to the point—avoiding overproduced, “radio-style” spots.
For Smart Speakers & In-Car Streaming: Listeners cannot click links, so use voice-friendly calls to action, such as “Visit us at OurStore.com or just search ‘Our Event’ on your phone.”
Tracking Success with Real-Time Reporting
One of the significant advantages of streaming audio is its precise performance tracking. Unlike traditional radio, which relies on estimates, streaming platforms provide real-time
impression-level reporting, allowing dealers to see:
How many times an ad was heard
Completion rates (whether the listener heard the full ad)
Audience engagement metrics
This data enables optimization of campaigns in real-time, shifting budgets toward better-performing audience groups and refining messaging for maximum impact.
A Smarter Way to Drive Local Traffic
For local businesses, streaming audio advertising offers a highly targeted, measurable method to reach in-market shoppers. By leveraging lifestyle audience profiles, tailoring messaging to the audio environment, and utilizing real-time reporting, advertisers can drive more web visits and increase sales. As traditional radio continues to decline, embracing streaming audio can provide local advertisers a competitive edge in attracting today’s car shoppers.
